N-CSR 1 d110975dncsr.htm MET INVESTORS SERIES TRUST FORM N-CSR Met Investors Series Trust Form N-CSR

 

 

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)

 

 

One Financial Center

Boston, MA 02111

(Address of principal executive offices)(Zip code)

 

 

 

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

Michael P. Lawlor

c/o MetLife Advisers, LLC

One Financial Center

Boston, MA 02111

  

David C. Mahaffey, Esq.

Sullivan & Worcester LLP

1666 K Street, N.W.

Washington, D.C. 20006

 

 

Registrant’s telephone number, including area code: (617) 578-3408

Date of fiscal year end: December 31

Date of reporting period: January 1, 2015 through December 31, 2015

 

 

 

Item 1: Report to Shareholders.

The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (the “Act”):

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Managed by AllianceBernstein L.P.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class B shares of the AB Global Dynamic Allocation Portfolio returned 0.58%. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned -1.21%.

MARKET ENVIRONMENT / CONDITIONS

Global stocks finished the 12-month period ended December 31, 2015 essentially flat amidst heightened volatility. Outcomes varied significantly by region, with U.S. equities advancing modestly and emerging-market equities trailing significantly. Currency movements also played a role as a strong U.S. dollar dampened returns for U.S. dollar–based investors.

The first half of the year was positive for global equities, though there were some tough patches. Increasingly accommodative central bank policy was stabilizing at a time where concerns around weakening Chinese growth and a potential Greek default were growing. Throughout the period, equity markets continued to seek reassurance from central banks, whose investor-friendly stances helped chase away bouts of pessimism.

The second half of the year was marked by increasing volatility, mainly driven by China’s woes. An unexpected devaluation of China’s currency prompted a steep global pullback for stocks and fears of a global economic slowdown lingered through year end. The ongoing slump in commodities and oil also unsettled investors, though they took solace in the U.S. Federal Reserve’s (the “Fed”) willingness to finally raise rates. The decision to increase rates simultaneously conveyed a vote of confidence in the U.S. economy while removing a long-standing uncertainty that weighed on equity markets.

In 2015, monetary policy intervention took center stage in bond markets, as well. Dovish rhetoric seemed to mollify pessimists at times. However, by year end, bond markets generally performed poorly due to accelerating volatility and divergent central bank stances. Bond investors were particularly disappointed by the lack of aggressive action from the European Central Bank (the “ECB”); however, the disappointment was somewhat offset by the Fed’s lift-off—the first hike in over nine years—which investors generally digested smoothly.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio’s objective is to provide long term growth by participating in up markets and by mitigating the downside. We aim to deliver more consistent returns through broad diversification and reduce volatility by making flexible adjustments to asset allocation. In this way, we should capture potential return opportunities and manage risk. The strategic allocation is a growth-oriented portfolio with approximately 60% invested in a global mix of equities across capitalization ranges and including real estate; and 40% invested in a mix of global sovereign and high quality corporate bonds.

Through the first half of 2015, the Portfolio had an overweight in risk assets with global equity and real estate holdings in excess of the strategic asset allocation weights. This position was supported by our view that the 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, strong corporate balance sheets and earnings trends offset slightly rich equity valuations. In June, we took the Portfolio’s long held overweight in risk assets down to neutral relative to strategic targets due to diminished return potential in equities and the likelihood of rising volatility as concerns mounted about global growth. As volatility rose in August, we took the Portfolio’s neutral position to an underweight which we maintained until the end of the year. Through the year, the Portfolio maintained a regional bias towards developed-international equity markets—particularly in Europe and Japan—as a result of more favorable valuations and continued accommodative monetary policy. In fixed income, the Portfolio was underweight relative to the strategic targets to begin the year but as volatility rose we moved to an overweight. Through the year, the Portfolio diversified across fixed income with modest allocations to inflation-linked and high-yield bonds. We also maintained a cash position at times during the year to reduce the interest-rate risk of the Portfolio. We chose not to own commodities over the period.

In the twelve months ending December 31, 2015, Portfolio performance was positive and significantly outperformed the benchmark driven by asset allocation decisions. An underweight to emerging market equities versus the benchmark and an overweight to Japanese equities were contributors over the period. In the first half of the year, the decision to be overweight equity was rewarded. In the third and fourth quarters, the move to be neutral to risk assets starting in June and, subsequently, to be moderately underweight also added to performance. The Portfolio held a 10-year interest rate swap, resulting in extended duration exposure, which added to performance. Diversification of fixed income was largely a good strategy but Treasury Inflation Protected Securities (TIPS) holdings detracted. At times the Portfolio’s European equity overweight, most particularly in June, detracted.

The Portfolio utilized equity futures, fixed income futures, currency forwards, exchange traded funds, and total return swaps for both hedging and investment purposes. Equity options and interest rate swaps were used for hedging purposes, while credit default swaps and commodity futures were used for investment purposes. All derivatives performed in line with the manager’s expectations over the period.

 

MIST-1

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Managed by AllianceBernstein L.P.

Portfolio Manager Commentary*—(Continued)

 

We ended the period neutral to risk assets. The Portfolio held an overweight to Japanese and European equities and very modest exposures to global real estate for diversification. The Portfolio was neutral to bonds with diversification to inflation-linked and high-yield bonds.

Dan Loewy

Vadim Zlotnikov

Portfolio Managers

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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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

AB Global Dynamic Allocation Portfolio

 

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

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        Since Inception2  
AB Global Dynamic Allocation Portfolio            

Class B

        0.58           5.75   
Dow Jones Moderate Index        -1.21           4.96   

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 date of the Class B shares is 5/2/2011. Index since inception return is based on the Portfolio’s inception date.

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 DECEMBER 31, 2015

Top Equity Sectors

 

     % of
Net Assets		  

Financials

      13.6   

Health Care

      6.0   

Consumer Discretionary

      5.8   

Information Technology

      5.6   

Industrials

      5.1   

Top Fixed Income Sectors

 

     % of
Net Assets		  

Cash & Cash Equivalents

      24.5   

U.S. Treasury & Government Agencies

      21.5   

Foreign Government

      4.6   

 

 

MIST-3

Met Investors Series Trust

AB Global Dynamic Allocation 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, July 1, 2015 through December 31, 2015.

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.

 

AB Global Dynamic Allocation Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class B(a)

    Actual      1.22 %     $ 1,000.00         $ 988.40         $ 6.11   
   Hypothetical*      1.22 %     $ 1,000.00         $ 1,019.06         $ 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 (184 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

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—47.2% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—0.8%

  

Airbus Group SE

     56,862      $ 3,817,912   

BAE Systems plc

     304,342        2,239,889   

Boeing Co. (The) (a)

     37,025        5,353,445   

Cobham plc

     109,227        453,397   

Finmeccanica S.p.A. (b)

     39,047        539,729   

General Dynamics Corp.

     17,630        2,421,657   

Honeywell International, Inc.

     45,360        4,697,935   

L-3 Communications Holdings, Inc.

     4,685        559,904   

Lockheed Martin Corp.

     15,545        3,375,597   

Meggitt plc

     74,574        411,332   

Northrop Grumman Corp.

     10,925        2,062,749   

Precision Castparts Corp.

     8,025        1,861,880   

Raytheon Co.

     17,615        2,193,596   

Rockwell Collins, Inc. (a)

     7,635        704,710   

Rolls-Royce Holdings plc (b)

     176,986        1,498,092   

Safran S.A.

     28,096        1,924,197   

Singapore Technologies Engineering, Ltd.

     149,900        316,508   

Textron, Inc.

     15,980        671,320   

Thales S.A.

     10,074        754,862   

United Technologies Corp.

     48,025        4,613,762   

Zodiac Aerospace

     19,462        463,884   
   

 

 

  
      40,936,357   
   

 

 

  

Air Freight & Logistics—0.2%

    

Bollore S.A.

     82,471        384,349   

C.H. Robinson Worldwide, Inc. (a)

     8,260        512,285   

Deutsche Post AG

     93,270        2,626,630   

Expeditors International of Washington, Inc.

     10,905        491,816   

FedEx Corp.

     15,210        2,266,138   

Royal Mail plc

     86,633        563,737   

TNT Express NV

     46,991        397,637   

United Parcel Service, Inc. - Class B

     40,500        3,897,315   

Yamato Holdings Co., Ltd.

     32,793        695,031   
   

 

 

  
      11,834,938   
   

 

 

  

Airlines—0.2%

    

American Airlines Group, Inc.

     38,921        1,648,304   

ANA Holdings, Inc.

     111,656        322,223   

Cathay Pacific Airways, Ltd.

     113,200        194,933   

Delta Air Lines, Inc.

     46,051        2,334,325   

Deutsche Lufthansa AG (a) (b)

     22,326        352,566   

easyJet plc

     15,329        392,388   

International Consolidated Airlines Group S.A. - Class DI

     78,157        696,725   

Japan Airlines Co., Ltd.

     11,578        414,625   

Qantas Airways, Ltd. (b)

     49,461        146,677   

Ryanair Holdings plc (ADR)

     2,174        187,964   

Singapore Airlines, Ltd.

     51,200        402,931   

Southwest Airlines Co.

     38,185        1,644,246   

United Continental Holdings, Inc. (b)

     21,891        1,254,354   
   

 

 

  
      9,992,261   
   

 

 

  

Auto Components—0.4%

    

Aisin Seiki Co., Ltd.

     18,507        795,724   

BorgWarner, Inc.

     13,040        563,719   

Auto Components—(Continued)

    

Bridgestone Corp. (a)

     62,594      2,143,336   

Cie Generale des Etablissements Michelin

     17,987        1,707,825   

Continental AG

     10,589        2,570,115   

Delphi Automotive plc

     16,521        1,416,345   

Denso Corp.

     46,857        2,234,113   

GKN plc

     164,956        748,885   

Goodyear Tire & Rubber Co. (The)

     15,590        509,325   

Johnson Controls, Inc.

     37,845        1,494,499   

Koito Manufacturing Co., Ltd.

     10,781        440,989   

NGK Spark Plug Co., Ltd. (a)

     17,000        447,825   

NHK Spring Co., Ltd.

     15,100        151,250   

NOK Corp.

     9,147        213,795   

Nokian Renkaat Oyj

     11,052        392,569   

Stanley Electric Co., Ltd.

     13,744        302,733   

Sumitomo Electric Industries, Ltd.

     72,561        1,022,412   

Sumitomo Rubber Industries, Ltd.

     16,401        213,203   

Toyoda Gosei Co., Ltd.

     6,245        141,826   

Toyota Industries Corp.

     15,724        840,321   

Valeo S.A.

     7,667        1,183,668   

Yokohama Rubber Co., Ltd. (The)

     10,000        153,223   
   

 

 

  
      19,687,700   
   

 

 

  

Automobiles—1.0%

    

Bayerische Motoren Werke AG

     31,871        3,356,606   

Daihatsu Motor Co., Ltd. (a)

     18,533        249,646   

Daimler AG

     92,684        7,736,355   

Fiat Chrysler Automobiles NV (b)

     86,426        1,190,055   

Ford Motor Co.

     225,895        3,182,861   

Fuji Heavy Industries, Ltd.

     57,012        2,343,669   

General Motors Co.

     83,513        2,840,277   

Harley-Davidson, Inc. (a)

     11,875        539,006   

Honda Motor Co., Ltd.

     156,996        5,030,393   

Isuzu Motors, Ltd.

     57,200        615,549   

Mazda Motor Corp.

     52,500        1,080,021   

Mitsubishi Motors Corp.

     61,400        519,114   

Nissan Motor Co., Ltd.

     239,349        2,506,668   

Peugeot S.A. (b)

     42,630        747,467   

Renault S.A.

     18,546        1,859,145   

Suzuki Motor Corp.

     35,094        1,065,398   

Toyota Motor Corp.

     263,210        16,155,842   

Volkswagen AG

     3,417        526,457   

Yamaha Motor Co., Ltd.

     25,266        566,180   
   

 

 

  
      52,110,709   
   

 

 

  

Banks—4.3%

    

Aozora Bank, Ltd.

     107,635        375,345   

Australia & New Zealand Banking Group, Ltd.

     276,787        5,585,837   

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

     254,014        335,480   

Banco Bilbao Vizcaya Argentaria S.A.

     613,532        4,474,233   

Banco Comercial Portugues S.A. - Class R (a) (b)

     3,978,123        209,460   

Banco de Sabadell S.A. (a)

     486,316        861,356   

Banco Espirito Santo S.A. (b) (c) (d)

     169,954        0   

Banco Popolare SC (b)

     34,695        475,755   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-5

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Banks—(Continued)

    

Banco Popular Espanol S.A. (a)

     163,647      $ 538,884   

Banco Santander S.A.

     1,391,483        6,831,531   

Bank Hapoalim B.M.

     101,271        523,032   

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

     133,695        463,754   

Bank of America Corp.

     606,908        10,214,262   

Bank of East Asia, Ltd. (The)

     113,200        419,095   

Bank of Ireland (b)

     2,640,685        967,808   

Bank of Kyoto, Ltd. (The)

     32,632        302,284   

Bank of Queensland, Ltd.

     35,407        356,727   

Bank of Yokohama, Ltd. (The)

     108,009        661,113   

Bankia S.A.

     440,582        512,369   

Bankinter S.A.

     64,673        458,426   

Barclays plc

     1,615,059        5,227,427   

BB&T Corp.

     45,145        1,706,932   

Bendigo and Adelaide Bank, Ltd.

     43,705        377,680   

BNP Paribas S.A.

     101,963        5,771,513   

BOC Hong Kong Holdings, Ltd.

     356,000        1,077,925   

CaixaBank S.A. (a)

     252,492        878,335   

Chiba Bank, Ltd. (The)

     66,833        473,841   

Chugoku Bank, Ltd. (The)

     15,798        210,578   

Citigroup, Inc.

     174,471        9,028,874   

Comerica, Inc.

     10,255        428,967   

Commerzbank AG (b)

     102,251        1,058,657   

Commonwealth Bank of Australia

     163,482        10,100,057   

Credit Agricole S.A.

     101,601        1,196,928   

Danske Bank A/S

     67,935        1,814,941   

DBS Group Holdings, Ltd.

     169,100        1,979,737   

DNB ASA

     93,914        1,155,784   

Erste Group Bank AG (b)

     26,892        840,460   

Fifth Third Bancorp

     46,535        935,354   

Fukuoka Financial Group, Inc.

     74,326        368,643   

Gunma Bank, Ltd. (The)

     36,171        210,287   

Hachijuni Bank, Ltd. (The)

     39,338        241,408   

Hang Seng Bank, Ltd.

     73,600        1,400,548   

Hiroshima Bank, Ltd. (The) (a)

     47,340        268,830   

Hokuhoku Financial Group, Inc.

     117,000        238,369   

HSBC Holdings plc

     1,882,996        14,859,541   

Huntington Bancshares, Inc.

     46,555        514,898   

ING Groep NV

     372,262        5,011,036   

Intesa Sanpaolo S.p.A.

     1,221,005        4,069,117   

Intesa Sanpaolo S.p.A. - Risparmio Shares

     89,130        271,134   

Iyo Bank, Ltd. (The)

     23,000        223,272   

Japan Post Bank Co., Ltd. (b)

     39,000        567,827   

Joyo Bank, Ltd. (The)

     58,592        276,940   

JPMorgan Chase & Co.

     214,400        14,156,832   

KBC Groep NV

     24,185        1,512,186   

KeyCorp

     48,720        642,617   

Kyushu Financial Group, Inc. (b)

     33,102        231,308   

Lloyds Banking Group plc

     5,496,287        5,915,760   

M&T Bank Corp.

     7,495        908,244   

Mitsubishi UFJ Financial Group, Inc.

     1,227,480        7,596,745   

Mizrahi Tefahot Bank, Ltd.

     13,163        157,172   

Mizuho Financial Group, Inc.

     2,267,060        4,525,582   

National Australia Bank, Ltd.

     252,741        5,509,739   

Natixis S.A.

     89,693        506,988   

Nordea Bank AB

     292,383        3,190,381   

Oversea-Chinese Banking Corp., Ltd. (a)

     292,200        1,805,933   

Banks—(Continued)

    

People’s United Financial, Inc. (a)

     17,895      289,004   

PNC Financial Services Group, Inc. (The)

     29,735        2,834,043   

Raiffeisen Bank International AG (a) (b)

     11,184        163,634   

Regions Financial Corp.

     76,815        737,424   

Resona Holdings, Inc.

     212,526        1,031,572   

Royal Bank of Scotland Group plc (b)

     334,226        1,478,677   

Seven Bank, Ltd. (a)

     57,322        250,911   

Shinsei Bank, Ltd.

     171,300        315,115   

Shizuoka Bank, Ltd. (The)

     50,824        492,636   

Skandinaviska Enskilda Banken AB - Class A

     146,090        1,527,440   

Societe Generale S.A.

     69,920        3,225,234   

Standard Chartered plc

     315,195        2,614,961   

Sumitomo Mitsui Financial Group, Inc.

     122,550        4,622,867   

Sumitomo Mitsui Trust Holdings, Inc.

     319,090        1,204,673   

SunTrust Banks, Inc.

     30,000        1,285,200   

Suruga Bank, Ltd.

     17,000        350,281   

Svenska Handelsbanken AB - A Shares

     144,104        1,902,166   

Swedbank AB - A Shares

     87,149        1,913,985   

U.S. Bancorp

     95,935        4,093,546   

UniCredit S.p.A.

     459,515        2,530,992   

Unione di Banche Italiane SCPA

     86,263        572,917   

United Overseas Bank, Ltd.

     124,400        1,712,575   

Wells Fargo & Co. (e)

     270,810        14,721,232   

Westpac Banking Corp.

     319,805        7,751,889   

Yamaguchi Financial Group, Inc. (a)

     19,000        225,147   

Zions Bancorporation

     11,760        321,048   
   

 

 

  
      212,181,247   
   

 

 

  

Beverages—1.1%

    

Anheuser-Busch InBev S.A.

     77,404        9,561,331   

Asahi Group Holdings, Ltd.

     37,263        1,164,918   

Brown-Forman Corp. - Class B (a)

     6,127        608,289   

Carlsberg A/S - Class B

     10,297        910,409   

Coca-Cola Amatil, Ltd.

     54,506        367,355   

Coca-Cola Co. (The) (e)

     226,910        9,748,054   

Coca-Cola Enterprises, Inc.

     12,190        600,236   

Coca-Cola HBC AG (b)

     19,325        412,030   

Constellation Brands, Inc. - Class A

     9,975        1,420,839   

Diageo plc

     242,137        6,603,194   

Dr Pepper Snapple Group, Inc.

     11,040        1,028,928   

Heineken Holding NV

     9,760        748,208   

Heineken NV

     22,174        1,892,516   

Kirin Holdings Co., Ltd. (a)

     79,148        1,070,983   

Molson Coors Brewing Co. - Class B

     9,205        864,534   

Monster Beverage Corp. (b)

     8,880        1,322,765   

PepsiCo, Inc.

     85,225        8,515,682   

Pernod-Ricard S.A.

     20,440        2,323,844   

Remy Cointreau S.A. (a)

     2,384        170,709   

SABMiller plc

     93,433        5,596,603   

Suntory Beverage & Food, Ltd.

     13,397        587,391   

Treasury Wine Estates, Ltd.

     71,048        426,511   
   

 

 

  
      55,945,329   
   

 

 

  

Biotechnology—0.9%

    

AbbVie, Inc.

     95,992        5,686,566   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-6

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Biotechnology—(Continued)

    

Actelion, Ltd. (b)

     9,911      $ 1,363,738   

Alexion Pharmaceuticals, Inc. (b)

     13,100        2,498,825   

Amgen, Inc.

     43,983        7,139,760   

Baxalta, Inc.

     31,400        1,225,542   

Biogen, Inc. (b)

     13,630        4,175,550   

Celgene Corp. (b)

     45,840        5,489,798   

CSL, Ltd.

     44,746        3,411,571   

Gilead Sciences, Inc.

     85,120        8,613,293   

Grifols S.A.

     14,437        664,619   

Regeneron Pharmaceuticals, Inc. (b)

     4,541        2,465,173   

Vertex Pharmaceuticals, Inc. (b)

     14,167        1,782,634   
   

 

 

  
      44,517,069   
   

 

 

  

Building Products—0.2%

    

Allegion plc

     5,501        362,626   

Asahi Glass Co., Ltd.

     90,533        516,251   

Assa Abloy AB - Class B

     96,480        2,020,743   

Cie de St-Gobain

     46,930        2,018,863   

Daikin Industries, Ltd.

     22,591        1,644,120   

Geberit AG

     3,649        1,227,334   

LIXIL Group Corp.

     25,629        568,808   

Masco Corp.

     19,875        562,463   

TOTO, Ltd. (a)

     13,500        473,329   
   

 

 

  
      9,394,537   
   

 

 

  

Capital Markets—0.9%

    

3i Group plc

     93,160        656,626   

Aberdeen Asset Management plc (a)

     88,802        378,310   

Affiliated Managers Group, Inc. (b)

     3,205        512,031   

Ameriprise Financial, Inc.

     10,315        1,097,722   

Bank of New York Mellon Corp. (The)

     64,085        2,641,584   

BlackRock, Inc.

     7,510        2,557,305   

Charles Schwab Corp. (The)

     69,345        2,283,531   

Credit Suisse Group AG (b)

     169,973        3,673,684   

Daiwa Securities Group, Inc.

     159,135        972,956   

Deutsche Bank AG

     132,768        3,258,675   

E*Trade Financial Corp. (b)

     16,815        498,397   

Franklin Resources, Inc.

     22,341        822,596   

Goldman Sachs Group, Inc. (The)

     23,350        4,208,371   

Hargreaves Lansdown plc

     25,170        557,313   

ICAP plc

     53,238        399,654   

Invesco, Ltd.

     24,820        830,974   

Investec plc

     52,979        373,877   

Julius Baer Group, Ltd. (b)

     21,594        1,035,296   

Legg Mason, Inc.

     6,330        248,326   

Macquarie Group, Ltd.

     28,895        1,726,663   

Mediobanca S.p.A.

     54,165        519,325   

Morgan Stanley

     88,260        2,807,551   

Nomura Holdings, Inc.

     349,526        1,942,558   

Northern Trust Corp.

     12,690        914,822   

Partners Group Holding AG

     1,546        555,069   

Platinum Asset Management, Ltd. (a)

     22,368        130,623   

SBI Holdings, Inc.

     20,535        221,667   

Schroders plc

     12,004        522,791   

State Street Corp.

     23,690        1,572,068   

T. Rowe Price Group, Inc.

     14,890        1,064,486   

Capital Markets—(Continued)

    

UBS Group AG

     351,944      6,772,776   
   

 

 

  
      45,757,627   
   

 

 

  

Chemicals—1.3%

    

Air Liquide S.A.

     33,116        3,719,385   

Air Products & Chemicals, Inc.

     11,245        1,463,087   

Air Water, Inc.

     15,767        252,968   

Airgas, Inc.

     3,860        533,915   

Akzo Nobel NV

     23,835        1,592,023   

Arkema S.A.

     6,433        449,934   

Asahi Kasei Corp.

     121,475        822,144   

BASF SE

     88,412        6,759,077   

CF Industries Holdings, Inc.

     13,500        550,935   

Chr Hansen Holding A/S

     9,519        595,394   

Croda International plc

     13,159        586,523   

Daicel Corp.

     28,442        423,243   

Dow Chemical Co. (The)

     67,140        3,456,367   

E.I. du Pont de Nemours & Co.

     52,455        3,493,503   

Eastman Chemical Co.

     8,580        579,236   

Ecolab, Inc.

     15,445        1,766,599   

EMS-Chemie Holding AG

     798        349,423   

Evonik Industries AG

     13,457        446,559   

FMC Corp. (a)

     7,740        302,866   

Givaudan S.A. (b)

     891        1,603,216   

Hitachi Chemical Co., Ltd.

     9,988        158,263   

Incitec Pivot, Ltd.

     161,668        462,265   

International Flavors & Fragrances, Inc.

     4,685        560,513   

Israel Chemicals, Ltd.

     49,068        198,956   

Johnson Matthey plc

     19,818        769,571   

JSR Corp. (a)

     18,320        285,928   

K&S AG

     18,467        480,139   

Kaneka Corp. (a)

     26,974        280,467   

Kansai Paint Co., Ltd.

     22,548        340,897   

Koninklijke DSM NV

     17,505        875,990   

Kuraray Co., Ltd.

     34,005        411,193   

LANXESS AG

     8,851        407,512   

Linde AG

     17,879        2,595,196   

LyondellBasell Industries NV - Class A

     21,571        1,874,520   

Mitsubishi Chemical Holdings Corp.

     130,132        825,062   

Mitsubishi Gas Chemical Co., Inc.

     37,159        189,855   

Mitsui Chemicals, Inc.

     78,044        346,157   

Monsanto Co.

     27,080        2,667,922   

Mosaic Co. (The)

     19,480        537,453   

Nippon Paint Holdings Co., Ltd.

     14,000        338,648   

Nitto Denko Corp.

     15,970        1,164,928   

Novozymes A/S - B Shares

     22,460        1,075,491   

OCI NV (a) (b)

     8,225        202,487   

Orica, Ltd. (a)

     35,626        398,517   

PPG Industries, Inc.

     15,690        1,550,486   

Praxair, Inc.

     16,625        1,702,400   

Sherwin-Williams Co. (The)

     4,660        1,209,736   

Shin-Etsu Chemical Co., Ltd.

     39,589        2,150,316   

Sika AG

     209        749,234   

Solvay S.A. (a)

     5,722        608,069   

Sumitomo Chemical Co., Ltd.

     142,637        818,625   

Symrise AG

     11,910        790,067   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-7

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Chemicals—(Continued)

    

Syngenta AG

     8,947      $ 3,511,734   

Taiyo Nippon Sanso Corp. (a)

     14,268        128,883   

Teijin, Ltd.

     89,665        305,411   

Toray Industries, Inc. (a)

     140,548        1,304,355   

Umicore S.A.

     9,185        383,945   

Yara International ASA

     17,212        741,329   
   

 

 

  
      63,148,917   
   

 

 

  

Commercial Services & Supplies—0.2%

  

ADT Corp. (The) (a)

     9,822        323,930   

Aggreko plc (a)

     24,639        331,416   

Babcock International Group plc

     24,179        360,054   

Brambles, Ltd.

     150,505        1,259,436   

Cintas Corp.

     5,130        467,086   

Dai Nippon Printing Co., Ltd.

     51,963        513,723   

Edenred

     19,941        375,709   

G4S plc

     148,269        492,457   

ISS A/S

     14,331        516,889   

Park24 Co., Ltd.

     9,080        220,321   

Pitney Bowes, Inc. (a)

     11,610        239,747   

Republic Services, Inc.

     13,885        610,801   

Secom Co., Ltd.

     20,229        1,368,888   

Securitas AB - B Shares

     30,220        460,319   

Societe BIC S.A.

     2,769        455,614   

Sohgo Security Services Co., Ltd.

     5,900        276,107   

Stericycle, Inc. (b)

     4,915        592,749   

Toppan Printing Co., Ltd.

     49,929        459,741   

Tyco International plc

     24,425        778,913   

Waste Management, Inc.

     24,335        1,298,759   
   

 

 

  
      11,402,659   
   

 

 

  

Communications Equipment—0.4%

    

Alcatel-Lucent (b)

     271,512        1,076,989   

Cisco Systems, Inc. (e)

     294,800        8,005,294   

F5 Networks, Inc. (b)

     4,085        396,082   

Harris Corp.

     7,190        624,811   

Juniper Networks, Inc.

     20,420        563,592   

Motorola Solutions, Inc.

     9,300        636,585   

Nokia Oyj

     354,071        2,520,642   

QUALCOMM, Inc.

     91,105        4,553,883   

Telefonaktiebolaget LM Ericsson - B Shares

     292,944        2,837,662   
   

 

 

  
      21,215,540   
   

 

 

  

Construction & Engineering—0.2%

    

ACS Actividades de Construccion y Servicios S.A.

     18,216        530,699   

Boskalis Westminster

     8,495        346,064   

Bouygues S.A.

     19,590        776,447   

CIMIC Group, Ltd.

     9,707        170,379   

Ferrovial S.A.

     43,353        978,439   

Fluor Corp.

     8,395        396,412   

Jacobs Engineering Group, Inc. (b)

     7,150        299,942   

JGC Corp.

     20,182        308,826   

Kajima Corp.

     81,151        482,888   

Obayashi Corp.

     62,450        576,144   

Construction & Engineering—(Continued)

  

Quanta Services, Inc. (b)

     11,785      238,646   

Shimizu Corp.

     56,178        457,765   

Skanska AB - B Shares

     36,683        707,846   

Taisei Corp.

     101,221        666,867   

Vinci S.A.

     46,056        2,953,531   
   

 

 

  
      9,890,895   
   

 

 

  

Construction Materials—0.2%

    

Boral, Ltd.

     73,565        314,699   

CRH plc

     79,145        2,287,700   

Fletcher Building, Ltd.

     65,581        327,930   

HeidelbergCement AG

     13,600        1,109,511   

Imerys S.A.

     3,463        241,573   

James Hardie Industries plc

     43,384        547,291   

LafargeHolcim, Ltd. (b)

     40,852        2,046,998   

Martin Marietta Materials, Inc.

     3,912        534,301   

Taiheiyo Cement Corp.

     113,000        329,466   

Vulcan Materials Co.

     7,750        736,017   
   

 

 

  
      8,475,486   
   

 

 

  

Consumer Finance—0.2%

    

Acom Co., Ltd. (a) (b)

     38,410        180,844   

AEON Financial Service Co., Ltd.

     10,005        223,831   

American Express Co.

     49,380        3,434,379   

Capital One Financial Corp.

     31,465        2,271,144   

Credit Saison Co., Ltd.

     14,315        282,108   

Discover Financial Services

     25,185        1,350,420   

Navient Corp.

     21,635        247,721   

Provident Financial plc

     14,148        700,729   

Synchrony Financial (b)

     48,287        1,468,408   
   

 

 

  
      10,159,584   
   

 

 

  

Containers & Packaging—0.1%

    

Amcor, Ltd.

     113,555        1,104,782   

Avery Dennison Corp.

     5,300        332,098   

Ball Corp.

     7,970        579,658   

International Paper Co.

     24,135        909,890   

Owens-Illinois, Inc. (b)

     9,270        161,484   

Rexam plc

     67,439        598,224   

Sealed Air Corp.

     11,895        530,517   

Toyo Seikan Group Holdings, Ltd. (a)

     15,696        290,338   

WestRock Co.

     15,195        693,196   
   

 

 

  
      5,200,187   
   

 

 

  

Distributors—0.0%

    

Genuine Parts Co.

     8,815        757,121   

Jardine Cycle & Carriage, Ltd.

     11,200        273,284   
   

 

 

  
      1,030,405   
   

 

 

  

Diversified Consumer Services—0.0%

    

Benesse Holdings, Inc. (a)

     6,454        185,838   

H&R Block, Inc.

     13,655        454,848   
   

 

 

  
      640,686   
   

 

 

  

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-8

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Diversified Financial Services—0.7%

  

ASX, Ltd.

     18,603      $ 570,739   

Berkshire Hathaway, Inc. -
Class B (b) (e)

     108,624        14,342,713   

Challenger, Ltd.

     54,841        345,720   

CME Group, Inc.

     19,585        1,774,401   

Deutsche Boerse AG

     18,622        1,647,400   

Eurazeo S.A.

     3,905        268,745   

Exor S.p.A.

     9,555        432,425   

First Pacific Co., Ltd.

     224,500        148,705   

Groupe Bruxelles Lambert S.A.

     7,805        667,320   

Hong Kong Exchanges and Clearing, Ltd.

     109,500        2,782,517   

Industrivarden AB - C Shares

     15,683        268,060   

Intercontinental Exchange, Inc.

     6,436        1,649,289   

Investment AB Kinnevik - B Shares

     22,645        694,185   

Investor AB - B Shares

     43,815        1,612,049   

Japan Exchange Group, Inc.

     52,900        826,201   

Leucadia National Corp.

     19,475        338,670   

London Stock Exchange Group plc

     30,254        1,222,606   

McGraw Hill Financial, Inc.

     15,815        1,559,043   

Mitsubishi UFJ Lease & Finance Co., Ltd.

     47,420        244,278   

Moody’s Corp.

     10,125        1,015,942   

Nasdaq, Inc.

     6,870        399,628   

ORIX Corp.

     127,450        1,787,888   

Pargesa Holding S.A.

     3,017        190,069   

Singapore Exchange, Ltd.

     76,600        414,380   

Wendel S.A.

     2,767        328,668   
   

 

 

  
      35,531,641   
   

 

 

  

Diversified Telecommunication Services—1.3%

  

AT&T, Inc. (e)

     356,580        12,269,909   

Bezeq The Israeli Telecommunication Corp., Ltd.

     185,314        407,825   

BT Group plc

     805,718        5,568,485   

CenturyLink, Inc.

     32,550        818,958   

Deutsche Telekom AG

     310,402        5,616,351   

Elisa Oyj

     13,687        514,744   

Frontier Communications Corp. (a)

     67,665        315,996   

HKT Trust & HKT, Ltd.

     254,200        324,204   

Iliad S.A.

     2,544        606,948   

Inmarsat plc

     43,255        720,695   

Koninklijke KPN NV

     307,687        1,161,836   

Level 3 Communications, Inc. (b)

     16,714        908,573   

Nippon Telegraph & Telephone Corp.

     72,200        2,866,472   

Orange S.A.

     191,234        3,208,206   

PCCW, Ltd.

     398,700        233,563   

Proximus

     14,687        476,487   

Singapore Telecommunications, Ltd.

     5,000        12,868   

Singapore Telecommunications, Ltd.

     761,400        1,998,685   

Spark New Zealand, Ltd.

     174,817        394,018   

Swisscom AG

     2,499        1,242,789   

TDC A/S

     77,385        383,883   

Telecom Italia S.p.A. (a) (b)

     1,104,563        1,392,210   

Telecom Italia S.p.A. - Risparmio Shares

     577,030        590,201   

Telefonica Deutschland Holding AG (a)

     57,071        304,684   

Telefonica S.A.

     433,807        4,788,210   

Telenor ASA

     72,146        1,200,238   

TeliaSonera AB

     249,656        1,241,483   

Diversified Telecommunication Services—(Continued)

  

Telstra Corp., Ltd.

     411,599      1,670,075   

TPG Telecom, Ltd.

     27,669        197,809   

Verizon Communications, Inc. (e)

     235,720        10,894,978   
   

 

 

  
      62,331,383   
   

 

 

  

Electric Utilities—0.8%

    

American Electric Power Co., Inc.

     28,450        1,657,782   

AusNet Services

     167,248        179,680   

Cheung Kong Infrastructure Holdings, Ltd.

     60,400        555,990   

Chubu Electric Power Co., Inc.

     62,037        848,567   

Chugoku Electric Power Co., Inc. (The)

     28,534        375,566   

CLP Holdings, Ltd.

     181,982        1,546,727   

Contact Energy, Ltd.

     70,864        229,225   

Duke Energy Corp.

     39,915        2,849,532   

Edison International

     18,845        1,115,812   

EDP - Energias de Portugal S.A.

     221,925        797,581   

Electricite de France S.A.

     23,384        343,520   

Endesa S.A.

     30,538        611,817   

Enel S.p.A.

     678,867        2,839,550   

Entergy Corp.

     10,425        712,653   

Eversource Energy

     18,365        937,901   

Exelon Corp.

     49,924        1,386,389   

FirstEnergy Corp.

     24,425        775,005   

Fortum Oyj

     42,856        642,406   

HK Electric Investments & HK Electric Investments, Ltd. (144A)

     255,100        213,705   

Hokuriku Electric Power Co.

     16,211        239,435   

Iberdrola S.A.

     518,483        3,675,691   

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

     67,733        810,437   

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

     41,097        449,071   

Mighty River Power, Ltd.

     67,154        126,839   

NextEra Energy, Inc.

     26,645        2,768,149   

Pepco Holdings, Inc.

     14,660        381,307   

Pinnacle West Capital Corp.

     6,450        415,896   

Power Assets Holdings, Ltd.

     133,400        1,228,188   

PPL Corp.

     38,815        1,324,756   

Red Electrica Corp. S.A.

     10,441        870,260   

Shikoku Electric Power Co., Inc. (a)

     17,152        267,670   

Southern Co. (The) (a)

     52,595        2,460,920   

SSE plc

     95,598        2,140,686   

Terna Rete Elettrica Nazionale S.p.A.

     144,432        744,165   

Tohoku Electric Power Co., Inc.

     43,538        544,271   

Tokyo Electric Power Co., Inc. (b)

     139,185        800,539   

Xcel Energy, Inc.

     29,310        1,052,522   
   

 

 

  
      38,920,210   
   

 

 

  

Electrical Equipment—0.4%

    

ABB, Ltd. (b)

     211,674        3,757,222   

AMETEK, Inc.

     13,967        748,492   

Eaton Corp. plc

     27,038        1,407,057   

Emerson Electric Co.

     38,095        1,822,084   

Fuji Electric Co., Ltd.

     52,942        222,007   

Legrand S.A.

     25,657        1,448,103   

Mabuchi Motor Co., Ltd. (a)

     4,800        259,338   

Mitsubishi Electric Corp.

     185,739        1,947,385   

Nidec Corp.

     21,500        1,556,221   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-9

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Electrical Equipment—(Continued)

    

OSRAM Licht AG

     8,625      $ 362,920   

Prysmian S.p.A.

     18,819        411,644   

Rockwell Automation, Inc.

     7,745        794,714   

Schneider Electric SE

     53,734        3,059,392   

Vestas Wind Systems A/S

     21,566        1,505,690   
   

 

 

  
      19,302,269   
   

 

 

  

Electronic Equipment, Instruments & Components—0.4%

  

Alps Electric Co., Ltd.

     17,305        468,013   

Amphenol Corp. - Class A

     17,870        933,350   

Citizen Holdings Co., Ltd.

     25,400        182,438   

Corning, Inc.

     71,040        1,298,611   

FLIR Systems, Inc.

     8,105        227,507   

Hamamatsu Photonics KK

     13,700        375,505   

Hexagon AB - B Shares

     24,863        921,111   

Hirose Electric Co., Ltd. (a)

     2,900        350,484   

Hitachi High-Technologies Corp.

     6,611        178,653   

Hitachi, Ltd.

     465,158        2,631,711   

Ingenico Group SA

     5,314        671,691   

Keyence Corp.

     4,388        2,408,334   

Kyocera Corp.

     30,900        1,432,191   

Murata Manufacturing Co., Ltd.

     19,546        2,805,373   

Nippon Electric Glass Co., Ltd. (a)

     37,602        189,599   

Omron Corp.

     18,866        628,402   

Shimadzu Corp.

     24,283        406,855   

TDK Corp.

     11,925        762,781   

TE Connectivity, Ltd.

     23,300        1,505,413   

Yaskawa Electric Corp.

     23,000        313,045   

Yokogawa Electric Corp.

     21,943        263,816   
   

 

 

  
      18,954,883   
   

 

 

  

Energy Equipment & Services—0.3%

  

Amec Foster Wheeler plc

     37,515        236,887   

Baker Hughes, Inc.

     25,225        1,164,134   

Cameron International Corp. (b)

     11,100        701,520   

Diamond Offshore Drilling, Inc.

     3,715        78,387   

Ensco plc - Class A (a)

     13,570        208,842   

FMC Technologies, Inc. (b)

     13,230        383,802   

Halliburton Co.

     49,550        1,686,682   

Helmerich & Payne, Inc. (a)

     6,205        332,278   

National Oilwell Varco, Inc. (a)

     22,205        743,646   

Petrofac, Ltd. (a)

     25,003        292,949   

Saipem S.p.A. (a) (b)

     25,369        203,930   

Schlumberger, Ltd. (e)

     73,390        5,118,953   

Technip S.A.

     10,096        498,702   

Tenaris S.A. (a)

     45,208        538,188   

Transocean, Ltd. (a)

     19,780        244,876   

Transocean, Ltd. (Swiss-Traded Shares) (a)

     35,006        435,300   
   

 

 

  
      12,869,076   
   

 

 

  

Food & Staples Retailing—0.9%

    

Aeon Co., Ltd.

     62,929        967,651   

Carrefour S.A.

     53,347        1,536,198   

Casino Guichard Perrachon S.A. (a)

     5,490        252,185   

Colruyt S.A.

     6,854        352,034   

Food & Staples Retailing—(Continued)

  

Costco Wholesale Corp.

     25,495      4,117,442   

CVS Health Corp.

     64,615        6,317,409   

Delhaize Group S.A.

     10,013        975,344   

Distribuidora Internacional de Alimentacion S.A. (a) (b)

     59,120        347,333   

FamilyMart Co., Ltd.

     5,714        265,501   

ICA Gruppen AB

     7,426        268,902   

J Sainsbury plc (a)

     129,307        492,734   

Jeronimo Martins SGPS S.A.

     24,196        314,376   

Koninklijke Ahold NV

     80,316        1,695,720   

Kroger Co. (The)

     56,260        2,353,356   

Lawson, Inc.

     6,276        508,964   

Metro AG

     17,159        547,668   

Seven & I Holdings Co., Ltd.

     72,531        3,307,082   

Sysco Corp.

     32,045        1,313,845   

Tesco plc (b)

     781,744        1,720,550   

Wal-Mart Stores, Inc. (e)

     91,474        5,607,356   

Walgreens Boots Alliance, Inc.

     50,695        4,316,933   

Wesfarmers, Ltd.

     108,171        3,254,515   

Whole Foods Market, Inc.

     20,700        693,450   

WM Morrison Supermarkets plc (a)

     211,833        459,713   

Woolworths, Ltd. (a)

     121,872        2,156,732   
   

 

 

  
      44,142,993   
   

 

 

  

Food Products—1.1%

    

Ajinomoto Co., Inc.

     54,281        1,284,735   

Archer-Daniels-Midland Co.

     35,255        1,293,153   

Aryzta AG (b)

     8,440        427,030   

Associated British Foods plc

     34,278        1,687,272   

Barry Callebaut AG (a) (b)

     215        234,485   

Calbee, Inc.

     7,080        297,135   

Campbell Soup Co. (a)

     10,390        545,995   

Chocoladefabriken Lindt & Spruengli AG

     10        744,286   

Chocoladefabriken Lindt & Spruengli AG (Participation Certifcate)

     94        585,557   

ConAgra Foods, Inc.

     24,940        1,051,470   

Danone S.A.

     56,741        3,829,301   

General Mills, Inc.

     34,660        1,998,496   

Golden Agri-Resources, Ltd.

     679,600        161,901   

Hershey Co. (The)

     8,465        755,671   

Hormel Foods Corp.

     7,805        617,219   

J.M. Smucker Co. (The)

     6,985        861,530   

Kellogg Co.

     14,755        1,066,344   

Kerry Group plc - Class A

     15,267        1,263,418   

Keurig Green Mountain, Inc. (a)

     6,983        628,330   

Kikkoman Corp. (a)

     14,100        488,007   

Kraft Heinz Co. (The)

     34,423        2,504,617   

McCormick & Co., Inc.

     6,770        579,241   

Mead Johnson Nutrition Co. (a)

     11,730        926,084   

MEIJI Holdings Co., Ltd.

     11,800        972,983   

Mondelez International, Inc. - Class A

     93,360        4,186,262   

Nestle S.A.

     306,912        22,749,441   

NH Foods, Ltd.

     16,715        327,823   

Nisshin Seifun Group, Inc.

     20,400        333,077   

Nissin Foods Holdings Co., Ltd.

     6,234        330,331   

Orkla ASA

     78,035        615,845   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-10

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Food Products—(Continued)

    

Tate & Lyle plc

     44,620      $ 393,224   

Toyo Suisan Kaisha, Ltd.

     8,477        295,072   

Tyson Foods, Inc. - Class A (a)

     17,650        941,275   

WH Group, Ltd. (144A) (b)

     555,700        307,292   

Wilmar International, Ltd.

     184,339        379,715   

Yakult Honsha Co., Ltd. (a)

     8,492        415,360   

Yamazaki Baking Co., Ltd. (a)

     10,748        241,279   
   

 

 

  
      56,320,256   
   

 

 

  

Gas Utilities—0.1%

    

AGL Resources, Inc.

     6,930        442,203   

APA Group

     106,735        670,545   

Enagas S.A.

     20,730        583,298   

Gas Natural SDG S.A.

     33,792        686,469   

Hong Kong & China Gas Co., Ltd.

     666,842        1,308,023   

Osaka Gas Co., Ltd.

     180,489        650,799   

Snam S.p.A.

     201,667        1,054,641   

Toho Gas Co., Ltd. (a)

     39,048        252,166   

Tokyo Gas Co., Ltd.

     218,460        1,026,181   
   

 

 

  
      6,674,325   
   

 

 

  

Health Care Equipment & Supplies—0.7%

  

Abbott Laboratories

     86,400        3,880,224   

Baxter International, Inc.

     31,600        1,205,540   

Becton Dickinson & Co.

     12,177        1,876,354   

Boston Scientific Corp. (b)

     77,880        1,436,107   

C.R. Bard, Inc.

     4,285        811,750   

Cochlear, Ltd.

     5,519        382,209   

Coloplast A/S - Class B

     10,695        863,264   

DENTSPLY International, Inc.

     8,045        489,538   

Edwards Lifesciences Corp. (b)

     12,460        984,091   

Essilor International S.A.

     19,789        2,466,817   

Getinge AB - B Shares

     19,294        502,125   

Hoya Corp.

     40,150        1,636,863   

Intuitive Surgical, Inc. (b)

     2,220        1,212,475   

Medtronic plc

     81,979        6,305,825   

Olympus Corp.

     26,406        1,040,039   

Smith & Nephew plc

     86,117        1,524,250   

Sonova Holding AG

     5,204        660,628   

St. Jude Medical, Inc.

     16,285        1,005,924   

Stryker Corp.

     18,370        1,707,308   

Sysmex Corp.

     14,100        901,781   

Terumo Corp.

     29,300        906,905   

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

     5,725        462,580   

William Demant Holding A/S (b)

     2,358        223,936   

Zimmer Biomet Holdings, Inc.

     9,935        1,019,232   
   

 

 

  
      33,505,765   
   

 

 

  

Health Care Providers & Services—0.7%

  

Aetna, Inc.

     20,244        2,188,781   

Alfresa Holdings Corp.

     17,000        336,300   

AmerisourceBergen Corp.

     11,885        1,232,593   

Anthem, Inc.

     15,180        2,116,699   

Cardinal Health, Inc.

     18,930        1,689,881   

Chartwell Retirement Residences

     18,600        170,716   

Cigna Corp.

     14,925        2,183,975   

Health Care Providers & Services—(Continued)

  

DaVita HealthCare Partners, Inc. (b)

     9,830      685,249   

Express Scripts Holding Co. (b)

     39,214        3,427,696   

Extendicare, Inc. (a)

     9,450        65,905   

Fresenius Medical Care AG & Co. KGaA

     21,077        1,775,774   

Fresenius SE & Co. KGaA

     36,719        2,625,733   

HCA Holdings, Inc. (b)

     18,569        1,255,822   

Healthscope, Ltd.

     167,018        322,013   

Henry Schein, Inc. (b)

     4,903        775,606   

Humana, Inc.

     8,600        1,535,186   

Laboratory Corp. of America Holdings (b)

     5,825        720,203   

McKesson Corp.

     13,455        2,653,730   

Medipal Holdings Corp.

     12,987        221,141   

Miraca Holdings, Inc.

     5,243        231,219   

Patterson Cos., Inc. (a)

     4,980        225,146   

Quest Diagnostics, Inc.

     8,305        590,818   

Ramsay Health Care, Ltd.

     13,648        671,150   

Ryman Healthcare, Ltd.

     35,230        204,596   

Sonic Healthcare, Ltd.

     36,792        476,727   

Suzuken Co., Ltd.

     7,500        285,876   

Tenet Healthcare Corp. (b)

     5,757        174,437   

UnitedHealth Group, Inc.

     55,300        6,505,492   

Universal Health Services, Inc. - Class B

     5,300        633,297   
   

 

 

  
      35,981,761   
   

 

 

  

Health Care Technology—0.0%

    

Cerner Corp. (b)

     17,760        1,068,619   

M3, Inc. (a)

     18,690        387,360   
   

 

 

  
      1,455,979   
   

 

 

  

Hotels, Restaurants & Leisure—0.7%

    

Accor S.A.

     20,240        873,052   

Aristocrat Leisure, Ltd.

     51,269        378,896   

Carnival Corp.

     26,820        1,461,154   

Carnival plc

     17,767        1,008,766   

Chipotle Mexican Grill, Inc. (a) (b)

     1,815        870,928   

Compass Group plc

     158,609        2,745,173   

Crown Resorts, Ltd. (a)

     34,811        314,478   

Darden Restaurants, Inc.

     6,575        418,433   

Flight Centre Travel Group, Ltd. (a)

     5,369        154,723   

Galaxy Entertainment Group, Ltd.

     223,871        698,017   

Genting Singapore plc (a)

     581,000        313,151   

InterContinental Hotels Group plc

     22,781        883,986   

Marriott International, Inc. - Class A (a)

     11,575        775,988   

McDonald’s Corp.

     54,640        6,455,170   

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

     6,377        138,734   

Melco Crown Entertainment, Ltd. (ADR)

     9,158        153,854   

Merlin Entertainments plc (144A)

     67,665        453,453   

MGM China Holdings, Ltd.

     90,500        112,260   

Oriental Land Co., Ltd.

     19,300        1,161,988   

Pandox AB (b)

     5,686        104,047   

Royal Caribbean Cruises, Ltd. (a)

     9,914        1,003,396   

Sands China, Ltd.

     231,935        781,506   

Shangri-La Asia, Ltd.

     119,200        116,828   

SJM Holdings, Ltd.

     189,856        135,422   

Sodexo S.A.

     9,088        884,071   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-11

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Hotels, Restaurants & Leisure—(Continued)

  

Starbucks Corp.

     86,060      $ 5,166,182   

Starwood Hotels & Resorts Worldwide, Inc.

     9,865        683,447   

Tabcorp Holdings, Ltd.

     78,543        267,843   

Tatts Group, Ltd.

     139,490        443,016   

TUI AG

     47,996        851,514   

Whitbread plc

     17,603        1,137,582   

William Hill plc

     85,076        496,463   

Wyndham Worldwide Corp.

     6,865        498,742   

Wynn Macau, Ltd.

     148,278        171,863   

Wynn Resorts, Ltd. (a)

     4,750        328,652   

Yum! Brands, Inc.

     24,940        1,821,867   
   

 

 

  
      34,264,645   
   

 

 

  

Household Durables—0.3%

    

Barratt Developments plc

     95,709        877,056   

Casio Computer Co., Ltd. (a)

     19,400        452,859   

D.R. Horton, Inc.

     18,850        603,765   

Electrolux AB - Series B

     23,276        558,690   

Garmin, Ltd. (a)

     6,770        251,641   

Harman International Industries, Inc.

     4,130        389,087   

Husqvarna AB - B Shares

     39,758        262,315   

Iida Group Holdings Co., Ltd.

     14,204        263,096   

Leggett & Platt, Inc. (a)

     7,880        331,118   

Lennar Corp. - Class A (a)

     10,095        493,746   

Mohawk Industries, Inc. (b)

     3,760        712,106   

Newell Rubbermaid, Inc.

     15,525        684,342   

Nikon Corp. (a)

     32,755        437,574   

Panasonic Corp.

     212,528        2,156,925   

Persimmon plc (b)

     29,573        883,165   

PulteGroup, Inc.

     18,580        331,096   

Rinnai Corp.

     3,575        316,505   

Sekisui Chemical Co., Ltd.

     39,915        520,650   

Sekisui House, Ltd.

     58,549        983,871   

Sony Corp.

     121,475        2,975,942   

Taylor Wimpey plc

     312,210        932,311   

Techtronic Industries Co., Ltd.

     131,100        532,564   

Whirlpool Corp.

     4,530        665,321   
   

 

 

  
      16,615,745   
   

 

 

  

Household Products—0.6%

    

Church & Dwight Co., Inc.

     7,701        653,661   

Clorox Co. (The)

     7,515        953,127   

Colgate-Palmolive Co.

     52,150        3,474,233   

Henkel AG & Co. KGaA

     10,027        962,212   

Kimberly-Clark Corp.

     21,135        2,690,486   

Procter & Gamble Co. (The) (e)

     157,225        12,485,237   

Reckitt Benckiser Group plc

     61,593        5,669,570   

Svenska Cellulosa AB SCA - B Shares

     56,772        1,648,711   

Unicharm Corp.

     35,900        731,911   
   

 

 

  
      29,269,148   
   

 

 

  

Independent Power and Renewable Electricity Producers—0.0%

  

AES Corp.

     39,585        378,828   

Electric Power Development Co., Ltd.

     14,156        503,764   

Enel Green Power S.p.A.

     166,848        338,117   

Independent Power and Renewable Electricity Producers—(Continued)

  

Meridian Energy, Ltd.

     120,436      196,191   

NRG Energy, Inc.

     19,105        224,866   
   

 

 

  
      1,641,766   
   

 

 

  

Industrial Conglomerates—0.9%

    

3M Co.

     36,245        5,459,947   

CK Hutchison Holdings, Ltd.

     259,446        3,475,621   

Danaher Corp.

     34,460        3,200,645   

General Electric Co. (e)

     547,926        17,067,895   

Keihan Electric Railway Co., Ltd. (a)

     49,000        327,791   

Keppel Corp., Ltd. (a)

     139,000        634,299   

Koninklijke Philips NV

     91,686        2,331,155   

NWS Holdings, Ltd.

     144,500        214,003   

Roper Technologies, Inc.

     5,890        1,117,863   

Seibu Holdings, Inc.

     11,513        235,473   

Sembcorp Industries, Ltd.

     94,600        202,430   

Siemens AG

     76,324        7,405,036   

Smiths Group plc

     38,087        526,901   

Toshiba Corp. (a) (b)

     386,779        793,705   
   

 

 

  
      42,992,764   
   

 

 

  

Insurance—2.0%

    

ACE, Ltd. (a)

     18,740        2,189,769   

Admiral Group plc

     20,167        490,528   

Aegon NV

     174,349        984,109   

Aflac, Inc.

     24,985        1,496,601   

Ageas

     19,387        898,611   

AIA Group, Ltd.

     1,159,573        6,908,223   

Allianz SE

     43,991        7,793,255   

Allstate Corp. (The)

     23,165        1,438,315   

American International Group, Inc.

     75,035        4,649,919   

AMP, Ltd.

     284,212        1,198,099   

Aon plc

     16,280        1,501,179   

Assicurazioni Generali S.p.A.

     112,394        2,055,011   

Assurant, Inc.

     3,905        314,509   

Aviva plc

     389,444        2,942,659   

AXA S.A.

     188,282        5,147,373   

Baloise Holding AG

     4,825        611,866   

Chubb Corp. (The)

     13,170        1,746,869   

Cincinnati Financial Corp.

     8,510        503,537   

CNP Assurances

     16,499        222,225   

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

     103,737        1,721,283   

Direct Line Insurance Group plc

     131,860        787,639   

Gjensidige Forsikring ASA

     19,318        307,620   

Hannover Rueck SE

     5,828        668,000   

Hartford Financial Services Group, Inc. (The)

     24,040        1,044,778   

Insurance Australia Group, Ltd.

     234,042        940,292   

Japan Post Holdings Co., Ltd. (b)

     43,316        672,111   

Legal & General Group plc

     572,118        2,256,326   

Lincoln National Corp.

     14,540        730,780   

Loews Corp.

     16,540        635,136   

Mapfre S.A. (a)

     102,184        254,865   

Marsh & McLennan Cos., Inc.

     30,750        1,705,087   

Medibank Private, Ltd.

     262,303        408,848   

MetLife, Inc. (f)

     64,675        3,117,982   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-12

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Insurance—(Continued)

    

MS&AD Insurance Group Holdings, Inc.

     48,739      $ 1,425,342   

Muenchener Rueckversicherungs-Gesellschaft AG

     16,061        3,216,605   

NN Group NV

     22,993        808,560   

Old Mutual plc

     473,680        1,247,152   

Principal Financial Group, Inc.

     15,875        714,057   

Progressive Corp. (The)

     33,905        1,078,179   

Prudential Financial, Inc.

     26,130        2,127,243   

Prudential plc

     247,489        5,540,760   

QBE Insurance Group, Ltd.

     131,693        1,198,090   

RSA Insurance Group plc

     97,249        611,104   

Sampo Oyj - A Shares

     43,031        2,181,075   

SCOR SE

     14,874        556,423   

Sompo Japan Nipponkoa Holdings, Inc.

     31,766        1,039,044   

Sony Financial Holdings, Inc.

     16,749        299,186   

St. James’s Place plc

     50,353        742,678   

Standard Life plc

     189,073        1,084,852   

Suncorp Group, Ltd.

     123,635        1,082,490   

Swiss Life Holding AG (b)

     3,104        833,051   

Swiss Re AG

     33,900        3,297,729   

T&D Holdings, Inc.

     55,752        732,880   

Tokio Marine Holdings, Inc.

     65,679        2,530,643   

Torchmark Corp.

     6,755        386,116   

Travelers Cos., Inc. (The)

     18,080        2,040,509   

Tryg A/S

     11,149        221,421   

UnipolSai S.p.A.

     107,059        271,224   

Unum Group

     14,295        475,881   

XL Group plc

     17,465        684,279   

Zurich Insurance Group AG (b)

     14,478        3,694,198   
   

 

 

  
      98,464,175   
   

 

 

  

Internet & Catalog Retail—0.5%

    

Amazon.com, Inc. (b)

     22,290        15,065,588   

Expedia, Inc.

     5,785        719,076   

Netflix, Inc. (a) (b)

     24,681        2,823,013   

Priceline Group, Inc. (The) (b)

     2,995        3,818,475   

Rakuten, Inc. (b)

     89,474        1,031,115   

TripAdvisor, Inc. (a) (b)

     6,505        554,551   

Zalando SE (a) (b)

     8,315        328,476   
   

 

 

  
      24,340,294   
   

 

 

  

Internet Software & Services—0.9%

    

Akamai Technologies, Inc. (b)

     10,310        542,615   

Alphabet, Inc. - Class A (b) (e)

     16,840        13,101,689   

Alphabet, Inc. - Class C (b) (e)

     17,166        13,026,934   

Auto Trader Group plc (144A) (b)

     72,270        472,270   

eBay, Inc. (b)

     64,975        1,785,513   

Facebook, Inc. - Class A (b)

     131,046        13,715,274   

Kakaku.com, Inc.

     13,876        273,935   

Mixi, Inc.

     4,137        154,459   

United Internet AG

     11,907        654,780   

VeriSign, Inc. (a) (b)

     5,735        501,010   

Yahoo Japan Corp.

     137,049        556,976   

Yahoo!, Inc. (b)

     50,195        1,669,486   
   

 

 

  
      46,454,941   
   

 

 

  

IT Services—0.9%

    

Accenture plc - Class A

     36,195      3,782,377   

Alliance Data Systems Corp. (b)

     3,550        981,824   

Amadeus IT Holding S.A. - A Shares

     42,241        1,860,009   

Atos SE

     8,418        707,020   

Automatic Data Processing, Inc.

     26,995        2,287,016   

Cap Gemini S.A.

     15,745        1,456,855   

Cognizant Technology Solutions Corp. - Class A (b)

     35,350        2,121,707   

Computershare, Ltd.

     45,026        379,521   

CSRA, Inc.

     7,955        238,650   

Fidelity National Information Services, Inc.

     16,285        986,871   

Fiserv, Inc. (b)

     13,560        1,240,198   

Fujitsu, Ltd.

     179,016        891,028   

International Business Machines Corp. (e)

     52,296        7,196,976   

Itochu Techno-Solutions Corp.

     4,600        91,912   

MasterCard, Inc. - Class A

     57,900        5,637,144   

Nomura Research Institute, Ltd.

     11,900        457,376   

NTT Data Corp.

     12,151        586,984   

Obic Co., Ltd.

     6,240        330,792   

Otsuka Corp. (a)

     5,100        250,103   

Paychex, Inc.

     18,615        984,547   

PayPal Holdings, Inc. (b)

     64,275        2,326,755   

Teradata Corp. (a) (b)

     8,200        216,644   

Total System Services, Inc.

     9,795        487,791   

Visa, Inc. - Class A (a)

     113,160        8,775,558   

Western Union Co. (The) (a)

     29,620        530,494   

Xerox Corp.

     58,160        618,241   
   

 

 

  
      45,424,393   
   

 

 

  

Leisure Products—0.1%

    

Bandai Namco Holdings, Inc.

     17,110        359,516   

Hasbro, Inc. (a)

     6,545        440,871   

Mattel, Inc. (a)

     19,545        531,038   

Sankyo Co., Ltd. (a)

     4,804        179,184   

Sega Sammy Holdings, Inc.

     17,948        167,609   

Shimano, Inc.

     7,641        1,170,307   

Yamaha Corp.

     16,200        391,412   
   

 

 

  
      3,239,937   
   

 

 

  

Life Sciences Tools & Services—0.2%

    

Agilent Technologies, Inc.

     19,135        800,035   

Illumina, Inc. (a) (b)

     8,419        1,615,985   

Lonza Group AG (b)

     5,106        830,102   

PerkinElmer, Inc.

     6,490        347,669   

QIAGEN NV (b)

     21,267        575,374   

Thermo Fisher Scientific, Inc.

     23,130        3,280,991   

Waters Corp. (b)

     4,790        644,638   
   

 

 

  
      8,094,794   
   

 

 

  

Machinery—0.8%

    

Alfa Laval AB (a)

     28,329        514,372   

Alstom S.A. (a) (b)

     20,930        639,634   

Amada Holdings Co., Ltd.

     32,986        314,786   

Andritz AG

     7,526        365,044   

Atlas Copco AB - A Shares

     64,601        1,573,787   

Atlas Copco AB - B Shares

     37,649        865,623   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-13

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Machinery—(Continued)

    

Caterpillar, Inc. (a)

     34,885      $ 2,370,785   

CNH Industrial NV (a)

     90,768        618,732   

Cummins, Inc.

     9,695        853,257   

Deere & Co. (a)

     18,115        1,381,631   

Dover Corp. (a)

     9,100        557,921   

FANUC Corp.

     18,910        3,259,918   

Flowserve Corp. (a)

     7,680        323,174   

GEA Group AG

     17,657        711,513   

Hino Motors, Ltd.

     25,133        289,976   

Hitachi Construction Machinery Co., Ltd. (a)

     10,358        161,264   

Hoshizaki Electric Co., Ltd.

     3,900        242,393   

IHI Corp. (a)

     133,748        367,735   

Illinois Tool Works, Inc.

     19,100        1,770,188   

IMI plc

     26,134        329,690   

Ingersoll-Rand plc

     15,365        849,531   

JTEKT Corp.

     19,817        324,339   

Kawasaki Heavy Industries, Ltd.

     136,697        505,510   

Komatsu, Ltd.

     88,887        1,448,310   

Kone Oyj - Class B (a)

     32,429        1,363,490   

Kubota Corp.

     108,359        1,670,362   

Kurita Water Industries, Ltd.

     10,324        216,138   

Makita Corp. (a)

     11,490        660,322   

MAN SE

     3,393        343,269   

Melrose Industries plc

     94,885        404,873   

Metso Oyj (a)

     10,930        243,374   

Minebea Co., Ltd.

     30,000        257,608   

Mitsubishi Heavy Industries, Ltd.

     292,000        1,275,464   

Nabtesco Corp.

     11,740        238,572   

NGK Insulators, Ltd.

     24,922        562,168   

NSK, Ltd.

     45,169        489,904   

PACCAR, Inc. (a)

     20,595        976,203   

Parker-Hannifin Corp.

     8,035        779,234   

Pentair plc (a)

     10,373        513,775   

Sandvik AB (a)

     102,373        886,673   

Schindler Holding AG

     1,992        334,247   

Schindler Holding AG (Participation Certificate)

     4,259        713,155   

Sembcorp Marine, Ltd. (a)

     79,700        97,816   

SKF AB - B Shares

     38,286        617,239   

SMC Corp.

     5,213        1,351,884   

Snap-on, Inc.

     3,410        584,576   

Stanley Black & Decker, Inc.

     8,940        954,166   

Sulzer AG

     2,324        218,543   

Sumitomo Heavy Industries, Ltd.

     52,676        235,962   

THK Co., Ltd.

     11,652        215,622   

Volvo AB - B Shares

     148,056        1,366,861   

Wartsila Oyj Abp

     14,240        645,728   

Weir Group plc (The)

     20,606        303,094   

Xylem, Inc.

     10,440        381,060   

Yangzijiang Shipbuilding Holdings, Ltd.

     178,690        137,969   

Zardoya Otis S.A. (a)

     17,418        202,949   
   

 

 

  
      39,881,413   
   

 

 

  

Marine—0.1%

    

AP Moeller - Maersk A/S - Class A

     368        473,027   

AP Moeller - Maersk A/S - Class B

     666        864,806   

Marine—(Continued)

    

Kuehne & Nagel International AG

     5,228      716,836   

Mitsui OSK Lines, Ltd.

     109,913        276,880   

Nippon Yusen KK

     154,984        375,651   
   

 

 

  
      2,707,200   
   

 

 

  

Media—1.1%

    

Altice NV - Class A (b)

     35,497        507,600   

Altice NV - Class B (b)

     10,517        152,163   

Axel Springer SE

     4,296        238,904   

Cablevision Systems Corp. - Class A

     12,885        411,031   

CBS Corp. - Class B

     25,750        1,213,597   

Comcast Corp. - Class A

     144,002        8,126,033   

Dentsu, Inc. (a)

     20,887        1,143,298   

Discovery Communications, Inc. - Class A (a) (b)

     8,650        230,782   

Discovery Communications, Inc. - Class C (b)

     14,850        374,517   

Eutelsat Communications S.A.

     16,424        490,477   

Hakuhodo DY Holdings, Inc.

     22,440        242,502   

Interpublic Group of Cos., Inc. (The)

     23,725        552,318   

ITV plc

     368,339        1,500,871   

JCDecaux S.A.

     7,148        273,609   

Kabel Deutschland Holding AG

     2,134        263,728   

Lagardere SCA

     11,447        340,584   

News Corp. - Class A

     22,021        294,201   

News Corp. - Class B

     6,156        85,938   

Numericable-SFR SAS

     10,547        382,940   

Omnicom Group, Inc.

     14,085        1,065,671   

Pearson plc

     79,142        855,294   

ProSiebenSat.1 Media SE

     21,110        1,067,828   

Publicis Groupe S.A.

     18,215        1,208,099   

REA Group, Ltd.

     5,089        202,366   

RELX NV

     95,762        1,610,324   

RELX plc

     107,525        1,885,176   

RTL Group S.A.

     93        7,768   

RTL Group S.A. (Brussels Exchange)

     3,657        305,656   

Schibsted ASA - B Shares (b)

     8,577        272,263   

Schibsted ASA - Class A

     7,278        238,878   

Scripps Networks Interactive, Inc. - Class A (a)

     5,450        300,895   

SES S.A.

     31,421        870,974   

Singapore Press Holdings, Ltd. (a)

     154,000        426,945   

Sky plc

     99,322        1,625,001   

TEGNA, Inc.

     13,040        332,781   

Telenet Group Holding NV (b)

     5,090        274,314   

Time Warner Cable, Inc.

     16,435        3,050,172   

Time Warner, Inc.

     47,255        3,055,981   

Toho Co., Ltd.

     10,894        301,847   

Twenty-First Century Fox, Inc. - Class A

     70,758        1,921,787   

Twenty-First Century Fox, Inc. - Class B

     24,925        678,708   

Viacom, Inc. - Class B

     20,070        826,081   

Vivendi S.A.

     111,903        2,409,645   

Walt Disney Co. (The)

     90,079        9,465,501   

Wolters Kluwer NV

     29,128        975,955   

WPP plc

     124,684        2,869,940   
   

 

 

  
      54,930,943   
   

 

 

  

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-14

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Metals & Mining—0.5%

    

Alcoa, Inc.

     75,850      $ 748,639   

Alumina, Ltd. (a)

     241,405        201,107   

Anglo American plc (London Exchange) (a)

     134,755        593,712   

Antofagasta plc (a)

     37,473        256,785   

ArcelorMittal (a)

     95,415        398,681   

BHP Billiton plc

     203,306        2,282,544   

BHP Billiton, Ltd.

     309,154        4,016,006   

Boliden AB

     26,201        434,427   

Fortescue Metals Group, Ltd. (a)

     148,438        200,207   

Freeport-McMoRan, Inc.

     65,900        446,143   

Fresnillo plc

     21,130        221,156   

Glencore plc (b)

     1,177,779        1,567,119   

Hitachi Metals, Ltd.

     20,465        252,363   

Iluka Resources, Ltd.

     39,920        176,643   

JFE Holdings, Inc.

     47,361        744,406   

Kobe Steel, Ltd.

     297,670        323,405   

Maruichi Steel Tube, Ltd.

     4,500        132,803   

Mitsubishi Materials Corp.

     106,804        335,913   

Newcrest Mining, Ltd. (b)

     73,349        693,373   

Newmont Mining Corp.

     30,635        551,124   

Nippon Steel & Sumitomo Metal Corp.

     73,300        1,451,407   

Norsk Hydro ASA

     128,462        477,779   

Nucor Corp.

     18,440        743,132   

Randgold Resources, Ltd.

     9,039        557,732   

Rio Tinto plc

     120,666        3,516,528   

Rio Tinto, Ltd.

     40,833        1,317,436   

South32, Ltd. (b)

     510,728        391,808   

Sumitomo Metal Mining Co., Ltd.

     47,516        574,312   

ThyssenKrupp AG

     35,492        703,845   

Voestalpine AG

     11,025        337,416   
   

 

 

  
      24,647,951   
   

 

 

  

Multi-Utilities—0.5%

    

AGL Energy, Ltd.

     64,954        849,345   

Ameren Corp.

     14,060        607,814   

CenterPoint Energy, Inc.

     24,900        457,164   

Centrica plc

     486,360        1,562,197   

CMS Energy Corp.

     15,955        575,656   

Consolidated Edison, Inc. (a)

     16,945        1,089,055   

Dominion Resources, Inc.

     34,490        2,332,904   

DTE Energy Co.

     10,430        836,382   

DUET Group

     223,437        370,254   

E.ON SE

     192,538        1,863,346   

Engie S.A.

     140,651        2,489,200   

National Grid plc

     360,343        4,956,236   

NiSource, Inc.

     18,350        358,008   

PG&E Corp.

     28,345        1,507,670   

Public Service Enterprise Group, Inc.

     29,270        1,132,456   

RWE AG

     47,217        601,859   

SCANA Corp.

     8,240        498,438   

Sempra Energy

     13,620        1,280,416   

Suez Environnement Co.

     28,758        538,092   

TECO Energy, Inc.

     13,635        363,373   

Veolia Environnement S.A.

     43,402        1,028,768   

WEC Energy Group, Inc. (a)

     18,229        935,330   
   

 

 

  
      26,233,963   
   

 

 

  

Multiline Retail—0.2%

    

Dollar General Corp.

     17,080      1,227,540   

Dollar Tree, Inc. (b)

     13,613        1,051,196   

Don Quijote Holdings Co., Ltd.

     11,400        400,513   

Harvey Norman Holdings, Ltd.

     51,926        156,921   

Isetan Mitsukoshi Holdings, Ltd.

     34,197        444,935   

J Front Retailing Co., Ltd.

     22,900        331,781   

Kohl’s Corp.

     11,425        544,173   

Macy’s, Inc.

     19,110        668,468   

Marks & Spencer Group plc

     158,253        1,051,644   

Marui Group Co., Ltd.

     21,500        349,321   

Next plc

     14,013        1,502,181   

Nordstrom, Inc. (a)

     8,040        400,472   

Ryohin Keikaku Co., Ltd.

     2,312        468,715   

Takashimaya Co., Ltd.

     27,372        246,305   

Target Corp.

     36,390        2,642,278   
   

 

 

  
      11,486,443   
   

 

 

  

Oil, Gas & Consumable Fuels—2.2%

    

Anadarko Petroleum Corp.

     29,435        1,429,952   

Apache Corp.

     21,895        973,671   

BG Group plc

     328,791        4,767,900   

BP plc

     1,760,118        9,171,875   

Cabot Oil & Gas Corp.

     23,990        424,383   

Caltex Australia, Ltd.

     26,050        709,282   

Chesapeake Energy Corp. (a)

     29,935        134,707   

Chevron Corp. (e)

     109,100        9,814,636   

Cimarex Energy Co.

     5,515        492,931   

Columbia Pipeline Group, Inc.

     18,350        367,000   

ConocoPhillips

     71,520        3,339,269   

CONSOL Energy, Inc. (a)

     13,190        104,201   

Delek Group, Ltd.

     464        92,909   

Devon Energy Corp.

     22,320        714,240   

Eni S.p.A.

     244,876        3,627,630   

EOG Resources, Inc.

     31,890        2,257,493   

EQT Corp.

     8,810        459,265   

Exxon Mobil Corp. (e)

     241,789        18,847,452   

Galp Energia SGPS S.A.

     36,804        426,628   

Hess Corp.

     13,970        677,266   

Idemitsu Kosan Co., Ltd. (a)

     8,500        135,240   

Inpex Corp.

     91,495        902,930   

JX Holdings, Inc.

     216,024        903,410   

Kinder Morgan, Inc.

     104,130        1,553,620   

Koninklijke Vopak NV

     6,851        294,623   

Lundin Petroleum AB (a) (b)

     20,889        299,423   

Marathon Oil Corp.

     39,180        493,276   

Marathon Petroleum Corp.

     31,010        1,607,558   

Murphy Oil Corp. (a)

     9,385        210,693   

Neste Oyj

     12,432        370,688   

Newfield Exploration Co. (b)

     9,400        306,064   

Noble Energy, Inc.

     24,600        810,078   

Occidental Petroleum Corp.

     44,245        2,991,404   

Oil Search, Ltd.

     131,915        645,839   

OMV AG

     14,226        399,361   

ONEOK, Inc.

     12,060        297,400   

Origin Energy, Ltd.

     167,735        565,029   

Phillips 66

     27,740        2,269,132   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-15

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Oil, Gas & Consumable Fuels—(Continued)

  

Pioneer Natural Resources Co.

     8,665      $ 1,086,418   

Range Resources Corp. (a)

     9,805        241,301   

Repsol S.A.

     101,098        1,100,655   

Royal Dutch Shell plc - A Shares

     377,144        8,473,108   

Royal Dutch Shell plc - B Shares (a)

     234,911        5,364,023   

Santos, Ltd. (a)

     211,696        560,289   

Showa Shell Sekiyu KK (a)

     18,100        147,125   

Southwestern Energy Co. (a) (b)

     22,205        157,878   

Spectra Energy Corp. (a)

     38,920        931,745   

Statoil ASA

     107,354        1,501,485   

Tesoro Corp.

     7,125        750,761   

TonenGeneral Sekiyu KK

     27,150        228,156   

Total S.A.

     209,163        9,315,250   

Valero Energy Corp.

     28,815        2,037,509   

Williams Cos., Inc. (The)

     39,465        1,014,250   

Woodside Petroleum, Ltd.

     71,321        1,495,835   
   

 

 

  
      108,294,246   
   

 

 

  

Paper & Forest Products—0.1%

    

Mondi plc

     35,432        691,006   

OJI Holdings Corp.

     76,372        307,815   

Stora Enso Oyj - R Shares

     52,601        473,042   

UPM-Kymmene Oyj

     51,496        953,747   
   

 

 

  
      2,425,610   
   

 

 

  

Personal Products—0.4%

    

Beiersdorf AG

     9,703        882,684   

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

     13,120        1,155,347   

Kao Corp.

     48,524        2,490,077   

Kose Corp.

     2,934        270,099   

L’Oreal S.A.

     24,245        4,078,994   

Shiseido Co., Ltd. (a)

     34,709        718,238   

Unilever NV

     156,805        6,793,671   

Unilever plc

     123,545        5,289,922   
   

 

 

  
      21,679,032   
   

 

 

  

Pharmaceuticals—3.5%

    

Allergan plc (b)

     22,817        7,130,312   

Astellas Pharma, Inc.

     203,200        2,886,295   

AstraZeneca plc

     121,651        8,224,699   

Bayer AG

     79,602        9,986,970   

Bristol-Myers Squibb Co.

     96,635        6,647,522   

Chugai Pharmaceutical Co., Ltd.

     21,574        751,909   

Daiichi Sankyo Co., Ltd.

     61,399        1,261,794   

Eisai Co., Ltd.

     24,280        1,604,979   

Eli Lilly & Co.

     56,530        4,763,218   

Endo International plc (b)

     12,046        737,456   

Galenica AG

     376        586,233   

GlaxoSmithKline plc

     468,457        9,461,893   

Hisamitsu Pharmaceutical Co., Inc.

     5,525        231,748   

Johnson & Johnson (e)

     160,520        16,488,614   

Kyowa Hakko Kirin Co., Ltd.

     22,167        348,639   

Mallinckrodt plc (b)

     6,770        505,245   

Merck & Co., Inc. (e)

     163,235        8,622,073   

Merck KGaA

     12,482        1,212,409   

Mitsubishi Tanabe Pharma Corp.

     21,801        375,582   

Pharmaceuticals—(Continued)

    

Mylan NV (b)

     21,085      1,140,066   

Novartis AG

     219,032        18,722,109   

Novo Nordisk A/S - Class B

     188,614        10,841,605   

Ono Pharmaceutical Co., Ltd.

     8,034        1,427,922   

Orion Oyj - Class B

     9,890        340,931   

Otsuka Holdings Co., Ltd.

     37,675        1,332,816   

Perrigo Co. plc

     7,553        1,092,919   

Pfizer, Inc.

     357,506        11,540,294   

Roche Holding AG

     67,628        18,637,474   

Sanofi

     113,683        9,700,089   

Santen Pharmaceutical Co., Ltd.

     35,800        588,747   

Shionogi & Co., Ltd.

     28,798        1,301,920   

Shire plc

     57,021        3,907,867   

Sumitomo Dainippon Pharma Co., Ltd. (a)

     15,300        180,028   

Taisho Pharmaceutical Holdings Co., Ltd. (a)

     3,039        214,593   

Takeda Pharmaceutical Co., Ltd.

     76,050        3,786,028   

Taro Pharmaceutical Industries, Ltd. (b)

     722        111,585   

Teva Pharmaceutical Industries, Ltd.

     83,199        5,460,976   

UCB S.A.

     12,202        1,098,323   

Zoetis, Inc.

     26,540        1,271,797   
   

 

 

  
      174,525,679   
   

 

 

  

Professional Services—0.2%

    

Adecco S.A. (b)

     15,955        1,095,530   

Bureau Veritas S.A.

     25,590        509,251   

Capita plc

     63,867        1,136,338   

Dun & Bradstreet Corp. (The)

     2,095        217,733   

Equifax, Inc.

     6,815        758,987   

Experian plc

     93,660        1,655,018   

Intertek Group plc

     15,614        638,564   

Nielsen Holdings plc

     21,233        989,458   

Randstad Holding NV

     12,332        767,109   

Recruit Holdings Co., Ltd.

     13,636        400,957   

Robert Half International, Inc.

     7,720        363,921   

Seek, Ltd. (a)

     31,433        349,501   

SGS S.A.

     528        1,005,888   

Verisk Analytics, Inc. (b)

     9,001        691,997   
   

 

 

  
      10,580,252   
   

 

 

  

Real Estate Investment Trusts—3.2%

    

Acadia Realty Trust

     7,405        245,476   

Activia Properties, Inc.

     50        212,291   

Advance Residence Investment Corp.

     142        312,555   

Aedifica S.A.

     1,377        90,535   

AEON REIT Investment Corp.

     100        118,591   

Affine S.A.

     700        12,423   

Agree Realty Corp.

     1,950        66,281   

Alexander’s, Inc.

     228        87,577   

Alexandria Real Estate Equities, Inc.

     7,818        706,434   

Allied Properties Real Estate Investment Trust

     8,370        190,967   

Alstria Office REIT-AG (a) (b)

     11,300        150,713   

American Assets Trust, Inc.

     4,150        159,153   

American Campus Communities, Inc.

     12,100        500,214   

American Homes 4 Rent - Class A

     16,224        270,292   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-16

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Real Estate Investment Trusts—(Continued)

  

American Tower Corp.

     24,545      $ 2,379,638   

ANF Immobilier

     750        16,953   

Apartment Investment & Management Co. - Class A

     25,865        1,035,376   

Apple Hospitality REIT, Inc. (a)

     17,950        358,461   

Artis Real Estate Investment Trust

     14,550        134,596   

Ascendas Real Estate Investment Trust

     406,300        650,709   

Ashford Hospitality Trust, Inc. (a)

     9,850        62,154   

Assura plc

     176,350        143,706   

AvalonBay Communities, Inc.

     22,534        4,149,185   

Befimmo S.A.

     1,800        107,475   

Beni Stabili S.p.A. SIIQ

     115,157        86,884   

Big Yellow Group plc

     15,350        182,083   

BioMed Realty Trust, Inc.

     21,994        521,038   

Boardwalk Real Estate Investment Trust

     4,300        147,456   

Boston Properties, Inc.

     25,525        3,255,458   

Brandywine Realty Trust

     18,876        257,846   

British Land Co. plc (The)

     204,078        2,348,979   

Brixmor Property Group, Inc.

     18,850        486,707   

BWP Trust (a)

     52,748        120,828   

Camden Property Trust

     9,350        717,706   

Canadian Apartment Properties REIT

     13,500        261,863   

Canadian Real Estate Investment Trust

     7,800        237,095   

CapitaLand Commercial Trust, Ltd.

     413,900        392,936   

CapitaLand Mall Trust

     519,700        704,283   

Care Capital Properties, Inc.

     8,999        275,099   

CBL & Associates Properties, Inc.

     18,350        226,990   

CDL Hospitality Trusts

     68,950        64,375   

Cedar Realty Trust, Inc. (a)

     9,050        64,074   

Champion REIT

     255,000        126,830   

Charter Hall Retail REIT

     35,650        107,606   

Chatham Lodging Trust

     3,950        80,896   

Chesapeake Lodging Trust

     6,407        161,200   

Cofinimmo S.A.

     2,195        234,432   

Colony Starwood Homes

     4,100        92,824   

Columbia Property Trust, Inc.

     13,450        315,806   

Cominar Real Estate Investment Trust

     18,181        193,281   

Corporate Office Properties Trust

     10,200        222,666   

Cousins Properties, Inc.

     22,894        215,890   

Crombie Real Estate Investment Trust

     8,300        76,780   

Cromwell Property Group

     157,650        120,380   

Crown Castle International Corp.

     19,310        1,669,349   

CubeSmart

     18,621        570,175   

Daiwa House REIT Investment Corp. (a)

     29        113,227   

Daiwa House Residential Investment Corp.

     72        148,965   

Daiwa Office Investment Corp. (a)

     28        151,612   

DCT Industrial Trust, Inc. (a)

     9,502        355,090   

DDR Corp.

     32,950        554,878   

Derwent London plc

     10,800        583,448   

Dexus Property Group

     196,411        1,065,035   

DiamondRock Hospitality Co.

     21,650        208,923   

Digital Realty Trust, Inc. (a)

     14,650        1,107,833   

Douglas Emmett, Inc.

     14,614        455,665   

Dream Global Real Estate Investment Trust

     10,200        63,838   

Dream Office Real Estate Investment Trust

     11,650        146,246   

Duke Realty Corp.

     37,227        782,512   

DuPont Fabros Technology, Inc.

     7,050        224,120   

Real Estate Investment Trusts—(Continued)

  

EastGroup Properties, Inc.

     3,483      193,690   

Education Realty Trust, Inc.

     5,966        225,992   

Empire State Realty Trust, Inc. - Class A

     10,129        183,031   

EPR Properties

     6,447        376,827   

Equinix, Inc.

     3,417        1,033,301   

Equity Commonwealth (b)

     13,609        377,378   

Equity Lifestyle Properties, Inc.

     8,269        551,294   

Equity One, Inc.

     6,976        189,398   

Equity Residential

     60,030        4,897,848   

Essex Property Trust, Inc.

     10,950        2,621,539   

Eurocommercial Properties NV

     4,900        211,220   

Extra Space Storage, Inc.

     12,550        1,107,035   

Federal Realty Investment Trust

     7,498        1,095,458   

FelCor Lodging Trust, Inc.

     15,450        112,785   

First Industrial Realty Trust, Inc.

     11,850        262,240   

First Potomac Realty Trust

     6,200        70,680   

Fonciere Des Regions (a)

     6,775        606,510   

Fortune Real Estate Investment Trust

     142,050        145,566   

Franklin Street Properties Corp.

     9,500        98,325   

Frontier Real Estate Investment Corp.

     51        204,719   

Fukuoka REIT Corp.

     68        117,262   

Gaming and Leisure Properties, Inc. (a)

     9,400        261,320   

Gecina S.A.

     7,400        897,792   

General Growth Properties, Inc.

     88,211        2,400,221   

Getty Realty Corp. (a)

     2,700        46,305   

GLP J-Reit

     224        216,709   

Goodman Group

     359,738        1,628,690   

Government Properties Income Trust (a)

     7,635        121,167   

GPT Group (The)

     364,085        1,258,459   

Gramercy Property Trust, Inc.

     45,269        349,477   

Granite Real Estate Investment Trust

     5,100        139,912   

Great Portland Estates plc

     37,150        452,846   

Green REIT plc

     71,300        123,327   

Grivalia Properties Real Estate Investment Co.

     4,201        33,678   

H&R Real Estate Investment Trust

     29,894        433,168   

Hamborner REIT AG

     6,400        67,071   

Hammerson plc

     159,926        1,413,426   

Hansteen Holdings plc (a)

     77,750        131,864   

HCP, Inc.

     76,925        2,941,612   

Healthcare Realty Trust, Inc.

     10,810        306,139   

Healthcare Trust of America, Inc. - Class A (a)

     13,675        368,815   

Hersha Hospitality Trust

     4,212        91,653   

Hibernia REIT plc

     73,600        112,672   

Highwoods Properties, Inc.

     10,300        449,080   

Hospitality Properties Trust

     16,350        427,552   

Host Hotels & Resorts, Inc. (a)

     125,135        1,919,571   

Hudson Pacific Properties, Inc.

     7,900        222,306   

Icade

     7,045        472,970   

Immobiliare Grande Distribuzione SIIQ S.p.A.

     32,696        31,432   

Industrial & Infrastructure Fund Investment Corp. (a)

     33        157,480   

Inland Real Estate Corp.

     9,300        98,766   

InnVest Real Estate Investment Trust

     10,576        39,210   

Intervest Offices & Warehouses NV

     1,450        38,363   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-17

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Real Estate Investment Trusts—(Continued)

  

Intu Properties plc

     191,476      $ 894,809   

Investa Office Fund

     60,362        174,821   

Investors Real Estate Trust

     13,508        93,881   

Invincible Investment Corp.

     250        145,119   

Iron Mountain, Inc. (a)

     11,049        298,433   

Japan Excellent, Inc.

     121        132,830   

Japan Hotel REIT Investment Corp.

     309        228,396   

Japan Logistics Fund, Inc.

     92        178,372   

Japan Prime Realty Investment Corp.

     166        568,043   

Japan Real Estate Investment Corp.

     263        1,279,079   

Japan Retail Fund Investment Corp.

     497        954,396   

Kenedix Office Investment Corp.

     40        187,263   

Keppel REIT (a)

     201,450        131,851   

Kilroy Realty Corp. (a)

     9,984        631,788   

Kimco Realty Corp.

     68,238        1,805,577   

Kite Realty Group Trust

     8,862        229,792   

Kiwi Property Group, Ltd.

     136,700        125,854   

Klepierre

     43,326        1,921,344   

Land Securities Group plc

     160,955        2,790,485   

Lar Espana Real Estate Socimi S.A. (a)

     5,500        56,295   

LaSalle Hotel Properties (a)

     12,150        305,694   

Lexington Realty Trust (a)

     25,450        203,600   

Liberty Property Trust

     15,950        495,247   

Link REIT

     460,600        2,756,735   

Londonmetric Property plc

     63,050        152,264   

LTC Properties, Inc.

     3,850        166,089   

Macerich Co. (The)

     24,927        2,011,360   

Mack-Cali Realty Corp.

     9,607        224,323   

Mapletree Commercial Trust (a)

     141,400        129,284   

Mapletree Industrial Trust

     133,850        143,410   

Mapletree Logistics Trust

     157,650        109,746   

Medical Properties Trust, Inc.

     25,650        295,231   

Mercialys S.A.

     4,450        90,067   

Merlin Properties Socimi S.A.

     34,884        435,332   

Mid-America Apartment Communities, Inc.

     8,126        737,922   

Mirvac Group

     752,821        1,077,276   

Mori Hills REIT Investment Corp.

     144        184,518   

Mori Trust Sogo REIT, Inc.

     107        182,406   

National Health Investors, Inc.

     3,750        228,263   

National Retail Properties, Inc.

     14,683        588,054   

New Senior Investment Group, Inc.

     8,950        88,247   

New York REIT, Inc.

     17,650        202,975   

Nippon Accommodations Fund, Inc.

     50        174,312   

Nippon Building Fund, Inc.

     283        1,351,750   

Nippon Prologis REIT, Inc.

     299        540,316   

Nomura Real Estate Master Fund, Inc. (b)

     724        896,149   

Northview Apartment Real Estate Investment Trust

     4,250        53,935   

NSI NV

     14,793        63,831   

Omega Healthcare Investors, Inc.

     17,970        628,591   

Orix JREIT, Inc.

     285        368,790   

Paramount Group, Inc.

     15,524        280,984   

Parkway Properties, Inc.

     8,600        134,418   

Pebblebrook Hotel Trust (a)

     7,750        217,155   

Pennsylvania Real Estate Investment Trust

     7,150        156,371   

Physicians Realty Trust

     9,400        158,484   

Real Estate Investment Trusts—(Continued)

  

Piedmont Office Realty Trust, Inc. - Class A

     15,700      296,416   

Plum Creek Timber Co., Inc.

     10,045        479,347   

Post Properties, Inc.

     5,850        346,086   

Premier Investment Corp.

     120        122,736   

Primary Health Properties plc

     45,776        73,301   

ProLogis, Inc.

     86,970        3,732,752   

PS Business Parks, Inc.

     2,200        192,346   

Public Storage

     24,246        6,005,734   

Pure Industrial Real Estate Trust

     20,450        64,585   

QTS Realty Trust, Inc. - Class A

     4,150        187,207   

Ramco-Gershenson Properties Trust

     8,428        139,989   

Realty Income Corp. (a)

     40,542        2,093,183   

Redefine International plc

     106,650        78,595   

Regency Centers Corp.

     10,100        688,012   

Retail Opportunity Investments Corp.

     10,635        190,367   

Retail Properties of America, Inc. - Class A

     25,550        377,373   

Rexford Industrial Realty, Inc. (a)

     5,800        94,888   

RioCan Real Estate Investment Trust

     34,238        586,181   

RLJ Lodging Trust

     13,550        293,086   

Rouse Properties, Inc. (a)

     3,900        56,784   

Ryman Hospitality Properties, Inc.

     5,236        270,387   

Sabra Health Care REIT, Inc.

     7,000        141,610   

Safestore Holdings plc

     22,350        117,558   

Saul Centers, Inc.

     1,457        74,700   

Scentre Group

     1,064,092        3,224,802   

Segro plc

     151,724        957,768   

Select Income REIT

     7,305        144,785   

Senior Housing Properties Trust

     25,600        379,904   

Shaftesbury plc

     30,000        402,017   

Shopping Centres Australasia Property Group

     77,900        120,161   

Silver Bay Realty Trust Corp.

     3,700        57,942   

Simon Property Group, Inc.

     51,525        10,018,521   

SL Green Realty Corp.

     16,490        1,863,040   

Smart Real Estate Investment Trust

     12,000        261,820   

Sovran Self Storage, Inc.

     3,868        415,075   

Spirit Realty Capital, Inc.

     45,412        455,028   

STAG Industrial, Inc.

     7,335        135,331   

Stockland (a)

     482,961        1,433,788   

STORE Capital Corp. (a)

     6,950        161,240   

Summit Hotel Properties, Inc.

     8,950        106,953   

Sun Communities, Inc. (a)

     6,046        414,332   

Sunstone Hotel Investors, Inc. (a)

     22,508        281,125   

Suntec Real Estate Investment Trust (a)

     489,800        532,325   

Tanger Factory Outlet Centers, Inc.

     10,350        338,445   

Target Healthcare REIT, Ltd.

     18,550        29,483   

Taubman Centers, Inc.

     6,500        498,680   

Terreno Realty Corp.

     4,550        102,921   

Tier REIT, Inc. (a)

     5,100        75,225   

Tokyu REIT, Inc. (a)

     102        128,475   

Top REIT, Inc.

     19        71,835   

Tritax Big Box REIT plc

     73,150        139,850   

UDR, Inc.

     28,300        1,063,231   

Unibail-Rodamco SE (Paris Exchange)

     20,163        5,112,409   

United Urban Investment Corp.

     533        722,943   

Universal Health Realty Income Trust

     1,450        72,515   

Urban Edge Properties

     9,600        225,120   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-18

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Real Estate Investment Trusts—(Continued)

  

Urstadt Biddle Properties, Inc. - Class A

     2,850      $ 54,834   

Vastned Retail NV (a)

     2,007        92,253   

Ventas, Inc.

     55,040        3,105,907   

VEREIT, Inc.

     97,750        774,180   

Vicinity Centres

     678,750        1,375,510   

Vornado Realty Trust

     28,580        2,856,857   

Warehouses De Pauw SCA

     1,521        134,135   

Washington Real Estate Investment Trust (a)

     7,344        198,729   

Weingarten Realty Investors

     12,008        415,237   

Welltower, Inc.

     58,295        3,965,809   

Wereldhave Belgium NV

     250        29,870   

Wereldhave NV

     4,300        241,119   

Westfield Corp.

     398,507        2,741,529   

Weyerhaeuser Co.

     29,720        891,006   

Winthrop Realty Trust (b)

     3,450        44,747   

Workspace Group plc

     12,500        176,433   

WP Carey, Inc. (a)

     9,501        560,559   

WP Glimcher, Inc.

     19,850        210,609   

Xenia Hotels & Resorts, Inc.

     12,050        184,727   
   

 

 

  
      158,364,032   
   

 

 

  

Real Estate Management & Development—1.0%

  

ADLER Real Estate AG (b)

     2,600        40,098   

ADO Properties S.A. (144A) (b)

     2,498        72,130   

Aeon Mall Co., Ltd.

     23,797        408,498   

Allreal Holding AG (b)

     1,050        139,874   

Azrieli Group

     7,460        277,795   

BUWOG AG (b)

     6,450        139,580   

CA Immobilien Anlagen AG (b)

     7,932        144,622   

Capital & Counties Properties plc

     78,450        509,210   

CapitaLand, Ltd.

     520,250        1,221,014   

Castellum AB

     17,700        250,843   

CBRE Group, Inc. - Class A (b)

     16,715        578,005   

Cheung Kong Property Holdings, Ltd.

     564,396        3,666,285   

City Developments, Ltd.

     38,700        208,152   

Citycon Oyj (b)

     42,300        109,616   

Conwert Immobilien Invest SE (a) (b)

     6,700        102,091   

Daejan Holdings plc

     550        51,264   

Daito Trust Construction Co., Ltd.

     6,944        803,939   

Daiwa House Industry Co., Ltd.

     57,810        1,657,447   

Deutsche Euroshop AG

     4,950        217,556   

Deutsche Wohnen AG

     68,449        1,905,320   

DIC Asset AG

     3,700        37,540   

Dios Fastigheter AB

     5,082        36,754   

Entra ASA (144A)

     6,768        54,306   

Fabege AB

     14,300        235,128   

Fastighets AB Balder - B Shares (b)

     9,950        245,223   

First Capital Realty, Inc. (a)

     9,700        128,637   

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

     25,350        555,925   

Global Logistic Properties, Ltd.

     301,668        454,215   

Grainger plc

     44,350        151,947   

Grand City Properties S.A. (a)

     10,000        233,943   

Hang Lung Properties, Ltd.

     456,100        1,034,469   

Helical Bar plc (a)

     10,350        72,392   

Hemfosa Fastigheter AB

     8,524        94,152   

Real Estate Management & Development—(Continued)

  

Henderson Land Development Co., Ltd.

     221,686      1,349,498   

Hispania Activos Inmobiliarios S.A. (b)

     7,350        104,100   

Hongkong Land Holdings, Ltd.

     182,650        1,273,726   

Hufvudstaden AB - A Shares

     12,000        169,921   

Hulic Co., Ltd.

     66,893        586,720   

Hysan Development Co., Ltd.

     129,000        528,010   

Inmobiliaria Colonial S.A. (b)

     225,459        156,600   

Kerry Properties, Ltd.

     132,400        361,291   

Killam Properties, Inc.

     5,650        42,915   

Klovern AB - B Shares

     40,450        45,310   

Kungsleden AB

     19,620        139,419   

LEG Immobilien AG (b)

     6,800        558,121   

Lend Lease Group

     53,125        547,971   

Mitsubishi Estate Co., Ltd.

     257,594        5,339,136   

Mitsui Fudosan Co., Ltd.

     192,968        4,835,290   

Mobimo Holding AG (b)

     650        143,983   

New World Development Co., Ltd.

     1,100,925        1,081,665   

Nomura Real Estate Holdings, Inc.

     24,909        461,406   

Norwegian Property ASA (b)

     26,650        27,297   

NTT Urban Development Corp.

     22,814        219,234   

PSP Swiss Property AG (b)

     4,309        377,399   

Sino Land Co., Ltd.

     618,300        902,548   

Sponda Oyj (a)

     25,998        109,904   

St. Modwen Properties plc

     19,000        115,891   

Sumitomo Realty & Development Co., Ltd.

     81,095        2,310,636   

Sun Hung Kai Properties, Ltd.

     346,678        4,167,444   

Swire Pacific, Ltd. - Class A

     56,400        633,346   

Swire Properties, Ltd.

     238,150        682,975   

Swiss Prime Site AG (b)

     13,201        1,030,831   

TAG Immobilien AG (a)

     12,750        159,161   

Technopolis Oyj

     10,250        41,482   

TLG Immobilien AG

     5,942        111,471   

Tokyo Tatemono Co., Ltd.

     40,800        443,601   

Tokyu Fudosan Holdings Corp.

     48,735        304,950   

U & I Group plc

     13,450        44,633   

UNITE Group plc (The)

     23,950        231,242   

UOL Group, Ltd.

     96,000        420,985   

Vonovia SE

     95,205        2,948,947   

Wallenstam AB - B Shares (a)

     21,350        170,775   

Wharf Holdings, Ltd. (The)

     277,550        1,537,335   

Wheelock & Co., Ltd.

     87,800        370,064   

Wihlborgs Fastigheter AB

     7,150        144,259   
   

 

 

  
      51,069,462   
   

 

 

  

Road & Rail—0.5%

    

Asciano, Ltd.

     94,107        598,736   

Aurizon Holdings, Ltd.

     203,071        645,826   

Central Japan Railway Co.

     13,881        2,458,877   

ComfortDelGro Corp., Ltd.

     206,700        442,124   

CSX Corp.

     56,970        1,478,371   

DSV A/S

     18,530        727,948   

East Japan Railway Co.

     32,126        3,019,273   

Hankyu Hanshin Holdings, Inc.

     110,000        714,521   

J.B. Hunt Transport Services, Inc.

     5,296        388,515   

Kansas City Southern

     6,390        477,141   

Keikyu Corp.

     44,373        366,404   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-19

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Road & Rail—(Continued)

    

Keio Corp.

     55,672      $ 480,888   

Keisei Electric Railway Co., Ltd.

     26,811        341,217   

Kintetsu Group Holdings Co., Ltd.

     173,710        706,645   

MTR Corp., Ltd.

     140,700        695,083   

Nagoya Railroad Co., Ltd. (a)

     84,000        349,668   

Nippon Express Co., Ltd.

     79,307        372,102   

Norfolk Southern Corp.

     17,440        1,475,250   

Odakyu Electric Railway Co., Ltd.

     59,552        641,075   

Ryder System, Inc. (a)

     3,100        176,173   

Tobu Railway Co., Ltd.

     98,045        483,337   

Tokyu Corp.

     107,569        850,880   

Union Pacific Corp.

     50,290        3,932,678   

West Japan Railway Co.

     15,852        1,093,445   
   

 

 

  
      22,916,177   
   

 

 

  

Semiconductors & Semiconductor Equipment—0.7%

  

Analog Devices, Inc.

     18,140        1,003,505   

Applied Materials, Inc.

     69,560        1,298,685   

ARM Holdings plc

     135,188        2,041,424   

ASM Pacific Technology, Ltd.

     23,200        181,652   

ASML Holding NV

     33,370        2,973,815   

Avago Technologies, Ltd.

     15,061        2,186,104   

Broadcom Corp. - Class A

     32,335        1,869,610   

First Solar, Inc. (b)

     4,370        288,376   

Infineon Technologies AG

     108,809        1,592,291   

Intel Corp. (e)

     275,570        9,493,386   

KLA-Tencor Corp.

     9,070        629,004   

Lam Research Corp.

     9,147        726,455   

Linear Technology Corp.

     13,880        589,484   

Microchip Technology, Inc. (a)

     12,230        569,184   

Micron Technology, Inc. (a) (b)

     62,370        883,159   

NVIDIA Corp.

     29,670        977,923   

NXP Semiconductors NV (b)

     11,511        969,802   

Qorvo, Inc. (b)

     8,623        438,911   

Rohm Co., Ltd.

     9,278        468,882   

Skyworks Solutions, Inc.

     11,071        850,585   

STMicroelectronics NV

     60,812        405,664   

Texas Instruments, Inc.

     59,430        3,257,358   

Tokyo Electron, Ltd.

     16,525        991,716   

Xilinx, Inc.

     14,980        703,610   
   

 

 

  
      35,390,585   
   

 

 

  

Software—1.2%

    

Activision Blizzard, Inc. (a)

     29,069        1,125,261   

Adobe Systems, Inc. (b)

     28,820        2,707,351   

Autodesk, Inc. (b)

     13,115        799,097   

CA, Inc.

     18,145        518,221   

Check Point Software Technologies, Ltd. (a) (b)

     6,529        531,330   

Citrix Systems, Inc. (b)

     9,270        701,276   

Dassault Systemes S.A.

     12,337        987,066   

Electronic Arts, Inc. (b)

     18,080        1,242,458   

Gemalto NV

     7,706        460,457   

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

     40,732        110,882   

Intuit, Inc.

     16,095        1,553,167   

Konami Holdings Corp. (a)

     9,003        214,710   

Software—(Continued)

    

Microsoft Corp. (e)

     463,655      25,723,579   

Mobileye NV (b)

     7,822        330,714   

Nexon Co., Ltd.

     12,484        202,646   

NICE Systems, Ltd.

     5,484        314,644   

Nintendo Co., Ltd.

     10,287        1,416,127   

Oracle Corp. (e)

     188,510        6,886,270   

Oracle Corp. Japan (a)

     3,733        174,087   

Red Hat, Inc. (b)

     10,635        880,684   

Sage Group plc (The)

     103,456        919,865   

Salesforce.com, Inc. (b)

     35,960        2,819,264   

SAP SE

     94,604        7,535,322   

Symantec Corp.

     39,600        831,600   

Trend Micro, Inc. (b)

     10,124        410,683   
   

 

 

  
      59,396,761   
   

 

 

  

Specialty Retail—0.8%

    

ABC-Mart, Inc.

     2,700        148,107   

Advance Auto Parts, Inc.

     4,320        650,203   

AutoNation, Inc. (b)

     4,505        268,768   

AutoZone, Inc. (b)

     1,835        1,361,405   

Bed Bath & Beyond, Inc. (a) (b)

     9,775        471,644   

Best Buy Co., Inc.

     17,745        540,335   

CarMax, Inc. (a) (b)

     12,050        650,338   

Dixons Carphone plc

     93,749        688,990   

Dufry AG (b)

     3,890        461,383   

Fast Retailing Co., Ltd.

     5,179        1,813,596   

GameStop Corp. - Class A (a)

     6,145        172,306   

Gap, Inc. (The) (a)

     13,740        339,378   

Hennes & Mauritz AB - B Shares

     91,392        3,254,411   

Hikari Tsushin, Inc.

     1,900        128,978   

Home Depot, Inc. (The)

     74,470        9,848,657   

Industria de Diseno Textil S.A.

     105,002        3,603,276   

Kingfisher plc

     221,982        1,074,867   

L Brands, Inc.

     14,940        1,431,551   

Lowe’s Cos., Inc.

     53,620        4,077,265   

Nitori Holdings Co., Ltd.

     7,200        605,144   

O’Reilly Automotive, Inc. (b)

     5,765        1,460,966   

Ross Stores, Inc.

     23,980        1,290,364   

Sanrio Co., Ltd. (a)

     4,726        110,646   

Shimamura Co., Ltd. (a)

     2,200        257,136   

Signet Jewelers, Ltd.

     4,625        572,066   

Sports Direct International plc (b)

     25,741        218,251   

Staples, Inc.

     37,285        353,089   

Tiffany & Co.

     6,520        497,411   

TJX Cos., Inc. (The)

     39,050        2,769,035   

Tractor Supply Co.

     7,835        669,892   

Urban Outfitters, Inc. (b)

     5,450        123,987   

USS Co., Ltd.

     21,110        317,614   

Yamada Denki Co., Ltd. (a)

     65,120        281,617   
   

 

 

  
      40,512,676   
   

 

 

  

Technology Hardware, Storage & Peripherals—1.0%

  

Apple, Inc. (e)

     327,260        34,447,388   

Brother Industries, Ltd.

     22,646        259,682   

Canon, Inc.

     102,733        3,113,766   

EMC Corp.

     111,510        2,863,577   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-20

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Technology Hardware, Storage & Peripherals—(Continued)

  

FUJIFILM Holdings Corp.

     44,653      $ 1,859,827   

Hewlett Packard Enterprise Co.

     104,710        1,591,592   

HP, Inc.

     104,710        1,239,766   

Konica Minolta, Inc.

     43,253        433,829   

NEC Corp.

     250,087        794,349   

NetApp, Inc.

     17,370        460,826   

Ricoh Co., Ltd.

     67,478        693,085   

SanDisk Corp.

     11,855        900,861   

Seagate Technology plc (a)

     17,460        640,084   

Seiko Epson Corp.

     26,900        413,432   

Western Digital Corp.

     13,395        804,370   
   

 

 

  
      50,516,434   
   

 

 

  

Textiles, Apparel & Luxury Goods—0.6%

  

Adidas AG

     20,135        1,961,998   

Asics Corp. (a)

     15,878        328,623   

Burberry Group plc

     42,907        754,686   

Christian Dior SE

     5,247        891,299   

Cie Financiere Richemont S.A.

     50,248        3,609,483   

Coach, Inc.

     15,950        522,044   

Fossil Group, Inc. (a) (b)

     2,399        87,707   

Hanesbrands, Inc.

     23,322        686,366   

Hermes International

     2,547        858,751   

Hugo Boss AG

     6,453        537,388   

Kering

     7,310        1,246,017   

Li & Fung, Ltd.

     566,300        382,873   

Luxottica Group S.p.A.

     16,344        1,065,456   

LVMH Moet Hennessy Louis Vuitton SE

     26,896        4,204,562   

Michael Kors Holdings, Ltd. (b)

     11,197        448,552   

NIKE, Inc. - Class B

     78,580        4,911,250   

Pandora A/S

     10,595        1,336,922   

PVH Corp.

     4,808        354,109   

Ralph Lauren Corp.

     3,495        389,623   

Swatch Group AG (The)

     4,799        324,185   

Swatch Group AG (The) - Bearer Shares (a)

     2,976        1,038,552   

Under Armour, Inc. - Class A (a) (b)

     10,472        844,148   

VF Corp.

     19,700        1,226,325   

Yue Yuen Industrial Holdings, Ltd.

     71,100        241,090   
   

 

 

  
      28,252,009   
   

 

 

  

Tobacco—0.7%

    

Altria Group, Inc.

     113,625        6,614,111   

British American Tobacco plc

     179,446        9,966,260   

Imperial Tobacco Group plc

     92,129        4,845,576   

Japan Tobacco, Inc.

     105,885        3,887,794   

Philip Morris International, Inc. (e)

     89,805        7,894,758   

Reynolds American, Inc.

     48,064        2,218,154   

Swedish Match AB

     18,915        669,204   
   

 

 

  
      36,095,857   
   

 

 

  

Trading Companies & Distributors—0.3%

  

AerCap Holdings NV (b)

     8,551        369,061   

Ashtead Group plc

     48,564        799,102   

Brenntag AG

     14,907        778,031   

Trading Companies & Distributors—(Continued)

  

Bunzl plc

     32,326      892,967   

Fastenal Co. (a)

     16,750        683,735   

ITOCHU Corp.

     152,010        1,791,903   

Marubeni Corp.

     158,709        814,726   

Mitsubishi Corp.

     130,085        2,161,159   

Mitsui & Co., Ltd.

     164,305        1,951,418   

Noble Group, Ltd. (a)

     454,000        126,291   

Rexel S.A.

     29,055        385,727   

Sumitomo Corp.

     108,313        1,103,175   

Toyota Tsusho Corp.

     20,426        477,754   

Travis Perkins plc

     24,005        693,589   

United Rentals, Inc. (b)

     5,500        398,970   

Wolseley plc

     24,979        1,357,830   

WW Grainger, Inc. (a)

     3,520        713,117   
   

 

 

  
      15,498,555   
   

 

 

  

Transportation Infrastructure—0.1%

  

  

Abertis Infraestructuras S.A. (a)

     49,936        778,358   

Aena S.A. (144A) (b)

     6,513        742,043   

Aeroports de Paris

     2,878        333,689   

Atlantia S.p.A.

     39,865        1,055,878   

Auckland International Airport, Ltd.

     91,033        357,580   

Fraport AG Frankfurt Airport Services Worldwide

     4,010        255,861   

Groupe Eurotunnel SE

     45,105        559,763   

Hutchison Port Holdings Trust - Class U

     541,202        285,906   

Japan Airport Terminal Co., Ltd. (a)

     4,100        181,826   

Kamigumi Co., Ltd.

     21,677        186,591   

Mitsubishi Logistics Corp. (a)

     11,300        149,042   

Sydney Airport

     105,157        483,800   

Transurban Group (b)

     10,262        78,294   

Transurban Group

     184,711        1,402,483   
   

 

 

  
      6,851,114   
   

 

 

  

Water Utilities—0.0%

    

Severn Trent plc

     22,794        731,012   

United Utilities Group plc

     65,449        901,972   
   

 

 

  
      1,632,984   
   

 

 

  

Wireless Telecommunication Services—0.4%

  

KDDI Corp.

     168,365        4,358,459   

Millicom International Cellular S.A.

     6,058        345,050   

NTT DoCoMo, Inc.

     137,652        2,821,253   

SoftBank Group Corp.

     92,532        4,663,090   

StarHub, Ltd.

     58,000        150,860   

Tele2 AB - B Shares

     30,588        303,840   

Vodafone Group plc

     2,555,433        8,265,611   
   

 

 

  
      20,908,163   
   

 

 

  

Total Common Stocks
(Cost $1,896,957,820)

       2,355,112,817   
   

 

 

  

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-21

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

U.S. Treasury & Government Agencies—21.5%

 

Security Description   Principal
Amount*		     Value  

Federal Agencies—1.6%

    

Federal Home Loan Bank
4.750%, 12/16/16

     1,785,000      $ 1,851,081   

Federal Home Loan Mortgage Corp.
2.000%, 08/25/16

     3,900,000        3,931,387   

2.375%, 01/13/22

     8,925,000        9,048,986   

6.250%, 07/15/32

     2,480,000        3,447,808   

Federal National Mortgage Association
0.500%, 03/30/16

     12,850,000        12,850,989   

0.875%, 02/08/18

     20,645,000        20,509,569   

1.250%, 01/30/17

     14,970,000        15,026,137   

2.375%, 04/11/16

     966,000        971,002   

5.250%, 09/15/16 (a)

     5,445,000        5,616,060   

5.375%, 06/12/17

     756,000        802,930   

6.625%, 11/15/30

     1,650,000        2,336,623   

7.250%, 05/15/30

     1,941,000        2,869,252   
   

 

 

  
      79,261,824   
   

 

 

  

U.S. Treasury—19.9%

    

U.S. Treasury Bonds
2.500%, 02/15/45

     5,830,000        5,230,833   

2.750%, 08/15/42

     8,785,000        8,396,879   

2.875%, 05/15/43

     5,779,000        5,634,525   

2.875%, 08/15/45

     8,505,000        8,260,149   

3.000%, 05/15/45

     1,395,000        1,388,625   

3.125%, 11/15/41

     15,840,000        16,364,700   

3.125%, 02/15/42 (a)

     5,645,000        5,828,683   

3.125%, 02/15/43

     8,925,000        9,147,429   

3.625%, 08/15/43

     20,086,000        22,621,074   

3.750%, 08/15/41

     8,025,000        9,218,406   

4.250%, 05/15/39

     1,235,000        1,525,562   

4.375%, 05/15/40 (a)

     6,650,000        8,367,569   

4.375%, 05/15/41

     7,495,000        9,458,630   

4.750%, 02/15/41

     1,780,000        2,366,149   

6.000%, 02/15/26

     14,292,000        19,081,492   

6.250%, 08/15/23

     4,620,000        5,963,048   

6.250%, 05/15/30

     1,815,000        2,631,679   

6.875%, 08/15/25

     2,640,000        3,696,929   

8.875%, 02/15/19 (a)

     2,158,000        2,654,508   

U.S. Treasury Inflation Indexed Notes
0.125%, 04/15/19 (g)

     16,587,620        16,490,218   

0.125%, 04/15/20 (g)

     21,642,060        21,366,188   

0.125%, 01/15/22 (g)

     9,433,391        9,141,418   

0.125%, 07/15/22 (g)

     17,377,637        16,849,513   

0.625%, 07/15/21 (g)

     16,799,898        16,910,139   

1.125%, 01/15/21 (g)

     11,706,528        12,068,857   

1.250%, 07/15/20 (g)

     13,357,546        13,890,633   

1.375%, 01/15/20 (g)

     8,116,967        8,437,628   

1.875%, 07/15/19 (g)

     8,212,932        8,708,706   

2.125%, 01/15/19 (g)

     1,238,509        1,310,562   

U.S. Treasury Notes
0.625%, 11/30/17

     19,755,000        19,591,409   

0.750%, 12/31/17

     8,888,000        8,827,935   

0.750%, 03/31/18

     30,165,000        29,895,174   

0.875%, 11/30/16

     2,003,000        2,004,174   

0.875%, 01/31/18 (h)

     63,035,000        62,719,825   

U.S. Treasury—(Continued)

    

U.S. Treasury Notes
1.250%, 11/30/18

     16,530,000      16,502,230   

1.250%, 01/31/19

     6,545,000        6,523,015   

1.250%, 04/30/19

     8,909,000        8,852,276   

1.375%, 06/30/18

     21,010,000        21,092,884   

1.375%, 03/31/20

     9,890,000        9,768,303   

1.375%, 08/31/20

     17,945,000        17,657,593   

1.375%, 10/31/20 (a)

     17,900,000        17,583,958   

1.500%, 08/31/18

     39,415,000        39,676,755   

1.500%, 01/31/19

     5,070,000        5,087,826   

1.500%, 11/30/19

     29,340,000        29,223,109   

1.500%, 05/31/20

     9,830,000        9,745,138   

1.625%, 06/30/20

     13,695,000        13,638,823   

1.625%, 07/31/20

     7,875,000        7,837,468   

1.625%, 11/15/22

     16,550,000        16,077,415   

1.750%, 05/15/23 (i)

     47,565,000        46,340,582   

1.875%, 10/31/17

     13,345,000        13,538,396   

2.000%, 11/15/21

     17,230,000        17,280,484   

2.000%, 02/15/22

     9,370,000        9,386,838   

2.000%, 02/15/23

     9,615,000        9,559,041   

2.000%, 02/15/25

     5,275,000        5,156,518   

2.000%, 08/15/25

     17,740,000        17,297,192   

2.125%, 08/15/21

     11,970,000        12,111,677   

2.125%, 05/15/25

     13,955,000        13,772,929   

2.250%, 11/30/17

     16,220,000        16,578,608   

2.250%, 11/15/24

     6,890,000        6,886,500   

2.375%, 07/31/17

     15,830,100        16,164,020   

2.625%, 01/31/18

     18,655,000        19,232,148   

2.625%, 08/15/20

     21,945,000        22,796,225   

2.625%, 11/15/20

     28,794,000        29,916,505   

2.750%, 02/15/19

     33,793,000        35,212,036   

2.750%, 11/15/23

     9,125,000        9,523,151   

3.125%, 10/31/16

     6,730,000        6,858,287   

3.125%, 01/31/17

     14,130,000        14,468,894   

3.500%, 05/15/20

     9,995,000        10,745,405   

3.625%, 02/15/20

     29,095,000        31,381,692   

3.625%, 02/15/21

     12,065,000        13,114,558   
   

 

 

  
      992,637,727   
   

 

 

  

Total U.S. Treasury & Government Agencies
(Cost $1,064,480,302)

       1,071,899,551   
   

 

 

  
Foreign Government—4.6%                

Sovereign—4.6%

    

Australia Government Bonds
2.750%, 04/21/24 (AUD)

     2,155,000        1,568,998   

3.750%, 04/21/37 (AUD)

     530,000        403,924   

5.250%, 03/15/19 (AUD)

     510,000        408,162   

5.750%, 05/15/21 (AUD)

     2,345,000        2,003,228   

6.000%, 02/15/17 (AUD)

     230,000        174,877   

Austria Government Bonds
3.150%, 06/20/44 (144A) (EUR)

     275,000        390,806   

3.400%, 11/22/22 (144A) (EUR)

     1,740,000        2,279,572   

4.150%, 03/15/37 (144A) (EUR)

     380,000        599,006   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-22

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Foreign Government—(Continued)

 

Security Description   Principal
Amount*		     Value  

Sovereign—(Continued)

    

Belgium Government Bonds
2.600%, 06/22/24 (144A) (EUR)

     905,000      $ 1,133,238   

3.750%, 09/28/20 (144A) (EUR)

     335,000        427,987   

4.250%, 09/28/21 (144A) (EUR)

     900,000        1,203,775   

4.250%, 03/28/41 (144A) (EUR)

     575,000        915,681   

5.000%, 03/28/35 (144A) (EUR)

     355,000        589,757   

5.500%, 09/28/17 (144A) (EUR)

     900,000        1,077,398   

5.500%, 03/28/28 (EUR)

     815,000        1,307,607   

Bundesobligation
0.250%, 04/13/18 (EUR)

     390,000        429,370   

Bundesrepublik Deutschland
1.500%, 05/15/23 (EUR)

     885,000        1,047,555   

1.500%, 05/15/24 (EUR)

     1,450,000        1,716,070   

2.000%, 01/04/22 (EUR)

     1,505,000        1,822,004   

2.000%, 08/15/23 (EUR)

     1,170,000        1,433,645   

2.500%, 01/04/21 (EUR)

     2,715,000        3,322,740   

2.500%, 07/04/44 (EUR)

     625,000        846,096   

3.250%, 07/04/42 (EUR)

     135,000        205,658   

3.750%, 01/04/17 (EUR)

     3,345,000        3,785,311   

4.250%, 07/04/39 (EUR)

     920,000        1,571,296   

5.500%, 01/04/31 (EUR)

     1,505,000        2,636,334   

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

     1,870,000        1,494,973   

3.500%, 06/01/20 (CAD)

     420,000        340,811   

3.500%, 12/01/45 (CAD)

     225,000        210,902   

4.000%, 06/01/16 (CAD)

     695,000        509,409   

4.000%, 06/01/41 (CAD)

     975,000        956,997   

5.750%, 06/01/29 (CAD)

     385,000        409,040   

5.750%, 06/01/33 (CAD)

     245,000        273,842   

Denmark Government Bonds
1.500%, 11/15/23 (DKK)

     5,745,000        893,241   

4.000%, 11/15/19 (DKK)

     3,690,000        620,764   

4.500%, 11/15/39 (DKK)

     1,645,000        378,696   

Finland Government Bond
3.500%, 04/15/21 (144A) (EUR)

     1,500,000        1,922,814   

France Government Bond OAT
1.000%, 11/25/25 (EUR)

     640,000        696,104   

1.750%, 05/25/23 (EUR)

     545,000        644,210   

2.250%, 10/25/22 (EUR)

     1,270,000        1,550,220   

2.250%, 05/25/24 (EUR)

     3,550,000        4,338,857   

3.250%, 05/25/45 (EUR)

     620,000        855,804   

3.750%, 04/25/21 (EUR)

     4,445,000        5,751,287   

4.500%, 04/25/41 (EUR)

     1,585,000        2,614,653   

5.500%, 04/25/29 (EUR)

     1,565,000        2,558,254   

5.750%, 10/25/32 (EUR)

     535,000        937,839   

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

     6,675,000        7,426,078   

Ireland Government Bonds
2.000%, 02/18/45 (EUR)

     190,000        197,992   

4.500%, 04/18/20 (EUR)

     415,000        534,599   

5.400%, 03/13/25 (EUR)

     840,000        1,249,107   

Italy Buoni Poliennali Del Tesoro
3.250%, 09/01/46 (144A) (EUR)

     280,000        339,970   

3.750%, 04/15/16 (EUR)

     2,145,000        2,355,678   

3.750%, 03/01/21 (EUR)

     5,105,000        6,407,276   

3.750%, 09/01/24 (EUR)

     2,270,000        2,927,649   

Sovereign—(Continued)

    

Italy Buoni Poliennali Del Tesoro
5.000%, 08/01/39 (EUR)

     1,800,000      2,793,577   

5.250%, 08/01/17 (EUR)

     5,495,000        6,468,535   

5.250%, 11/01/29 (EUR)

     3,195,000        4,824,074   

5.500%, 11/01/22 (EUR)

     2,270,000        3,179,090   

Japan Government Five Year Bonds
0.100%, 12/20/19 (JPY)

     139,400,000        1,163,969   

0.300%, 09/20/18 (JPY)

     1,331,600,000        11,173,608   

Japan Government Ten Year Bonds
0.500%, 12/20/24 (JPY)

     555,750,000        4,750,242   

0.800%, 09/20/22 (JPY)

     78,700,000        687,449   

0.800%, 12/20/22 (JPY)

     274,150,000        2,397,088   

0.800%, 09/20/23 (JPY)

     389,900,000        3,415,433   

1.700%, 03/20/17 (JPY)

     453,750,000        3,854,808   

Japan Government Thirty Year Bonds
1.800%, 09/20/43 (JPY)

     480,350,000        4,519,794   

1.900%, 09/20/42 (JPY)

     268,850,000        2,588,203   

2.300%, 03/20/40 (JPY)

     363,450,000        3,765,220   

Japan Government Twenty Year Bonds
1.300%, 06/20/35 (JPY)

     85,800,000        756,899   

1.400%, 12/20/22 (JPY)

     876,300,000        7,965,184   

1.500%, 03/20/33 (JPY)

     90,500,000        840,322   

1.700%, 12/20/31 (JPY)

     561,250,000        5,384,909   

1.700%, 09/20/32 (JPY)

     182,400,000        1,746,727   

1.700%, 09/20/33 (JPY)

     470,300,000        4,479,461   

2.100%, 06/20/29 (JPY)

     555,050,000        5,577,930   

2.100%, 12/20/29 (JPY)

     75,500,000        760,013   

2.500%, 12/21/20 (JPY)

     808,300,000        7,547,160   

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

     21,375,000        1,283,063   

7.250%, 12/15/16 (MXN)

     12,170,000        729,311   

7.750%, 11/13/42 (MXN)

     3,375,000        213,983   

10.000%, 11/20/36 (MXN)

     8,160,000        633,208   

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

     905,000        1,109,532   

3.750%, 01/15/42 (144A) (EUR)

     645,000        1,042,022   

4.500%, 07/15/17 (144A) (EUR)

     1,240,000        1,447,442   

5.500%, 01/15/28 (EUR)

     1,250,000        2,050,069   

Norway Government Bond
3.000%, 03/14/24 (144A) (NOK)

     3,240,000        411,934   

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

     3,610,000        1,036,254   

5.750%, 04/25/29 (PLN)

     1,105,000        353,953   

Singapore Government Bond
2.250%, 06/01/21 (SGD)

     865,000        612,192   

South Africa Government Bonds
6.500%, 02/28/41 (ZAR)

     6,815,000        291,504   

8.250%, 09/15/17 (ZAR)

     12,430,000        801,162   

10.500%, 12/21/26 (ZAR)

     10,465,000        714,584   

Spain Government Bonds
2.750%, 10/31/24 (144A) (EUR)

     2,425,000        2,875,319   

3.150%, 01/31/16 (EUR)

     2,085,000        2,270,883   

3.800%, 01/31/17 (144A) (EUR)

     2,725,000        3,082,810   

4.000%, 04/30/20 (144A) (EUR)

     2,190,000        2,721,747   

4.200%, 01/31/37 (144A) (EUR)

     650,000        868,291   

4.400%, 10/31/23 (144A) (EUR)

     445,000        590,623   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-23

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Foreign Government—(Continued)

 

Security Description   Shares/
Principal
Amount*		     Value  

Sovereign—(Continued)

    

Spain Government Bonds
4.700%, 07/30/41 (144A) (EUR)

     610,000      $ 875,507   

5.850%, 01/31/22 (144A) (EUR)

     2,230,000        3,115,115   

6.000%, 01/31/29 (EUR)

     770,000        1,198,377   

Sweden Government Bonds
1.500%, 11/13/23 (SEK)

     3,330,000        414,561   

5.000%, 12/01/20 (SEK)

     8,685,000        1,264,057   

Switzerland Government Bond
4.000%, 02/11/23 (CHF)

     415,000        541,787   

United Kingdom Gilt
1.750%, 01/22/17 (GBP)

     1,495,000        2,234,487   

2.250%, 09/07/23 (GBP)

     2,630,000        4,012,660   

2.750%, 09/07/24 (GBP)

     1,425,000        2,248,572   

3.250%, 01/22/44 (GBP)

     3,105,000        5,094,682   

3.750%, 09/07/20 (GBP)

     1,395,000        2,288,533   

4.250%, 09/07/39 (GBP)

     2,150,000        4,067,192   

4.500%, 12/07/42 (GBP)

     275,000        549,634   

8.000%, 06/07/21 (GBP)

     1,170,000        2,317,788   
   

 

 

  

Total Foreign Government
(Cost $262,079,045)

       228,699,694   
   

 

 

  
Mutual Funds—1.3%   

Investment Company Securities—1.3%

  

F&C Commercial Property Trust, Ltd.

     56,950        112,834   

F&C UK Real Estate Investment, Ltd.

     25,250        37,876   

MedicX Fund, Ltd.

     39,033        48,762   

Picton Property Income, Ltd.

     58,300        60,772   

Schroder Real Estate Investment Trust, Ltd.

     56,000        49,043   

Standard Life Investment Property Income Trust, Ltd.

     31,140        38,722   

UK Commercial Property Trust, Ltd.

     65,950        82,866   

Vanguard REIT ETF (a)

     848,932        67,685,348   
   

 

 

  

Total Mutual Funds
(Cost $67,003,945)

       68,116,223   
   

 

 

  
Preferred Stocks—0.1%   

Automobiles—0.1%

    

Bayerische Motoren Werke (BMW) AG

     5,286        442,779   

Porsche Automobil Holding SE

     14,774        800,579   

Volkswagen AG

     17,865        2,588,096   
   

 

 

  
      3,831,454   
   

 

 

  

Chemicals—0.0%

    

FUCHS Petrolub SE

     6,675        315,380   
   

 

 

  

Household Products—0.0%

  

  

Henkel AG & Co. KGaA

     17,190        1,916,205   
   

 

 

  

Total Preferred Stocks
(Cost $6,296,909)

       6,063,039   
   

 

 

  
Rights—0.0%    
Security Description   Shares/
Principal
Amount*		     Value  

Banks—0.0%

    

UBI Banca, Expires 01/12/16 (b)

     87,002      0   
   

 

 

  

Real Estate Investment Trusts—0.0%

  

Ascendas Real Estate Investment Trust, Expires 01/13/16 (b)

     15,236        666   
   

 

 

  

Total Rights
(Cost $0)

       666   
   

 

 

  
Short-Term Investments—27.0%   

Mutual Fund—2.5%

    

State Street Navigator Securities Lending MET Portfolio (j)

     124,262,473        124,262,473   
   

 

 

  

Repurchase Agreement—23.5%

  

Fixed Income Clearing Corp.
Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $1,171,607,460 on 01/04/16, collateralized by $1,164,385,000 U.S. Government Agency Obligations with rates ranging from 0.125% - 3.000%, maturity dates ranging from 04/15/16 - 08/31/20, with a value of $1,195,041,396.

     1,171,603,554        1,171,603,554   
   

 

 

  

U.S. Treasury—1.0%

    

U.S. Treasury Bills
0.262%, 02/25/16 (k)

     50,000,000        49,979,938   
   

 

 

  

Total Short-Term Investments
(Cost $1,345,845,965)

       1,345,845,965   
   

 

 

  

Total Investments—101.7%
(Cost $4,642,663,986) (l)

       5,075,737,955   

Other assets and liabilities (net)—(1.7)%

       (83,978,290 ) 
   

 

 

  
Net Assets—100.0%     $ 4,991,759,665   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of December 31, 2015, the market value of securities loaned was $139,051,432 and the collateral received consisted of cash in the amount of $124,262,473 and non-cash collateral with a value of $20,566,193. 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 Consolidated Statement of Assets and Liabilities.
(b) Non-income producing security.
(c) Security was valued in good faith under procedures approved by the Board of Trustees. As of December 31, 2015, these securities represent less than 0.05% of net assets.

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-24

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

 

 

(d) Illiquid security. As of December 31, 2015, these securities represent 0.0% of net assets.
(e) All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2015, the market value of securities pledged was $107,246,142.
(f) Affiliated Issuer. (See Note 8 of the Notes to Consolidated Financial Statements for a summary of transactions in securities of affiliated issuers.)
(g) Principal amount of security is adjusted for inflation.
(h) All or a portion of the security was pledged as collateral against open centrally cleared swap contracts. As of December 31, 2015, the market value of securities pledged was $62,685,000.
(i) All or a portion of the security was pledged as collateral against open swap contracts. As of December 31, 2015, the market value of securities pledged was $1,589,307.
(j) Represents investment of cash collateral received from securities on loan as of December 31, 2015.
(k) The rate shown represents current yield to maturity.
(l) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $4,671,164,178. The aggregate unrealized appreciation and depreciation of investments were $645,136,413 and $(240,562,636), respectively, resulting in net unrealized appreciation of $404,573,777 for federal income tax purposes.
(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 December 31, 2015, the market value of 144A securities was $31,335,545, which is 0.6% 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
(CHF)— Swiss Franc
(DKK)— Danish Krone
(ETF)— Exchange-Traded Fund
(EUR)— Euro
(GBP)— British Pound
(JPY)— Japanese Yen
(MXN)— Mexican Peso
(NOK)— Norwegian Krone
(PLN)— Polish Zloty
(SEK)— Swedish Krona
(SGD)— Singapore Dollar
(ZAR)— South African Rand

 

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy

     

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  
AUD     21,331,909      

HSBC Bank USA

        03/18/16         $ 15,298,179         $ 190,551   
DKK     327,800      

State Street Bank and Trust

        01/07/16           46,866           871   
DKK     500,000      

State Street Bank and Trust

        01/07/16           71,884           931   
EUR     1,488,173      

BNP Paribas S.A.

        01/27/16           1,617,151           1,005   
EUR     656,834      

HSBC Bank USA

        01/27/16           719,601           (5,397 ) 
EUR     721,789      

State Street Bank and Trust

        01/27/16           790,912           (6,079 ) 
EUR     16,225,750      

BNP Paribas S.A.

        03/18/16           17,806,683           (140,719 ) 
EUR     82,056,856      

BNP Paribas S.A.

        03/18/16           90,051,951           (711,646 ) 
EUR     71,258,000      

UBS AG

        03/18/16           76,488,897           1,094,035   
GBP     13,047,358      

Royal Bank of Scotland plc

        03/18/16           19,564,383           (327,614 ) 
JPY     43,416,486      

State Street Bank and Trust

        02/10/16           361,188           299   
JPY     6,994,486,000      

Credit Suisse International

        03/18/16           56,964,385           1,329,406   
JPY     408,672,798      

Royal Bank of Scotland plc

        03/18/16           3,324,119           81,862   
JPY     6,159,180,000      

Royal Bank of Scotland plc

        03/18/16           50,260,270           1,071,873   
SEK     49,950      

State Street Bank and Trust

        01/07/16           5,752           166   

Contracts to Deliver

                                  
AUD     6,308,272      

BNP Paribas S.A.

        02/05/16         $ 4,529,118         $ (60,717 ) 
AUD     94,871,822      

Royal Bank of Scotland plc

        03/18/16           68,622,117           (262,670 ) 
CAD     5,681,395      

HSBC Bank USA

        01/14/16           4,268,516           162,513   
CAD     6,530,000      

BNP Paribas S.A.

        03/18/16           4,838,264           118,094   
CHF     539,380      

Deutsche Bank AG

        01/14/16           533,472           (5,249 ) 
CHF     23,516,321      

UBS AG

        03/18/16           22,998,310           (553,648 ) 
DKK     13,970,728      

Goldman Sachs International

        01/07/16           2,056,291           21,750   
EUR     658,025      

Barclays Bank plc

        01/27/16           723,649           8,151   
EUR     102,783,905      

Citibank N.A.

        01/27/16           109,295,573           (2,465,834 ) 
EUR     630,007      

JPMorgan Chase Bank N.A.

        01/27/16           666,642           (18,392 ) 
EUR     3,196,352      

State Street Bank and Trust

        01/27/16           3,471,670           (3,863 ) 
EUR     707,378      

State Street Bank and Trust

        01/27/16           773,274           4,111   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-25

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Forward Foreign Currency Exchange Contracts—(Continued)

 

Contracts to Deliver

     

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  
EUR     145,429      

State Street Bank and Trust

        01/27/16         $ 153,902         $ (4,229 ) 
EUR     26,675,432      

BNP Paribas S.A.

        03/18/16           29,079,979           36,809   
EUR     20,394,319      

BNP Paribas S.A.

        03/18/16           22,232,681           28,142   
EUR     37,002,681      

Bank of America N.A.

        03/18/16           39,942,063           (345,013 ) 
EUR     55,314,523      

Credit Suisse International

        03/18/16           60,327,371           103,075   
EUR     13,861,000      

Royal Bank of Scotland plc

        03/18/16           15,175,439           84,122   
EUR     66,901      

State Street Bank and Trust

        03/18/16           72,611           (228 ) 
GBP     15,758,938      

BNP Paribas S.A.

        01/28/16           23,908,279           674,929   
GBP     31,069,147      

Deutsche Bank AG

        03/18/16           46,830,525           1,022,785   
GBP     24,543,325      

UBS AG

        03/18/16           37,104,366           918,169   
JPY     74,151,556      

Barclays Bank plc

        02/10/16           613,858           (3,530 ) 
JPY     8,812,859,311      

State Street Bank and Trust

        02/10/16           72,257,281           (1,118,768 ) 
JPY     11,616,484,000      

Barclays Bank plc

        03/18/16           95,926,308           (888,368 ) 
MXN     51,490,886      

Citibank N.A.

        01/15/16           3,058,344           72,872   
NOK     3,389,307      

State Street Bank and Trust

        01/07/16           397,331           14,436   
PLN     5,166,431      

State Street Bank and Trust

        01/29/16           1,298,930           (17,419 ) 
SEK     13,363,391      

HSBC Bank USA

        01/07/16           1,562,879           (20,278 ) 
SGD     871,442      

State Street Bank and Trust

        01/08/16           619,809           5,281   
ZAR     25,272,276      

Standard Chartered Bank

        01/21/16           1,787,688           158,199   
ZAR     5,127,520      

State Street Bank and Trust

        01/21/16           352,128           21,518   
                   

 

 

  

Net Unrealized Appreciation

  

      $ 266,294   
                   

 

 

  

Futures Contracts

 

Futures Contracts—Long

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

Australian 10 Year Treasury Bond Futures

      03/15/16         750        AUD         95,246,895      $ (56,576 ) 

Canada Government Bond 10 Year Futures

      03/21/16         23        CAD         3,179,236        45,916   

Euro Stoxx 50 Index Futures

      03/18/16         2,480        EUR         78,636,616        2,996,152   

Euro-Bund Futures

      03/08/16         240        EUR         38,196,048        (320,861 ) 

MSCI EAFE Mini Index Futures

      03/18/16         31        USD         2,631,000        1,210   

S&P 500 E-Mini Index Futures

      03/18/16         2,090        USD         214,509,227        (1,809,927 ) 

TOPIX Index Futures

      03/10/16         608        JPY         9,656,693,760        (2,062,430 ) 

U.S. Treasury Note 10 Year Futures

      03/21/16         2,542        USD         321,565,807        (1,512,120 ) 

U.S. Treasury Note 5 Year Futures

      03/31/16         3,672        USD         435,616,837        (1,144,648 ) 

Futures Contracts—Short

                                 

FTSE 100 Index Futures

      03/18/16         (728 )      GBP         (43,104,167 )      (2,973,865 ) 

Hang Seng Index Futures

      01/28/16         (282 )      HKD         (313,592,460 )      601,475   

Japanese Government 10 Year Bond Futures

      03/14/16         (89 )      JPY         (13,238,691,260 )      (215,223 ) 

SPI 200 Index Futures

      03/17/16         (343 )      AUD         (42,145,165 )      (2,137,722 ) 

United Kingdom Long Gilt Bond Futures

      03/29/16         (211 )      GBP         (24,750,054 )      164,498   
            

 

 

  

Net Unrealized Depreciation

  

   $ (8,424,121 ) 
            

 

 

  

Swap Agreements

OTC Total Return Swaps

 

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		  

Pay

   3M LIBOR     0.437 %    02/08/16   Citibank N.A.   S&P 400 Midcap Total Return Index     USD        132,965,116      $ (1,996,101 )    $ —      $ (1,996,101 ) 

Pay

   3M LIBOR     1.000 %    03/18/16   Goldman Sachs International   Russell 2000 Total Return Index     USD        53,583,381        (809,260 )      —        (809,260 ) 

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-26

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Swap Agreements—(Continued)

 

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		  

Pay

   3M LIBOR     1.000 %    04/20/16   Goldman Sachs International   Russell 2000 Total Return Index     USD        265,984      $ (5,263 )    $ —      $ (5,263 ) 

Pay

   3M LIBOR     0.407 %    04/20/16   Goldman Sachs International   S&P 400 Midcap Total Return Index     USD        8,932,357        (185,727 )      —        (185,727 ) 

Pay

   3M LIBOR     1.000 %    04/20/16   Goldman Sachs International   Russell 2000 Total Return Index     USD        92,412,710        (1,828,725 )      —        (1,828,725 ) 
               

 

 

    

 

 

    

 

 

  

Totals

  

   $ (4,825,076 )    $ —      $ (4,825,076 ) 
               

 

 

    

 

 

    

 

 

  

Centrally Cleared Interest Rate Swaps

 

Pay/Receive Floating Rate

    Floating
Rate Index		      Fixed
Rate		     Maturity
Date		      Notional
Amount		      Unrealized
Appreciation		  

Pay

      3M LIBOR         2.185 %      12/24/25         USD         1,242,000,000       $ 335,959   
                

 

 

  

Centrally Cleared Credit Default Swaps on Credit Indices—Sell Protection (a)

 

Reference Obligation

    Fixed Deal
Receive Rate		      Maturity
Date		     

Implied Credit
Spread at
December 31,
2015(b)

    Notional
Amount(c)		      Unrealized
Appreciation/
(Depreciation)		  

CDX.NA.HY.25

      5.000%         12/20/20       4.726%      USD         11,467,000       $ 158,279   

CDX.NA.HY.25

      5.000%         12/20/20       4.726%      USD         11,465,000         178,889   

CDX.NA.HY.25

      5.000%         12/20/20       4.726%      USD         60,890,000         (419,960 ) 

CDX.NA.HY.25

      5.000%         12/20/20       4.726%      USD         11,465,000         146,786   

CDX.NA.HY.25

      5.000%         12/20/20       4.726%      USD         11,465,000         (174,234 ) 
                 

 

 

  

Net Unrealized Depreciation

  

    $ (110,240 ) 
                 

 

 

  

 

(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 of purchased protection credit default swap contracts entered into by the Portfolio for the same referenced debt obligation.

Securities in the amount of $332,857 have been received at the custodian bank as collateral for OTC swap contracts.

 

(AUD)— Australian Dollar
(CAD)— Canadian Dollar
(CHF)— Swiss Franc
(DKK)— Danish Krone
(EUR)— Euro
(GBP)— British Pound
(HKD)— Hong Kong Dollar
(JPY)— Japanese Yen
(MXN)— Mexican Peso
(NOK)— Norwegian Krone
(PLN)— Polish Zloty

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-27

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

 

 

(SEK)—           Swedish Krona
(SGD)—           Singapore Dollar
(USD)—           United States Dollar
(ZAR)—           South African Rand
(CDX.NA.HY)— Markit North America High Yield CDS Index
(LIBOR)—           London Interbank Offered Rate

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2      Level 3      Total  
Common Stocks            

Aerospace & Defense

    $ 28,516,555       $ 12,419,802       $ —         $ 40,936,357   

Air Freight & Logistics

      7,167,554         4,667,384         —           11,834,938   

Airlines

      7,069,193         2,923,068         —           9,992,261   

Auto Components

      3,983,888         15,703,812         —           19,687,700   

Automobiles

      6,562,144         45,548,565         —           52,110,709   

Banks

      63,386,304         148,794,943         0         212,181,247   

Beverages

      24,109,327         31,836,002         —           55,945,329   

Biotechnology

      39,077,141         5,439,928         —           44,517,069   

Building Products

      925,089         8,469,448         —           9,394,537   

Capital Markets

      22,059,764         23,697,863         —           45,757,627   

Chemicals

      22,249,538         40,899,379         —           63,148,917   

Commercial Services & Supplies

      4,311,985         7,090,674         —           11,402,659   

Communications Equipment

      15,857,236         5,358,304         —           21,215,540   

Construction & Engineering

      935,000         8,955,895         —           9,890,895   

Construction Materials

      1,270,318         7,205,168         —           8,475,486   

Consumer Finance

      8,772,072         1,387,512         —           10,159,584   

Containers & Packaging

      3,206,843         1,993,344         —           5,200,187   

Distributors

      757,121         273,284         —           1,030,405   

Diversified Consumer Services

      454,848         185,838         —           640,686   

Diversified Financial Services

      21,079,686         14,451,955         —           35,531,641   

Diversified Telecommunication Services

      25,208,414         37,122,969         —           62,331,383   

Electric Utilities

      17,838,624         21,081,586         —           38,920,210   

Electrical Equipment

      4,772,347         14,529,922         —           19,302,269   

Electronic Equipment, Instruments & Components

      3,964,881         14,990,002         —           18,954,883   

Energy Equipment & Services

      10,663,120         2,205,956         —           12,869,076   

Food & Staples Retailing

      24,719,791         19,423,202         —           44,142,993   

Food Products

      17,955,687         38,364,569         —           56,320,256   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-28

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Fair Value Hierarchy—(Continued)

 

Description    Level 1      Level 2     Level 3      Total  

Gas Utilities

    $ 442,203       $ 6,232,122      $ —         $ 6,674,325   

Health Care Equipment & Supplies

      22,396,948         11,108,817        —           33,505,765   

Health Care Providers & Services

      28,831,232         7,150,529        —           35,981,761   

Health Care Technology

      1,068,619         387,360        —           1,455,979   

Hotels, Restaurants & Leisure

      19,637,813         14,626,832        —           34,264,645   

Household Durables

      4,462,222         12,153,523        —           16,615,745   

Household Products

      20,256,744         9,012,404        —           29,269,148   

Independent Power and Renewable Electricity Producers

      603,694         1,038,072        —           1,641,766   

Industrial Conglomerates

      26,846,350         16,146,414        —           42,992,764   

Insurance

      29,252,836         69,211,339        —           98,464,175   

Internet & Catalog Retail

      22,980,703         1,359,591        —           24,340,294   

Internet Software & Services

      44,342,521         2,112,420        —           46,454,941   

IT Services

      38,412,793         7,011,600        —           45,424,393   

Leisure Products

      971,909         2,268,028        —           3,239,937   

Life Sciences Tools & Services

      6,689,318         1,405,476        —           8,094,794   

Machinery

      12,295,501         27,585,912        —           39,881,413   

Marine

      —           2,707,200        —           2,707,200   

Media

      31,985,994         22,944,949        —           54,930,943   

Metals & Mining

      2,489,038         22,158,913        —           24,647,951   

Multi-Utilities

      11,974,666         14,259,297        —           26,233,963   

Multiline Retail

      6,534,127         4,952,316        —           11,486,443   

Oil, Gas & Consumable Fuels

      56,795,553         51,498,693        —           108,294,246   

Paper & Forest Products

      —           2,425,610        —           2,425,610   

Personal Products

      1,155,347         20,523,685        —           21,679,032   

Pharmaceuticals

      60,051,101         114,474,578        —           174,525,679   

Professional Services

      3,022,096         7,558,156        —           10,580,252   

Real Estate Investment Trusts

      105,190,084         53,173,948        —           158,364,032   

Real Estate Management & Development

      1,305,482         49,763,980        —           51,069,462   

Road & Rail

      7,928,128         14,988,049        —           22,916,177   

Semiconductors & Semiconductor Equipment

      26,735,141         8,655,444        —           35,390,585   

Software

      46,650,272         12,746,489        —           59,396,761   

Specialty Retail

      27,548,660         12,964,016        —           40,512,676   

Technology Hardware, Storage & Peripherals

      42,948,464         7,567,970        —           50,516,434   

Textiles, Apparel & Luxury Goods

      9,470,124         18,781,885        —           28,252,009   

Tobacco

      16,727,023         19,368,834        —           36,095,857   

Trading Companies & Distributors

      2,164,883         13,333,672        —           15,498,555   

Transportation Infrastructure

      78,294         6,772,820        —           6,851,114   

Water Utilities

      —           1,632,984        —           1,632,984   

Wireless Telecommunication Services

      —           20,908,163        —           20,908,163   

Total Common Stocks

      1,127,120,353         1,227,992,464        0         2,355,112,817   

Total U.S. Treasury & Government Agencies*

      —           1,071,899,551        —           1,071,899,551   

Total Foreign Government*

      —           228,699,694        —           228,699,694   
Mutual Funds           

Investment Company Securities

      67,685,348         430,875        —           68,116,223   

Total Preferred Stocks*

      —           6,063,039        —           6,063,039   

Total Rights*

      666         —          —           666   
Short-Term Investments           

Mutual Fund

      124,262,473         —          —           124,262,473   

Repurchase Agreement

      —           1,171,603,554        —           1,171,603,554   

U.S. Treasury

      —           49,979,938        —           49,979,938   

Total Short-Term Investments

      124,262,473         1,221,583,492        —           1,345,845,965   

Total Investments

    $ 1,319,068,840       $ 3,756,669,115      $ 0       $ 5,075,737,955   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (124,262,473 )    $ —         $ (124,262,473 ) 
Forward Contracts           

Forward Foreign Currency Exchange Contracts (Unrealized Appreciation)

    $ —         $ 7,225,955      $ —         $ 7,225,955   

Forward Foreign Currency Exchange Contracts (Unrealized Depreciation)

      —           (6,959,661 )      —           (6,959,661 ) 

Total Forward Contracts

    $ —         $ 266,294      $ —         $ 266,294   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-29

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Fair Value Hierarchy—(Continued)

 

Description    Level 1     Level 2     Level 3      Total  
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 3,809,251      $ —        $ —         $ 3,809,251   

Futures Contracts (Unrealized Depreciation)

      (12,233,372 )      —          —           (12,233,372 ) 

Total Futures Contracts

    $ (8,424,121 )    $ —        $ —         $ (8,424,121 ) 
Centrally Cleared Swap Contracts          

Centrally Cleared Swap Contracts (Unrealized Appreciation)

    $ —        $ 819,913      $ —         $ 819,913   

Centrally Cleared Swap Contracts (Unrealized Depreciation)

      —          (594,194 )      —           (594,194 ) 

Total Centrally Cleared Swap Contracts

    $ —        $ 225,719      $ —         $ 225,719   
OTC Swap Contracts          

OTC Swap Contracts at Value (Liabilities)

    $ —        $ (4,825,076 )    $ —         $ (4,825,076 ) 

 

* See Consolidated Schedule of Investments for additional detailed categorizations.

Transfers from Level 1 to Level 2 in the amount of $6,559,878 were due to the application of a systematic fair valuation model factor. Transfers from Level 2 to Level 1 in the amount of $958,434 were due to the discontinuation of a systematic fair valuation model factor.

As of December 31, 2015, 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 change in the valuation techniques used since the December 31, 2014 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 December 31, 2015 have not been presented.

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-30

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 3,901,016,419   

Affiliated investments at value (c)

      3,117,982   

Repurchase Agreement

      1,171,603,554   

Cash

      13,018,031   

Cash denominated in foreign currencies (d)

      8,329,752   

Cash collateral for centrally cleared swap contracts

      7,099,943   

Unrealized appreciation on forward foreign currency exchange contracts

      7,225,955   

Receivable for:

   

Investments sold

      24,501   

Fund shares sold

      679,457   

Dividends and interest

      12,981,494   

Variation margin on futures contracts

      1,806,420   

Interest on OTC swap contracts

      59,180   

Variation margin on centrally cleared swap contracts

      8,181,337   

Prepaid expenses

      13,956  
  

 

 

  

Total Assets

      5,135,157,981  

Liabilities

   

OTC swap contracts at market value

      4,825,076   

Unrealized depreciation on forward foreign currency exchange contracts

      6,959,661   

Collateral for securities loaned

      124,262,473   

Payables for:

   

Investments purchased

      3,017   

Fund shares redeemed

      294,807   

Variation margin on futures contracts

      2,615,407   

Interest on OTC swap contracts

      76,636   

Accrued Expenses:

   

Management fees

      2,526,375   

Distribution and service fees

      1,066,261   

Deferred trustees’ fees

      64,810   

Other expenses

      703,793  
  

 

 

  

Total Liabilities

      143,398,316  
  

 

 

  

Net Assets

    $ 4,991,759,665  
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 4,461,804,140   

Undistributed net investment income

      75,255,290   

Accumulated net realized gain

      34,590,485   

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

      420,109,750  
  

 

 

  

Net Assets

    $ 4,991,759,665  
  

 

 

  

Net Assets

   

Class B

    $ 4,991,759,665   

Capital Shares Outstanding*

   

Class B

      449,247,636   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 11.11   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding repurchase agreement and affiliated investments, was $3,468,765,856.
(b) Includes securities loaned at value of $139,051,432.
(c) Identified cost of affiliated investments was $2,294,576.
(d) Identified cost of cash denominated in foreign currencies was $8,352,355.

 

Consolidated§ Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends (a)

    $ 67,844,834   

Dividends from affiliated investments

      93,966   

Interest

      21,354,622   

Securities lending income

      1,591,139   
  

 

 

  

Total investment income

      90,884,561   

Expenses

   

Management fees

      31,564,495   

Administration fees

      170,351   

Custodian and accounting fees

      1,080,643   

Distribution and service fees—Class B

      12,943,539   

Audit and tax services

      93,982   

Legal

      30,995   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      174,396   

Insurance

      33,125   

Miscellaneous

      56,594   
  

 

 

  

Total expenses

      46,183,293   

Less management fee waiver

      (946,728 ) 
  

 

 

  

Net expenses

      45,236,565   
  

 

 

  

Net Investment Income

      45,647,996   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      11,075,610   

Futures contracts

      20,482,871   

Written options

      2,876,782   

Swap contracts

      52,794,986   

Foreign currency transactions

      33,380,051   
  

 

 

  

Net realized gain

      120,610,300   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (96,152,281 ) 

Affiliated investments

      (372,251 ) 

Futures contracts

      (8,646,677 ) 

Swap contracts

      (19,524,304 ) 

Foreign currency transactions

      (10,147,362 ) 
  

 

 

  

Net change in unrealized depreciation

      (134,842,875 ) 
  

 

 

  

Net realized and unrealized loss

      (14,232,575 ) 
  

 

 

  

Net Increase in Net Assets From Operations

    $ 31,415,421   
  

 

 

  

 

(a) Net of foreign withholding taxes of $3,556,966.

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-31

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 45,647,996      $ 59,299,844   

Net realized gain

      120,610,300        265,785,061   

Net change in unrealized appreciation (depreciation)

      (134,842,875 )      40,676,400   
  

 

 

    

 

 

  

Increase in net assets from operations

      31,415,421        365,761,305   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (169,604,727 )      (100,095,595 ) 

Net realized capital gains

     

Class B

      (180,740,390 )      (99,658,496 ) 
  

 

 

    

 

 

  

Total distributions

      (350,345,117 )      (199,754,091 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      115,396,701        (35,057,760 ) 
  

 

 

    

 

 

  

Total increase (decrease) in net assets

      (203,532,995 )      130,949,454   

Net Assets

     

Beginning of period

      5,195,292,660        5,064,343,206   
  

 

 

    

 

 

  

End of period

    $ 4,991,759,665      $ 5,195,292,660   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 75,255,290      $ 136,260,872   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      12,323,841      $ 141,092,410        6,780,832      $ 78,462,208   

Reinvestments

      30,786,038        350,345,117        17,851,125        199,754,091   

Redemptions

      (32,503,623 )      (376,040,826 )      (27,007,767 )      (313,274,059 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      10,606,256      $ 115,396,701        (2,375,810 )    $ (35,057,760 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ 115,396,701        $ (35,057,760 ) 
    

 

 

      

 

 

  

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-32

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Consolidated§ Financial Highlights

 

Selected per share data                                  
     Class B  
     Year Ended December 31,  
     2015      2014      2013      2012     2011(a)  

Net Asset Value, Beginning of Period

    $ 11.84       $ 11.48       $ 10.70       $ 9.73      $ 10.00   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (b)

      0.10         0.13         0.08         0.05        0.01   

Net realized and unrealized gain (loss) on investments

      (0.01 )       0.69         1.09         0.93        (0.18 )(c) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total from investment operations

      0.09         0.82         1.17         0.98        (0.17 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.40 )       (0.23 )       (0.15 )       (0.01 )      (0.04 ) 

Distributions from net realized capital gains

      (0.42 )       (0.23 )       (0.24 )       (0.00 )(d)      (0.06 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

      (0.82 )       (0.46 )       (0.39 )       (0.01 )      (0.10 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 11.11       $ 11.84       $ 11.48       $ 10.70      $ 9.73   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Return (%) (f)

      0.58         7.35         11.15         10.09        (1.72 )(e) 

Ratios/Supplemental Data

              

Gross ratio of expenses to average net assets (%)

      0.89         0.90         0.89         0.91        1.01  (g) 

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

      0.87         0.88         0.88         0.91        0.97  (g) 

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

      0.88         1.15         0.74         0.52        0.13  (g) 

Portfolio turnover rate (%)

      34         37         29         35        15  (e) 

Net assets, end of period (in millions)

    $ 4,991.8       $ 5,195.3       $ 5,064.3       $ 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) Periods less than one year are not computed on an annualized basis.
(f) 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.
(g) Computed on an annualized basis.
(h) Includes the effects of management fee waivers (see Note 7 of the Notes to Consolidated Financial Statements).

See accompanying notes to consolidated financial statements.

 

MIST-33

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is AB 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 include 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
December 31, 2015		      % of
Total Assets at
December 31, 2015		  

AllianceBernstein Global Dynamic Allocation Portfolio, Ltd.

      5/2/2012       $ 63,314,778         1.2 % 

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 December 31, 2015 through the date the consolidated financial statements were issued.

 

MIST-34

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946- Financial Services- Investment Companies. 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, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 and subject to general oversight by the Board. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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 through an independent pricing service based on the mean between closing bid and ask prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or broker-dealer. These contracts are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

Options, including swaptions, and futures contracts that are traded OTC are generally valued on the basis of quotations provided by broker-dealers or prices provided by 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, yield curves, credit curves, measures of volatility and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts (other than centrally cleared swaps) are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and other pricing services. Such quotations and prices are derived utilizing observable data, including the underlying reference securities or indices, credit spread quotations and expected default recovery rates determined by the pricing service. These contracts are generally categorized as Level 2 within the fair value hierarchy.

 

MIST-35

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or an independent pricing service when the exchange price is not available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third party prices are used to produce daily settlement prices. These securities are categorized as Level 2 within the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates, including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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, deflationary sell adjustments, corporate actions, real estate investment trust (REIT) adjustments, 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.

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-36

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $1,171,603,554, which is reflected as repurchase agreement on the Consolidated Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Consolidated Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Consolidated Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

The following table provides a breakdown of the collateral received and the remaining contractual maturities for securities lending transactions, which are accounted for as secured borrowings.

 

     Remaining Contractual Maturity of the Agreements
As of December 31, 2015		  
      Overnight and
Continuous		     Up to
30 Days		      31 - 90
Days		      Greater than
90 days		     Total  
Securities Lending Transactions             

Common Stocks

    $ (72,618,440 )    $ —       $ —       $ —      $ (72,618,440 ) 

Mutual Funds

      (18,874,253 )      —         —         —        (18,874,253 ) 

U.S. Treasury & Government Agencies

      (32,769,780 )      —         —         —        (32,769,780 ) 

Total

    $ (124,262,473 )    $ —       $ —       $ —      $ (124,262,473 ) 

Total Borrowings

    $ (124,262,473 )    $ —       $ —       $ —      $ (124,262,473 ) 

Gross amount of recognized liabilities for securities lending transactions

  

   $ (124,262,473 ) 

 

MIST-37

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

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 valuation 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 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 cash 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. If futures contracts are exchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

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.

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 investment exposure to a target asset class or to enhance return. Writing puts or buying calls tends to increase the Portfolio’s exposure to the underlying instrument and writing calls or buying puts tends 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 is worthless when it expires and the premium paid for the option is considered a realized loss. The risk associated with writing a call

 

MIST-38

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

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 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 subsequently marked to market to reflect the current value of the option written. 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 either privately negotiated in the OTC market (“OTC swaps”) or 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 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.

Centrally Cleared Swaps: Clearinghouses currently offer clearing derivative transactions which include interest rate and 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.

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 upon entering into the swap agreement 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,

 

MIST-39

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

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 they are 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 be worthless when it expires 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 involving an entity in the index, the credit event is settled based on that entity’s 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 December 31, 2015, 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.

 

MIST-40

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

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: (1) 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”; (2) 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 (3) 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 contract’s 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 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.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of 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 appreciation on centrally cleared swap contracts (a) (b)    $ 335,959         
   Unrealized appreciation on futures contracts (a) (c)      210,414       Unrealized depreciation on futures contracts (a) (c)    $ 3,249,428   
Credit    Unrealized appreciation on centrally cleared swap contracts (a) (b)      483,954       Unrealized depreciation on centrally cleared swap contracts (a) (b)      594,194   
Equity          OTC swap contracts at market value (d)      4,825,076   
   Unrealized appreciation on futures contracts (a) (c)      3,598,837       Unrealized depreciation on futures contracts (a) (c)      8,983,944   
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts      7,225,955       Unrealized depreciation on forward foreign currency exchange contracts      6,959,661   
     

 

 

        

 

 

  
Total       $ 11,855,119          $ 24,612,303   
     

 

 

        

 

 

  

 

  (a) Financial instrument not subject to a master netting agreement.
  (b) 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.
  (c) 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.
  (d) Excludes OTC swap interest receivable of $59,180 and OTC swap interest payable of $76,636.

The Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Consolidated Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized assets and liabilities.

 

MIST-41

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

The following table presents the Portfolio’s derivative assets by counterparty net of amounts available for offset under a master netting agreement (“MNA”) (see Note 5), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Assets
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Received†		      Net Amount*  

Barclays Bank plc

    $ 8,151       $ (8,151 )    $ —       $ —   

BNP Paribas S.A.

      858,979         (858,979 )      —         —   

Citibank N.A.

      72,872         (72,872 )      —         —   

Credit Suisse International

      1,432,481         —        —         1,432,481   

Deutsche Bank AG

      1,022,785         (5,249 )      —         1,017,536   

Goldman Sachs International

      21,750         (21,750 )      —         —   

HSBC Bank USA

      353,064         (25,675 )      —         327,389   

Royal Bank of Scotland plc

      1,237,857         (590,284 )      —         647,573   

Standard Chartered Bank

      158,199         —        —         158,199   

State Street Bank and Trust

      47,613         (47,613 )      —         —   

UBS AG

      2,012,204         (553,648 )      —         1,458,556   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 7,225,955       $ (2,184,221 )    $ —       $ 5,041,734   
  

 

 

     

 

 

    

 

 

     

 

 

  

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under an MNA, or similar agreement, and net of the related collateral pledged by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Liabilities
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Pledged†		     Net Amount**  

Bank of America N.A.

    $ 345,013       $ —      $ —      $ 345,013   

Barclays Bank plc

      891,898         (8,151 )      —        883,747   

BNP Paribas S.A.

      913,082         (858,979 )      —        54,103   

Citibank N.A.

      4,461,935         (72,872 )      (619,628 )      3,769,435   

Deutsche Bank AG

      5,249         (5,249 )      —        —   

Goldman Sachs International

      2,828,975         (21,750 )      (969,679 )      1,837,546   

HSBC Bank USA

      25,675         (25,675 )      —        —   

JPMorgan Chase Bank N.A.

      18,392         —        —        18,392   

Royal Bank of Scotland plc

      590,284         (590,284 )      —        —   

State Street Bank and Trust

      1,150,586         (47,613 )      —        1,102,973   

UBS AG

      553,648         (553,648 )      —        —   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 11,784,737       $ (2,184,221 )    $ (1,589,307 )    $ 8,011,209   
  

 

 

     

 

 

    

 

 

    

 

 

  

 

  * Net amount represents the net amount receivable from the counterparty in the event of default.
  ** Net amount represents the net amount payable due to the counterparty in the event of default.
  † In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

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

    Interest Rate     Credit     Equity     Commodity     Foreign
Exchange		     Total  

Investments (a)

    $ —      $ —      $ (16,624,511 )    $ —      $ —      $ (16,624,511 ) 

Forward foreign currency transactions

      —        —        —        —        28,880,815        28,880,815   

Futures contracts

      (10,971,149 )      —        33,010,315        (1,556,295 )      —        20,482,871   

Swap contracts

      45,753,033        (1,029,199 )      8,071,152        —        —        52,794,986   

Written options

      —        —        2,876,782        —        —        2,876,782   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   $ 34,781,884      $ (1,029,199 )    $ 27,333,738      $ (1,556,295 )    $ 28,880,815      $ 88,410,943   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

    Interest Rate     Credit     Equity     Commodity     Foreign
Exchange		     Total  

Forward foreign currency transactions

    $ —      $ —      $ —      $ —      $ (10,223,806 )    $ (10,223,806 ) 

Futures contracts

      (4,835,804 )      —        (5,783,691 )      1,972,818        —        (8,646,677 ) 

Swap contracts

      (1,142,853 )      (110,240 )      (18,271,211 )      —        —        (19,524,304 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   $ (5,978,657 )    $ (110,240 )    $ (24,054,902 )    $ 1,972,818      $ (10,223,806 )    $ (38,394,787 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

MIST-42

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Investments (a)

    $ 336,120   

Forward foreign currency transactions

      1,074,681,157   

Futures contracts long

      428,695,797   

Futures contracts short

      (119,420,662 ) 

Swap contracts

      1,506,575,116   

 

  ‡ Averages are based on activity levels during 2015.
  (a) Represents purchased options which are part of net realized gain (loss) on investments and net change in unrealized appreciation (depreciation) on investments as shown in the Consolidated Statement of Operations.

Written Options

The Portfolio transactions in written options during the year ended December 31, 2015:

 

Call Options

    Number of
Contracts		      Premium
Received		  

Options outstanding December 31, 2014

      —       $ —   

Options written

      128,600         3,191,852   

Options bought back

      (128,600 )       (3,191,852 ) 
  

 

 

     

 

 

  

Options outstanding December 31, 2015

      —       $ —   
  

 

 

     

 

 

  

5. Certain Risks

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”).

Market 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, interest rate, and price fluctuations.

Commodities Risk: 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 factors affecting a particular industry or commodity.

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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC 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

 

MIST-43

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

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 (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to Portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may 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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$478,795,805    $ 867,854,895       $ 805,896,596       $ 1,128,235,821   

7. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$31,564,495      0.700 %    First $250 million
     0.650 %    $250 million to $500 million
     0.625 %    $500 million to $1 billion
     0.600 %    Over $1 billion

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. The Subadvisor is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

 

MIST-44

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, for the period May 1, 2015 to April 30, 2016, 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%    $2 billion to $3.5 billion
0.030%    $3.5 billion to $5 billion
0.040%    Over $5 billion

An identical agreement was in place for the period January 1, 2015 through April 30, 2015. Amounts waived for the year ended December 31, 2015 are shown as a management fee waiver 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, LLC, 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 year ended December 31, 2015 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 year ended December 31, 2015 is as follows:

 

Security Description

   

Number of
shares held at
December 31, 2014

     

Shares
purchased

     

Shares
sold

     

Number of
shares held at
December 31, 2015

     

Realized
Gain on
shares
sold

     

Income earned
from affiliates
during the
period

  

MetLife, Inc.

      63,375         1,300         0         64,675       $ 0       $ 93,966   

9. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$327,645,494    $ 100,095,595       $ 22,699,623       $ 99,658,496       $ 350,345,117       $ 199,754,091   

 

MIST-45

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

As of December 31, 2015, 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		      Other
Accumulated
Capital Losses		      Total  
$125,449,889    $ 3,631,625       $ 400,938,822       $ —       $ 530,020,336   

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.

As of December 31, 2015, the Portfolio had no accumulated capital losses.

11. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-46

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of AB Global Dynamic Allocation 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 AB Global Dynamic Allocation Portfolio and subsidiary, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, and the consolidated financial highlights for each of the four years in the period then ended and for the period from May 2, 2011 (commencement of operations) to December 31, 2011. These consolidated financial statements and consolidated financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these consolidated financial statements and consolidated 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 consolidated financial highlights referred to above present fairly, in all material respects, the financial position of AB Global Dynamic Allocation Portfolio and subsidiary of the Met Investors Series Trust as of December 31, 2015, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the consolidated financial highlights for each of the four years in the period then ended and for the period from May 2, 2011 (commencement of operations) to December 31, 2011, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-47

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-48

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-49

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

 

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

 

MIST-50

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-51

Met Investors Series Trust

AB Global Dynamic Allocation Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

AB Global Dynamic Allocation Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and AllianceBernstein L.P. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the one-year and since-inception (beginning May 2, 2011) periods ended June 30, 2015, but underperformed the median of its Performance Universe and its Lipper Index for the three-year period ended June 30, 2015. The Board further considered that the Portfolio outperformed its benchmark, the Dow Jones Moderate Index, for the one-year, three-year and since-inception periods ended October 31, 2015 but underperformed its blended index for the same periods.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-l fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also noted that the Portfolio’s contractual sub-advisory fees were below the average of the Sub-advised Expense Group and the average of the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-52

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Managed by Allianz Global Investors U.S. LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class B shares of the Allianz Global Investors Dynamic Multi-Asset Plus Portfolio returned -0.98%. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned -1.21%.

MARKET ENVIRONMENT / CONDITIONS

Over the year, global capital markets digested a myriad of headline concerns. While the fears of a Greek exit from the Eurozone and uncertainty around the U.S. Federal Reserve rate hike dominated the first half of the year, the second half was punctuated by slowing economic growth in China and heightened market volatility. Amidst this backdrop of uncertainty, global equities posted mixed results for the year. U.S. markets as represented by the Russell 3000 Index (+0.48%) ultimately ended the year higher than they began, while international equities as represented by the MSCI EAFE Index in USD (-0.81%) conversely declined. The MSCI EAFE Index (+5.33%) measured in local currency terms posted a positive result, however the dollar strengthened significantly during the period and wiped out those gains. Clearly defined trends were scarce particularly in the latter half of the year, as in the third quarter, global equities (as measured by the MSCI All Country World Index) were whipsawed with a -14% peak-to-trough decline (July 16th to September 29th), only to jump back with a roughly +10% rally by the end of October. The slowdown in China was a widely cited catalyst although there was no single cause for the decline. As the zero interest rate era came to an end in the U.S., the Barclays U.S. Aggregate Bond Index gained +0.55%, while its major constituents posted mixed results. The index’s U.S. MBS (Mortgage Backed Securities) (+1.51%) and U.S. Treasury (+0.84%) constituents gained ground, while corporate issues (-0.68%) declined.

PORTFOLIO REVIEW / PERIOD END POSITIONING

Allianz pursues the Portfolio’s investment objective through a combination of active allocation between asset classes and utilization of actively managed strategies within those asset classes. Allianz allocates the Portfolio’s investments among asset classes in response to changing market, economic, and political factors and events that Allianz believes may affect the value of the Portfolio’s investments. The Portfolio utilizes both quantitative and fundamental research in order to identify trends and turning points in the global markets that inform its decisions about when and where to invest the Portfolio’s assets.

The Portfolio outperformed the Dow Jones Moderate Index benchmark but had a small negative return in 2015 on an absolute basis. Positive contributors to the Portfolio return were its actively managed international equity exposures, a U.S. bond duration exposure, and the underweight positioning to the euro. A negative return contribution came from the actively-managed U.S. equity exposure. Overall, the return contributions were muted as major markets moved sideways for most of the year.

Stock selections of the active equity portfolio management team (particularly in the international portion of the Portfolio) contributed to the overall results. Further, the decision to hedge part of the euro exposure also contributed as the euro declined against the U.S. dollar.

The Portfolio’s total equity exposure was adjusted over the period, with a small overweight earlier in the year, and subsequent underweight in a response to the market correction in August and September. In an effort to reduce the downside risk of the Portfolio, the fund maintained underweights through the end of the year. While some risk mitigation was produced in down markets the overall effect resulted in trailing performance mainly due to the sharp recovery of equity markets during the last quarter.

By the end of 2015, the Portfolio remained underweight equities, primarily resulting from an underweight to developed markets outside the U.S. The international equity exposure remained partially hedged with a short position to the euro vs. the U.S. dollar. In the fixed income portion of the Portfolio, U.S. government bonds also received an underweight, while emerging markets debt in the opportunistic portion of the Portfolio contributed to raise the Portfolio’s overall duration. A modest exposure to real estate was also held in the opportunistic portion of the Portfolio.

 

MIST-1

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Managed by Allianz Global Investors U.S. LLC

Portfolio Manager Commentary*—(Continued)

 

The Portfolio utilizes derivatives to gain exposure to certain asset classes and to conduct tactical views to overweight and underweight certain asset classes relative to the benchmark. The Portfolio utilized derivatives to gain exposure to U.S. equities, international equities, real estate, and fixed income which have provided mixed contributions to absolute performance during the reporting period. The derivatives performed as expected, enabling the Portfolio to gain or reduce exposure to the underlying asset classes in a liquid and cost effective way.

Michael Stamos

Herold Rohweder

Giorgio Carlino

Portfolio Managers

Allianz Global Investors U.S. 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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

 

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

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        Since Inception2  
Allianz Global Investor Dynamic Multi-Asset Plus Portfolio            

Class B

        -0.98           3.15   
Dow Jones Moderate Index        -1.21           1.92   

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 date of the Class B shares is 4/14/2014. Index since inception return is based on the Portfolio’s inception date.

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.

PORFOLIO COMPOSITION AS OF DECEMBER 31, 2015

 

Top Equity Sectors

 

     % of
Net Assets		  
Financials      19.2   
Consumer Discretionary      7.7   
Health Care      7.2   
Information Technology      7.2   
Industrials      5.2   

Top Fixed Income Sectors

 

     % of
Net Assets		  
U.S. Treasury & Government Agencies      23.9   
Cash & Cash Equivalents      13.4   

 

MIST-3

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus 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, July 1, 2015 through December 31, 2015.

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.

 

Allianz Global Investors Dynamic Multi-Asset Plus
Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class B(a)

    Actual      1.20 %     $ 1,000.00         $ 970.60         $ 5.96   
   Hypothetical*      1.20 %     $ 1,000.00         $ 1,019.16         $ 6.11   

* 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 (184 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

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—53.1% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—0.3%

    

General Dynamics Corp.

     812      $ 111,536   

Spirit AeroSystems Holdings, Inc. - Class A (a)

     485        24,284   

Teledyne Technologies, Inc. (a)

     1,907        169,151   
   

 

 

  
      304,971   
   

 

 

  

Air Freight & Logistics—0.8%

    

Atlas Air Worldwide Holdings, Inc. (a)

     901        37,247   

bpost S.A.

     6,138        150,455   

Deutsche Post AG

     18,458        519,806   

FedEx Corp.

     1,837        273,695   

Park-Ohio Holdings Corp.

     396        14,565   
   

 

 

  
      995,768   
   

 

 

  

Airlines—0.3%

    

Air New Zealand, Ltd.

     13,037        26,325   

Alaska Air Group, Inc.

     3,437        276,713   

JetBlue Airways Corp. (a)

     913        20,680   
   

 

 

  
      323,718   
   

 

 

  

Auto Components—0.3%

    

Bridgestone Corp.

     300        10,273   

Cie Automotive S.A.

     4,621        77,359   

Exedy Corp.

     600        14,494   

FCC Co., Ltd.

     4,000        85,103   

Keihin Corp.

     1,800        31,523   

Kongsberg Automotive ASA (a)

     29,173        20,465   

Modine Manufacturing Co. (a)

     1,070        9,683   

Nexteer Automotive Group, Ltd.

     28,000        30,932   

NOK Corp.

     1,400        32,722   

Standard Motor Products, Inc.

     513        19,520   

Takata Corp. (a)

     1,500        9,989   

Toyoda Gosei Co., Ltd.

     800        18,168   

Toyota Boshoku Corp.

     1,600        32,133   
   

 

 

  
      392,364   
   

 

 

  

Automobiles—0.9%

    

Daimler AG

     7,211        601,904   

Peugeot S.A. (a)

     1,006        17,639   

Toyota Motor Corp.

     8,100        497,178   
   

 

 

  
      1,116,721   
   

 

 

  

Banks—5.4%

    

Bancfirst Corp.

     293        17,176   

Banco Santander S.A.

     23,830        116,994   

Bank of Queensland, Ltd.

     3,127        31,505   

Berkshire Hills Bancorp, Inc.

     3,380        98,392   

BNC Bancorp

     846        21,471   

Cathay General Bancorp

     3,135        98,220   

Dah Sing Financial Holdings, Ltd.

     2,000        9,928   

DBS Group Holdings, Ltd.

     14,300        167,417   

DNB ASA

     18,636        229,350   

First Merchants Corp.

     1,222        31,063   

Great Southern Bancorp, Inc.

     432        19,552   

HSBC Holdings plc

     27,299        215,428   

Huntington Bancshares, Inc.

     1,222        13,515   

Banks—(Continued)

    

Iberiabank Corp.

     360      19,825   

Independent Bank Corp./Rockland Trust

     3,378        157,145   

International Bancshares Corp.

     5,763        148,109   

Intesa Sanpaolo S.p.A.

     57,649        192,121   

Mitsubishi UFJ Financial Group, Inc.

     111,600        690,681   

Mizuho Financial Group, Inc.

     350,500        699,680   

National Penn Bancshares, Inc.

     2,364        29,148   

Oversea-Chinese Banking Corp., Ltd.

     26,200        161,928   

Pinnacle Financial Partners, Inc.

     323        16,589   

PNC Financial Services Group, Inc. (The)

     758        72,245   

Renasant Corp.

     4,995        171,878   

Royal Bank of Canada

     9,200        493,012   

Simmons First National Corp. - Class A

     651        33,435   

Southside Bancshares, Inc.

     992        23,828   

Sparebank 1 Nord Norge

     2,534        10,483   

Sumitomo Mitsui Financial Group, Inc.

     16,400        618,646   

Sydbank A/S

     1,767        56,620   

Toronto-Dominion Bank (The)

     12,960        508,022   

UniCredit S.p.A.

     1,976        10,884   

United Overseas Bank, Ltd.

     11,600        159,693   

Wells Fargo & Co.

     20,988        1,140,908   

WesBanco, Inc.

     396        11,888   
   

 

 

  
      6,496,779   
   

 

 

  

Beverages—0.9%

    

Dr Pepper Snapple Group, Inc.

     7,494        698,441   

Heineken Holding NV

     4,338        332,554   
   

 

 

  
      1,030,995   
   

 

 

  

Biotechnology—1.1%

    

AMAG Pharmaceuticals, Inc. (a)

     1,877        56,666   

Amgen, Inc.

     2,233        362,483   

Gilead Sciences, Inc.

     8,025        812,050   

PDL BioPharma, Inc.

     11,902        42,133   
   

 

 

  
      1,273,332   
   

 

 

  

Building Products—0.0%

    

Insteel Industries, Inc.

     1,352        28,284   

Patrick Industries, Inc. (a)

     591        25,708   
   

 

 

  
      53,992   
   

 

 

  

Capital Markets—0.8%

    

3i Group plc

     39,278        276,846   

Arlington Asset Investment Corp. - Class A

     1,498        19,819   

Bank of New York Mellon Corp. (The)

     5,715        235,572   

Cowen Group, Inc. - Class A (a)

     17,980        68,863   

Investec plc

     3,160        22,300   

Morgan Stanley

     10,545        335,437   

Piper Jaffray Cos. (a)

     1,435        57,974   
   

 

 

  
      1,016,811   
   

 

 

  

Chemicals—0.9%

    

A. Schulman, Inc.

     747        22,888   

Borregaard ASA

     10,537        58,643   

Denka Co., Ltd.

     44,000        194,841   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-5

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Chemicals—(Continued)

    

K&S AG

     3,165      $ 82,290   

Kuraray Co., Ltd.

     23,100        279,328   

Minerals Technologies, Inc.

     2,348        107,679   

Yara International ASA

     7,236        311,658   
   

 

 

  
      1,057,327   
   

 

 

  

Commercial Services & Supplies—0.4%

    

ADT Corp. (The)

     4,192        138,252   

Broadspectrum, Ltd. (a)

     9,742        9,871   

Deluxe Corp.

     456        24,870   

Downer EDI, Ltd.

     3,926        10,208   

Multi-Color Corp.

     303        18,122   

Pitney Bowes, Inc.

     9,733        200,987   

Transcontinental, Inc. - Class A

     1,015        12,661   

West Corp.

     979        21,117   
   

 

 

  
      436,088   
   

 

 

  

Communications Equipment—0.5%

    

ARRIS Group, Inc. (a)

     3,177        97,121   

Brocade Communications Systems, Inc.

     15,738        144,475   

Cisco Systems, Inc.

     13,705        372,159   

Comtech Telecommunications Corp.

     389        7,815   
   

 

 

  
      621,570   
   

 

 

  

Construction & Engineering—0.4%

    

ACS Actividades de Construccion y Servicios S.A.

     2,205        64,240   

Boskalis Westminster

     4,963        202,180   

Galliford Try plc

     4,990        112,128   

Peab AB

     13,431        102,854   

Tutor Perini Corp. (a)

     1,032        17,276   

Veidekke ASA

     2,311        28,287   
   

 

 

  
      526,965   
   

 

 

  

Consumer Finance—0.3%

    

Capital One Financial Corp.

     2,754        198,784   

Nelnet, Inc. - Class A

     3,006        100,911   

OneMain Holdings, Inc. (a)

     366        15,204   
   

 

 

  
      314,899   
   

 

 

  

Containers & Packaging—0.0%

    

Smurfit Kappa Group plc

     490        12,505   
   

 

 

  

Diversified Consumer Services—0.0%

    

DeVry Education Group, Inc.

     357        9,036   

EnerCare, Inc.

     1,110        12,803   

Service Corp. International

     530        13,790   
   

 

 

  
      35,629   
   

 

 

  

Diversified Financial Services—0.4%

    

Berkshire Hathaway, Inc. - Class B (a)

     137        18,089   

CME Group, Inc.

     717        64,960   

Heartland Bank, Ltd.

     13,369        12,045   

Diversified Financial Services—(Continued)

  

Voya Financial, Inc.

     9,537      352,011   
   

 

 

  
      447,105   
   

 

 

  

Diversified Telecommunication Services—2.4%

  

AT&T, Inc.

     28,105        967,093   

BCE, Inc.

     4,569        176,526   

BT Group plc

     70,929        490,205   

CenturyLink, Inc.

     16,323        410,687   

Consolidated Communications Holdings, Inc.

     4,657        97,564   

Frontier Communications Corp.

     5,430        25,358   

General Communication, Inc. - Class A (a)

     3,044        60,210   

IDT Corp. - Class B

     1,360        15,858   

Iridium Communications, Inc. (a)

     1,969        16,559   

Orange S.A.

     34,273        574,975   

PCCW, Ltd.

     53,000        31,048   

Telefonica S.A.

     4,853        53,566   
   

 

 

  
      2,919,649   
   

 

 

  

Electric Utilities—2.7%

    

American Electric Power Co., Inc.

     4,151        241,879   

Duke Energy Corp.

     8,664        618,523   

Entergy Corp.

     3,339        228,254   

Exelon Corp.

     18,599        516,494   

Iberdrola S.A.

     50,405        357,337   

NextEra Energy, Inc.

     6,253        649,624   

Portland General Electric Co.

     815        29,642   

Southern Co. (The)

     14,077        658,663   
   

 

 

  
      3,300,416   
   

 

 

  

Electrical Equipment—0.0%

    

Fujikura, Ltd.

     3,000        16,210   
   

 

 

  

Electronic Equipment, Instruments & Components—1.1%

  

Arrow Electronics, Inc. (a)

     4,653        252,100   

Austria Technologie & Systemtechnik AG

     1,734        27,364   

CDW Corp.

     3,847        161,728   

Citizen Holdings Co., Ltd.

     9,800        70,389   

Corning, Inc.

     1,427        26,086   

E2V Technologies plc

     4,528        15,010   

ePlus, Inc. (a)

     850        79,271   

Flextronics International, Ltd. (a)

     1,071        12,006   

Hitachi, Ltd.

     84,000        475,244   

Jabil Circuit, Inc.

     737        17,165   

Sanmina Corp. (a)

     569        11,710   

SYNNEX Corp.

     2,012        180,939   

Taiyo Yuden Co., Ltd.

     1,700        23,498   

Wasion Group Holdings, Ltd.

     16,000        16,391   
   

 

 

  
      1,368,901   
   

 

 

  

Energy Equipment & Services—0.1%

    

Atwood Oceanics, Inc.

     617        6,312   

BW Offshore, Ltd.

     21,433        6,137   

Helix Energy Solutions Group, Inc. (a)

     3,261        17,153   

Seadrill, Ltd. (a)

     11,502        39,593   
   

 

 

  
      69,195   
   

 

 

  

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-6

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Food & Staples Retailing—1.3%

    

CVS Health Corp.

     8,064      $ 788,417   

Delhaize Group S.A.

     3,202        311,900   

George Weston, Ltd.

     157        12,134   

Ingles Markets, Inc. - Class A

     1,338        58,979   

Kroger Co. (The)

     9,248        386,844   

Rallye S.A.

     1,522        23,649   
   

 

 

  
      1,581,923   
   

 

 

  

Food Products—1.4%

    

Archer-Daniels-Midland Co.

     13,027        477,830   

Aryzta AG (a)

     255        12,469   

Bunge, Ltd.

     2,666        182,034   

Cal-Maine Foods, Inc.

     3,828        177,390   

John B Sanfilippo & Son, Inc.

     2,048        110,653   

Leroy Seafood Group ASA

     1,460        54,374   

Pilgrim’s Pride Corp.

     606        13,387   

Sanderson Farms, Inc.

     2,274        176,280   

Tassal Group, Ltd.

     6,685        22,798   

Tyson Foods, Inc. - Class A

     8,594        458,318   
   

 

 

  
      1,685,533   
   

 

 

  

Gas Utilities—0.3%

    

Atmos Energy Corp.

     1,938        122,171   

UGI Corp.

     8,384        283,044   
   

 

 

  
      405,215   
   

 

 

  

Health Care Equipment & Supplies—0.0%

  

Inogen, Inc. (a)

     903        36,201   
   

 

 

  

Health Care Providers & Services—3.1%

    

Aetna, Inc.

     6,421        694,238   

Amsurg Corp. (a)

     1,531        116,356   

Anthem, Inc.

     4,479        624,552   

Cardinal Health, Inc.

     2,999        267,721   

Centene Corp. (a)

     218        14,346   

Cigna Corp.

     5,296        774,964   

HealthSouth Corp.

     696        24,228   

Kindred Healthcare, Inc.

     691        8,230   

LifePoint Health, Inc. (a)

     272        19,965   

Providence Service Corp. (The) (a)

     618        28,996   

Quest Diagnostics, Inc.

     8,076        574,527   

Triple-S Management Corp. - Class B (a)

     4,346        103,913   

UnitedHealth Group, Inc.

     4,534        533,380   
   

 

 

  
      3,785,416   
   

 

 

  

Hotels, Restaurants & Leisure—0.5%

    

Carnival plc

     5,278        299,672   

Greene King plc

     8,023        109,485   

Marriott Vacations Worldwide Corp.

     254        14,465   

Royal Caribbean Cruises, Ltd.

     244        24,695   

Star Entertainment Grp, Ltd. (The)

     45,506        167,487   
   

 

 

  
      615,804   
   

 

 

  

Household Durables—1.1%

    

Barratt Developments plc

     27,043        247,816   

Household Durables—(Continued)

    

Bellway plc

     3,378      140,861   

Berkeley Group Holdings plc

     3,866        210,074   

Libbey, Inc.

     761        16,225   

Persimmon plc (a)

     12,576        375,568   

Tamron Co., Ltd.

     1,500        27,616   

Taylor Wimpey plc

     95,642        285,603   
   

 

 

  
      1,303,763   
   

 

 

  

Household Products—0.1%

    

HRG Group, Inc. (a)

     8,752        118,677   
   

 

 

  

Industrial Conglomerates—0.2%

    

3M Co.

     1,877        282,751   

General Electric Co.

     519        16,167   
   

 

 

  
      298,918   
   

 

 

  

Insurance—3.8%

    

ACE, Ltd.

     5,623        657,047   

Allstate Corp. (The)

     8,748        543,163   

American International Group, Inc.

     4,628        286,797   

Aviva plc

     2,268        17,137   

Direct Line Insurance Group plc

     37,743        225,450   

Endurance Specialty Holdings, Ltd.

     3,006        192,354   

Everest Re Group, Ltd.

     3,196        585,156   

Federated National Holding Co.

     525        15,519   

Muenchener Rueckversicherungs-Gesellschaft AG

     775        155,213   

Navigators Group, Inc. (The) (a)

     299        25,651   

Reinsurance Group of America, Inc.

     3,237        276,925   

Selective Insurance Group, Inc.

     746        25,051   

Swiss Re AG

     5,100        496,119   

Travelers Cos., Inc. (The)

     5,941        670,501   

Zurich Insurance Group AG (a)

     1,711        436,578   
   

 

 

  
      4,608,661   
   

 

 

  

Internet Software & Services—0.5%

    

Alphabet, Inc. - Class A (a)

     35        27,230   

DHI Group, Inc. (a)

     3,408        31,251   

Facebook, Inc. - Class A (a)

     1,837        192,261   

j2 Global, Inc.

     4,243        349,284   
   

 

 

  
      600,026   
   

 

 

  

IT Services—1.2%

    

Atea ASA

     2,196        18,130   

Bechtle AG

     1,342        128,371   

Booz Allen Hamilton Holding Corp.

     1,804        55,653   

Cardtronics, Inc. (a)

     2,046        68,848   

CGI Group, Inc. - Class A (a)

     315        12,612   

Convergys Corp.

     8,642        215,099   

Euronet Worldwide, Inc. (a)

     1,156        83,729   

Itochu Techno-Solutions Corp.

     800        15,985   

NeuStar, Inc. - Class A (a)

     4,220        101,153   

NS Solutions Corp.

     4,400        99,916   

Science Applications International Corp.

     570        26,095   

Sykes Enterprises, Inc. (a)

     4,419        136,017   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-7

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

IT Services—(Continued)

    

Western Union Co. (The)

     29,807      $ 533,843   
   

 

 

  
      1,495,451   
   

 

 

  

Machinery—1.1%

    

American Railcar Industries, Inc.

     1,537        71,132   

CKD Corp.

     9,500        94,363   

Duerr AG

     1,433        114,335   

FreightCar America, Inc.

     859        16,690   

GLORY, Ltd.

     500        15,328   

Greenbrier Cos., Inc.

     2,434        79,397   

Illinois Tool Works, Inc.

     287        26,599   

Kadant, Inc.

     486        19,737   

Krones AG

     1,887        224,985   

Lydall, Inc. (a)

     424        15,044   

Mitsui Engineering & Shipbuilding Co., Ltd.

     9,000        14,783   

Mueller Industries, Inc.

     861        23,333   

PACCAR, Inc.

     6,748        319,855   

Standex International Corp.

     244        20,289   

Trinity Industries, Inc.

     8,815        211,736   

Valmet Oyj

     991        9,544   

Vesuvius plc

     1,930        9,463   

Wacker Neuson SE

     759        11,667   
   

 

 

  
      1,298,280   
   

 

 

  

Marine—0.2%

    

DFDS A/S

     950        36,774   

Kawasaki Kisen Kaisha, Ltd.

     5,000        10,687   

Matson, Inc.

     2,344        99,925   

Orient Overseas International, Ltd.

     12,500        59,800   
   

 

 

  
      207,186   
   

 

 

  

Media—2.9%

    

AMC Entertainment Holdings, Inc. - Class A

     811        19,464   

APN News & Media, Ltd. (a)

     18,777        7,084   

Cablevision Systems Corp. - Class A

     5,111        163,041   

Comcast Corp. - Class A

     24,942        1,407,477   

Eros International plc (a)

     4,687        42,886   

Gannett Co., Inc.

     2,220        36,164   

John Wiley & Sons, Inc. - Class A

     259        11,663   

Lagardere SCA

     5,196        154,597   

Nippon Television Holdings, Inc.

     2,000        36,398   

TEGNA, Inc.

     7,835        199,949   

Thomson Reuters Corp.

     13,559        513,570   

TV Tokyo Holdings Corp.

     600        11,295   

Walt Disney Co. (The)

     9,249        971,885   
   

 

 

  
      3,575,473   
   

 

 

  

Metals & Mining—0.8%

    

Aichi Steel Corp.

     7,000        32,737   

Alcoa, Inc.

     24,444        241,262   

APERAM S.A. (a)

     625        22,134   

Bekaert S.A.

     556        17,077   

Boliden AB

     14,787        245,177   

Century Aluminum Co. (a)

     591        2,612   

Compass Minerals International, Inc.

     163        12,269   

Metals & Mining—(Continued)

    

Evolution Mining, Ltd.

     18,796      19,096   

Evraz plc (a)

     11,283        12,073   

Handy & Harman, Ltd. (a)

     393        8,060   

JFE Holdings, Inc.

     800        12,574   

Kaiser Aluminum Corp.

     1,883        157,532   

Norsk Hydro ASA

     27,824        103,484   

Northern Star Resources, Ltd.

     16,724        33,883   

Sumitomo Metal Mining Co., Ltd.

     2,000        24,173   
   

 

 

  
      944,143   
   

 

 

  

Multi-Utilities—0.6%

    

Dominion Resources, Inc.

     953        64,461   

National Grid plc

     39,733        546,496   

SCANA Corp.

     2,791        168,828   
   

 

 

  
      779,785   
   

 

 

  

Multiline Retail—0.7%

    

Canadian Tire Corp., Ltd. - Class A

     2,240        191,283   

Kohl’s Corp.

     3,870        184,328   

Macy’s, Inc.

     2,141        74,892   

Target Corp.

     6,114        443,938   
   

 

 

  
      894,441   
   

 

 

  

Oil, Gas & Consumable Fuels—1.3%

    

BW LPG, Ltd.

     4,001        32,736   

Caltex Australia, Ltd.

     6,248        170,119   

DHT Holdings, Inc.

     1,804        14,594   

ERG S.p.A.

     5,361        72,064   

Euronav NV

     3,621        49,647   

Exxon Mobil Corp.

     3,565        277,892   

Green Plains, Inc.

     5,651        129,408   

Navigator Holdings, Ltd. (a)

     3,636        49,631   

Panhandle Oil and Gas, Inc. - Class A

     1,419        22,931   

PBF Energy, Inc. - Class A

     1,127        41,485   

REX American Resources Corp. (a)

     540        29,198   

Royal Dutch Shell plc - A Shares

     2,275        52,118   

Ship Finance International, Ltd.

     7,274        120,530   

Teekay Tankers, Ltd. - Class A

     2,550        17,544   

Tesoro Corp.

     1,776        187,137   

Valero Energy Corp.

     4,706        332,761   

Westmoreland Coal Co. (a)

     1,241        7,297   
   

 

 

  
      1,607,092   
   

 

 

  

Paper & Forest Products—0.4%

    

Canfor Pulp Products, Inc.

     988        9,661   

Holmen AB - B Shares

     5,450        167,716   

Stora Enso Oyj - R Shares

     1,350        12,138   

UPM-Kymmene Oyj

     18,050        334,300   

Western Forest Products, Inc.

     6,956        11,361   
   

 

 

  
      535,176   
   

 

 

  

Personal Products—0.0%

    

Revlon, Inc. - Class A (a)

     745        20,741   

USANA Health Sciences, Inc. (a)

     127        16,224   
   

 

 

  
      36,965   
   

 

 

  

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-8

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Pharmaceuticals—3.0%

    

Allergan plc (a)

     1,386      $ 433,125   

Eli Lilly & Co.

     9,367        789,263   

Johnson & Johnson

     11,965        1,229,045   

Mallinckrodt plc (a)

     1,456        108,661   

Merck KGaA

     197        19,135   

Mylan NV (a)

     3,881        209,846   

Otsuka Holdings Co., Ltd.

     2,900        102,592   

Shire plc

     167        11,445   

Teva Pharmaceutical Industries, Ltd.

     11,715        768,944   
   

 

 

  
      3,672,056   
   

 

 

  

Professional Services—0.1%

    

ICF International, Inc. (a)

     331        11,770   

Korn/Ferry International

     431        14,301   

TrueBlue, Inc. (a)

     577        14,864   

VSE Corp.

     375        23,317   
   

 

 

  
      64,252   
   

 

 

  

Real Estate Investment Trusts—1.0%

    

AG Mortgage Investment Trust, Inc.

     3,707        47,598   

Anworth Mortgage Asset Corp.

     13,318        57,933   

Apollo Commercial Real Estate Finance, Inc.

     4,132        71,194   

Ares Commercial Real Estate Corp.

     1,629        18,636   

Befimmo S.A.

     487        29,078   

Chimera Investment Corp.

     16,824        229,479   

Colony Capital, Inc. - Class A

     7,621        148,457   

Fortune Real Estate Investment Trust

     102,000        104,525   

Ladder Capital Corp.

     1,029        12,780   

New Residential Investment Corp.

     14,499        176,308   

New York Mortgage Trust, Inc.

     18,047        96,191   

Omega Healthcare Investors, Inc.

     4,051        141,704   

Western Asset Mortgage Capital Corp.

     4,850        49,567   
   

 

 

  
      1,183,450   
   

 

 

  

Road & Rail—0.7%

  

AMERCO

     588        229,026   

ArcBest Corp.

     690        14,759   

Go-Ahead Group plc

     647        25,446   

National Express Group plc

     4,771        23,399   

Ryder System, Inc.

     326        18,527   

Senko Co., Ltd.

     3,000        20,249   

Sixt SE

     315        16,123   

West Japan Railway Co.

     7,400        510,440   
   

 

 

  
      857,969   
   

 

 

  

Semiconductors & Semiconductor Equipment—1.8%

  

Amkor Technology, Inc. (a)

     5,063        30,783   

Applied Materials, Inc.

     7,676        143,311   

BE Semiconductor Industries NV

     1,862        37,233   

Dialog Semiconductor plc (a)

     1,792        60,348   

Infineon Technologies AG

     19,260        281,847   

Intel Corp.

     27,467        946,238   

Lam Research Corp.

     156        12,390   

Micron Technology, Inc. (a)

     11,305        160,079   

NVIDIA Corp.

     14,081        464,110   
   

 

 

  
      2,136,339   
   

 

 

  

Software—0.5%

  

Mentor Graphics Corp.

     6,275      115,586   

Micro Focus International plc

     1,360        31,929   

Microsoft Corp.

     6,081        337,374   

Nemetschek AG

     796        39,675   

UBISOFT Entertainment (a)

     3,988        115,378   
   

 

 

  
      639,942   
   

 

 

  

Specialty Retail—0.8%

  

Best Buy Co., Inc.

     333        10,140   

Bilia AB - A Shares

     3,846        87,087   

Foot Locker, Inc.

     6,586        428,683   

GameStop Corp. - Class A

     5,738        160,894   

Lookers plc

     6,749        18,340   

Murphy USA, Inc. (a)

     3,981        241,806   

Penske Automotive Group, Inc.

     648        27,436   
   

 

 

  
      974,386   
   

 

 

  

Technology Hardware, Storage & Peripherals—1.6%

  

Apple, Inc.

     12,938        1,361,854   

Brother Industries, Ltd.

     1,100        12,614   

FUJIFILM Holdings Corp.

     5,100        212,418   

Hewlett Packard Enterprise Co.

     11,169        169,769   

HP, Inc.

     11,169        132,241   

Quantum Corp. (a)

     7,662        7,126   
   

 

 

  
      1,896,022   
   

 

 

  

Textiles, Apparel & Luxury Goods—0.0%

  

Iconix Brand Group, Inc. (a)

     4,358        29,765   
   

 

 

  

Thrifts & Mortgage Finance—0.2%

  

Brookline Bancorp, Inc.

     9,153        105,260   

EverBank Financial Corp.

     728        11,633   

Provident Financial Services, Inc.

     3,743        75,421   
   

 

 

  
      192,314   
   

 

 

  

Tobacco—0.5%

  

Reynolds American, Inc.

     11,928        550,477   
   

 

 

  

Trading Companies & Distributors—0.6%

  

AerCap Holdings NV (a)

     2,146        92,621   

Air Lease Corp.

     7,292        244,136   

Aircastle, Ltd.

     6,095        127,325   

GATX Corp.

     3,135        133,394   

H&E Equipment Services, Inc.

     755        13,198   

Rush Enterprises, Inc. - Class A (a)

     3,848        84,233   
   

 

 

  
      694,907   
   

 

 

  

Transportation Infrastructure—0.2%

  

BBA Aviation plc

     2,421        6,746   

Flughafen Zuerich AG

     255        191,273   
   

 

 

  
      198,019   
   

 

 

  

Wireless Telecommunication Services—0.6%

  

Spok Holdings, Inc.

     692        12,677   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-9

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares/
Principal
Amount*		     Value  

Wireless Telecommunication Services—(Continued)

  

Vodafone Group plc

     207,968      $ 672,678   
   

 

 

  
      685,355   
   

 

 

  

Total Common Stocks
(Cost $66,317,011)

       64,321,292   
   

 

 

  
U.S. Treasury & Government Agencies—23.9%   

Federal Agencies—1.0%

  

Federal Home Loan Mortgage Corp.
1.000%, 06/29/17

     585,000        584,942   

Federal National Mortgage Association
1.375%, 11/15/16

     660,000        663,065   
   

 

 

  
      1,248,007   
   

 

 

  

U.S. Treasury—22.9%

  

U.S. Treasury Bonds
3.000%, 11/15/44

     390,000        388,583   

3.125%, 02/15/43 (b)

     781,000        800,464   

4.375%, 05/15/41 (b) (c)

     802,000        1,012,118   

4.500%, 05/15/38 (c)

     878,000        1,127,338   

5.375%, 02/15/31

     351,000        475,975   

6.875%, 08/15/25

     281,000        393,499   

7.625%, 11/15/22

     1,054,000        1,430,476   

7.875%, 02/15/21

     976,000        1,263,576   

U.S. Treasury Notes
0.375%, 03/15/16 (b)

     580,000        580,136   

0.625%, 11/30/17

     781,000        774,533   

0.750%, 02/28/18

     1,269,000        1,258,193   

0.875%, 07/31/19

     1,171,000        1,144,561   

1.000%, 09/30/16

     1,073,000        1,075,137   

1.000%, 03/31/17

     1,171,000        1,172,829   

1.000%, 06/30/19

     1,171,000        1,151,652   

1.125%, 03/31/20

     781,000        763,427   

1.500%, 02/28/19

     1,171,000        1,174,705   

1.875%, 10/31/17

     1,171,000        1,187,970   

2.000%, 05/31/21

     976,000        982,596   

2.000%, 11/15/21

     1,073,000        1,076,144   

2.000%, 02/15/23

     1,366,000        1,358,050   

2.125%, 02/29/16

     567,000        568,572   

2.125%, 08/31/20

     937,000        952,117   

2.250%, 07/31/18 (c)

     1,046,000        1,073,294   

2.375%, 08/15/24

     624,000        630,508   

2.750%, 05/31/17

     976,000        1,000,705   

3.000%, 02/28/17

     976,000        999,638   

3.125%, 05/15/19

     1,171,000        1,235,359   

4.625%, 11/15/16

     702,000        725,007   
   

 

 

  
      27,777,162   
   

 

 

  

Total U.S. Treasury & Government Agencies
(Cost $29,115,412)

   

     29,025,169   
   

 

 

  
Mutual Funds—7.5%   
Security Description   Shares/
Principal
Amount*		     Value  

Investment Company Securities—7.5%

  

iShares J.P. Morgan USD Emerging Markets Bond ETF

     28,500      3,014,730   

Vanguard Emerging Markets Government Bond ETF

     41,000        3,037,690   

Vanguard REIT ETF

     37,500        2,989,875   
   

 

 

  

Total Mutual Funds
(Cost $9,209,367)

   

     9,042,295   
   

 

 

  
Preferred Stock—0.3%   

Automobiles—0.3%

  

Volkswagen AG
(Cost $541,707)

     2,489        360,580   
   

 

 

  
Short-Term Investment—13.4%   

Repurchase Agreement—13.4%

    

Fixed Income Clearing Corp.
Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $16,255,161 on 01/04/16, collateralized by $16,795,000 U.S. Treasury Note at 0.625% due 04/30/18 with a value of $16,585,063.

     16,255,106        16,255,106   
   

 

 

  

Total Short-Term Investments
(Cost $16,255,106)

       16,255,106   
   

 

 

  

Total Investments—98.2%
(Cost $121,438,603) (d)

       119,004,442   

Other assets and liabilities (net)—1.8%

       2,170,058   
   

 

 

  
Net Assets—100.0%     $ 121,174,500   
   

 

 

  

 

* 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 December 31, 2015, the market value of securities pledged was $1,506,799.
(c) All or a portion of the security was pledged as collateral against open centrally cleared swap contracts. As of December 31, 2015, the market value of securities pledged was $1,955,771.
(d) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $121,617,102. The aggregate unrealized appreciation and depreciation of investments were $2,861,112 and $(5,473,772) respectively, resulting in net unrealized depreciation of $(2,612,660) for federal income tax purposes.
(ETF)— Exchange-Traded Fund

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-10

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

 

Futures Contracts

 

Futures Contracts—Long

    Expiration
Date		      Number of
Contracts		     Notional
Amount		     Unrealized
Depreciation		  

S&P 500 E-Mini Index Futures

      03/18/16         44        USD         4,561,256      $ (83,376 ) 

TOPIX Index Futures

      03/10/16         18        JPY         285,189,300        (55,238 ) 

U.S. Treasury Long Bond Futures

      03/21/16         34        USD         5,229,692        (2,191 ) 

U.S. Treasury Note 10 Year Futures

      03/21/16         10        USD         1,266,106        (7,043 ) 

U.S. Treasury Note 2 Year Futures

      03/31/16         13        USD         2,833,010        (8,963 ) 

U.S. Treasury Note 5 Year Futures

      03/31/16         42        USD         4,987,676        (18,223 ) 

Futures Contracts—Short

                    

Euro Currency Futures

      03/14/16         (36 )      USD         (4,892,292 )      (6,408 ) 

Euro Stoxx 50 Index Futures

      03/18/16         (25 )      EUR         (793,454 )      (29,393 ) 

FTSE 100 Index Futures

      03/18/16         (23 )      GBP         (1,404,696 )      (30,729 ) 

MSCI EAFE Mini Index Futures

      03/18/16         (45 )      USD         (3,743,144 )      (77,806 ) 
            

 

 

  

Net Unrealized Depreciation

  

   $ (319,370 ) 
            

 

 

  

Swap Agreements

Centrally Cleared Interest Rate Swaps

 

Pay/Receive Floating Rate

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

Pay

      3M LIBOR         1.994 %      10/23/25         USD         2,000,000       $ (31,730 ) 

Pay

      3M LIBOR         2.007 %      04/13/25         USD         16,000,000         (175,594 ) 

Pay

      3M LIBOR         2.032 %      10/01/25         USD         2,000,000         (24,413 ) 

Pay

      3M LIBOR         2.075 %      11/24/25         USD         2,500,000         (22,630 ) 

Pay

      3M LIBOR         2.198 %      09/15/25         USD         2,000,000         6,375   

Pay

      3M LIBOR         2.222 %      05/19/25         USD         1,500,000         10,856   

Pay

      3M LIBOR         2.246 %      05/11/25         USD         1,500,000         14,139   

Pay

      3M LIBOR         2.388 %      07/24/25         USD         1,500,000         28,469   

Pay

      3M LIBOR         2.451 %      07/01/25         USD         1,500,000         39,681   

Pay

      3M LIBOR         2.481 %      06/25/25         USD         1,500,000         43,151   

Pay

      3M LIBOR         2.496 %      06/15/25         USD         1,500,000         45,426   

Pay

      3M LIBOR         2.512 %      07/15/25         USD         1,500,000         47,887   
                

 

 

  

Net Unrealized Depreciation

  

    $ (18,383 ) 
                

 

 

  

 

(EUR)— Euro
(GBP)— British Pound
(JPY)— Japanese Yen
(USD)— United States Dollar
(LIBOR)— London Interbank Offered Rate

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-11

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2      Level 3      Total  
Common Stocks            

Aerospace & Defense

    $ 304,971       $ —         $ —         $ 304,971   

Air Freight & Logistics

      325,507         670,261         —           995,768   

Airlines

      297,393         26,325         —           323,718   

Auto Components

      29,203         363,161         —           392,364   

Automobiles

      —           1,116,721         —           1,116,721   

Banks

      3,125,421         3,371,358         —           6,496,779   

Beverages

      698,441         332,554         —           1,030,995   

Biotechnology

      1,273,332         —           —           1,273,332   

Building Products

      53,992         —           —           53,992   

Capital Markets

      717,665         299,146         —           1,016,811   

Chemicals

      130,567         926,760         —           1,057,327   

Commercial Services & Supplies

      416,009         20,079         —           436,088   

Communications Equipment

      621,570         —           —           621,570   

Construction & Engineering

      17,276         509,689         —           526,965   

Consumer Finance

      314,899         —           —           314,899   

Containers & Packaging

      —           12,505         —           12,505   

Diversified Consumer Services

      35,629         —           —           35,629   

Diversified Financial Services

      435,060         12,045         —           447,105   

Diversified Telecommunication Services

      1,769,855         1,149,794         —           2,919,649   

Electric Utilities

      2,943,079         357,337         —           3,300,416   

Electrical Equipment

      —           16,210         —           16,210   

Electronic Equipment, Instruments & Components

      741,005         627,896         —           1,368,901   

Energy Equipment & Services

      23,465         45,730         —           69,195   

Food & Staples Retailing

      1,246,374         335,549         —           1,581,923   

Food Products

      1,595,892         89,641         —           1,685,533   

Gas Utilities

      405,215         —           —           405,215   

Health Care Equipment & Supplies

      36,201         —           —           36,201   

Health Care Providers & Services

      3,785,416         —           —           3,785,416   

Hotels, Restaurants & Leisure

      39,160         576,644         —           615,804   

Household Durables

      16,225         1,287,538         —           1,303,763   

Household Products

      118,677         —           —           118,677   

Industrial Conglomerates

      298,918         —           —           298,918   

Insurance

      3,278,164         1,330,497         —           4,608,661   

Internet Software & Services

      600,026         —           —           600,026   

IT Services

      1,233,049         262,402         —           1,495,451   

Machinery

      803,812         494,468         —           1,298,280   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-12

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Fair Value Hierarchy—(Continued)

 

Description    Level 1     Level 2     Level 3      Total  

Marine

    $ 99,925      $ 107,261      $ —         $ 207,186   

Media

      3,366,099        209,374        —           3,575,473   

Metals & Mining

      421,735        522,408        —           944,143   

Multi-Utilities

      233,289        546,496        —           779,785   

Multiline Retail

      894,441        —          —           894,441   

Oil, Gas & Consumable Fuels

      1,230,408        376,684        —           1,607,092   

Paper & Forest Products

      21,022        514,154        —           535,176   

Personal Products

      36,965        —          —           36,965   

Pharmaceuticals

      2,769,940        902,116        —           3,672,056   

Professional Services

      64,252        —          —           64,252   

Real Estate Investment Trusts

      1,049,847        133,603        —           1,183,450   

Road & Rail

      262,312        595,657        —           857,969   

Semiconductors & Semiconductor Equipment

      1,756,911        379,428        —           2,136,339   

Software

      452,960        186,982        —           639,942   

Specialty Retail

      868,959        105,427        —           974,386   

Technology Hardware, Storage & Peripherals

      1,670,990        225,032        —           1,896,022   

Textiles, Apparel & Luxury Goods

      29,765        —          —           29,765   

Thrifts & Mortgage Finance

      192,314        —          —           192,314   

Tobacco

      550,477        —          —           550,477   

Trading Companies & Distributors

      694,907        —          —           694,907   

Transportation Infrastructure

      —          198,019        —           198,019   

Wireless Telecommunication Services

      12,677        672,678        —           685,355   

Total Common Stocks

      44,411,663        19,909,629        —           64,321,292   

Total U.S. Treasury & Government Agencies*

      —          29,025,169        —           29,025,169   

Total Mutual Funds*

      9,042,295        —          —           9,042,295   

Total Preferred Stock*

      —          360,580        —           360,580   

Total Short-Term Investment*

      —          16,255,106        —           16,255,106   

Total Investments

    $ 53,453,958      $ 65,550,484      $ —         $ 119,004,442   
                                   
Futures Contracts          

Futures Contracts (Unrealized Depreciation)

    $ (319,370 )    $ —        $ —         $ (319,370 ) 
Centrally Cleared Swap Contracts          

Centrally Cleared Swap Contracts (Unrealized Appreciation)

    $ —        $ 235,984      $ —         $ 235,984   

Centrally Cleared Swap Contracts (Unrealized Depreciation)

      —          (254,367 )      —           (254,367 ) 

Total Centrally Cleared Swap Contracts

    $ —        $ (18,383 )    $ —         $ (18,383 ) 

 

* 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-13

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Consolidated§ Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a)

    $ 102,749,336   

Repurchase Agreement

      16,255,106   

Cash denominated in foreign currencies (b)

      5,781   

Receivable for:

   

Investments sold

      2,832,838   

Fund shares sold

      243,716   

Dividends and interest

      299,288   

Variation margin on futures contracts

      302,265   

Variation margin on centrally cleared swap contracts

      446,486   

Due from investment adviser

      19,822   

Prepaid expenses

      156   
  

 

 

  

Total Assets

      123,154,794   

Liabilities

   

Payables for:

   

Investments purchased

      1,734,143   

Fund shares redeemed

      1,667   

Accrued Expenses:

   

Management fees

      68,060   

Distribution and service fees

      25,207   

Deferred trustees’ fees

      28,671   

Other expenses

      122,546   
  

 

 

  

Total Liabilities

      1,980,294   
  

 

 

  

Net Assets

    $ 121,174,500   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 124,857,028   

Undistributed net investment income

      26,099   

Accumulated net realized loss

      (932,437 ) 

Unrealized depreciation on investments, futures contracts, swap contracts and foreign currency transactions

      (2,776,190 ) 
  

 

 

  

Net Assets

    $ 121,174,500   
  

 

 

  

Net Assets

   

Class B

    $ 121,174,500   

Capital Shares Outstanding*

   

Class B

      11,781,904   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 10.28   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding repurchase agreement, was $105,183,497.
(b) Identified cost of cash denominated in foreign currencies was $5,864.

Consolidated§ Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends (a)

    $ 1,305,237   

Dividends from affiliated investments

      600   

Interest

      283,734  
  

 

 

  

Total investment income

      1,589,571  

Expenses

   

Management fees

      517,644   

Administration fees

      35,020   

Custodian and accounting fees

      116,511   

Distribution and service fees—Class B

      191,720   

Audit and tax services

      85,878   

Legal

      24,120   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      24,622   

Insurance

      239   

Miscellaneous

      7,874  
  

 

 

  

Total expenses

      1,038,801  

Less expenses reimbursed by the Adviser

      (118,545 )
  

 

 

  

Net expenses

      920,256  
  

 

 

  

Net Investment Income

      669,315  
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      (131,488 ) 

Affiliated investments

      (2,785 ) 

Net increase from payments by affiliates (b)

      2,185   

Futures contracts

      (498,806 ) 

Swap contracts

      1,047,700   

Foreign currency transactions

      1,115  
  

 

 

  

Net realized gain

      417,921  
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (2,566,849 ) 

Futures contracts

      (927,150 ) 

Swap contracts

      (314,477 ) 

Foreign currency transactions

      327  
  

 

 

  

Net change in unrealized depreciation

      (3,808,149 )
  

 

 

  

Net realized and unrealized loss

      (3,390,228 )
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (2,720,913 )
  

 

 

  

 

(a) Net of foreign withholding taxes of $36,941.
(b) See Note 7 of the Notes to Consolidated Financial Statements.

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-14

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Consolidated§ Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Period Ended
December 31,
2014(a)		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income (loss)

    $ 669,315      $ (70,094 ) 

Net realized gain (loss)

      417,921        (68,501 ) 

Net change in unrealized appreciation (depreciation)

      (3,808,149 )     1,031,959  
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (2,720,913 )     893,364  
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (1,228,964 )      (158,044 ) 

Net realized capital gains

     

Class B

      (143,588 )     (333,268 )
  

 

 

    

 

 

  

Total distributions

      (1,372,552 )     (491,312 )
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      88,210,930       36,654,983  
  

 

 

    

 

 

  

Total increase in net assets

      84,117,465        37,057,035   

Net Assets

     

Beginning of period

      37,057,035       —  
  

 

 

    

 

 

  

End of period

    $ 121,174,500      $ 37,057,035   
  

 

 

    

 

 

  

Undistributed (accumulated) net investment income (loss)

     

End of period

    $ 26,099      $ (14,019 ) 
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Period Ended
December 31, 2014(a)		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      8,979,573      $ 95,903,610        3,578,297      $ 37,197,927   

Reinvestments

      132,254        1,372,552        46,482        491,312   

Redemptions

      (856,402 )      (9,065,232 )      (98,300 )      (1,034,256 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      8,255,425      $ 88,210,930        3,526,479      $ 36,654,983   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 88,210,930        $ 36,654,983   
    

 

 

      

 

 

  

 

(a) Commencement of operations was April 14, 2014.

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-15

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Consolidated§ Financial Highlights

 

Selected per share data              
     Class B  
     Year Ended
December 31,		  
     2015      2014(a)  

Net Asset Value, Beginning of Period

    $ 10.51       $ 10.00  
  

 

 

     

 

 

  

Income (Loss) from Investment Operations

      

Net investment income (loss) (b)

      0.09         (0.04 ) 

Net realized and unrealized gain (loss) on investments

      (0.19 )      0.70  
  

 

 

     

 

 

  

Total from investment operations

      (0.10 )      0.66  
  

 

 

     

 

 

  

Less Distributions

      

Distributions from net investment income

      (0.11 )       (0.05 ) 

Distributions from net realized capital gains

      (0.02 )      (0.10 )
  

 

 

     

 

 

  

Total distributions

      (0.13 )      (0.15 )
  

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.28       $ 10.51  
  

 

 

     

 

 

  

Total Return (%) (c)

      (0.98 )      6.52  (d)

Ratios/Supplemental Data

      

Gross ratio of expenses to average net assets (%)

      1.35         2.98  (e) 

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

      1.20         1.20  (e) 

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

      0.87         (0.51 )(e) 

Portfolio turnover rate (%)

      23         19  (d) 

Net assets, end of period (in millions)

    $ 121.2       $ 37.1   

 

(a) Commencement of operations was April 14, 2014.
(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 (see Note 7 of the Notes to Consolidated Financial Statements).

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-16

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Notes to Consolidated Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Allianz Global Investors Dynamic Multi-Asset Plus Portfolio (the “Portfolio”) (commenced operations on April 14, 2014), 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 one class of shares: Class B shares. Class B shares are currently offered by the Portfolio.

2. Consolidation of Subsidiary—Allianz Global Investors Dynamic Multi-Asset Plus Portfolio, Ltd.

The Portfolio may invest up to 25% of its total assets in the Allianz Global Investors Dynamic Multi-Asset Plus 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 in commodity-related instruments such as futures, options, and swap contracts. 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 Allianz Global Investors U.S. 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 and the Financial Highlights of the Portfolio include 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
December 31, 2015		      % of
Total Assets at
December 31, 2015		  

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio, Ltd.,

      4/14/2014       $ 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 December 31, 2015 through the date the consolidated financial statements were issued.

 

MIST-17

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946- Financial Services- Investment Companies. 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, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 and subject to general oversight by the Board. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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 through an independent pricing service based on the mean between closing bid and ask prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or broker-dealer. These contracts are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

Options, including swaptions, and futures contracts that are traded OTC are generally valued on the basis of quotations provided by broker-dealers or prices provided by 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, yield curves, credit curves, measures of volatility and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts (other than centrally cleared swaps) are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and other pricing services. Such quotations and prices are derived utilizing observable data, including the underlying reference securities or indices, credit spread quotations and expected default recovery rates determined by the pricing service. These contracts are generally categorized as Level 2 within the fair value hierarchy.

 

MIST-18

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or an independent pricing service when the exchange price is not available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third party prices are used to produce daily settlement prices. These securities are categorized as Level 2 within the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates, including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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, controlled foreign corporation adjustments, real estate investment trust (REIT) adjustments, distribution redesignations and premium amortization. These adjustments have no impact on net assets or the results 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 remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

 

MIST-19

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $16,255,106, which is reflected as repurchase agreement on the Consolidated Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2015.

4. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts 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 cash 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. If futures contracts are exchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

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 either privately negotiated in the OTC market (“OTC swaps”) or 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 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.

Centrally Cleared Swaps: Clearinghouses currently offer clearing derivatives transactions which include interest rate and 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.

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

 

MIST-20

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

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 upon entering into the swap agreement 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.

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: (1) 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”; (2) 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 (3) 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 contract’s remaining life, to the extent that amount is positive.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of 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 appreciation on centrally cleared swap contracts (a)    $ 235,984       Unrealized depreciation on centrally cleared swap contracts (a)    $ 254,367   
         Unrealized depreciation on futures contracts (b)      36,420   
Equity          Unrealized depreciation on futures contracts (b)      276,542   
Foreign Exchange          Unrealized depreciation on futures contracts (b)      6,408   
     

 

 

        

 

 

  
Total       $ 235,984          $ 573,737   
     

 

 

        

 

 

  

 

  (a) 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.
  (b) 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.

 

MIST-21

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

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

    Interest Rate     Equity     Foreign
Exchange		     Total  

Futures contracts

    $ (164,690 )    $ (473,591 )    $ 139,475      $ (498,806 ) 

Swap contracts

      1,047,700        —        —        1,047,700   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 883,010      $ (473,591 )    $ 139,475      $ 548,894   
  

 

 

    

 

 

    

 

 

    

 

 

  

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

    Interest Rate     Equity     Foreign
Exchange		     Total  

Futures contracts

    $ (59,596 )    $ (849,808 )    $ (17,746 )    $ (927,150 ) 

Swap contracts

      (314,477 )      —        —        (314,477 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ (374,073 )    $ (849,808 )    $ (17,746 )    $ (1,241,627 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Futures contracts long

    $ 6,796,409   

Futures contracts short

      (3,527,024 ) 

Swap contracts

      23,791,667   

 

  ‡ Averages are based on activity levels during 2015.

5. Certain Risks

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”).

Market 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, interest rate, and price fluctuations.

Commodities Risk: 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 factors affecting a particular industry or commodity.

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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC 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

 

MIST-22

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

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 (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to Portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$26,245,799    $ 82,367,975       $ 6,306,615       $ 8,372,354   

7. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$517,644      0.675 %   First $250 million
     0.650 %   $250 million to $1 billion
     0.600 %     Over $1 billion

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. The Subadviser is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

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 30, 2016. 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

 

MIST-23

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

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

    Expenses Deferred in 2014
Subject to repayment until
December 31, 2017		      Expenses Deferred in 2015
Subject to repayment until
December 31, 2018
1.20%    $ 237,922       $118,545

Amounts waived for the year ended December 31, 2015 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 three years after the end of the fiscal year in which such expense was incurred. As of December 31, 2015, there was $356,467 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.

During the year ended December 31, 2015, the Subadvisor voluntarily reimbursed the Portfolio for a trading error that was in breach of an investment guideline. The error did not result in a breach of regulatory guidelines for the Portfolio. This reimbursement is reflected as net increase from payments by affiliates in the Consolidated Statement of Operations and had no impact on total return.

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, LLC, 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 year ended December 31, 2015 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 year ended December 31, 2015 is as follows:

 

Security Description

    Number of
shares held at
December 31, 2014		      Shares
purchased		      Shares
sold		     Number of
shares held at
December 31, 2015		      Realized
Loss on
shares sold		     Income earned
from affiliates
during the
period		  

MetLife, Inc.

      0         921         (921 )      0       $ (2,785 )    $ 600   

 

MIST-24

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

9. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$1,299,972    $ 247,374       $ 72,580       $ 243,938       $ 1,372,552       $ 491,312   

As of December 31, 2015, 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		     Other
Accumulated
Capital Losses		     Total  
$61,886    $ —       $ (2,690,557 )    $ (1,025,186 )    $ (3,653,857 ) 

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.

As of December 31, 2015, the Portfolio had short term accumulated capital losses of $239,282 and long term accumulated capital losses of $785,904.

 

MIST-25

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Allianz Global Investors Dynamic Multi-Asset Plus 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 Allianz Global Investors Dynamic Multi-Asset Plus Portfolio and subsidiary, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related consolidated statement of operations for the year then ended, and the consolidated statements of changes in net assets and the consolidated financial highlights for the year ended December 31, 2015 and for the period from April 14, 2014 (commencement of operations) to December 31, 2014. These consolidated financial statements and consolidated financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these consolidated financial statements and consolidated 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 consolidated financial highlights referred to above present fairly, in all material respects, the financial position of Allianz Global Investors Dynamic Multi-Asset Plus Portfolio and subsidiary of the Met Investors Series Trust as of December 31, 2015, the results of their operations for the year then ended, and the changes in their net assets and the consolidated financial highlights for the year ended December 31, 2015 and for the period from April 14, 2014 (commencement of operations) to December 31, 2014, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-26

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-27

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-28

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-29

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-30

Met Investors Series Trust

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

Allianz Global Investors Dynamic Multi-Asset Plus Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Allianz Global Investors U.S. LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the one-year and since-inception (beginning April 14, 2014) periods ended June 30, 2015. The Board further considered that the Portfolio outperformed its benchmark, the Dow Jones Moderate Index, for the one-year and since-inception periods ended October 31, 2015 but underperformed its blended index for the same periods. The Board also noted that the Portfolio commenced operations on April 14, 2014.

The Board also considered that the Portfolio’s actual management fees were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median, and the Portfolio’s total expenses (exclusive of 12b-l fees) were above the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also noted that the Portfolio’s contractual sub-advisory fees were above the average of the Sub-advised Expense Group and the average of the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-31

Met Investors Series Trust

American Funds Balanced Allocation Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class B and C shares of the American Funds Balanced Allocation Portfolio returned -0.33% and -0.71%, respectively. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned -1.21%.

MARKET ENVIRONMENT / CONDITIONS

2015 marked a year of increasing uncertainty and volatility, especially in the third quarter when the volatility index, VIX, sprung to more than three times its average level. Major factors that impacted the global equity markets were concerns over China’s slowdown and a further and unexpected decline in commodity prices. China’s disappointing economic news, plummeting A-shares stock markets, surprise currency devaluation, and multiple rounds of interest rate cuts throughout the year added a tremendous amount of negative sentiment to the stock markets worldwide. Furthermore, after an approximate 40% price decline in 2014, crude oil plunged again in 2015. Prices of industrial metals fell sharply as well. The overall drop in commodity prices hurt many companies in the Energy, Materials, and Industrials sectors. Another theme in 2015 was the U.S. dollar’s continuous strengthening as a result of divergent central bank policies globally. While the Federal Reserve (the “Fed”) finally made their first move in nine years to raise interest rates in December, the European Central Bank, the Bank of Japan, and the People’s Bank of China further eased their monetary policies in 2015. As a result, the U.S. dollar strengthened against many other currencies, including those of both developed and emerging countries, leading to diminished returns for U.S. investors who invest in stocks and bonds outside the U.S.

The U.S. stock market, as measured by the S&P 500 Index, produced a modestly positive return of 1.4% in 2015. Mid cap (represented by the S&P Mid Cap 400 Index) and small cap stocks (S&P Small Cap 600) underperformed their large cap counterparts, and finished the year in negative territory with a return of -2.2% and -2.0% respectively. Stocks with a growth orientation noticeably outpaced those with a value bias. From a sector perspective, the Consumer, Health Care, and Information Technology sectors performed better than the broad market, while Energy and Materials significantly trailed as a result of falling commodity prices. Due to the risk-off sentiment dominating a big part of the year, stocks with low volatility and high quality characteristics significantly outperformed the rest. Developed markets outside U.S., in particular, Europe and Japan delivered solid performance, thanks to continuous accommodative monetary policies. The MSCI EAFE Index advanced 5.3% in local currency terms for the year. However, with currency depreciation, the return in U.S. dollar terms was slightly negative at -0.8%. Emerging markets, on the other hand, struggled and produced a loss of 5.8% in local currency terms and a woeful -14.9% return in dollar terms.

Fixed income markets in general were modestly up. Treasuries, agencies, and mortgage backed securities all enjoyed a positive return for the year, while investment grade corporate bonds were slightly down. Overall, the Barclays U.S. Aggregate Bond Index advanced 0.6%. Conversely, high yield corporate bonds, driven particularly by energy related bonds, suffered a meaningful loss of -4.5% for the year. Foreign bonds on average produced a modestly positive return in local currency terms. However, U.S. investors realized a negative performance of -6.0% (measured by the Barclays Global Aggregate ex-U.S. Index) as a result of dollar strengthening.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The American Funds Balanced Allocation Portfolio invested all of its assets in funds of the American Funds Insurance Series (AFIS) and American Funds retail mutual funds to maintain a broad asset allocation of approximately 35% to fixed income and 65% to equities.

Over the twelve month period, the Portfolio outpaced the Dow Jones Moderate Index, driven largely by solid security selection in the underlying funds in addition to a greater domestic orientation relative to the Dow Jones Index.

The equity underlying funds in aggregate produced positive results. Detraction from funds with a higher income orientation was more than compensated for by contribution from funds with a stronger focus on growth of capital. The AFIS Growth Fund was the most growth oriented fund and generated the highest contribution to the asset allocation portfolio. The AFIS Growth Fund outpaced the S&P 500 Index by a wide margin as growth stocks, which the fund favored to achieve its capital growth goal, were rewarded by the market in the past twelve months. The fund’s stock selection within the Consumer Discretionary sector was particularly strong, with Amazon leading the way, as the stock more than doubled in 2015. In addition, the fund’s stock selection in the Health Care and Information Technology sectors was also strongly additive. The Fundamental Investors Fund, which has both growth and income as its objectives, with a greater emphasis on growth over yield, also delivered solid performance. The fund benefited from its holdings with a growth focus, mostly in the Consumer Discretionary and Information Technology sectors, with Amazon, Microsoft, and Avago Technologies being the top contributing names. Conversely, the AFIS Blue Chip Income & Growth Fund and the American Mutual Fund suffered from their greater focus on income over growth, as higher dividend paying stocks significantly underperformed in 2015. Additionally, performance of both funds was held back by their holdings in a number of rail-based transportation stocks within the Industrials sector, whose businesses were hurt by declining commodity prices and commodity demand. Among underlying funds that invest outside the U.S., the AFIS International Fund contributed positively. Relative performance was aided in part by an underweight position in the Energy and Materials sectors and an overweight position in the Health Care sector. Moreover, stock picking in the Financials sector further added to performance by avoiding weak performing Chinese banks and instead investing in Indian banks and insurance company AIA in Hong Kong. The AFIS Global Small Capitalization Fund was

 

MIST-1

Met Investors Series Trust

American Funds Balanced Allocation Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*—(Continued)

 

another positive contributor. Outperformance was primarily driven by a handful of biotech stocks which had an exceptional run in the first half of the year, and a consumer discretionary stock, Netflix.

Among the fixed income funds, the AFIS U.S. Government/AAA-Rated Securities Fund was the top contributor as the government sector outperformed credit sectors in 2015. Moreover, the fund produced a positive alpha relative to its asset class benchmark, the Barclays U.S. Government/Mortgage Index. While the fund’s TIPS holdings modestly detracted from performance, its issue selection in the mortgage-backed securities sector produced significant contributions. From a duration standpoint, the fund’s focus on the 5-year part of the yield curve proved to be beneficial. Conversely, the AFIS High-Income Bond Fund hindered the asset allocation portfolio’s performance. The fund underperformed the Barclays U.S. Corporate High Yield Index by over 200 basis points, driven largely by issue selection in commodity related industries, with Peabody Energy being the top detractor.

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, 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 subject to change at any time based upon economic, market, or other conditions and the advisory 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        Since Inception2  
American Funds Balanced Allocation Portfolio                 

Class B

        -0.33           7.10           5.04   

Class C

        -0.71           6.76           4.71   
Dow Jones Moderate Index        -1.21           5.85           4.77   

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 date of the Class B and Class C shares is 4/28/2008. Index since inception return is based on the Portfolio’s inception date.

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
American Funds Bond Fund (Class 1)      13.1   
American Funds U.S. Government/AAA - Rated Securities Fund (Class 1)      11.1   
American Funds Growth Fund (Class 1)      9.1   
American Funds Growth-Income Fund (Class 1)      9.1   
American Funds Fundamental Investors Fund (Class R-6)      8.1   
American Funds Blue Chip Income and Growth Fund (Class 1)      8.1   
American Funds American Mutual Fund (Class R-6)      8.1   
American Funds AMCAP Fund (Class R-6)      8.1   
American Funds International Growth and Income Fund (Class 1)      6.8   
American Funds International Fund (Class 1)      5.8   

 

MIST-3

Met Investors Series Trust

American Funds Balanced Allocation 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class B(a)

   Actual      0.73 %     $ 1,000.00         $ 972.90         $ 3.63   
   Hypothetical*      0.73 %     $ 1,000.00         $ 1,021.53         $ 3.72   

Class C(a)

   Actual      1.03 %     $ 1,000.00         $ 970.80         $ 5.12   
   Hypothetical*      1.03 %     $ 1,000.00         $ 1,020.01         $ 5.24   

* 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 (184 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 December 31, 2015

Mutual Funds—100.1% of Net Assets

 

Security Description   Shares     Value  

Investment Company Securities—100.1%

  

American Funds AMCAP Fund (Class R-6)

     14,014,219      $ 366,752,099   

American Funds American Mutual Fund (Class R-6)

     10,846,775        367,163,319   

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

     29,095,535        367,185,648   

American Funds Bond Fund (Class 1) (a)

     55,351,439        592,260,400   

American Funds Fundamental Investors Fund (Class R-6)

     7,242,595        367,344,418   

American Funds Global Bond Fund (Class 1) (a)

     12,227,125        134,620,645   

American Funds Global Small Capitalization Fund (Class 1)

     5,373,756        131,173,390   

American Funds Growth Fund (Class 1)

     6,080,898        413,622,701   

American Funds Growth-Income Fund (Class 1)

     9,093,933        412,864,545   

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

     18,879,953        173,506,769   

American Funds International Fund (Class 1)

     14,521,273        262,544,612   

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

     20,813,568        306,375,714   

Investment Company Securities—(Continued)

  

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

     7,155,444      135,023,232   

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

     40,692,070        501,326,302   
   

 

 

  

Total Mutual Funds
(Cost $4,333,785,827)

       4,531,763,794   
   

 

 

  

Total Investments—100.1%
(Cost $4,333,785,827) (b)

       4,531,763,794   

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

       (2,519,864 ) 
   

 

 

  
Net Assets—100.0%     $ 4,529,243,930   
   

 

 

  

 

(a) Affiliated Issuer. (See Note 6 of the Notes to Financial Statements for a summary of transactions in securities of affiliated issuers.)
(b) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $4,339,510,259. The aggregate unrealized appreciation and depreciation of investments were $292,883,802 and $(100,630,267), respectively, resulting in net unrealized appreciation of $192,253,535 for federal income tax purposes.

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2      Level 3      Total  
Mutual Funds            

Investment Company Securities

    $ 4,531,763,794       $ —         $ —         $ 4,531,763,794   

Total Investments

    $ 4,531,763,794       $ —         $ —         $ 4,531,763,794   
                                     

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

American Funds Balanced Allocation Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a)

    $ 2,321,465,084   

Affiliated investments at value (b)

      2,210,298,710   

Receivable for:

   

Investments sold

      771,917   

Fund shares sold

      51,320   

Prepaid expenses

      12,901   
  

 

 

  

Total Assets

      4,532,599,932   

Liabilities

   

Payables for:

   

Fund shares redeemed

      823,237   

Accrued Expenses:

   

Management fees

      225,339   

Distribution and service fees

      2,126,582   

Deferred trustees’ fees

      81,937   

Other expenses

      98,907   
  

 

 

  

Total Liabilities

      3,356,002   
  

 

 

  

Net Assets

    $ 4,529,243,930   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 3,880,586,205   

Undistributed net investment income

      73,116,847   

Accumulated net realized gain

      377,562,911   

Unrealized appreciation on investments and affiliated investments

      197,977,967   
  

 

 

  

Net Assets

    $ 4,529,243,930   
  

 

 

  

Net Assets

   

Class B

    $ 7,105,878   

Class C

      4,522,138,052   

Capital Shares Outstanding*

   

Class B

      705,825   

Class C

      452,466,810   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 10.07   

Class C

      9.99   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding affiliated investments, was $2,067,066,196.
(b) Identified cost of affiliated investments was $2,266,719,631.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends from Underlying Portfolios

    $ 30,886,607   

Dividends from Affiliated Underlying Portfolios

      48,810,913   
  

 

 

  

Total investment income

      79,697,520   

Expenses

   

Management fees

      2,766,278   

Administration fees

      22,280   

Custodian and accounting fees

      25,715   

Distribution and service fees—Class B

      16,484   

Distribution and service fees—Class C

      26,267,791   

Audit and tax services

      29,775   

Legal

      26,460   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      64,667   

Insurance

      30,940   

Miscellaneous

      32,519   
  

 

 

  

Total expenses

      29,318,082   
  

 

 

  

Net Investment Income

      50,379,438   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      83,054,843   

Affiliated investments

      12,042,501   

Capital gain distributions from Underlying Portfolios

      240,381,847   

Capital gain distributions from Affiliated Underlying Portfolios

      72,639,377   
  

 

 

  

Net realized gain

      408,118,568   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (312,181,144 ) 

Affiliated investments

      (169,655,863 ) 
  

 

 

  

Net change in unrealized depreciation

      (481,837,007 ) 
  

 

 

  

Net realized and unrealized loss

      (73,718,439 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (23,339,001 ) 
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

American Funds Balanced Allocation Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 50,379,438      $ 66,841,008   

Net realized gain

      408,118,568        252,721,120   

Net change in unrealized depreciation

      (481,837,007 )      (32,803,681 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (23,339,001 )      286,758,447   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (115,237 )      (78,777 ) 

Class C

      (66,732,953 )      (62,411,676 ) 

Net realized capital gains

     

Class B

      (343,311 )      (476,033 ) 

Class C

      (251,126,640 )      (476,521,577 ) 
  

 

 

    

 

 

  

Total distributions

      (318,318,141 )      (539,488,063 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      (44,076,544 )      268,936,312   
  

 

 

    

 

 

  

Total increase (decrease) in net assets

      (385,733,686 )      16,206,696   

Net Assets

     

Beginning of period

      4,914,977,616        4,898,770,920   
  

 

 

    

 

 

  

End of period

    $ 4,529,243,930      $ 4,914,977,616   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 73,116,847      $ 66,462,112   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      178,058      $ 1,874,032        113,711      $ 1,246,947   

Reinvestments

      43,755        458,548        54,181        554,810   

Redemptions

      (54,308 )      (561,004 )      (19,764 )      (215,085 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      167,505      $ 1,771,576        148,128      $ 1,586,672   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class C

         

Sales

      12,047,135      $ 125,597,575        17,784,746      $ 192,765,523   

Reinvestments

      30,504,759        317,859,593        52,940,398        538,933,253   

Redemptions

      (46,473,563 )      (489,305,288 )      (42,868,891 )      (464,349,136 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (3,921,669 )    $ (45,848,120 )      27,856,253      $ 267,349,640   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ (44,076,544 )      $ 268,936,312   
    

 

 

      

 

 

  

 

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  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 10.84       $ 11.50       $ 10.51       $ 9.52       $ 9.84   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.16         0.20         0.16         0.18         0.20   

Net realized and unrealized gain (loss) on investments

      (0.17 )       0.46         1.71         1.11         (0.36 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.01 )       0.66         1.87         1.29         (0.16 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.19 )       (0.19 )       (0.19 )       (0.20 )       (0.15 ) 

Distributions from net realized capital gains

      (0.57 )       (1.13 )       (0.69 )       (0.10 )       (0.01 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.76 )       (1.32 )       (0.88 )       (0.30 )       (0.16 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.07       $ 10.84       $ 11.50       $ 10.51       $ 9.52   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (0.33 )       6.38         18.91         13.80         (1.79 ) 

Ratios/Supplemental Data

               

Ratio of expenses to average net assets (%) (c)

      0.31         0.31         0.31         0.32         0.32   

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

      1.49         1.81         1.52         1.78         2.06   

Portfolio turnover rate (%)

      9         7         33         14         7   

Net assets, end of period (in millions)

    $ 7.1       $ 5.8       $ 4.5       $ 3.0       $ 2.1   
     Class C  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 10.76       $ 11.42       $ 10.44       $ 9.45       $ 9.78   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.11         0.15         0.13         0.13         0.16   

Net realized and unrealized gain (loss) on investments

      (0.16 )       0.47         1.69         1.13         (0.36 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.05 )       0.62         1.82         1.26         (0.20 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.15 )       (0.15 )       (0.15 )       (0.17 )       (0.12 ) 

Distributions from net realized capital gains

      (0.57 )       (1.13 )       (0.69 )       (0.10 )       (0.01 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.72 )       (1.28 )       (0.84 )       (0.27 )       (0.13 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 9.99       $ 10.76       $ 11.42       $ 10.44       $ 9.45   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (0.71 )       6.05         18.53         13.53         (2.13 ) 

Ratios/Supplemental Data

               

Ratio of expenses to average net assets (%) (c)

      0.61         0.61         0.61         0.62         0.62   

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

      1.05         1.36         1.17         1.30         1.60   

Portfolio turnover rate (%)

      9         7         33         14         7   

Net assets, end of period (in millions)

    $ 4,522.1       $ 4,909.1       $ 4,894.3       $ 4,385.0       $ 4,079.5   

 

(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) The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Portfolio invests.
(d) 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—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 plan and such distribution 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”) and other funds within the American Funds family not part of 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - 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 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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.

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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

 

MIST-9

Met Investors Series Trust

American Funds Balanced Allocation Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

3. Certain Risks

In the normal course of business, the Underlying Portfolios 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”).

Market 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, 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 they believe 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 their trading partners, (ii) monitoring and/or limiting the amount of their net exposure to each individual counterparty based on the adviser’s 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 (“Master Agreements”) with counterparties (approved brokers) with whom the Underlying Portfolios undertake a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 435,031,305       $ 0       $ 434,208,972   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$2,766,278      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, LLC, 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

 

MIST-10

Met Investors Series Trust

American Funds Balanced Allocation Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 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 year ended December 31, 2015 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 during the year ended December 31, 2015 is as follows:

 

Underlying Portfolio

    Number of
shares held at
December 31, 2014		      Shares
purchased		      Shares
sold		     Number of
shares held at
December 31, 2015		  

American Funds Blue Chip Income and Growth Fund

      27,369,013         3,478,356         (1,751,834 )      29,095,535   

American Funds Bond Fund

      53,064,604         4,567,971         (2,281,136 )      55,351,439   

American Funds Global Bond Fund

      12,073,615         400,672         (247,162 )      12,227,125   

American Funds High-Income Bond Fund

      18,217,302         1,253,465         (590,814 )      18,879,953   

American Funds International Growth and Income Fund*

      19,720,199         1,176,968         (83,599 )      20,813,568   

American Funds New World Fund

      6,514,754         652,442         (11,752 )      7,155,444   

American Funds U.S. Government/AAA - Rated Securities Fund

      47,270,930         1,094,884         (7,673,744 )      40,692,070   

 

* The Portfolio had ownership of at least 25% of the outstanding voting securities of the Underlying Portfolio as of December 31, 2015. 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

    Net Realized
Gain/(Loss) on sales
of Affiliated
Underlying
Portfolios		      Capital Gain
Distributions
from Affiliated
Underlying
Portfolios		      Dividend Income
from Affiliated
Underlying
Portfolios		      Ending Value
as of
December 31, 2015		  

American Funds Blue Chip Income and Growth Fund

    $ 7,172,655       $ 38,147,773       $ 8,297,333       $ 367,185,648   

American Funds Bond Fund

      2,407,008         11,740,378         11,618,285         592,260,400   

American Funds Global Bond Fund

      246,024         3,780,522         132,862         134,620,645   

American Funds High-Income Bond Fund

      180,042         —         11,205,670         173,506,769   

American Funds International Growth and Income Fund

      124,282         6,666,289         7,726,091         306,375,714   

American Funds New World Fund

      84,657         7,756,917         1,157,077         135,023,232   

American Funds U.S. Government/AAA - Rated Securities Fund

      1,827,833         4,547,498         8,673,595         501,326,302   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 12,042,501       $ 72,639,377       $ 48,810,913       $ 2,210,298,710   
  

 

 

     

 

 

     

 

 

     

 

 

  

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees 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-11

Met Investors Series Trust

American Funds Balanced Allocation Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$66,848,190    $ 79,797,446       $ 251,469,951       $ 459,690,617       $ 318,318,141       $ 539,488,063   

As of December 31, 2015, 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		      Other
Accumulated
Capital Losses		      Total  
$73,198,784    $ 383,287,342       $ 192,253,535       $ —       $ 648,739,661   

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, 2015, the Portfolio had no post-enactment accumulated capital losses and no pre-enactment accumulated capital loss carryforwards.

9. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-12

Met Investors Series Trust

American Funds Balanced Allocation Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of American Funds Balanced Allocation 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 American Funds Balanced Allocation Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the transfer agent; when replies were not received from the transfer agent, 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 American Funds Balanced Allocation Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-13

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-14

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-15

Met Investors Series Trust

American Funds Balanced Allocation Portfolio

Board of Trustees’ Consideration of Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (the “Advisory Agreements” or “Agreements”) with MetLife Advisers, LLC (the “Adviser”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser that the Adviser had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser has provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its investment management activities, trading practices, financial condition, relevant personnel matters and compliance program, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff regularly review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding material information related to those reviews and assessments.

The Board further considered the provision of investment advisory services by the Adviser to the Asset Allocation Portfolios (i.e., MetLife Asset Allocation 20 Portfolio, MetLife Asset Allocation 40 Portfolio, MetLife Asset Allocation 60 Portfolio, MetLife Asset Allocation 80 Portfolio and MetLife Asset Allocation 100 Portfolio) and the American Funds of Funds (i.e., American Funds Balanced Allocation Portfolio, American Funds Growth Allocation Portfolio and American Funds Moderate Allocation Portfolio). With respect to

 

MIST-16

Met Investors Series Trust

American Funds Balanced Allocation Portfolio

Board of Trustees’ Consideration of Advisory Agreements—(Continued)

 

the Asset Allocation Portfolios, the Board noted that the Adviser has hired at its own expense an independent consultant to provide research and consulting services with respect to the periodic asset allocation targets for each of the Asset Allocation Portfolios and investments in other Portfolios of the Trusts (the “Underlying Portfolios”). Additionally, the Board considered that a committee, consisting of investment professionals from across the Adviser, meets periodically to review the asset allocations and discuss the performance of the Asset Allocation Portfolios and the American Funds of Funds.

The Board further considered and found that the advisory fee to be paid to the Adviser with respect to each Asset Allocation Portfolio and American Fund of Funds was based on services to be provided that were in addition to, rather than duplicative of, the services provided pursuant to the advisory agreements for the Underlying Portfolios in which the Portfolio invests.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board focused particular attention on Portfolios with less favorable performance records.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”) and a narrower group of peer funds (“Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report.

The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. In the case of the Asset Allocation Portfolios, the Board also considered the Adviser’s analysis of its profitability that was attributable to its management of the Underlying Portfolios of the Trust in which the Asset Allocation Portfolios invest. The Board further considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Portfolios, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board considered the effective fees under the Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

 

MIST-17

Met Investors Series Trust

American Funds Balanced Allocation Portfolio

Board of Trustees’ Consideration of Advisory Agreements—(Continued)

 

American Funds Balanced Allocation Portfolio. The Board also considered the following information in relation to the Agreement with the Adviser regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe for the one-year period ended June 30, 2015 and underperformed the median of its Performance Universe for the three- and five-year periods ended June 30, 2015. The Board also considered that the Portfolio outperformed its Lipper Index for the one-, three- and five-year periods ended June 30, 2015. The Board noted that the Portfolio underperformed its benchmark, the Balanced AA Broad Index, for the one- and five-year periods ended October 31, 2015, and outperformed this benchmark for the three-year period ended October 31, 2015. The Board further considered that the Portfolio outperformed its other benchmark, the Dow Jones Moderate Index, for the one-, three-, and five-year periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-l fees) were below the Expense Group median and Expense Universe median. The Board noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size and were the lowest in the Expense Group.

 

MIST-18

Met Investors Series Trust

American Funds Growth Allocation Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class B and C shares of the American Funds Growth Allocation Portfolio returned -0.51% and -0.76%, respectively. The Portfolio’s benchmark, the Dow Jones Moderately Aggressive Index1, returned -1.89%.

MARKET ENVIRONMENT / CONDITIONS

2015 marked a year of increasing uncertainty and volatility, especially in the third quarter when the volatility index, VIX, sprung to more than three times its average level. Major factors that impacted the global equity markets were concerns over China’s slowdown and a further and unexpected decline in commodity prices. China’s disappointing economic news, plummeting A-shares stock markets, surprise currency devaluation, and multiple rounds of interest rate cuts throughout the year added a tremendous amount of negative sentiment to the stock markets worldwide. Furthermore, after an approximate 40% price decline in 2014, crude oil plunged again in 2015. Prices of industrial metals fell sharply as well. The overall drop in commodity prices hurt many companies in the Energy, Materials, and Industrials sectors. Another theme in 2015 was the U.S. dollar’s continuous strengthening as a result of divergent central bank policies globally. While the Federal Reserve (the “Fed”) finally made their first move in nine years to raise interest rates in December, the European Central Bank, the Bank of Japan, and the People’s Bank of China further eased their monetary policies in 2015. As a result, the U.S. dollar strengthened against many other currencies, including those of both developed and emerging countries, leading to diminished returns for U.S. investors who invest in stocks and bonds outside the U.S.

The U.S. stock market, as measured by the S&P 500 Index, produced a modestly positive return of 1.4% in 2015. Mid cap (represented by the S&P Mid Cap 400 Index) and small cap stocks (S&P Small Cap 600) underperformed their large cap counterparts, and finished the year in negative territory with a return of -2.2% and -2.0% respectively. Stocks with a growth orientation noticeably outpaced those with a value bias. From a sector perspective, the Consumer, Health Care, and Information Technology sectors performed better than the broad market, while Energy and Materials significantly trailed as a result of falling commodity prices. Due to the risk-off sentiment dominating a big part of the year, stocks with low volatility and high quality characteristics significantly outperformed the rest. Developed markets outside U.S., in particular, Europe and Japan delivered solid performance, thanks to continuous accommodative monetary policies. The MSCI EAFE Index advanced 5.3% in local currency terms for the year. However, with currency depreciation, the return in U.S. dollar terms was slightly negative at -0.8%. Emerging markets, on the other hand, struggled and produced a loss of 5.8% in local currency terms and a woeful -14.9% return in dollar terms.

Fixed income markets in general were modestly up. Treasuries, agencies, and mortgage backed securities all enjoyed a positive return for the year, while investment grade corporate bonds were slightly down. Overall, the Barclays U.S. Aggregate Bond Index advanced 0.6%. Conversely, high yield corporate bonds, driven particularly by energy related bonds, suffered a meaningful loss of -4.5% for the year. Foreign bonds on average produced a modestly positive return in local currency terms. However, U.S. investors realized a negative performance of -6.0% (measured by the Barclays Global Aggregate ex-U.S. Index) as a result of dollar strengthening.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The American Funds Growth Allocation Portfolio invested all of its assets in funds of the American Funds Insurance Series (AFIS) and American Funds retail mutual funds to maintain a broad asset allocation of approximately 15% to fixed income and 85% to equities.

Over the twelve month period, the Portfolio outpaced the Dow Jones Moderately Aggressive Index, driven largely by solid security selection in the underlying funds in addition to a greater domestic orientation relative to the Dow Jones Index.

The equity underlying funds in aggregate produced positive results. Detraction from funds with a higher income orientation was more than compensated for by contribution from funds with a stronger focus on growth of capital. The AFIS Growth Fund was the most growth oriented fund and generated the highest contribution to the asset allocation portfolio. The AFIS Growth Fund outpaced the S&P 500 Index by a wide margin as growth stocks, which the fund favored to achieve its capital growth goal, were rewarded by the market in the past twelve months. The fund’s stock selection within the Consumer Discretionary sector was particularly strong, with Amazon leading the way, as the stock more than doubled in 2015. In addition, the fund’s stock selection in the Health Care and Information Technology sectors was also strongly additive. The Fundamental Investors Fund, which has both growth and income as its objectives, with a greater emphasis on growth over yield, also delivered solid performance. The fund benefited from its holdings with a growth focus, mostly in the Consumer Discretionary and Information Technology sectors, with Amazon, Microsoft, and Avago Technologies being the top contributing names. Conversely, the AFIS Blue Chip Income & Growth Fund and the American Mutual Fund suffered from their greater focus on income over growth, as higher dividend paying stocks significantly underperformed in 2015. Additionally, performance of both funds was held back by their holdings in a number of rail-based transportation stocks within the Industrials sector whose businesses were hurt by declining commodity prices and commodity demand. Among underlying funds that invest outside the U.S., the AFIS International Fund contributed positively. Relative performance was aided in part by an underweight position in the Energy and Materials sectors and an overweight position in the Health Care sector. Moreover, stock picking in the Financials sector further added to performance by avoiding weak performing Chinese banks and instead investing in Indian banks and insurance company AIA in Hong Kong. The AFIS Global Small Capitalization Fund was

 

MIST-1

Met Investors Series Trust

American Funds Growth Allocation Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*—(Continued)

 

another positive contributor. Outperformance was primarily driven by a handful of biotech stocks which had an exceptional run in the first half of the year, and a consumer discretionary stock, Netflix.

On the fixed income side, the AFIS U.S. Government/AAA-Rated Securities Fund contributed positively as the government sector outperformed credit sectors in 2015. Moreover, the fund produced a positive alpha relative to its asset class benchmark, the Barclays U.S. Government/Mortgage Index. While the fund’s TIPS holdings modestly detracted from performance, its issue selection in the mortgage-backed securities sector produced significant contributions. From a duration standpoint, the fund’s focus on the 5-year part of the yield curve proved to be beneficial. Conversely, the AFIS High-Income Bond Fund hindered the asset allocation portfolio’s performance. The fund underperformed the Barclays U.S. Corporate High Yield Index by over 200 basis points, driven largely by issue selection in commodity related industries, with Peabody Energy being the top detractor.

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, 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 subject to change at any time based upon economic, market, or other conditions and the advisory 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        Since Inception2  
American Funds Growth Allocation Portfolio                 

Class B

        -0.51           8.21           5.09   

Class C

        -0.76           7.89           4.75   
Dow Jones Moderately Aggressive Index        -1.89           6.84           5.10   

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 date of the Class B and Class C shares is 4/28/2008. Index since inception return is based on the Portfolio’s inception date.

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
American Funds AMCAP Fund (Class R-6)      12.2   
American Funds Growth Fund (Class 1)      11.2   
American Funds Fundamental Investors Fund (Class R-6)      11.1   
American Funds American Mutual Fund (Class R-6)      10.1   
American Funds Blue Chip Income and Growth Fund (Class 1)      10.1   
American Funds Growth-Income Fund (Class 1)      10.1   
American Funds International Growth and Income Fund (Class 1)      8.7   
American Funds International Fund (Class 1)      7.8   
American Funds Global Small Capitalization Fund (Class 1)      4.9   
American Funds New World Fund (Class 1)      4.0   

 

MIST-3

Met Investors Series Trust

American Funds Growth Allocation 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class B(a)

    Actual      0.75 %     $ 1,000.00         $ 963.70         $ 3.71   
   Hypothetical*      0.75 %     $ 1,000.00         $ 1,021.43         $ 3.82   

Class C(a)

    Actual      1.05 %     $ 1,000.00         $ 962.50         $ 5.19   
   Hypothetical*      1.05 %     $ 1,000.00         $ 1,019.91         $ 5.35   

* 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 (184 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 December 31, 2015

Mutual Funds—100.1% of Net Assets

 

Security Description   Shares     Value  

Investment Company Securities—100.1%

  

American Funds AMCAP Fund (Class R-6)

     13,174,819      $ 344,785,018   

American Funds American Mutual Fund (Class R-6)

     8,495,508        287,572,942   

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

     22,784,720        287,543,164   

American Funds Bond Fund (Class 1)

     10,496,226        112,309,623   

American Funds Fundamental Investors Fund (Class R-6)

     6,233,033        316,139,415   

American Funds Global Bond Fund (Class 1)

     5,051,551        55,617,580   

American Funds Global Small Capitalization Fund (Class 1)

     5,672,868        138,474,709   

American Funds Growth Fund (Class 1)

     4,653,933        316,560,513   

American Funds Growth-Income Fund (Class 1)

     6,328,812        287,328,077   

American Funds High-Income Bond Fund (Class 1)

     8,827,996        81,129,286   

American Funds International Fund (Class 1)

     12,237,170        221,248,035   

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

     16,764,434        246,772,474   

Investment Company Securities—(Continued)

  

American Funds New World Fund (Class 1)

     6,062,059      114,391,046   

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

     2,277,332        28,056,728   
   

 

 

  

Total Mutual Funds
(Cost $2,615,424,716)

       2,837,928,610   
   

 

 

  

Total Investments—100.1%
(Cost $2,615,424,716) (b)

       2,837,928,610   

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

       (1,639,163 ) 
   

 

 

  
Net Assets—100.0%     $ 2,836,289,447   
   

 

 

  

 

(a) Affiliated Issuer. (See Note 6 of the Notes to Financial Statements for a summary of transactions in securities of affiliated issuers.)
(b) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $2,647,119,874. The aggregate unrealized appreciation and depreciation of investments were $249,402,691 and $(58,593,955), respectively, resulting in net unrealized appreciation of $190,808,736 for federal income tax purposes.

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2      Level 3      Total  
Mutual Funds            

Investment Company Securities

    $ 2,837,928,610       $ —         $ —         $ 2,837,928,610   

Total Investments

    $ 2,837,928,610       $ —         $ —         $ 2,837,928,610   
                                     

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

American Funds Growth Allocation Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a)

    $ 2,591,156,136   

Affiliated investments at value (b)

      246,772,474   

Receivable for:

   

Investments sold

      519,553   

Fund shares sold

      505,054   

Prepaid expenses

      8,094   
  

 

 

  

Total Assets

      2,838,961,311   

Liabilities

   

Payables for:

   

Fund shares redeemed

      1,024,607   

Accrued Expenses:

   

Management fees

      153,042   

Distribution and service fees

      1,328,189   

Deferred trustees’ fees

      81,937   

Other expenses

      84,089   
  

 

 

  

Total Liabilities

      2,671,864   
  

 

 

  

Net Assets

    $ 2,836,289,447   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 2,325,146,559   

Undistributed net investment income

      36,119,759   

Accumulated net realized gain

      252,519,235   

Unrealized appreciation on investments and affiliated investments

      222,503,894   
  

 

 

  

Net Assets

    $ 2,836,289,447   
  

 

 

  

Net Assets

   

Class B

    $ 19,339,540   

Class C

      2,816,949,907   

Capital Shares Outstanding*

   

Class B

      2,020,714   

Class C

      296,799,790   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 9.57   

Class C

      9.49   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding affiliated investments, was $2,343,961,607.
(b) Identified cost of affiliated investments was $271,463,109.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends from Underlying Portfolios

    $ 39,710,170   

Dividends from Affiliated Underlying Portfolios

      6,218,756   
  

 

 

  

Total investment income

      45,928,926   

Expenses

   

Management fees

      1,864,034   

Administration fees

      22,280   

Custodian and accounting fees

      25,715   

Distribution and service fees—Class B

      47,433   

Distribution and service fees—Class C

      16,275,018   

Audit and tax services

      29,775   

Legal

      26,460   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      49,132   

Insurance

      19,199   

Miscellaneous

      22,869   
  

 

 

  

Total expenses

      18,417,088   
  

 

 

  

Net Investment Income

      27,511,838   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      69,748,696   

Affiliated investments

      37,781   

Capital gain distributions from Underlying Portfolios

      230,309,079   

Capital gain distributions from Affiliated Underlying Portfolios

      5,326,434   
  

 

 

  

Net realized gain

      305,421,990   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (326,072,764 ) 

Affiliated investments

      (25,485,919 ) 
  

 

 

  

Net change in unrealized depreciation

      (351,558,683 ) 
  

 

 

  

Net realized and unrealized loss

      (46,136,693 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (18,624,855 ) 
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

American Funds Growth Allocation Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 27,511,838      $ 38,848,656   

Net realized gain

      305,421,990        196,316,429   

Net change in unrealized depreciation

      (351,558,683 )      (49,442,520 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (18,624,855 )      185,722,565   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (310,345 )      (199,175 ) 

Class C

      (38,815,051 )      (30,724,579 ) 

Net realized capital gains

     

Class B

      (1,207,492 )      (2,299,337 ) 

Class C

      (190,418,764 )      (455,623,023 ) 
  

 

 

    

 

 

  

Total distributions

      (230,751,652 )      (488,846,114 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      68,984,907        354,454,505   
  

 

 

    

 

 

  

Total increase (decrease) in net assets

      (180,391,600 )      51,330,956   

Net Assets

     

Beginning of period

      3,016,681,047        2,965,350,091   
  

 

 

    

 

 

  

End of period

    $ 2,836,289,447      $ 3,016,681,047   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 36,119,759      $ 38,716,708   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      255,776      $ 2,597,652        299,153      $ 3,176,586   

Reinvestments

      150,430        1,517,837        256,258        2,498,512   

Redemptions

      (63,960 )      (638,346 )      (81,407 )      (854,196 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      342,246      $ 3,477,143        474,004      $ 4,820,902   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class C

         

Sales

      14,411,248      $ 143,405,873        18,238,868      $ 193,951,377   

Reinvestments

      22,877,626        229,233,815        50,138,928        486,347,602   

Redemptions

      (30,416,083 )      (307,131,924 )      (31,252,795 )      (330,665,376 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      6,872,791      $ 65,507,764        37,125,001      $ 349,633,603   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 68,984,907        $ 354,454,505   
    

 

 

      

 

 

  

 

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  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 10.43       $ 11.76       $ 10.10       $ 8.80       $ 9.33   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.13         0.18         0.16         0.15         0.16   

Net realized and unrealized gain (loss) on investments

      (0.14 )       0.47         2.27         1.30         (0.56 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.01 )       0.65         2.43         1.45         (0.40 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.17 )       (0.16 )       (0.15 )       (0.15 )       (0.13 ) 

Distributions from net realized capital gains

      (0.68 )       (1.82 )       (0.62 )       0.00         0.00   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.85 )       (1.98 )       (0.77 )       (0.15 )       (0.13 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 9.57       $ 10.43       $ 11.76       $ 10.10       $ 8.80   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (0.51 )       6.72         25.44         16.54         (4.41 ) 

Ratios/Supplemental Data

               

Ratio of expenses to average net assets (%) (c)

      0.32         0.32         0.32         0.33         0.33   

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

      1.28         1.67         1.44         1.57         1.70   

Portfolio turnover rate (%)

      8         9         42         17         8   

Net assets, end of period (in millions)

    $ 19.3       $ 17.5       $ 14.2       $ 9.7       $ 6.8   
     Class C  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 10.34       $ 11.67       $ 10.02       $ 8.73       $ 9.26   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.09         0.14         0.12         0.10         0.11   

Net realized and unrealized gain (loss) on investments

      (0.12 )       0.47         2.26         1.30         (0.54 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.03 )       0.61         2.38         1.40         (0.43 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.14 )       (0.12 )       (0.11 )       (0.11 )       (0.10 ) 

Distributions from net realized capital gains

      (0.68 )       (1.82 )       (0.62 )       0.00         0.00   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.82 )       (1.94 )       (0.73 )       (0.11 )       (0.10 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 9.49       $ 10.34       $ 11.67       $ 10.02       $ 8.73   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (0.76 )       6.39         25.11         16.16         (4.73 ) 

Ratios/Supplemental Data

               

Ratio of expenses to average net assets (%) (c)

      0.62         0.62         0.62         0.63         0.63   

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

      0.92         1.29         1.10         1.07         1.17   

Portfolio turnover rate (%)

      8         9         42         17         8   

Net assets, end of period (in millions)

    $ 2,816.9       $ 2,999.2       $ 2,951.2       $ 2,435.2       $ 2,237.3   

 

(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) The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Portfolio invests.
(d) 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—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 plan and such distribution 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”) and other funds within the American Funds family not part of 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - 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 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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.

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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

 

MIST-9

Met Investors Series Trust

American Funds Growth Allocation Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

3. Certain Risks

In the normal course of business, the Underlying Portfolios 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”).

Market 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, 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 they believe 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 their trading partners, (ii) monitoring and/or limiting the amount of their net exposure to each individual counterparty based on the adviser’s 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 (“Master Agreements”) with counterparties (approved brokers) with whom the Underlying Portfolios undertake a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 344,252,462       $ 0       $ 242,944,974   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$1,864,034      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, LLC, 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

 

MIST-10

Met Investors Series Trust

American Funds Growth Allocation Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 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 year ended December 31, 2015 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 during the year ended December 31, 2015 is as follows:

 

Underlying Portfolio

    Number of
shares held at
December 31, 2014		      Shares
purchased		      Shares sold     Number of
shares held at
December 31, 2015		  

American Funds International Growth and Income Fund*

      15,599,377         1,191,843         (26,786 )      16,764,434   

 

* The Portfolio had ownership of at least 25% of the outstanding voting securities of the Underlying Portfolio as of December 31, 2015. 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

    Net Realized
Gain/(Loss) on sales
of Affiliated
Underlying
Portfolios		      Capital Gain
Distributions
from Affiliated
Underlying
Portfolios		      Dividend Income
from Affiliated
Underlying
Portfolios		      Ending Value
as of
December 31, 2015		  

American Funds International Growth and Income Fund

    $ 37,781       $ 5,326,434       $ 6,218,756       $ 246,772,474   

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$39,125,396    $ 38,706,425       $ 191,626,256       $ 450,139,689       $ 230,751,652       $ 488,846,114   

As of December 31, 2015, 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		      Other
Accumulated
Capital Losses		      Total  
$36,201,696    $ 284,214,394       $ 190,808,736       $ —       $ 511,224,826   

 

MIST-11

Met Investors Series Trust

American Funds Growth Allocation Portfolio

Notes to Financial Statements—December 31, 2015—(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, 2015, the Portfolio had no post-enactment accumulated capital losses and no pre-enactment accumulated capital loss carryforwards.

9. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-12

Met Investors Series Trust

American Funds Growth Allocation Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of American Funds Growth Allocation 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 American Funds Growth Allocation Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the transfer agent; when replies were not received from the transfer agent, 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 American Funds Growth Allocation Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-13

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-14

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-15

Met Investors Series Trust

American Funds Growth Allocation Portfolio

Board of Trustees’ Consideration of Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (the “Advisory Agreements” or “Agreements”) with MetLife Advisers, LLC (the “Adviser”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser that the Adviser had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser has provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its investment management activities, trading practices, financial condition, relevant personnel matters and compliance program, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff regularly review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding material information related to those reviews and assessments.

The Board further considered the provision of investment advisory services by the Adviser to the Asset Allocation Portfolios (i.e., MetLife Asset Allocation 20 Portfolio, MetLife Asset Allocation 40 Portfolio, MetLife Asset Allocation 60 Portfolio, MetLife Asset Allocation 80 Portfolio and MetLife Asset Allocation 100 Portfolio) and the American Funds of Funds (i.e., American Funds Balanced Allocation Portfolio, American Funds Growth Allocation Portfolio and American Funds Moderate Allocation Portfolio). With respect to

 

MIST-16

Met Investors Series Trust

American Funds Growth Allocation Portfolio

Board of Trustees’ Consideration of Advisory Agreements—(Continued)

 

the Asset Allocation Portfolios, the Board noted that the Adviser has hired at its own expense an independent consultant to provide research and consulting services with respect to the periodic asset allocation targets for each of the Asset Allocation Portfolios and investments in other Portfolios of the Trusts (the “Underlying Portfolios”). Additionally, the Board considered that a committee, consisting of investment professionals from across the Adviser, meets periodically to review the asset allocations and discuss the performance of the Asset Allocation Portfolios and the American Funds of Funds.

The Board further considered and found that the advisory fee to be paid to the Adviser with respect to each Asset Allocation Portfolio and American Fund of Funds was based on services to be provided that were in addition to, rather than duplicative of, the services provided pursuant to the advisory agreements for the Underlying Portfolios in which the Portfolio invests.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board focused particular attention on Portfolios with less favorable performance records.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”) and a narrower group of peer funds (“Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report.

The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. In the case of the Asset Allocation Portfolios, the Board also considered the Adviser’s analysis of its profitability that was attributable to its management of the Underlying Portfolios of the Trust in which the Asset Allocation Portfolios invest. The Board further considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Portfolios, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board considered the effective fees under the Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

 

MIST-17

Met Investors Series Trust

American Funds Growth Allocation Portfolio

Board of Trustees’ Consideration of Advisory Agreements—(Continued)

 

American Funds Growth Allocation Portfolio. The Board also considered the following information in relation to the Agreement with the Adviser regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe for the one-, three-, and five-year periods ended June 30, 2015. The Board also noted that the Portfolio outperformed its Lipper Index for the one- and three-year periods ended June 30, 2015, but underperformed its Lipper Index for the five-year period ended June 30, 2015. The Board noted that the Portfolio underperformed its benchmark, the Growth AA Broad Index, for the one- and five-year periods ended October 31, 2015, and outperformed this benchmark for the three-year period ended October 31, 2015. The Board further considered that the Portfolio outperformed its other benchmark, the Dow Jones Moderately Aggressive Index, for the one-, three-, and five-year periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median and Expense Universe median. The Board also noted that the Portfolio’s contractual management fees at common asset level were the lowest in the Expense Group.

 

MIST-18

Met Investors Series Trust

American Funds Growth Portfolio

For the six months ended June 30, 2015, the American Funds Growth Portfolio had a return of 6.49% for Class C versus 6.49% 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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year2  
American Funds Growth Portfolio                 

Class C

        6.49           10.86           6.51   
S&P 500 Index        1.38           12.57           7.31   

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 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-3

Met Investors Series Trust

American Funds 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class C(a)

    Actual      0.92 %     $ 1,000.00         $ 1,007.50         $ 4.66   
   Hypothetical*      0.92 %     $ 1,000.00         $ 1,020.57         $ 4.69   

* 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 (184 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-4

Met Investors Series Trust

American Funds Growth Portfolio

Schedule of Investments as of December 31, 2015

Mutual Fund—100.1% of Net Assets

 

Security Description   Shares     Value  

Investment Company Security—100.1%

  

American Funds Growth Fund (Class 1)
(Cost $931,605,010)

     16,006,850      $ 1,088,785,951   
   

 

 

  

Total Investments—100.1%
(Cost $931,605,010) (a)

       1,088,785,951   

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

       (668,679 ) 
   

 

 

  
Net Assets—100.0%     $ 1,088,117,272   
   

 

 

  

 

(a) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $935,869,187. The aggregate and net unrealized appreciation of investments was $152,916,764 for federal income tax purposes.

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2      Level 3      Total  
Mutual Fund            

Investment Company Security

    $ 1,088,785,951       $ —         $ —         $ 1,088,785,951   

Total Investments

    $ 1,088,785,951       $ —         $ —         $ 1,088,785,951   
                                     

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

American Funds Growth Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a)

    $ 1,088,785,951   

Receivable for:

   

Investments sold

      59,765   

Fund shares sold

      127,037   

Prepaid expenses

      2,973   
  

 

 

  

Total Assets

      1,088,975,726   

Liabilities

   

Payables for:

   

Fund shares redeemed

      186,801   

Accrued Expenses:

   

Distribution and service fees

      512,114   

Deferred trustees’ fees

      81,937   

Other expenses

      77,602   
  

 

 

  

Total Liabilities

      858,454   
  

 

 

  

Net Assets

    $ 1,088,117,272   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 662,369,831   

Undistributed net investment income

      2,898,170   

Accumulated net realized gain

      265,668,330   

Unrealized appreciation on investments

      157,180,941   
  

 

 

  

Net Assets

    $ 1,088,117,272   
  

 

 

  

Net Assets

   

Class C

    $ 1,088,117,272   

Capital Shares Outstanding*

   

Class C

      89,854,529   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class C

    $ 12.11   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $931,605,010.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends from Master Fund

    $ 9,394,914   
  

 

 

  

Total investment income

      9,394,914   

Expenses

   

Administration fees

      22,280   

Custodian and accounting fees

      25,419   

Distribution and service fees—Class C

      6,100,966   

Audit and tax services

      29,775   

Legal

      26,460   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      43,269   

Insurance

      6,981   

Miscellaneous

      13,618   
  

 

 

  

Total expenses

      6,303,941   
  

 

 

  

Net Investment Income

      3,090,973   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      43,816,350   

Capital gain distributions from Master Fund

      226,386,526   
  

 

 

  

Net realized gain

      270,202,876   
  

 

 

  

Net change in unrealized depreciation on investments

      (202,567,479 ) 
  

 

 

  

Net realized and unrealized gain

      67,635,397   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 70,726,370   
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

American Funds Growth Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 3,090,973      $ 9,613,469   

Net realized gain

      270,202,876        99,341,410   

Net change in unrealized depreciation

      (202,567,479 )      (23,135,590 ) 
  

 

 

    

 

 

  

Increase in net assets from operations

      70,726,370        85,819,289   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class C

      (9,642,504 )      (6,012,488 ) 

Net realized capital gains

     

Class C

      (98,772,782 )      (63,646,483 ) 
  

 

 

    

 

 

  

Total distributions

      (108,415,286 )      (69,658,971 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      17,286,432        5,990,824   
  

 

 

    

 

 

  

Total increase (decrease) in net assets

      (20,402,484 )      22,151,142   

Net Assets

     

Beginning of period

      1,108,519,756        1,086,368,614   
  

 

 

    

 

 

  

End of period

    $ 1,088,117,272      $ 1,108,519,756   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 2,898,170      $ 9,449,701   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class C

         

Sales

      5,716,033      $ 70,621,230        7,577,730      $ 92,867,502   

Reinvestments

      8,908,405        108,415,286        6,142,767        69,658,971   

Redemptions

      (12,907,839 )      (161,750,084 )      (12,782,594 )      (156,535,649 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      1,716,599      $ 17,286,432        937,903      $ 5,990,824   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 17,286,432        $ 5,990,824   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

American Funds Growth Portfolio

Financial Highlights

 

Selected per share data       
     Class C  
     Year Ended December 31,  
     2015      2014      2013      2012     2011  

Net Asset Value, Beginning of Period

    $ 12.58       $ 12.46       $ 10.18       $ 8.70      $ 9.15   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (a)

      0.03         0.11         0.07         0.04        0.03   

Net realized and unrealized gain (loss) on investments

      0.80         0.82         2.82         1.47        (0.45 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total from investment operations

      0.83         0.93         2.89         1.51        (0.42 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.12 )       (0.07 )       (0.05 )       (0.03 )      (0.03 ) 

Distributions from net realized capital gains

      (1.18 )       (0.74 )       (0.56 )       (0.00 )(b)      0.00   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

      (1.30 )       (0.81 )       (0.61 )       (0.03 )      (0.03 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 12.11       $ 12.58       $ 12.46       $ 10.18      $ 8.70   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Return (%) (c)

      6.49         8.18         29.78         17.41        (4.60 ) 

Ratios/Supplemental Data

              

Ratio of expenses to average net assets (%) (d)

      0.57         0.57         0.57         0.57        0.57   

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

      0.28         0.89         0.60         0.46        0.35   

Portfolio turnover rate (%)

      10         9         4         3        3   

Net assets, end of period (in millions)

    $ 1,088.1       $ 1,108.5       $ 1,086.4       $ 927.8      $ 885.9   

 

(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) The ratio of operating expenses to average net assets does not include expenses of the Master Fund in which the Portfolio invests.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

American Funds Growth Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 December 31, 2015, the Portfolio owned approximately 4.97% 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 has no permanent book-tax differences at December 31, 2015.

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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

3. Certain Risks

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”).

Market 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, interest rate, and price fluctuations.

 

MIST-9

Met Investors Series Trust

American Funds Growth Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 250,671,816       $ 0       $ 112,309,258   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - 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. 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 the annual rate of 0.750% of average daily net assets.

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, LLC, 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 year ended December 31, 2015 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 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.

 

MIST-10

Met Investors Series Trust

American Funds Growth Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$9,642,504    $ 6,012,488       $ 98,772,782       $ 63,646,483       $ 108,415,286       $ 69,658,971   

As of December 31, 2015, 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		      Other
Accumulated
Capital Losses		      Total  
$2,980,107    $ 269,932,508       $ 152,916,764       $ —       $ 425,829,379   

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.

As of December 31, 2015, the Portfolio had no post-enactment accumulated capital losses and no pre-enactment accumulated capital loss carryforwards.

8. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-11

Met Investors Series Trust

American Funds Growth Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of American Funds 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 American Funds Growth Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the transfer agent; when replies were not received from the transfer agent, 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 American Funds Growth Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-12

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-13

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-14

Met Investors Series Trust

American Funds Growth Portfolio

Board of Trustees’ Consideration of Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (the “Advisory Agreements” or “Agreements”) with MetLife Advisers, LLC (the “Adviser”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”). The American Funds Growth Portfolio is a “feeder fund” that invests all of its assets in an American Funds Insurance Series “master fund,” and the Board, including a majority of the Independent Trustees, approved the renewal of the stand-by Advisory Agreement with the Adviser (the “Stand-by Agreement”) whereby the Adviser will manage the Portfolio’s assets and receive a fee in the event the Portfolio no longer invests all of its assets in its master fund.

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process, as well as a variety of materials provided to and discussed with the Board throughout the year relating to the provision of asset management services by the Adviser. The Board also met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management. While the Agreements for the Trusts were considered at the same Board meetings, the Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio.

Information furnished and discussed throughout the year included investment performance reports for each Portfolio, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution. Information furnished specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, as well as additional material, including a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser that the Adviser had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, determined to approve the renewal of the Stand-by Agreement based upon the following factors: (i) its experience with the Adviser and the nature, extent and quality of services provided by the Adviser to the Trusts; and (ii) the investment performance of the Portfolio. The Board further noted that because the Stand-by Agreement is not currently in effect: (i) the fees and expenses of the Portfolio were not affected by the Stand-by Agreement; (ii) the Adviser’s profitability from the provision of investment management services under the Agreement was not affected by the Agreement; and (iii) economies of scale in the provision of asset management services by the Adviser were not implicated by the Agreement. In approving the renewal of the Stand-by Agreement, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors.

 

MIST-15

Met Investors Series Trust

American Funds Moderate Allocation Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class B and C shares of the American Funds Moderate Allocation Portfolio returned -0.36% and -0.73%, respectively. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned -1.21%.

MARKET ENVIRONMENT / CONDITIONS

2015 marked a year of increasing uncertainty and volatility, especially in the third quarter when the volatility index, VIX, sprung to more than three times its average level. Major factors that impacted the global equity markets were concerns over China’s slowdown and a further and unexpected decline in commodity prices. China’s disappointing economic news, plummeting A-shares stock markets, surprise currency devaluation, and multiple rounds of interest rate cuts throughout the year added a tremendous amount of negative sentiment to the stock markets worldwide. Furthermore, after an approximate 40% price decline in 2014, crude oil plunged again in 2015. Prices of industrial metals fell sharply as well. The overall drop in commodity prices hurt many companies in the Energy, Materials, and Industrials sectors. Another theme in 2015 was the U.S. dollar’s continuous strengthening as a result of divergent central bank policies globally. While the Federal Reserve (the “Fed”) finally made their first move in nine years to raise interest rates in December, the European Central Bank, the Bank of Japan, and the People’s Bank of China further eased their monetary policies in 2015. As a result, the U.S. dollar strengthened against many other currencies, including those of both developed and emerging countries, leading to diminished returns for U.S. investors who invest in stocks and bonds outside the U.S.

The U.S. stock market, as measured by the S&P 500 Index, produced a modestly positive return of 1.4% in 2015. Mid cap (represented by the S&P Mid Cap 400 Index) and small cap stocks (S&P Small Cap 600) underperformed their large cap counterparts, and finished the year in negative territory with a return of -2.2% and -2.0% respectively. Stocks with a growth orientation noticeably outpaced those with a value bias. From a sector perspective, the Consumer, Health Care, and Information Technology sectors performed better than the broad market, while Energy and Materials significantly trailed as a result of falling commodity prices. Due to the risk-off sentiment dominating a big part of the year, stocks with low volatility and high quality characteristics significantly outperformed the rest. Developed markets outside U.S., in particular, Europe and Japan delivered solid performance, thanks to continuous accommodative monetary policies. The MSCI EAFE Index advanced 5.3% in local currency terms for the year. However, with currency depreciation, the return in U.S. dollar terms was slightly negative at -0.8%. Emerging markets, on the other hand, struggled and produced a loss of 5.8% in local currency terms and a woeful -14.9% return in dollar terms.

Fixed income markets in general were modestly up. Treasuries, agencies, and mortgage backed securities all enjoyed a positive return for the year, while investment grade corporate bonds were slightly down. Overall, the Barclays U.S. Aggregate Bond Index advanced 0.6%. Conversely, high yield corporate bonds, driven particularly by energy related bonds, suffered a meaningful loss of -4.5% for the year. Foreign bonds on average produced a modestly positive return in local currency terms. However, U.S. investors realized a negative performance of -6.0% (measured by the Barclays Global Aggregate ex-U.S. Index) as a result of dollar strengthening.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The American Funds Moderate Allocation Portfolio invested all of its assets in funds of the American Funds Insurance Series (AFIS) and American Funds retail mutual funds to maintain a broad asset allocation of approximately 50% to fixed income and 50% to equities.

Over the twelve month period, the Portfolio outpaced the Dow Jones Moderate Index, driven largely by solid security selection in the underlying funds in addition to a greater domestic orientation relative to the Dow Jones Index.

Among the fixed income funds, the AFIS U.S. Government/AAA-Rated Securities Fund was the top contributor as the government sector outperformed credit sectors in 2015. Moreover, the fund produced a positive alpha relative to its asset class benchmark, the Barclays U.S. Government/Mortgage Index. While the fund’s TIPS holdings modestly detracted from performance, its issue selection in the mortgage-backed securities sector produced significant contributions. From a duration standpoint, the fund’s focus on the 5-year part of the yield curve proved to be beneficial. Conversely, the AFIS High-Income Bond Fund hindered the asset allocation portfolio’s performance. The fund underperformed the Barclays U.S. Corporate High Yield Index by over 200 basis points, driven largely by issue selection in commodity related industries, with Peabody Energy being the top detractor.

On the equity side, detraction from funds with a higher income orientation was more than compensated for by contribution from funds with a stronger focus on growth of capital. The AFIS Growth Fund was the most growth oriented fund and generated the highest contribution to the asset allocation portfolio. The AFIS Growth Fund outpaced the S&P 500 Index by a wide margin as growth stocks, which the fund favored to achieve its capital growth goal, were rewarded by the market in the past twelve months. The fund’s stock selection within the Consumer Discretionary sector was particularly strong, with Amazon leading the way, as the stock more than doubled in 2015. In addition, the fund’s stock selection in the Health Care and Information Technology sectors was also strongly additive. The Fundamental Investors Fund, which has both growth and income as its objectives, with a greater emphasis on growth over yield, also delivered solid performance. The fund benefited from its holdings with a growth focus, mostly in the Consumer Discretionary and Information Technology sectors, with Amazon, Microsoft, and Avago Technologies being the top contributing names. Conversely,

 

MIST-1

Met Investors Series Trust

American Funds Moderate Allocation Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*—(Continued)

 

the AFIS Blue Chip Income & Growth Fund and the American Mutual Fund suffered from their greater focus on income over growth, as higher dividend paying stocks significantly underperformed in 2015. Additionally, performance of both funds was held back by their holdings in a number of rail-based transportation stocks within the Industrials sector, whose businesses were hurt by declining commodity prices and commodity demand. Among underlying funds that invest outside the U.S., the AFIS International Fund contributed positively. Relative performance was aided in part by an underweight position in the Energy and Materials sectors and an overweight position in the Health Care sector. Moreover, stock picking in the Financials sector further added to performance by avoiding weak performing Chinese banks and instead investing in Indian banks and insurance company AIA in Hong Kong. The AFIS Global Small Capitalization Fund was another positive contributor. Outperformance was primarily driven by a handful of biotech stocks which had an exceptional run in the first half of the year, and a consumer discretionary stock, Netflix.

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, 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 subject to change at any time based upon economic, market, or other conditions and the advisory 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        Since Inception2  
American Funds Moderate Allocation Portfolio                 

Class B

        -0.36           6.16           4.77   

Class C

        -0.73           5.83           4.45   
Dow Jones Moderate Index        -1.21           5.85           4.77   

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 date of the Class B and Class C shares is 4/28/2008. Index since inception return is based on the Portfolio’s inception date.

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
American Funds U.S. Government/AAA - Rated Securities Fund (Class 1)      20.2   
American Funds Bond Fund (Class 1)      19.2   
American Funds American Mutual Fund (Class R-6)      9.1   
American Funds Growth-Income Fund (Class 1)      9.1   
American Funds Blue Chip Income and Growth Fund (Class 1)      8.1   
American Funds Growth Fund (Class 1)      5.0   
American Funds AMCAP Fund (Class R-6)      5.0   
American Funds Fundamental Investors Fund (Class R-6)      5.0   
American Funds High-Income Bond Fund (Class 1)      4.8   
American Funds International Growth and Income Fund (Class 1)      4.8   

 

MIST-3

Met Investors Series Trust

American Funds Moderate Allocation 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class B(a)

    Actual      0.72 %     $ 1,000.00         $ 981.20         $ 3.60   
   Hypothetical*      0.72 %     $ 1,000.00         $ 1,021.58         $ 3.67   

Class C(a)

    Actual      1.02 %     $ 1,000.00         $ 979.20         $ 5.09   
   Hypothetical*      1.02 %     $ 1,000.00         $ 1,020.06         $ 5.19   

* 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 (184 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 December 31, 2015

Mutual Funds—100.1% of Net Assets

 

Security Description   Shares     Value  

Investment Company Securities—100.1%

  

American Funds AMCAP Fund (Class R-6)

     5,488,443      $ 143,632,553   

American Funds American Mutual Fund (Class R-6)

     7,652,788        259,046,867   

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

     18,250,758        230,324,564   

American Funds Bond Fund (Class 1) (a)

     51,296,695        548,874,640   

American Funds Fundamental Investors Fund (Class R-6)

     2,828,148        143,443,654   

American Funds Global Bond Fund (Class 1)

     7,776,689        85,621,344   

American Funds Global Small Capitalization Fund (Class 1)

     1,131,885        27,629,305   

American Funds Growth Fund (Class 1)

     2,114,407        143,821,968   

American Funds Growth-Income Fund (Class 1)

     5,700,050        258,782,273   

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

     15,041,351        138,230,018   

American Funds International Fund (Class 1)

     7,598,042        137,372,606   

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

     9,333,610        137,390,744   

Investment Company Securities—(Continued)

  

American Funds New World Fund (Class 1)

     1,511,475      28,521,530   

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

     46,896,443        577,764,178   
   

 

 

  

Total Mutual Funds
(Cost $2,778,828,603)

       2,860,456,244   
   

 

 

  

Total Investments—100.1%
(Cost $2,778,828,603) (b)

       2,860,456,244   

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

       (1,658,427 ) 
   

 

 

  
Net Assets—100.0%     $ 2,858,797,817   
   

 

 

  

 

(a) Affiliated Issuer. (See Note 6 of the Notes to Financial Statements for a summary of transactions in securities of affiliated issuers.)
(b) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $2,781,080,947. The aggregate unrealized appreciation and depreciation of investments were $140,719,734 and $(61,344,437), respectively, resulting in net unrealized appreciation of $79,375,297 for federal income tax purposes.

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2      Level 3      Total  
Mutual Funds            

Investment Company Securities

    $ 2,860,456,244       $ —         $ —         $ 2,860,456,244   

Total Investments

    $ 2,860,456,244       $ —         $ —         $ 2,860,456,244   
                                     

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

American Funds Moderate Allocation Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a)

    $ 1,458,196,664   

Affiliated investments at value (b)

      1,402,259,580   

Receivable for:

   

Investments sold

      1,087,343   

Fund shares sold

      117,888   

Prepaid expenses

      8,130   
  

 

 

  

Total Assets

      2,861,669,605   

Liabilities

   

Payables for:

   

Investments purchased

      170   

Fund shares redeemed

      1,205,062   

Accrued Expenses:

   

Management fees

      153,934   

Distribution and service fees

      1,340,595   

Deferred trustees’ fees

      81,937   

Other expenses

      90,090   
  

 

 

  

Total Liabilities

      2,871,788   
  

 

 

  

Net Assets

    $ 2,858,797,817   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 2,538,203,293   

Undistributed net investment income

      54,581,314   

Accumulated net realized gain

      184,385,569   

Unrealized appreciation on investments and affiliated investments

      81,627,641   
  

 

 

  

Net Assets

    $ 2,858,797,817   
  

 

 

  

Net Assets

   

Class B

    $ 9,159,494   

Class C

      2,849,638,323   

Capital Shares Outstanding*

   

Class B

      922,802   

Class C

      288,796,228   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 9.93   

Class C

      9.87   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding affiliated investments, was $1,328,121,154.
(b) Identified cost of affiliated investments was $1,450,707,449.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends from Underlying Portfolios

    $ 22,547,771   

Dividends from Affiliated Underlying Portfolios

      33,171,436   
  

 

 

  

Total investment income

      55,719,207   

Expenses

   

Management fees

      1,888,552   

Administration fees

      22,280   

Custodian and accounting fees

      25,715   

Distribution and service fees—Class B

      22,178   

Distribution and service fees—Class C

      16,600,278   

Audit and tax services

      29,775   

Legal

      26,460   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      54,126   

Insurance

      19,645   

Miscellaneous

      23,822   
  

 

 

  

Total expenses

      18,748,004   
  

 

 

  

Net Investment Income

      36,971,203   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      41,991,249   

Affiliated investments

      6,332,012   

Capital gain distributions from Underlying Portfolios

      138,225,753   

Capital gain distributions from Affiliated Underlying Portfolios

      19,061,308   
  

 

 

  

Net realized gain

      205,610,322   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (199,802,735 ) 

Affiliated investments

      (61,186,419 ) 
  

 

 

  

Net change in unrealized depreciation

      (260,989,154 ) 
  

 

 

  

Net realized and unrealized loss

      (55,378,832 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (18,407,629 ) 
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

American Funds Moderate Allocation Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 36,971,203      $ 45,005,709   

Net realized gain

      205,610,322        133,167,782   

Net change in unrealized appreciation (depreciation)

      (260,989,154 )      9,785,138   
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (18,407,629 )      187,958,629   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (160,213 )      (119,514 ) 

Class C

      (44,857,701 )      (45,897,856 ) 

Net realized capital gains

     

Class B

      (380,096 )      (578,139 ) 

Class C

      (132,017,918 )      (273,161,783 ) 
  

 

 

    

 

 

  

Total distributions

      (177,415,928 )      (319,757,292 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      (72,357,008 )      96,403,643   
  

 

 

    

 

 

  

Total decrease in net assets

      (268,180,565 )      (35,395,020 ) 

Net Assets

     

Beginning of period

      3,126,978,382        3,162,373,402   
  

 

 

    

 

 

  

End of period

    $ 2,858,797,817      $ 3,126,978,382   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 54,581,314      $ 44,535,573   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      146,620      $ 1,520,382        212,494      $ 2,250,114   

Reinvestments

      52,816        540,309        69,212        697,653   

Redemptions

      (87,682 )      (924,351 )      (31,301 )      (330,340 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      111,754      $ 1,136,340        250,405      $ 2,617,427   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class C

         

Sales

      6,759,382      $ 69,291,501        8,892,006      $ 93,986,323   

Reinvestments

      17,357,764        176,875,619        31,778,849        319,059,639   

Redemptions

      (30,914,530 )      (319,660,468 )      (30,052,100 )      (319,259,746 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (6,797,384 )    $ (73,493,348 )      10,618,755      $ 93,786,216   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ (72,357,008 )      $ 96,403,643   
    

 

 

      

 

 

  

 

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  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 10.61       $ 11.14       $ 10.58       $ 9.87       $ 10.05   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.17         0.21         0.17         0.20         0.25   

Net realized and unrealized gain (loss) on investments

      (0.18 )       0.44         1.21         0.90         (0.20 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.01 )       0.65         1.38         1.10         0.05   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.20 )       (0.20 )       (0.22 )       (0.25 )       (0.18 ) 

Distributions from net realized capital gains

      (0.47 )       (0.98 )       (0.60 )       (0.14 )       (0.05 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.67 )       (1.18 )       (0.82 )       (0.39 )       (0.23 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 9.93       $ 10.61       $ 11.14       $ 10.58       $ 9.87   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (0.36 )       6.44         13.75         11.28         0.44   

Ratios/Supplemental Data

               

Ratio of expenses to average net assets (%) (c)

      0.32         0.32         0.32         0.32         0.32   

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

      1.62         1.97         1.56         1.93         2.51   

Portfolio turnover rate (%)

      8         5         27         12         7   

Net assets, end of period (in millions)

    $ 9.2       $ 8.6       $ 6.2       $ 4.4       $ 2.8   
     Class C  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 10.55       $ 11.08       $ 10.51       $ 9.81       $ 9.99   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.13         0.15         0.13         0.14         0.18   

Net realized and unrealized gain (loss) on investments

      (0.18 )       0.47         1.22         0.91         (0.15 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.05 )       0.62         1.35         1.05         0.03   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.16 )       (0.17 )       (0.18 )       (0.21 )       (0.16 ) 

Distributions from net realized capital gains

      (0.47 )       (0.98 )       (0.60 )       (0.14 )       (0.05 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.63 )       (1.15 )       (0.78 )       (0.35 )       (0.21 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 9.87       $ 10.55       $ 11.08       $ 10.51       $ 9.81   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (0.73 )       6.09         13.52         10.84         0.19   

Ratios/Supplemental Data

               

Ratio of expenses to average net assets (%) (c)

      0.62         0.62         0.62         0.62         0.62   

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

      1.22         1.42         1.20         1.36         1.79   

Portfolio turnover rate (%)

      8         5         27         12         7   

Net assets, end of period (in millions)

    $ 2,849.6       $ 3,118.4       $ 3,156.1       $ 3,027.8       $ 2,913.1   

 

(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) The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Portfolio invests.
(d) 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—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 plan and such distribution 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”) and other funds within the American Funds family not part of 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - 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 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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.

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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

 

MIST-9

Met Investors Series Trust

American Funds Moderate Allocation Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

3. Certain Risks

In the normal course of business, the Underlying Portfolios 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”).

Market 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, 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 they believe 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 their trading partners, (ii) monitoring and/or limiting the amount of their net exposure to each individual counterparty based on the adviser’s 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 (“Master Agreements”) with counterparties (approved brokers) with whom the Underlying Portfolios undertake a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 256,458,033       $ 0       $ 312,091,634   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers

for the year ended

December 31, 2015

    % per annum     Average Daily Net Assets
$1,888,552      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, LLC, 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

 

MIST-10

Met Investors Series Trust

American Funds Moderate Allocation Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 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 year ended December 31, 2015 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 during the year ended December 31, 2015 is as follows:

 

Underlying Portfolio

    Number of
shares held at
December 31, 2014		      Shares
purchased		      Shares sold     Number of
shares held at
December 31, 2015		  

American Funds Bond Fund

      48,230,462         5,345,517         (2,279,284 )      51,296,695   

American Funds High-Income Bond Fund

      14,576,399         970,049         (505,097 )      15,041,351   

American Funds International Growth and Income Fund

      9,065,122         491,368         (222,880 )      9,333,610   

American Funds U.S. Government/AAA - Rated Securities Fund

      55,590,909         1,243,998         (9,938,464 )      46,896,443   

Underlying Portfolio

    Net Realized
Gain/(Loss) on sales
of Affiliated
Underlying
Portfolios		      Capital Gain
Distributions
from Affiliated
Underlying
Portfolios		      Dividend Income
from Affiliated
Underlying
Portfolios		     Ending Value
as of
December 31, 2015		  

American Funds Bond Fund

    $ 3,162,343       $ 10,844,808       $ 10,771,760      $ 548,874,640   

American Funds High-Income Bond Fund

      426,290         —         8,921,058        138,230,018   

American Funds International Growth and Income Fund

      398,949         3,011,120         3,468,411        137,390,744   

American Funds U.S. Government/AAA - Rated Securities Fund

      2,344,430         5,205,380         10,010,207        577,764,178   
  

 

 

     

 

 

     

 

 

    

 

 

  
   $ 6,332,012       $ 19,061,308       $ 33,171,436      $ 1,402,259,580   
  

 

 

     

 

 

     

 

 

    

 

 

  

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$45,017,914    $ 60,512,763       $ 132,398,014       $ 259,244,529       $ 177,415,928       $ 319,757,292   

 

MIST-11

Met Investors Series Trust

American Funds Moderate Allocation Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

As of December 31, 2015, 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		      Other
Accumulated
Capital Losses		      Total  
$54,663,251    $ 186,637,913       $ 79,375,297       $ —       $ 320,676,461   

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, 2015, the Portfolio had no post-enactment accumulated capital losses and no pre-enactment accumulated capital loss carryforwards.

9. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-12

Met Investors Series Trust

American Funds Moderate Allocation Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of American Funds Moderate Allocation 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 American Funds Moderate Allocation Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the transfer agent; when replies were not received from the transfer agent, 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 American Funds Moderate Allocation Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-13

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-14

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-15

Met Investors Series Trust

American Funds Moderate Allocation Portfolio

Board of Trustees’ Consideration of Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (the “Advisory Agreements” or “Agreements”) with MetLife Advisers, LLC (the “Adviser”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser that the Adviser had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser has provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its investment management activities, trading practices, financial condition, relevant personnel matters and compliance program, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff regularly review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding material information related to those reviews and assessments.

The Board further considered the provision of investment advisory services by the Adviser to the Asset Allocation Portfolios (i.e., MetLife Asset Allocation 20 Portfolio, MetLife Asset Allocation 40 Portfolio, MetLife Asset Allocation 60 Portfolio, MetLife Asset Allocation 80 Portfolio and MetLife Asset Allocation 100 Portfolio) and the American Funds of Funds (i.e., American Funds Balanced Allocation Portfolio, American Funds Growth Allocation Portfolio and American Funds Moderate Allocation Portfolio). With respect to the Asset Allocation Portfolios, the Board noted that the Adviser has hired at its own expense an independent consultant to provide

 

MIST-16

Met Investors Series Trust

American Funds Moderate Allocation Portfolio

Board of Trustees’ Consideration of Advisory Agreements—(Continued)

 

research and consulting services with respect to the periodic asset allocation targets for each of the Asset Allocation Portfolios and investments in other Portfolios of the Trusts (the “Underlying Portfolios”). Additionally, the Board considered that a committee, consisting of investment professionals from across the Adviser, meets periodically to review the asset allocations and discuss the performance of the Asset Allocation Portfolios and the American Funds of Funds.

The Board further considered and found that the advisory fee to be paid to the Adviser with respect to each Asset Allocation Portfolio and American Fund of Funds was based on services to be provided that were in addition to, rather than duplicative of, the services provided pursuant to the advisory agreements for the Underlying Portfolios in which the Portfolio invests.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board focused particular attention on Portfolios with less favorable performance records.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”) and a narrower group of peer funds (“Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report.

The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. In the case of the Asset Allocation Portfolios, the Board also considered the Adviser’s analysis of its profitability that was attributable to its management of the Underlying Portfolios of the Trust in which the Asset Allocation Portfolios invest. The Board further considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Portfolios, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board considered the effective fees under the Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

 

MIST-17

Met Investors Series Trust

American Funds Moderate Allocation Portfolio

Board of Trustees’ Consideration of Advisory Agreements—(Continued)

 

American Funds Moderate Allocation Portfolio. The Board also considered the following information in relation to the Agreement with the Adviser regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the one-year period ended June 30, 2015, and underperformed the median of its Performance Universe and its Lipper Index for the three- and five-year periods ended June 30, 2015. The Board noted that the Portfolio underperformed its benchmark, the Moderate AA Broad Index, for the one- and five-year periods ended October 31, 2015, and outperformed this benchmark for the three-year period ended October 31, 2015. The Board further considered that the Portfolio outperformed its other benchmark, the Dow Jones Moderate Index, for the one-, three-, and five-year periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-l fees) were below the Expense Group median and Expense Universe median. The Board also noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size and were the lowest in the Expense Group.

 

MIST-18

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Managed by AQR Capital Management, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class B shares of the AQR Global Risk Balanced Portfolio returned -9.57%. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned -1.21%.

MARKET ENVIRONMENT / CONDITIONS

This year featured fairly dramatic shifts in the macro environment, related in particular to the significant decline in global commodity prices that began in late 2014 and extended through 2015. Several factors contributed to the poor recent performance of commodity markets. Developing economies, the key source of demand growth for many raw materials in recent years, generally lost momentum in 2015. China’s commodity-intensive investment boom continued to wind down, with 2015 GDP growth on track for the slowest pace in 25 years, while other large emerging markets such as Brazil and Russia sank into recession. Commodity markets, which are mostly priced in U.S. dollars, were also weighed down by a strong uptrend in the dollar over the course of the year as the Federal Reserve signaled its intention to begin raising rates for the first time in nearly a decade. In addition to these macro factors, a number of commodities were also buffeted by supply-side factors, most notably elevated global oil production and continued high supplies for metals such as iron ore and copper.

Lower commodity prices in turn created ripple effects across the global economy, driving significant divergence in performance between commodity producers and commodity consumers. Countries with large natural resource sectors generally saw slower growth (and equity market underperformance) in 2015, though some were able to respond with policy stimulus. In the developed world, central bankers in Canada, Norway, Australia, and New Zealand all lowered interest rates to cushion the blow from falling prices for key commodity exports. Canada and Norway moved towards more explicitly stimulative fiscal policy as well. These countries also experienced significant currency depreciation relative to the U.S. dollar, which may support future growth and rebalancing by boosting the international competitiveness of non-commodity businesses. Falling resource prices were even more problematic for emerging economies such as Brazil, Colombia, and South Africa where the scope for supportive macro policies was much more limited. Because many emerging market governments and corporates conduct some or all of their borrowing in foreign currencies, domestic currency depreciation can be a mixed blessing in the emerging world, as gains in competitiveness may be offset by rising debt burdens. Currency depreciation can also generate higher inflation, and some central bankers in the emerging world have tended to be less comfortable allowing temporary spikes in inflation for fear of sacrificing policy credibility. As a result of these dynamics, policymakers in some emerging markets intervened in currency markets and/or raised interest rates in a (not terribly successful) effort to avoid rapid currency depreciation.

In contrast to the varying degrees of stress experienced in countries with large raw material sectors, net importers of commodities generally fared better in 2015. While a decline in drilling activity weighed on investment spending in the U.S., and slower growth in the emerging world took its toll on demand for exports, commodity importers in the developed world generally experienced offsetting positive side effects of the new commodity price environment. In the U.S. and the Eurozone, households saw a significant boost to real incomes from falling energy prices and responded by boosting their spending at the fastest pace in several years. Auto sales were particularly strong, with annual sales in the U.S. on track to reach a record high and sales in the Eurozone on pace to grow 8.9% for the year. Lower commodity prices also exerted downward pressure on inflation, allowing for more accommodative monetary policy in the U.S. and the Eurozone. According to the economic projections that accompanied the December 2014 meeting of the Federal Open Market Committee (the “FOMC”), most committee members expected to raise rates at least three times in 2015. Instead, the first hike did not arrive until December, as below-target inflation and concerns about emerging market growth led the FOMC to delay the start of the tightening cycle. In the Eurozone, the European Central Bank (“ECB”) responded to low inflation by launching a new government bond purchase program in March and pushing overnight interest rates further below zero in December.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The AQR Global Risk Balanced Portfolio is a globally diversified asset-allocation portfolio. The Portfolio seeks to take equal risk from three primary sources: equity risk, nominal interest rate risk, and inflation-sensitive asset risk. The Portfolio diversifies by risk rather than dollars and targets equal risk contributions from each source. Diversifying by risk means creating a portfolio where each asset class is expected to matter about the same amount, not where each is allocated the same number of dollars. To achieve equal risk weighting, low-risk assets are given higher dollar allocations than high-risk assets, which are given lower dollar allocations. In this way, each asset class is expected to contribute meaningfully to the size and variability of portfolio returns.

To achieve its target risk of 10% annualized volatility, the Portfolio is moderately levered through investments in equity, fixed income, and commodity futures. The portfolio management process adjusts exposures to each of the three risk categories using proprietary risk-forecasting models. The process seeks to realize a steady risk contribution from 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 has shown that targeting a steady level of risk and maintaining a consistently diversified portfolio can help manage risk during periods of market stress and improve long-term risk-adjusted returns.

 

MIST-1

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Managed by AQR Capital Management, LLC

Portfolio Manager Commentary*—(Continued)

 

The Portfolio returned -9.57% for the year ending December 31, 2015, underperforming the Dow Jones Moderate Index by 8.36%. Significant losses in inflation-sensitive assets drove Portfolio performance over the year while equities experienced modest losses and nominal bonds experienced modest gains.

Equity risk detracted -1.3% as markets fell sharply in August and September on concerns over slower Chinese growth and subsequently rebounded as fears eased in the fourth quarter on accommodative ECB rhetoric and better than expected economic data. Emerging markets significantly underperformed developed markets as Chinese growth slowed, commodity prices fell, and political uncertainty increased. Nominal bonds contributed 0.7% over the year. Bond yields were up in most markets on the year, but returns were generally positive due to roll down and carry. Inflation-sensitive assets detracted -8.2% from the Portfolio, with losses coming from both commodities (-7.9%) and inflation-linked bonds (-0.3%). Commodity markets were down substantially during the period, driven by excess production, weak demand, and a stronger U.S. dollar. Inflation-linked bonds detracted somewhat as inflation expectations fell in tandem with commodities.

AQR’s systematic portfolio management process dynamically adjusts position sizes in inverse proportion to the volatility of the underlying assets. The Portfolio entered the beginning of 2015 with a total market exposure of 210%. Late in the summer, our systematic risk management processes lowered the Portfolio’s risk target and reduced exposures across asset classes. At the end of the year, the Portfolio was targeting 9.1% volatility, slightly below its long-term average. As of year-end 2015, exposures were 32% equities, 111% nominal bonds, 33% inflation-linked bonds, and 17% commodities, for a total Portfolio exposure of 193%.

The Portfolio uses futures and swaps on futures to gain most of its market exposures. Futures are used to gain exposure to equities, nominal interest rates, and commodities. Swaps on futures are used when holding limit, local regulation, or asset coverage rules restrict investment in futures. The Portfolio does not use derivatives to gain exposure to global inflation-linked bonds but instead buys cash bonds. Currency hedges are used to minimize currency exposures gained from non-US investments. Derivatives performed as expected over the period.

Brian Hurst

John Huss

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, 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 subject to change at any time based upon economic, market, or other conditions and the advisory 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        Since Inception2  
AQR Global Risk Balanced Portfolio            

Class B

        -9.57           0.81   
Dow Jones Moderate Index        -1.21           4.96   

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 date of the Class B shares is 5/2/2011. Index since inception return is based on the Portfolio’s inception date.

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 DECEMBER 31, 2015

Exposures by Asset Class*

 

     % of
Net Assets		  
Global Developed Bonds      111.4   
Global Inflation-Linked Bonds      33.4   
Global Developed Equities      24.2   
Commodities - Production Weighted      16.6   
Global Emerging Equities      3.8   
U.S. Mid Cap Equities      1.7   
U.S. Small Cap Equities      1.5   

 

  * 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class B(a)

    Actual      0.88 %     $ 1,000.00         $ 895.20         $ 4.20   
   Hypothetical*      0.88 %     $ 1,000.00         $ 1,020.77         $ 4.48   

* 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 (184 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 December 31, 2015

U.S. Treasury & Government Agencies—19.7% of Net Assets

 

Security Description  

Shares/

Principal
Amount*

     Value  

U.S. Treasury—19.7%

    

U.S. Treasury Inflation Indexed Notes
0.125%, 04/15/19 (a)

     201,686,461      $ 200,502,158   

0.125%, 04/15/20 (a)

     236,641,790        233,625,317   

0.125%, 07/15/24 (a)

     91,252,137        86,664,619   

0.250%, 01/15/25 (a)

     120,701,234        115,208,362   

0.375%, 07/15/25 (a)

     129,780,436        125,650,433   
   

 

 

  

Total U.S. Treasury & Government Agencies (Cost $782,079,942)

       761,650,889   
   

 

 

  
Foreign Government—14.5%   

Sovereign—14.5%

  

Deutsche Bundesrepublik Inflation Linked Bonds
0.100%, 04/15/23 (EUR) (a)

     30,687,208        34,913,700   

0.100%, 04/15/26 (EUR) (a)

     72,650,880        82,944,657   

1.750%, 04/15/20 (EUR) (a)

     50,566,629        60,504,104   

France Government Bond OAT
0.100%, 07/25/21 (EUR) (a)

     16,260,356        18,351,270   

0.100%, 03/01/25 (EUR) (a)

     41,455,062        46,137,197   

0.250%, 07/25/24 (EUR) (a)

     43,633,590        49,819,324   

1.100%, 07/25/22 (EUR) (a)

     19,658,772        23,794,725   

2.250%, 07/25/20 (EUR) (a)

     46,305,083        57,461,831   

United Kingdom Gilt Inflation Linked
0.125%, 03/22/24 (GBP) (a)

     66,047,999        103,233,408   

0.125%, 03/22/26 (GBP) (a)

     52,756,200        82,904,667   
   

 

 

  

Total Foreign Government
(Cost $569,654,565)

       560,064,883   
   

 

 

  
Short-Term Investments—64.2%   

Mutual Funds—43.3%

    

BlackRock Liquidity Funds T-Fund Portfolio, Institutional Class, 0.131% (b)

     417,784,215        417,784,215   

Dreyfus Treasury & Agency Cash Management, Institutional Class, 0.089% (b)

     390,475,394        390,475,394   

State Street Institutional Liquid Reserve Fund, Class I, 0.225% (b) (c)

     115,641,069        115,641,069   

State Street Institutional Treasury Plus Money Market Fund, Class I, 0.170% (b) (c)

     340,824,664        340,824,664   
Security Description  

Shares/

Principal
Amount*

     Value  

Mutual Funds—(Continued)

    

UBS Select Treasury Preferred Fund, Institutional Class, 0.144% (b)

     406,171,495      $ 406,171,495   
   

 

 

  
      1,670,896,837   
   

 

 

  

U.S. Treasury—20.9%

  

U.S. Treasury Bills
0.141%, 01/28/16 (d)

     41,747,000        41,743,368   

0.161%, 02/04/16 (d)

     239,259,000        239,238,185   

0.263%, 03/03/16 (d) (e)

     420,573,000        420,498,979   

0.342%, 05/12/16 (d)

     1,332,000        1,330,456   

0.427%, 05/26/16 (d)

     43,199,000        43,132,301   

0.428%, 05/19/16 (d)

     5,499,000        5,492,055   

0.492%, 06/02/16 (d)

     57,267,000        57,163,690   
   

 

 

  
      808,599,034   
   

 

 

  

Total Short-Term Investments
(Cost $2,479,326,282)

       2,479,495,871   
   

 

 

  

Total Investments—98.4%
(Cost $3,831,060,789) (f)

       3,801,211,643   

Other assets and liabilities (net)—1.6%

       62,529,587   
   

 

 

  
Net Assets—100.0%     $ 3,863,741,230   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Principal amount of security is adjusted for inflation.
(b) The rate shown represents the annualized seven-day yield as of December 31, 2015.
(c) All or a portion of the security was pledged as collateral against open swap contracts. As of December 31, 2015, the market value of securities pledged was $120,221,069.
(d) The rate shown represents current yield to maturity.
(e) All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2015, the market value of securities pledged was $10,869,719.
(f) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $3,851,176,581. The aggregate unrealized appreciation and depreciation of investments were $169,588 and $(50,134,526), respectively, resulting in net unrealized depreciation of $(49,964,938) for federal income tax purposes.
(EUR)— Euro
(GBP)— British Pound

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy

     

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  
CAD     282,000      

Credit Suisse International

        03/16/16         $ 202,015         $ 1,826   
EUR     4,455,000      

Citibank N.A.

        03/16/16           4,846,012           4,141   
EUR     2,176,000      

Credit Suisse International

        03/16/16           2,390,671           (21,662 ) 
EUR     4,455,000      

Credit Suisse International

        03/16/16           4,846,012           4,141   
EUR     10,849,417      

Credit Suisse International

        03/16/16           11,899,879           (88,130 ) 

 

§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 December 31, 2015

Forward Foreign Currency Exchange Contracts—(Continued)

 

Contracts to Buy

     

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  
EUR     11,185,813      

Credit Suisse International

        03/16/16         $ 12,180,187         $ (2,204 ) 
EUR     23,919,012      

Credit Suisse International

        03/16/16           26,217,199           (176,595 ) 
GBP     4,261,432      

Credit Suisse International

        03/16/16           6,351,115           (68,166 ) 
GBP     5,042,699      

Credit Suisse International

        03/16/16           7,633,497           (198,668 ) 
GBP     8,485,121      

Credit Suisse International

        03/16/16           12,742,522           (232,273 ) 
JPY     2,698,752      

Citibank N.A.

        03/16/16           22,032           459   
JPY     4,611,193      

Citibank N.A.

        03/16/16           37,613           814   
JPY     4,612,748      

Citibank N.A.

        03/16/16           37,517           924   
JPY     4,619,791      

Citibank N.A.

        03/16/16           37,616           883   
JPY     4,619,998      

Citibank N.A.

        03/16/16           37,575           926   
JPY     4,693,604      

Citibank N.A.

        03/16/16           38,263           851   
JPY     9,161,914      

Citibank N.A.

        03/16/16           74,920           1,431   
JPY     2,698,751      

Credit Suisse International

        03/16/16           22,032           459   
JPY     4,611,192      

Credit Suisse International

        03/16/16           37,613           814   
JPY     4,612,750      

Credit Suisse International

        03/16/16           37,517           924   
JPY     4,619,791      

Credit Suisse International

        03/16/16           37,616           883   
JPY     4,619,998      

Credit Suisse International

        03/16/16           37,575           926   
JPY     4,693,603      

Credit Suisse International

        03/16/16           38,263           851   
JPY     6,548,000      

Credit Suisse International

        03/16/16           53,258           1,310   
JPY     9,161,915      

Credit Suisse International

        03/16/16           74,920           1,431   
JPY     68,120,000      

Credit Suisse International

        03/16/16           561,540           6,141   

Contracts to Deliver

                                  
CAD     837,000      

Credit Suisse International

        03/16/16         $ 629,591         $ 24,574   
CHF     930,797      

Citibank N.A.

        03/16/16           937,040           4,916   
CHF     184,698      

Citibank N.A.

        03/16/16           185,149           188   
CHF     173,505      

Citibank N.A.

        03/16/16           170,207           (3,545 ) 
CHF     1,750,000      

Credit Suisse International

        03/16/16           1,761,785           9,290   
CHF     930,797      

Credit Suisse International

        03/16/16           937,039           4,916   
CHF     184,698      

Credit Suisse International

        03/16/16           185,149           188   
CHF     173,505      

Credit Suisse International

        03/16/16           170,207           (3,545 ) 
EUR     129,247,696      

Citibank N.A.

        03/16/16           137,734,783           (2,977,048 ) 
EUR     68,246,159      

Citibank N.A.

        03/16/16           72,488,328           (1,811,194 ) 
EUR     4,965,000      

Citibank N.A.

        03/16/16           5,296,393           (108,998 ) 
EUR     129,247,695      

Credit Suisse International

        03/16/16           137,733,786           (2,978,045 ) 
EUR     68,246,160      

Credit Suisse International

        03/16/16           72,488,338           (1,811,185 ) 
EUR     4,965,000      

Credit Suisse International

        03/16/16           5,296,393           (108,998 ) 
EUR     1,455,000      

Credit Suisse International

        03/16/16           1,575,874           (8,183 ) 
EUR     783,000      

Credit Suisse International

        03/16/16           851,368           (1,083 ) 
EUR     207,000      

Credit Suisse International

        03/16/16           227,913           2,553   
GBP     73,075,532      

Citibank N.A.

        03/16/16           109,635,513           1,894,786   
GBP     73,075,532      

Credit Suisse International

        03/16/16           109,636,390           1,895,663   
GBP     225,000      

Credit Suisse International

        03/16/16           339,308           7,573   
GBP     20,000      

Credit Suisse International

        03/16/16           29,759           271   
GBP     5,000      

Credit Suisse International

        03/16/16           7,540           168   
HKD     1,750,243      

Citibank N.A.

        03/16/16           225,917           (46 ) 
HKD     1,643,757      

Citibank N.A.

        03/16/16           212,188           (28 ) 
HKD     9,939,000      

Credit Suisse International

        03/16/16           1,282,865           (301 ) 
HKD     7,811,000      

Credit Suisse International

        03/16/16           1,007,795           (637 ) 
HKD     4,534,000      

Credit Suisse International

        03/16/16           585,219           (139 ) 
HKD     2,553,000      

Credit Suisse International

        03/16/16           329,491           (112 ) 
HKD     1,750,243      

Credit Suisse International

        03/16/16           225,917           (46 ) 
HKD     1,643,757      

Credit Suisse International

        03/16/16           212,188           (28 ) 
JPY     1,096,000      

Credit Suisse International

        03/16/16           8,941           (193 ) 
                   

 

 

  

Net Unrealized Depreciation

  

      $ (6,725,831 ) 
                   

 

 

  

 

§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 December 31, 2015

Futures Contracts

 

 

Futures Contracts—Long

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

Aluminum Futures

      01/06/16         55         USD         2,147,664       $ (84,339 ) 

Aluminum Futures

      01/08/16         4         USD         162,512         (12,382 ) 

Aluminum Futures

      01/15/16         10         USD         391,963         (16,025 ) 

Aluminum Futures

      01/20/16         6         USD         231,242         (5,417 ) 

Aluminum Futures

      01/22/16         14         USD         530,979         (4,054 ) 

Aluminum Futures

      01/26/16         8         USD         300,288         812   

Aluminum Futures

      01/28/16         11         USD         407,375         6,720   

Aluminum Futures

      02/16/16         8         USD         294,175         7,775   

Aluminum Futures

      03/14/16         629         USD         22,748,068         961,301   

Amsterdam Index Futures

      01/15/16         60         EUR         5,188,854         123,179   

Australian 10 Year Treasury Bond Futures

      03/15/16         1,197         AUD         151,218,158         489,667   

CAC 40 Index Futures

      01/15/16         277         EUR         12,767,370         88,326   

Canada Government Bond 10 Year Futures

      03/21/16         1,323         CAD         182,861,841         2,650,813   

Cattle Feeder Futures

      03/24/16         105         USD         7,926,136         665,489   

Cocoa Futures

      03/15/16         137         USD         4,436,435         (37,365 ) 

Coffee “C” Futures

      03/18/16         154         USD         7,016,530         300,395   

Copper Futures

      01/06/16         3         USD         386,255         (33,290 ) 

Copper Futures

      01/22/16         1         USD         131,292         (13,513 ) 

Copper Futures

      02/16/16         73         USD         8,662,738         (64,706 ) 

Copper Futures

      03/14/16         188         USD         21,350,261         778,514   

Corn Futures

      03/14/16         1,847         USD         34,627,856         (1,497,293 ) 

Cotton No. 2 Futures

      03/08/16         350         USD         10,865,099         208,901   

DAX Index Futures

      03/18/16         59         EUR         15,412,041         518,009   

Euro Stoxx 50 Index Futures

      03/18/16         1,452         EUR         46,950,447         765,282   

Euro-Bund Futures

      03/08/16         5,803         EUR         928,666,356         (13,319,853 ) 

FTSE 100 Index Futures

      03/18/16         800         GBP         47,336,550         3,313,191   

FTSE JSE Top 40 Index Futures

      03/17/16         510         ZAR         224,751,844         726,502   

FTSE MIB Index Futures

      03/18/16         38         EUR         4,026,744         51,334   

Gold 100 oz. Futures

      02/25/16         252         USD         27,054,083         (337,043 ) 

H-Shares Index Futures

      01/28/16         172         HKD         84,735,537         (164,197 ) 

Hang Seng Index Futures

      01/28/16         49         HKD         53,952,087         (35,172 ) 

IBEX 35 Index Futures

      01/15/16         58         EUR         5,566,497         (44,821 ) 

Japanese Government 10 Year Bond Futures

      03/14/16         305         JPY         45,372,280,375         706,515   

KOSPI 200 Index Futures

      03/10/16         298         KRW         35,454,881,513         317,401   

Lead Futures

      01/06/16         14         USD         567,932         61,011   

Lead Futures

      01/08/16         4         USD         176,560         3,133   

Lead Futures

      01/20/16         1         USD         44,740         178   

Lead Futures

      01/22/16         3         USD         131,950         2,802   

Lead Futures

      01/26/16         2         USD         87,879         1,953   

Lead Futures

      01/28/16         2         USD         87,204         2,625   

Lead Futures

      02/16/16         3         USD         119,776         15,031   

Lead Futures

      03/14/16         127         USD         5,058,524         646,158   

Lean Hogs Futures

      02/12/16         639         USD         14,655,240         629,640   

Live Cattle Futures

      02/29/16         385         USD         20,566,197         501,003   

MSCI Taiwan Index Futures

      01/28/16         312         USD         9,556,652         (59,372 ) 

Nickel Futures

      01/06/16         7         USD         414,871         (46,088 ) 

Nickel Futures

      01/08/16         2         USD         126,821         (21,442 ) 

Nickel Futures

      01/20/16         1         USD         62,351         (9,623 ) 

Nickel Futures

      01/22/16         2         USD         125,232         (19,766 ) 

Nickel Futures

      01/28/16         1         USD         63,081         (10,331 ) 

Nickel Futures

      02/16/16         2         USD         113,166         (7,548 ) 

Nickel Futures

      03/14/16         82         USD         4,149,729         186,759   

Russell 2000 Mini Index Futures

      03/18/16         513         USD         57,529,457         516,493   

S&P 500 E-Mini Index Futures

      03/18/16         5,685         USD         571,635,393         6,927,057   

S&P Midcap 400 E-Mini Index Futures

      03/18/16         471         USD         65,217,655         416,195   

S&P TSX 60 Index Futures

      03/17/16         301         CAD         45,211,111         430,056   

SGX CNX Nifty Index Futures

      01/28/16         1,144         USD         18,132,274         52,750   

 

§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 December 31, 2015

Futures Contracts—(Continued)

 

Futures Contracts—Long

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

SPI 200 Index Futures

      03/17/16         274        AUD         33,643,136      $ 1,725,061   

Silver Futures

      03/29/16         23        USD         1,624,342        (36,997 ) 

Soybean Futures

      03/14/16         268        USD         11,837,093        (256,143 ) 

Sugar No. 11 Futures

      02/29/16         990        USD         14,161,671        2,736,441   

TOPIX Index Futures

      03/10/16         691        JPY         10,882,288,093        (1,572,970 ) 

U.S. Treasury Note 10 Year Futures

      03/21/16         11,107        USD         1,401,741,379        (3,300,661 ) 

United Kingdom Long Gilt Bond Futures

      03/29/16         1,095        GBP         128,560,968        (1,028,724 ) 

Wheat Futures

      03/14/16         1,161        USD         29,503,583        (2,220,083 ) 

Zinc Futures

      01/06/16         21        USD         869,576        (33,130 ) 

Zinc Futures

      01/08/16         1        USD         46,346        (6,491 ) 

Zinc Futures

      01/15/16         2        USD         90,331        (10,452 ) 

Zinc Futures

      01/22/16         4        USD         174,753        (14,723 ) 

Zinc Futures

      01/26/16         2        USD         87,557        (7,511 ) 

Zinc Futures

      01/28/16         3        USD         130,288        (10,197 ) 

Zinc Futures

      02/16/16         2        USD         79,861        344   

Zinc Futures

      03/14/16         166        USD         6,559,565        117,785   

Futures Contracts—Short

                            

Aluminum Futures

      01/06/16         (55 )      USD         (2,147,615 )    $ 84,290   

Aluminum Futures

      01/08/16         (4 )      USD         (161,625 )      11,495   

Aluminum Futures

      01/15/16         (10 )      USD         (391,476 )      15,538   

Aluminum Futures

      01/20/16         (6 )      USD         (230,535 )      4,710   

Aluminum Futures

      01/22/16         (14 )      USD         (530,391 )      3,466   

Aluminum Futures

      01/26/16         (8 )      USD         (302,980 )      1,881   

Aluminum Futures

      01/28/16         (11 )      USD         (410,273 )      (3,822 ) 

Aluminum Futures

      02/16/16         (8 )      USD         (294,080 )      (7,870 ) 

Aluminum Futures

      03/14/16         (18 )      USD         (666,041 )      (12,446 ) 

Copper Futures

      01/06/16         (3 )      USD         (388,941 )      35,976   

Copper Futures

      01/22/16         (1 )      USD         (130,673 )      12,894   

Copper Futures

      02/16/16         (73 )      USD         (8,639,827 )      41,796   

Lead Futures

      01/06/16         (14 )      USD         (570,466 )      (58,477 ) 

Lead Futures

      01/08/16         (4 )      USD         (174,298 )      (5,395 ) 

Lead Futures

      01/20/16         (1 )      USD         (44,460 )      (459 ) 

Lead Futures

      01/22/16         (3 )      USD         (131,168 )      (3,584 ) 

Lead Futures

      01/26/16         (2 )      USD         (88,145 )      (1,687 ) 

Lead Futures

      01/28/16         (2 )      USD         (87,670 )      (2,159 ) 

Lead Futures

      02/16/16         (3 )      USD         (119,768 )      (15,040 ) 

Lead Futures

      03/14/16         (9 )      USD         (377,093 )      (27,176 ) 

Nickel Futures

      01/06/16         (7 )      USD         (418,257 )      49,475   

Nickel Futures

      01/08/16         (2 )      USD         (125,444 )      20,065   

Nickel Futures

      01/20/16         (1 )      USD         (61,870 )      9,142   

Nickel Futures

      01/22/16         (2 )      USD         (125,185 )      19,719   

Nickel Futures

      01/28/16         (1 )      USD         (63,592 )      10,842   

Nickel Futures

      02/16/16         (2 )      USD         (112,825 )      7,207   

Nickel Futures

      03/14/16         (1 )      USD         (52,388 )      (496 ) 

Zinc Futures

      01/06/16         (21 )      USD         (877,738 )      41,292   

Zinc Futures

      01/08/16         (1 )      USD         (44,322 )      4,467   

Zinc Futures

      01/15/16         (2 )      USD         (90,194 )      10,315   

Zinc Futures

      01/22/16         (4 )      USD         (174,540 )      14,510   

Zinc Futures

      01/26/16         (2 )      USD         (87,920 )      7,875   

Zinc Futures

      01/28/16         (3 )      USD         (131,093 )      11,002   

Zinc Futures

      02/16/16         (2 )      USD         (79,795 )      (410 ) 

Zinc Futures

      03/14/16         (5 )      USD         (187,427 )      (13,698 ) 
            

 

 

  

Net Unrealized Appreciation

  

   $ 3,576,117   
            

 

 

  

 

§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 December 31, 2015

Swap Agreements

 

OTC Total Return Swaps

 

Fixed
Rate

   

Maturity
Date

   

Counterparty

   

Underlying Reference
Instrument

    Notional
Amount		      Market
Value		     Upfront
Premium
Paid/(Received)		      Unrealized
Appreciation/
(Depreciation)		  
0.000%    01/28/16    Citibank N.A.    Brent Crude Futures      USD         63,879,440       $ (1,083,550 )    $ —       $ (1,083,550 ) 
0.000%    01/28/16    Merrill Lynch International    Brent Crude Futures      USD         52,295,310         103,660        —         103,660   
0.000%    03/21/16    Bank of America N.A.    Canada Government Bond 10 Year Futures      CAD         19,485,918         284,507        —         284,507   
0.000%    02/19/16    Citibank N.A.    Corn No. 2 Futures      USD         2,728,246         (109,371 )      —         (109,371 ) 
0.000%    02/19/16    Merrill Lynch International    Corn No. 2 Futures      USD         1,961,400         (77,963 )      —         (77,963 ) 
0.000%    01/19/16   

Merrill Lynch International

    Crude Oil Futures      USD         54,208,490         (3,130,330 )      —         (3,130,330 ) 
0.000%    01/19/16    Citibank N.A.    Crude Oil Futures      USD         71,869,360         (4,012,080 )      —         (4,012,080 ) 
0.000%    03/08/16    Bank of America N.A.    Euro-Bund Futures      EUR         37,460,639         (551,372 )      —         (551,372 ) 
0.000%    01/28/16    Bank of America N.A.    Hang Seng China Enterprises Index Futures      HKD         339,007,367         (915,654 )      —         (915,654 ) 
0.000%    01/28/16    Bank of America N.A.    Hang Seng Index Future      HKD         37,533,423         (36,958 )      —         (36,958 ) 
0.000%    02/17/16    Bank of America N.A.    Ibovespa Futures      BRL         50,643,563         (582,454 )      —         (582,454 ) 
0.000%    03/14/16    Bank of America N.A.    Japanese Government 10 Year Bond Futures      JPY         18,449,364,800         262,866        —         262,866   
0.000%    02/12/16    Merrill Lynch International    Lean Hogs Futures      USD         1,127,280         44,800        —         44,800   
0.000%    02/05/16    Merrill Lynch International    Live Cattle Futures      USD         18,505,700         372,700        —         372,700   
0.000%    03/29/16    Bank of America N.A.    Long Gilt Futures      GBP         54,475,340         (433,503 )      —         (433,503 ) 
0.000%    02/10/16   

Merrill Lynch International

    Low Sulphur Gas Oil Futures      USD         14,296,800         (1,996,400 )      —         (1,996,400 ) 
0.000%    02/10/16    Citibank N.A.    Low Sulphur Gas Oil Futures      USD         26,179,710         (3,651,260 )      —         (3,651,260 ) 
0.000%    01/28/16    Bank of America N.A.    MSCI Taiwan Stock Index Futures      USD         14,725,480         (144,720 )      —         (144,720 ) 
0.000%    01/28/16   

Merrill Lynch International

    NY Harbor ULSD Futures      USD         14,284,452         (2,011,464 )      —         (2,011,464 ) 
0.000%    01/28/16    Citibank N.A.    NY Harbor ULSD Futures      USD         20,022,513         (2,793,126 )      —         (2,793,126 ) 
0.000%    01/27/16    Citibank N.A.    Natural Gas Futures      USD         11,984,000         1,103,200        —         1,103,200   
0.000%    01/27/16   

Merrill Lynch International

    Natural Gas Futures      USD         10,138,860         938,520        —         938,520   
0.000%    01/27/16    Barclays Bank plc    Natural Gas Futures      USD         455,280         35,490        —         35,490   
0.000%    01/28/16    Citibank N.A.    RBOB Gasoline Futures      USD         18,941,328         703,248        —         703,248   
0.000%    01/28/16   

Merrill Lynch International

    RBOB Gasoline Futures      USD         14,839,373         534,643        —         534,643   
1.000%    02/19/16    Citibank N.A.    Soybean Futures      USD         6,779,883         (125,158 )      —         (125,158 ) 
0.000%    03/14/16   

Merrill Lynch International

    Soybean Futures      USD         6,302,175         (122,788 )      —         (122,788 ) 
0.000%    03/18/16    Bank of America N.A.    Swiss Market Index Futures      CHF         34,413,525         1,006,165        —         1,006,165   
0.000%    03/21/16    Bank of America N.A.    U.S. Treasury Note 10 Year Futures      USD         619,613,486         (1,287,892 )      —         (1,287,892 ) 
0.000%    02/19/16    Citibank N.A.    Wheat Futures      USD         2,667,071         (270,070 )      —         (270,070 ) 
                 

 

 

    

 

 

     

 

 

  
Totals       $ (17,946,314 )    $ —       $ (17,946,314 ) 
                 

 

 

    

 

 

     

 

 

  

 

(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 Korean Won
(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-9

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1     Level 2     Level 3      Total  

Total U.S. Treasury & Government Agencies*

    $ —        $ 761,650,889      $ —         $ 761,650,889   

Total Foreign Government*

      —          560,064,883        —           560,064,883   
Short-Term Investments          

Mutual Funds

      1,670,896,837        —          —           1,670,896,837   

U.S. Treasury

      —          808,599,034        —           808,599,034   

Total Short-Term Investments

      1,670,896,837        808,599,034        —           2,479,495,871   

Total Investments

    $ 1,670,896,837      $ 2,130,314,806      $ —         $ 3,801,211,643   
                                   
Forward Contracts          

Forward Foreign Currency Exchange Contracts (Unrealized Appreciation)

    $ —        $ 3,875,221      $ —         $ 3,875,221   

Forward Foreign Currency Exchange Contracts (Unrealized Depreciation)

      —          (10,601,052 )      —           (10,601,052 ) 

Total Forward Contracts

    $ —        $ (6,725,831 )    $ —         $ (6,725,831 ) 
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 28,070,558      $ —        $ —         $ 28,070,558   

Futures Contracts (Unrealized Depreciation)

      (24,494,441 )      —          —           (24,494,441 ) 

Total Futures Contracts

    $ 3,576,117      $ —        $ —         $ 3,576,117   
OTC Swap Contracts          

OTC Swap Contracts at Value (Assets)

    $ —        $ 5,389,799      $ —         $ 5,389,799   

OTC Swap Contracts at Value (Liabilities)

      —          (23,336,113 )      —           (23,336,113 ) 

Total OTC Swap Contracts

    $ —        $ (17,946,314 )    $ —         $ (17,946,314 ) 

 

* 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-10

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Consolidated§ Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a)

    $ 3,801,211,643   

Cash

      900,000   

Cash denominated in foreign currencies (b)

      3,681,953   

Cash collateral (c)

      139,339,275   

OTC swap contracts at market value

      5,389,799   

Unrealized appreciation on forward foreign currency exchange contracts

      3,875,221   

Receivable for:

   

Fund shares sold

      58,084   

Interest

      2,140,537   

Variation margin on futures contracts

      7,352,862   

Prepaid expenses

      12,431   
  

 

 

  

Total Assets

      3,963,961,805   

Liabilities

   

OTC swap contracts at market value

      23,336,113   

Unrealized depreciation on forward foreign currency exchange contracts

      10,601,052   

Payables for:

   

OTC swap contracts

      51,884,610   

Fund shares redeemed

      2,123,087   

Variation margin on futures contracts

      8,805,594   

Accrued Expenses:

   

Management fees

      2,001,230   

Distribution and service fees

      830,845   

Deferred trustees’ fees

      64,810   

Other expenses

      573,234   
  

 

 

  

Total Liabilities

      100,220,575   
  

 

 

  

Net Assets

    $ 3,863,741,230   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 3,941,096,191   

Undistributed net investment income

      5,489,936   

Accumulated net realized loss

      (31,940,668 ) 

Unrealized depreciation on investments, futures contracts, swap contracts and foreign currency transactions

      (50,904,229 ) 
  

 

 

  

Net Assets

    $ 3,863,741,230   
  

 

 

  

Net Assets

   

Class B

    $ 3,863,741,230   

Capital Shares Outstanding*

   

Class B

      461,641,040   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 8.37   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $3,831,060,789.
(b) Identified cost of cash denominated in foreign currencies was $3,676,338.
(c) Includes collateral of $113,703,835 for futures contracts, $20,944,958 for forward foreign currency exchange contracts and $4,690,482 for OTC swap contracts.

Consolidated§ Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Interest (a)

    $ 5,207,325   
  

 

 

  

Total investment income

      5,207,325   

Expenses

   

Management fees

      27,298,937   

Administration fees

      155,922   

Custodian and accounting fees

      698,145   

Distribution and service fees—Class B

      11,166,224   

Interest expense

      94,272   

Audit and tax services

      104,362   

Legal

      27,380   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      126,148   

Insurance

      30,821   

Miscellaneous

      36,257  
  

 

 

  

Total expenses

      39,773,641   

Less management fee waiver

      (636,596 )
  

 

 

  

Net expenses

      39,137,045   
  

 

 

  

Net Investment Loss

      (33,929,720 ) 
  

 

 

  

Net Realized and Unrealized Loss

   
Net realized gain (loss) on:   

Investments

      (111,374,361 ) 

Futures contracts

      41,827,108   

Swap contracts

      (379,041,487 ) 

Foreign currency transactions

      81,417,723  

Capital gain distributions

      5,770   
  

 

 

  

Net realized loss

      (367,165,247 ) 
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      39,477,308   

Futures contracts

      (85,821,683 ) 

Swap contracts

      50,841,436   

Foreign currency transactions

      (18,292,587 )
  

 

 

  

Net change in unrealized depreciation

      (13,795,526 )
  

 

 

  

Net realized and unrealized loss

      (380,960,773 )
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (414,890,493 )
  

 

 

  

 

(a) Net of foreign withholding taxes of $30,629.

 

§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§ Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment loss

    $ (33,929,720 )    $ (8,796,477 ) 

Net realized gain (loss)

      (367,165,247 )      219,146,745   

Net change in unrealized depreciation

      (13,795,526 )     (515,698 )
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (414,890,493 )     209,834,570  
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (245,638,078 )      0   

Net realized capital gains

     

Class B

      (439,979,919 )     (23,202,826 )
  

 

 

    

 

 

  

Total distributions

      (685,617,997 )     (23,202,826 )
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      202,132,838       (560,566,503 )
  

 

 

    

 

 

  

Total decrease in net assets

      (898,375,652 )      (373,934,759 ) 

Net Assets

     

Beginning of period

      4,762,116,882       5,136,051,641  
  

 

 

    

 

 

  

End of period

    $ 3,863,741,230      $ 4,762,116,882   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 5,489,936      $ 232,928,057   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      4,083,918      $ 39,139,504        5,933,583      $ 66,767,523   

Reinvestments

      73,171,611        685,617,997        2,097,905        23,202,826   

Redemptions

      (53,309,089 )      (522,624,663 )      (59,286,512 )      (650,536,852 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      23,946,440      $ 202,132,838        (51,255,024 )    $ (560,566,503 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ 202,132,838        $ (560,566,503 ) 
    

 

 

      

 

 

  

 

§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§ Financial Highlights

 

Selected per share data                                     
     Class B  
     Year Ended December 31,     May 2, 2011
through
December 31,
2011(a) 		    Period
April 19, 2011
through
May 2,
2011(a)		  
     2015     2014     2013     2012      

Net Asset Value, Beginning of Period

    $ 10.88      $ 10.50      $ 11.52      $ 10.53      $ 10.36  (b)    $ 10.00   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (Loss) from Investment Operations

             

Net investment income (loss) (c)

      (0.07 )      (0.02 )      (0.07 )      (0.00 )(d)      (0.01 )      0.51   

Net realized and unrealized gain (loss) on investments

      (0.79 )      0.45        (0.30 )      1.11        0.36        (0.15 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      (0.86 )      0.43        (0.37 )      1.11        0.35        0.36   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less Distributions

             

Distributions from net investment income

      (0.59 )      0.00        (0.23 )      (0.06 )      (0.15 )      0.00   

Distributions from net realized capital gains

      (1.06 )      (0.05 )      (0.42 )      (0.06 )      (0.03 )      0.00   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (1.65 )      (0.05 )      (0.65 )      (0.12 )      (0.18 )      0.00   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 8.37      $ 10.88      $ 10.50      $ 11.52      $ 10.53      $ 10.36   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return (%) (e)

      (9.57 )      4.00        (3.39 )      10.56        3.38  (f)(g)      3.60  (f)(h) 

Ratios/Supplemental Data

             

Gross ratio of expenses to average net assets (%)

      0.89        0.89        0.90        0.98        1.18  (i)   

Gross ratio of expenses to average net assets excluding interest expense (%)

      0.89        0.89        0.88        0.89        0.95  (i)   

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

      0.88        0.87        0.89        0.98        1.15  (i)   

Net ratio of expenses to average net assets excluding interest expense (%) (j)

      0.88        0.87        0.87        0.89        0.92  (i)   

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

      (0.76 )      (0.17 )      (0.66 )      (0.04 )      (0.06 )(i)   

Portfolio turnover rate (%)

      122        30        173        79        8  (f)   

Net assets, end of period (in millions)

    $ 3,863.7      $ 4,762.1      $ 5,136.1      $ 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 (see Note 7 of the Notes to Consolidated Financial Statements).

 

§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

Notes to Consolidated Financial Statements-December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 and the Financial Highlights of the Portfolio include 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
December 31, 2015		      % of
Total Assets at
December 31, 2015		  

AQR Global Risk Balanced Portfolio, Ltd.

      4/19/2011       $ 386,001,783         9.7 % 

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 December 31, 2015 through the date the consolidated financial statements were issued.

 

MIST-14

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and 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 through an independent pricing service based on the mean between closing bid and ask prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or broker-dealer. These contracts are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

Swap contracts (other than centrally cleared swaps) are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and other pricing services. Such quotations and prices are derived utilizing observable data, including the underlying reference securities or indices, credit spread quotations and expected default recovery rates determined by the pricing service. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or an independent pricing service when the exchange price is not available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third party prices are used to produce daily settlement prices. These securities are categorized as Level 2 within the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates, including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

 

MIST-15

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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, net operating loss, controlled foreign corporation adjustments and deflationary sell adjustments. These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

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.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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.

 

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

 

MIST-16

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(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 valuation 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 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 cash 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. If futures contracts are exchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

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 either privately negotiated in the OTC market (“OTC swaps”) or 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 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.

Centrally Cleared Swaps: Clearinghouses currently offer clearing derivative transactions which include interest rate and 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.

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

 

MIST-17

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

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 upon entering into the swap agreement 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: The Portfolio may enter into currency swap agreements to gain or mitigate exposure to currency risk. 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.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of 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

    OTC swap contracts at market value    $ 547,373       OTC swap contracts at market value    $ 2,272,767   
   Unrealized appreciation on futures contracts (a) (b)      3,846,995       Unrealized depreciation on futures contracts (a) (b)      17,649,238   

 

MIST-18

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

    

Asset Derivatives

     

Liability Derivatives

  

Risk Exposure

   

Consolidated
Statement of Assets &
Liabilities Location

    Fair Value     

Consolidated
Statement of Assets &
Liabilities Location

    Fair Value  

Equity

    OTC swap contracts at market value    $ 1,006,165       OTC swap contracts at market value    $ 1,679,786   
   Unrealized appreciation on futures contracts (a) (b)      15,970,836       Unrealized depreciation on futures contracts (a) (b)      1,876,532   

Commodity

    OTC swap contracts at market value      3,836,261       OTC swap contracts at market value      19,383,560   
   Unrealized appreciation on futures contracts (a) (b)      8,252,727       Unrealized depreciation on futures contracts (a) (b)      4,968,671   

Foreign Exchange

    Unrealized appreciation on forward foreign currency exchange contracts      3,875,221       Unrealized depreciation on forward foreign currency exchange contracts      10,601,052   
     

 

 

        

 

 

  
Total       $ 37,335,578          $ 58,431,606   
     

 

 

        

 

 

  

 

  (a) 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.
  (b) Financial instrument not subject to a master netting agreement.

The Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Consolidated Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized 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 (“MNA”) (see Note 5), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Assets
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Received†		      Net
Amount*		  

Bank of America N.A.

    $ 1,553,538       $ (1,553,538 )    $ —       $ —   

Barclays Bank plc

      35,490         —        —         35,490   

Citibank N.A.

      3,716,767         (3,716,767 )      —         —   

Credit Suisse International

      1,964,902         (1,964,902 )      —         —   

Merrill Lynch International

      1,994,323         (1,994,323 )      —         —   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 9,265,020       $ (9,229,530 )    $ —       $ 35,490   
  

 

 

     

 

 

    

 

 

     

 

 

  

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under an MNA, or similar agreement, and net of the related collateral pledged by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Liabilities
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Pledged†		     Net
Amount**		  

Bank of America N.A.

    $ 3,952,553       $ (1,553,538 )    $ (2,399,015 )    $ —   

Citibank N.A.

      16,945,474         (3,716,767 )      (13,228,707 )      —   

Credit Suisse International

      5,700,193         (1,964,902 )      (3,735,291 )      —   

Merrill Lynch International

      7,338,945         (1,994,323 )      (5,344,622 )      —   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 33,937,165       $ (9,229,530 )    $ (24,707,635 )    $ —   
  

 

 

     

 

 

    

 

 

    

 

 

  

 

  * Net amount represents the net amount receivable from the counterparty in the event of default.
  ** Net amount represents the net amount payable due to the counterparty in the event of default.
  † In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

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

    Interest Rate      Equity     Commodity     Foreign
Exchange		      Total  

Forward foreign currency transactions

    $ —       $ —      $ —      $ 80,088,135       $ 80,088,135   

Futures contracts

      102,520,048         11,601,349        (72,294,289 )      —         41,827,108   

Swap contracts

      1,255,587         (13,700,494 )      (366,596,580 )      —         (379,041,487 ) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  
   $ 103,775,635       $ (2,099,145 )    $ (438,890,869 )    $ 80,088,135       $ (257,126,244 ) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

 

MIST-19

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

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

    Interest Rate     Equity     Commodity      Foreign
Exchange		     Total  

Forward foreign currency transactions

    $ —      $ —      $ —       $ (18,219,743 )    $ (18,219,743 ) 

Futures contracts

      (56,013,395 )      (41,249,691 )      11,441,403         —        (85,821,683 ) 

Swap contracts

      (15,849,882 )      (3,623,303 )      70,314,621         —        50,841,436   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  
   $ (71,863,277 )    $ (44,872,994 )    $ 81,756,024       $ (18,219,743 )    $ (53,199,990 ) 
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Forward foreign currency transactions

    $ 1,081,771,932   

Futures contracts long

      2,727,730,150   

Futures contracts short

      (26,963 ) 

Swap contracts

      94,578,083   

 

  ‡ Averages are based on activity levels during 2015.

5. Certain Risks

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”).

Market 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, interest rate, and price fluctuations.

Commodities Risk: 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 factors affecting a particular industry or commodity.

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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC 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

 

MIST-20

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

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 (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to Portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may 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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$1,136,210,073    $ 1,085,780,288       $ 1,423,441,469       $ 1,336,894,555   

7. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$27,298,937      0.675 %    First $250 million
     0.650 %    $250 million to $750 million
     0.625 %    $750 million to $1 billion
     0.600 %    Over $1 billion

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. The Subadviser is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, for the period May 1, 2015 to April 30, 2016, 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
0.010%    $1 billion to $3.5 billion
0.040%    Over $3.5 billion

 

MIST-21

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

An identical agreement was in place for the period January 1, 2015 to April 30, 2015. Amounts waived for the year ended December 31, 2015 are shown as a management fee waiver 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, LLC, 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 year ended December 31, 2015 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. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Return of Capital      Total  

2015

    2014      2015      2014      2015      2014      2015      2014  
$486,253,651    $ —       $ 198,781,167       $ 23,202,826       $ 583,179       $ —       $ 685,617,997       $ 23,202,826   

As of December 31, 2015, 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		     Other
Accumulated
Capital Losses		     Total  
$—    $ —       $ (59,102,517 )    $ (18,187,633 )    $ (77,290,150 ) 

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.

As of December 31, 2015, the Portfolio had accumulated long term capital losses of $18,187,633.

10. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-22

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of AQR Global Risk Balanced 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 and subsidiary, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, and the consolidated financial highlights for each of the four years in the period then ended and for the period from April 19, 2011 (commencement of operations) to December 31, 2011. These consolidated financial statements and consolidated financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these consolidated financial statements and consolidated 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 consolidated financial highlights referred to above present fairly, in all material respects, the financial position of AQR Global Risk Balanced Portfolio and subsidiary of the Met Investors Series Trust as of December 31, 2015, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the consolidated financial highlights for each of the four years in the period then ended and for the period from April 19, 2011 (commencement of operations) to December 31, 2011, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-23

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-24

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-25

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

 

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-26

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-27

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

AQR Global Risk Balanced Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and AQR Capital Management, LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio underperformed the median of its Performance Universe and its Lipper Index for the one-year and three-year periods ended June 30, 2015. The Board also considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the since-inception (beginning May 2, 2011) period ended June 30, 2015. The Board further considered that the Portfolio underperformed its benchmark, the Dow Jones Moderate Index, and its blended index for the one-year, three-year, and since-inception (beginning May 2, 2011) periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-l fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board noted that the Portfolio’s contractual management fees were slightly above the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also noted that the Portfolio’s contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-28

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Managed by BlackRock Financial Management, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class B shares of the BlackRock Global Tactical Strategies Portfolio returned -0.11%. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned -1.21%.

MARKET ENVIRONMENT / CONDITIONS

Trends in monetary policy and economic growth at both a global and local level were the key drivers of asset prices in 2015. There were historic moves across both of these dimensions with landmark monetary policy decisions by the European Central Bank (the “ECB”) and the U.S. Federal Reserve (the “Fed”). While central banks broadly pursued a more dovish policy stance than anticipated at the start of the year, growth trajectories were mixed with the U.S. and Europe continuing their recoveries and emerging economies battling structural headwinds.

Monetary policy drove much of the equity performance divergence across developed markets. European equities were among the top performers into mid-year as the ECB over-delivered with their quantitative easing (“QE”) announcement in January. This tailwind subsequently abated as hopes for additional easing were not fully realized at the December ECB meeting. Japanese equities also gained on the back of continued monetary accommodation and growing corporate profits, despite lackluster economic activity. The prospect of monetary tightening cast a long shadow over U.S. equities, which struggled to outperform. Emerging markets also fought an uphill battle, held back by an appreciating U.S. dollar, falling commodity prices, and flagging exports. Though emerging market equities underperformed their developed market counterparts, investors focused on differentiating across the emerging world based on relative growth expectations.

Growth trends were generally stronger in the consumer sector particularly in developed economies where lower oil prices stimulated consumer spending, while the manufacturing sector remained weak. As a result, consumer-facing industries and technology firms outperformed. Commodity producers were the worst performers as oil and metals sold off, while downstream firms (e.g., refiners) benefitted.

Equity volatility increased over the course of the year, especially into the second half, reflecting a tension between continued easy global monetary policy, stretched valuations, and bursts of global growth concerns emanating from emerging markets. This was most evident in August as seemingly panicked moves by Chinese policymakers drove volatility sharply higher.

Fixed income markets were largely driven by two main forces—policy expectations and the impact of large swings in oil prices on inflation. The combination of aggressive policy easing and weak inflation drove core European bond yields sharply lower in the first quarter of the year. The ECB’s larger-than-expected stimulus program set the stage for an ensuing market correction with stabilization in oil prices acting as a catalyst to push core yields sharply higher during the second quarter. It also led to excessively elevated easing expectations that were eventually disappointed at the December ECB meeting. U.S. bond markets finished the year close to flat; long-term rates remained contained by mixed economic data, while two-year yields significantly rose in anticipation of a Fed rate hike. Emerging market (Brazil, South Africa, Malaysia) sovereign bonds underperformed on a combination of weaker commodity prices, increasing political uncertainty, and depreciating exchange rates.

Commodities continued their downward trend as persistent weakness in emerging economy growth weighed on demand and drove prices lower. The Fed’s gradual move to tighten policy led to significant dollar strength, adding to downward pressure on commodity prices. Supply developments also contributed to the collapse in oil prices with the technological improvement witnessed in shale enhancing supply. Moreover, a reduction in the Organization of Petroleum Exporting Countries’ production were disappointed, leading to a continued decline in oil into the end of the year.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio’s assets are allocated across a broad range of asset classes in a tactical sleeve. 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 when volatility subsides.

Relative to the Strategic Asset Allocation, directional and cross-country positioning in equities were the primary drivers of positive performance. Currency positioning also added value, while fixed income views modestly detracted. Additionally, volatility management modestly weighed on returns, yet effectively dampened volatility, thus creating a smoother ride for investors.

From a broad asset allocation perspective, the Portfolio benefitted from an overweight to equities as global risk assets advanced, particularly at the start of the year. During the period, we gradually reduced the Portfolio’s aggregate equity exposure due to heightened uncertainty surrounding growth and monetary policy across the world. Within fixed income, the Portfolio maintained a U.S. duration underweight, which detracted from performance in early 2015 given the spill over from ECB easing and yield compression in global bond markets.

In Europe, we retained the view that monetary easing by the ECB and improving economic activity would support risk assets. This theme aided performance, primarily in the first quarter, as Eurozone equities sharply rallied and the euro weakened against the dollar, driven by stronger economic data and positive sentiment over the ECB’s generous QE package. We reduced the Portfolio’s overweight mid-year on softer growth impulses and heightened political uncertainty, yet reinitiated the position on the back of economic stabilization toward year-end. This allowed the Portfolio to benefit from the fourth quarter equity rally. We took some profits on the Portfolio’s European equity position ahead of the December ECB meeting, closing 2015 with a modest long position.

 

MIST-1

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Managed by BlackRock Financial Management, Inc.

Portfolio Manager Commentary*—(Continued)

 

We remained constructive on Japanese equities on the basis of supportive policy, corporate governance reform, and attractive valuations. This view contributed to performance as Japanese equities outperformed, supported by the dual tailwinds of monetary easing and attractive valuations. The Portfolio maintained a Japanese equity overweight throughout most of the year, yet closed out of this position in the third quarter following a sustained deceleration in economic growth.

We maintained a generally bearish stance on the U.S. given weak earnings, expensive valuations, and lingering uncertainty surrounding the path of interest rates. While a short-lived equity overweight detracted during the first quarter due to slowing economic activity, an equity underweight throughout the rest of the period also weighed on performance as stocks traded in a narrow range. Stronger economic data, including continued gains in employment, enabled the Fed to commence policy normalization at its December meeting. We closed the Portfolio’s equity underweight position on the back of improving growth dynamics and heightened expectations for a Fed rate hike.

With monetary policy differentiation a key focus in the Portfolio’s currency positioning, underweights to the euro and yen versus the dollar benefitted performance as the Fed’s gradual move to raise rates led to a significant bout of dollar strength. We took profits on the Portfolio’s euro and yen short positions at the end of the year given depreciation and less dovish policy rhetoric.

While we remained wary of the broad emerging market complex, we selectively explored attractive value opportunities. In the first half of the year, we rotated out of Taiwanese equities in favor of Indian equities, which we believed would benefit from an accommodative policy regime and strong macroeconomic tailwinds. However, we closed this position in the second quarter following underperformance due to disappointing corporate earnings and negative investor sentiment.

Within fixed income, an underweight to global duration, primarily expressed via U.S. Treasuries, detracted from performance. Additionally, the Portfolio held Australian and U.K. bonds as a means of offsetting its U.S. fixed income underweight. We closed both positions in the third quarter on signs that concerns over global disinflation were exaggerated. In December, we reinitiated the Portfolio’s U.S. duration underweight position on the basis of accelerating growth momentum and the advent of policy normalization.

As market volatility rose in late August, we de-risked the Portfolio to create a smoother ride for investors. We reduced Portfolio risk primarily by selling equities as we believed that the source of the market turbulence was a growth scare emanating from China and transmitted through the equity market. As volatility abated in late September, the Portfolio returned to its fully-invested positioning. While the return impact from de-risking was modestly negative, the reduction in volatility was substantial.

During the period, the Portfolio held derivatives, which positively impacted performance. As part of the Portfolio’s design, we use a 10-year interest rate swap to overlay 30% of total portfolio NAV in order to help dampen volatility. This position dampened performance as interest rates rose; over the period, the 10-year U.S. Treasury rate climbed from 2.17% to 2.27%. The Portfolio also employs derivatives to hedge and/or take outright views primarily through equity and bond futures. Over the year, the Portfolio used futures to access equity and currency exposures in the following markets: U.S., U.K., Germany, France, Italy, Spain, Sweden, Switzerland, Japan, Hong Kong, Singapore, Australia, and broad Europe. The Portfolio also used a total return swap on the MSCI Switzerland Index and the S&P GSCI Index to gain exposure to equities and commodities, respectively. In terms of fixed income, the Portfolio used U.S. 10- and 5-year Treasury Note futures, long U.S. bond futures, Australian 10- and 3-year bond futures, and long gilt futures to help adjust Portfolio duration according to our views.

The Portfolio ended the year 2% overweight equities through Europe on the basis of attractive valuations, relatively robust growth dynamics, and supportive policy. Within fixed income, the Portfolio held an underweight in U.S. duration, reflecting improving domestic economic activity and normalizing financial conditions.

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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        Since Inception2  
BlackRock Global Tactical Strategies Portfolio            

Class B

        -0.11           4.54   
Dow Jones Moderate Index        -1.21           4.96   

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 date of the Class B shares is 5/2/2011. Index since inception return is based on the Portfolio’s inception date.

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
iShares 1-3 Year Credit Bond ETF      6.5   
iShares iBoxx $ Investment Grade Corporate Bond ETF      5.9   
Vanguard Total Bond Market ETF      5.7   
iShares Core U.S. Aggregate Bond ETF      4.9   
iShares MSCI EAFE Fund      4.4   
Powershares QQQ Trust - Series 1      3.5   
Financial Select Sector SPDR Fund      3.0   
iShares U.S. Real Estate ETF      2.1   
Health Care Select Sector SPDR Fund      2.0   
Consumer Discretionary Select Sector SPDR Fund      2.0   

 

MIST-3

Met Investors Series Trust

BlackRock Global Tactical Strategies 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class B(a)(b)

    Actual      0.89 %     $ 1,000.00         $ 976.40         $ 4.43   
   Hypothetical*      0.89 %     $ 1,000.00         $ 1,020.72         $ 4.53   

* 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 (184 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 December 31, 2015

Mutual Funds—52.1% of Net Assets

 

Security Description       
Shares		     Value  

Investment Company Securities—52.1%

  

Consumer Discretionary Select Sector SPDR Fund (a)

     1,907,756      $ 149,091,131   

Consumer Staples Select Sector SPDR Fund (a)

     2,535,939        128,039,560   

Energy Select Sector SPDR Fund (a)

     1,385,355        83,883,245   

Financial Select Sector SPDR Fund (a)

     9,339,060        222,082,847   

Health Care Select Sector SPDR Fund (a)

     2,109,513        151,990,412   

Industrial Select Sector SPDR Fund (a)

     2,702,775        143,274,103   

iShares 1-3 Year Credit Bond ETF (a) (b)

     4,618,949        483,142,065   

iShares Core U.S. Aggregate Bond ETF (b)

     3,419,215        369,309,412   

iShares iBoxx $ Investment Grade Corporate Bond ETF (b)

     3,858,200        439,873,382   

iShares Intermediate Credit Bond ETF (b)

     1,173,627        125,906,705   

iShares MSCI EAFE Fund (a) (b)

    5,598,492        328,911,405   

iShares MSCI Japan Fund (a) (b)

     2,978,237        36,096,232   

iShares U.S. Real Estate ETF (a) (b)

     2,080,408        156,259,445   

Materials Select Sector SPDR Fund (a)

     1,102,186        47,856,916   

Powershares QQQ Trust - Series 1 (a)

     2,330,863        260,730,335   

SPDR S&P 500 ETF Trust (a)

     234,454        47,802,826   

Technology Select Sector SPDR Fund (a)

     3,193,938        136,796,365   

Utilities Select Sector SPDR Fund (a)

     1,071,224        46,362,575   

Vanguard Short-Term Corporate Bond ETF (a)

     1,458,405        115,199,411   

Vanguard Total Bond Market ETF

     5,264,314        425,145,999   
   

 

 

  

Total Mutual Funds
(Cost $3,820,545,404)

       3,897,754,371   
   

 

 

  
Short-Term Investments—63.2%   

Mutual Funds—20.1%

  

SSGA USD Liquidity Fund, S2 Shares 0.218% (c)

     108,521,098        108,521,098   

State Street Navigator Securities Lending MET Portfolio (d)

     1,391,830,070        1,391,830,070   
   

 

 

  
      1,500,351,168   
   

 

 

  

Repurchase Agreement—43.1%

  

Fixed Income Clearing Corp.
Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $3,227,288,220 on 01/04/16, collateralized by $3,308,475,000 U.S. Government Agency Obligations with rates ranging from 1.000% - 1.840%, maturity dates ranging from 11/30/19 - 06/30/20, with a value of $3,291,844,373.

     3,227,277,462      3,227,277,462   
   

 

 

  

Total Short-Term Investments
(Cost $4,727,628,630)

       4,727,628,630   
   

 

 

  

Total Investments—115.3%
(Cost $8,548,174,034) (e)

       8,625,383,001   

Other assets and liabilities (net)—(15.3)%

       (1,142,786,950 ) 
   

 

 

  
Net Assets—100.0%     $ 7,482,596,051   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of December 31, 2015, the market value of securities loaned was $1,428,043,384 and the collateral received consisted of cash in the amount of $1,391,830,070 and non-cash collateral with a value of $83,136,081. 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 Consolidated Statement of Assets and Liabilities.
(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 December 31, 2015.
(d) Represents investment of cash collateral received from securities on loan as of December 31, 2015.
(e) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $8,606,569,105. The aggregate unrealized appreciation and depreciation of investments were $138,338,391 and $(119,524,495), respectively, resulting in net unrealized appreciation of $18,813,896 for federal income tax purposes.
(ETF)— Exchange-Traded Fund

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy

     

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation		  
SEK     431,000,000      

Goldman Sachs & Co.

        02/02/16         $ 49,598,819         $ 1,501,324   
                   

 

 

  

 

§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 December 31, 2015

 

Futures Contracts

 

Futures Contracts—Long

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

Australian Currency Futures

      03/14/16         1,529        USD         109,616,839      $ 1,480,301   

British Pound Currency Futures

      03/14/16         3,239        USD         303,580,255        (5,308,843 ) 

CAC 40 Index Futures

      01/15/16         688        EUR         31,690,640        241,519   

DAX Index Futures

      03/18/16         191        EUR         50,106,822        1,444,810   

Euro Currency Futures

      03/14/16         3,348        USD         457,343,444        (1,764,344 ) 

Euro Stoxx 50 Index Futures

      03/18/16         14,748        EUR         477,186,287        7,436,709   

FTSE 100 Index Futures

      03/18/16         3,236        GBP         193,567,676        10,318,816   

FTSE MIB Index Futures

      03/18/16         130        EUR         13,796,462        153,056   

Hang Seng Index Futures

      01/28/16         276        HKD         301,722,388        82,014   

IBEX 35 Index Futures

      01/15/16         179        EUR         17,361,873        (336,671 ) 

Japanese Yen Currency Futures

      03/14/16         3,272        USD         333,166,410        7,632,840   

MSCI Singapore Index Futures

      01/28/16         878        SGD         28,391,587        14,453   

Nikkei 225 Index Futures

      03/10/16         2,081        JPY         41,057,395,311        (12,113,360 ) 

OMX Stockholm 30 Index Futures

      01/15/16         2,703        SEK         384,169,688        855,861   

Russell 2000 Mini Index Futures

      03/18/16         3,891        USD         430,967,009        9,299,641   

S&P 500 E-Mini Index Futures

      03/18/16         3,086        USD         310,124,277        3,937,943   

SPI 200 Index Futures

      03/17/16         1,096        AUD         134,071,192        7,265,581   

Swiss Franc Currency Futures

      03/14/16         1,236        USD         156,325,232        (1,330,832 ) 

U.S. Treasury Long Bond Futures

      03/21/16         479        USD         73,331,729        314,521   

U.S. Treasury Note 5 Year Futures

      03/31/16         2,305        USD         273,324,318        (595,997 ) 

Futures Contracts—Short

                                 

U.S. Treasury Note 10 Year Futures

      03/21/16         (976 )      USD         (122,764,292 )      (120,208 ) 
            

 

 

  

Net Unrealized Appreciation

  

   $ 28,907,810   
            

 

 

  

Swap Agreements

OTC Total Return Swaps

 

     Fixed
Rate		   Maturity
Date		     

Counterparty

   

Underlying Reference
Instrument

    Notional
Amount		      Market
Value		     Upfront
Premium
Paid/(Received)		      Unrealized
Appreciation/
(Depreciation)		  
  1.000%     01/19/16       Credit Suisse International    MSCI Switzerland Index Net Dividends      CHF         14,086,821       $ 680,686      $ —       $ 680,686   
  1.000%     01/19/16       UBS AG    MSCI Switzerland Index Net Dividends      CHF         129,073,986         2,605,722        —         2,605,722   
  1.124%     01/19/16       UBS AG    MSCI Switzerland Index Net Dividends      CHF         129,073,986         —        —         —   
  0.120%     03/04/16       JPMorgan Chase Bank N.A.    S&P GSCI Index      USD         63,361,108         (2,392,008 )      —         (2,392,008 ) 
  0.120%     03/04/16       JPMorgan Chase Bank N.A.    S&P GSCI Index      USD         58,502,038         (5,305,401 )      —         (5,305,401 ) 
  0.120%     03/04/16       JPMorgan Chase Bank N.A.    S&P GSCI Index      USD         172,980,141         (6,530,344 )      —         (6,530,344 ) 
                  

 

 

    

 

 

     

 

 

  

Totals

  

    $ (10,941,345 )    $ —       $ (10,941,345 ) 
                  

 

 

    

 

 

     

 

 

  

Centrally Cleared Interest Rate Swaps

 

Pay/Receive
Floating Rate

    Floating
Rate Index		      Fixed
Rate		     Maturity
Date		      Notional
Amount		      Unrealized
Depreciation		  

Pay

      3M LIBOR         1.985 %      10/06/25         USD         425,000,000       $ (8,256,887 ) 

Pay

      3M LIBOR         2.030 %      10/05/25         USD         375,000,000         (5,767,376 ) 

Pay

      3M LIBOR         2.035 %      10/08/25         USD         413,000,000         (6,569,427 ) 

Pay

      3M LIBOR         2.050 %      10/07/25         USD         314,000,000         (4,319,196 ) 

Pay

      3M LIBOR         2.050 %      10/09/25         USD         182,000,000         (2,591,258 ) 

 

§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 December 31, 2015

Centrally Cleared Interest Rate Swaps—(Continued)

 

Pay/Receive
Floating Rate

    Floating
Rate Index		      Fixed
Rate		     Maturity
Date		      Notional
Amount		      Unrealized
Depreciation		  

Pay

      3M LIBOR         2.080 %      10/13/25         USD         238,000,000       $ (2,618,224 ) 

Pay

      3M LIBOR         2.090 %      10/13/25         USD         356,000,000         (3,595,087 ) 
                

 

 

  

Net Unrealized Depreciation

  

    $ (33,717,455 ) 
                

 

 

  

 

(AUD)— Australian Dollar
(CHF)— Swiss Franc
(EUR)— Euro
(GBP)— British Pound
(HKD)— Hong Kong Dollar
(JPY)— Japanese Yen
(SEK)— Swedish Krona
(SGD)— Singapore Dollar
(USD)— United States Dollar
(LIBOR)— London Interbank Offered Rate

 

§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§ Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1     Level 2     Level 3      Total  
Mutual Funds          

Investment Company Securities

    $ 3,897,754,371      $ —        $ —         $ 3,897,754,371   
Short-Term Investments          

Mutual Funds

      1,500,351,168        —          —           1,500,351,168   

Repurchase Agreement

      —          3,227,277,462        —           3,227,277,462   

Total Short-Term Investments

      1,500,351,168        3,227,277,462        —           4,727,628,630   

Total Investments

    $ 5,398,105,539      $ 3,227,277,462      $ —         $ 8,625,383,001   
                                   

Collateral for Securities Loaned (Liability)

    $ —        $ (1,391,830,070 )    $ —         $ (1,391,830,070 ) 
Forward Contracts          

Forward Foreign Currency Exchange Contracts (Unrealized Appreciation)

    $ —        $ 1,501,324      $ —         $ 1,501,324   
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 50,478,065      $ —        $ —         $ 50,478,065   

Futures Contracts (Unrealized Depreciation)

      (21,570,255 )      —          —           (21,570,255 ) 

Total Futures Contracts

    $ 28,907,810      $ —        $ —         $ 28,907,810   
Centrally Cleared Swap Contracts          

Centrally Cleared Swap Contracts (Unrealized Depreciation)

    $ —        $ (33,717,455 )    $ —         $ (33,717,455 ) 

OTC Swap Contracts

          

OTC Swap Contracts at Value (Assets)

    $ —        $ 3,286,408      $ —         $ 3,286,408   

OTC Swap Contracts at Value (Liabilities)

      —          (14,227,753 )      —           (14,227,753 ) 

Total OTC Swap Contracts

    $ —        $ (10,941,345 )    $ —         $ (10,941,345 ) 

 

§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§ Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 3,458,606,893   

Affiliated investments at value (c) (d)

      1,939,498,646   

Repurchase Agreement

      3,227,277,462   

Cash

      797,607   

Cash collateral (e)

      281,139,234   

OTC swap contracts at market value

      3,286,408   

Unrealized appreciation on forward foreign currency exchange contracts

      1,501,324   

Receivable for:

   

Fund shares sold

      438,952   

Dividends and interest

      301,929   

Interest on OTC swap contracts

      289,780   

Variation margin on centrally cleared swap contracts

      8,118,051   

Prepaid expenses

      21,110   
  

 

 

  

Total Assets

      8,921,277,396   

Liabilities

   

Cash collateral for OTC swap contracts

      5,160,000   

OTC swap contracts at market value

      14,227,753   

Collateral for securities loaned

      1,391,830,070   

Payables for:

   

Open OTC swap contracts cash collateral

      6,310,000   

Fund shares redeemed

      609,356   

Variation margin on futures contracts

      14,397,359   

Interest on OTC swap contracts

      25,142   

Accrued Expenses:

   

Management fees

      3,993,582   

Distribution and service fees

      1,596,828   

Deferred trustees’ fees

      64,810   

Other expenses

      466,445   
  

 

 

  

Total Liabilities

      1,438,681,345   
  

 

 

  

Net Assets

    $ 7,482,596,051   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 6,800,276,645   

Undistributed net investment income

      102,541,459   

Accumulated net realized gain

      516,643,584   

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

      63,134,363   
  

 

 

  

Net Assets

    $ 7,482,596,051   
  

 

 

  

Net Assets

   

Class B

    $ 7,482,596,051   

Capital Shares Outstanding*

   

Class B

      724,503,615   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 10.33   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding repurchase agreement and affiliated investments, was $3,367,989,974.
(b) Includes securities loaned at value of $1,115,522,539.
(c) Identified cost of affiliated investments was $1,952,906,598.
(d) Includes securities loaned at value of $312,520,845.
(e) Includes collateral of $177,095,414 for futures contracts, $16,540,000 for OTC swap contracts and $87,503,820 for centrally cleared swap contracts.

Consolidated§ Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends from Underlying ETFs

    $ 37,130,034   

Dividends from affiliated investments

      55,764,647   

Interest

      2,842   

Securities lending income

      3,877,127   
  

 

 

  

Total investment income

      96,774,650   

Expenses

   

Management fees

      51,480,160   

Administration fees

      232,965   

Custodian and accounting fees

      542,440   

Distribution and service fees—Class B

      19,569,292   

Audit and tax services

      51,648   

Legal

      30,987   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      158,019   

Insurance

      50,275   

Miscellaneous

      48,064   
  

 

 

  

Total expenses

      72,199,023   

Less management fee waiver

      (2,646,630 ) 
  

 

 

  

Net expenses

      69,552,393   
  

 

 

  

Net Investment Income

      27,222,257   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      374,956,809   

Affiliated investments

      9,746,021   

Futures contracts

      21,042,581   

Swap contracts

      76,881,739   

Foreign currency transactions

      12,932,817   

Capital gain distributions from Underlying ETFs

      503,030   

Capital gain distributions from Affiliated Underlying ETFs

      553,735   
  

 

 

  

Net realized gain

      496,616,732   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (387,089,603 ) 

Affiliated investments

      (60,118,720 ) 

Futures contracts

      4,446,332   

Swap contracts

      (94,427,004 ) 

Foreign currency transactions

      826,339   
  

 

 

  

Net change in unrealized depreciation

      (536,362,656 ) 
  

 

 

  

Net realized and unrealized loss

      (39,745,924 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (12,523,667 ) 
  

 

 

  

 

§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§ Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 27,222,257      $ 49,417,840   

Net realized gain

      496,616,732        267,458,674   

Net change in unrealized appreciation (depreciation)

      (536,362,656 )     141,985,852  
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (12,523,667 )     458,862,366  
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (120,922,240 )      (88,385,504 ) 

Net realized capital gains

     

Class B

      (314,257,217 )     (416,873,360 )
  

 

 

    

 

 

  

Total distributions

      (435,179,457 )     (505,258,864 )
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      83,417,309       75,515,382  
  

 

 

    

 

 

  

Total increase (decrease) in net assets

      (364,285,815 )      29,118,884   

Net Assets

     

Beginning of period

      7,846,881,866       7,817,762,982  
  

 

 

    

 

 

  

End of period

    $ 7,482,596,051      $ 7,846,881,866   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 102,541,459      $ 120,488,474   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015 		    Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      15,561,063      $ 168,205,331        8,542,798      $ 92,870,143   

Reinvestments

      40,709,023        435,179,457        48,582,583        505,258,864   

Redemptions

      (48,291,277 )      (519,967,479 )      (47,882,117 )      (522,613,625 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      7,978,809      $ 83,417,309        9,243,264      $ 75,515,382   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 83,417,309        $ 75,515,382   
    

 

 

      

 

 

  

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-10

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Consolidated§ Financial Highlights

 

Selected per share data                                  
     Class B  
     Year Ended December 31,  
     2015      2014      2013      2012     2011(a)  

Net Asset Value, Beginning of Period

    $ 10.95       $ 11.05       $ 10.39       $ 9.52      $ 10.00   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (b)

      0.04         0.07         0.06         0.14        0.09   

Net realized and unrealized gain (loss) on investments

      (0.04 )      0.56        0.99        0.73       (0.44 )
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total from investment operations

      0.00        0.63        1.05        0.87       (0.35 )
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.17 )       (0.13 )       (0.15 )       0.00        (0.06 ) 

Distributions from net realized capital gains

      (0.45 )      (0.60 )      (0.24 )      (0.00 )(c)     (0.07 )
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

      (0.62 )      (0.73 )      (0.39 )      0.00       (0.13 )
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 10.33       $ 10.95       $ 11.05       $ 10.39      $ 9.52   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Return (%) (d)

      (0.11 )      5.92        10.31        9.14       (3.41 )(e)

Ratios/Supplemental Data

              

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

      0.92         0.92         0.92         0.93        0.96  (f) 

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

      0.89         0.90         0.91         0.93        0.92  (f) 

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

      0.35         0.63         0.58         1.37        1.45  (f) 

Portfolio turnover rate (%)

      51         25         51         62        75  (e) 

Net assets, end of period (in millions)

    $ 7,482.6       $ 7,846.9       $ 7,817.8       $ 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) The ratio of operating expenses to average net assets does not include expenses of the Underlying ETFs in which the Portfolio invests.
(h) Includes the effects of management fee waivers (see Note 7 of the Notes to Consolidated Financial Statements).

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-11

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Notes to Consolidated Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 Portfolio, Ltd.

The Portfolio may invest up to 6% of its total assets in the BlackRock Global Tactical Strategies 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-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 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
December 31, 2015		      % of
Total Assets at
December 31, 2015		  

BlackRock Global Tactical Strategies Portfolio, Ltd.

      5/14/2013       $ 105,403,577         1.2 % 

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

 

MIST-12

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

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 December 31, 2015 through the date the consolidated financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - Investments in the ETFs are valued at the closing market quotation for their shares and are categorized as Level 1 within the fair value hierarchy. For information about the use of fair value pricing by the Underlying ETFs, please refer to the prospectuses for such Underlying ETFs.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and 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.

Investments in unregistered open-end management investment companies are reported at net asset value (“NAV”) per share on the valuation date and are categorized as Level 1 within the fair value heirarchy provided the NAV is observable, calculated daily and are the value at which both purchases and sales will be conducted.

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

Options, including swaptions, and futures contracts that are traded over-the-counter (“OTC”) are generally valued on the basis of quotations provided by broker-dealers or prices provided by 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, yield curves, credit curves, measures of volatility and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts (other than centrally cleared swaps) are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and other pricing services. Such quotations and prices are derived utilizing observable data, including the underlying reference securities or indices, credit spread quotations and expected default recovery rates determined by the pricing service. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or an independent pricing service when the exchange price is not available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third party prices are used to produce daily settlement prices. These securities are categorized as Level 2 within the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates, including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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

 

MIST-13

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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, futures transactions, controlled foreign corporation reversal and swap transactions. These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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.

 

MIST-14

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

At December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $3,227,277,462, which is reflected as repurchase agreement on the Consolidated Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Consolidated Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Consolidated Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

All securities on loan are classified as Mutual Funds in the Portfolio’s Schedule of Investments as of December 31, 2015, with a contractual maturity of overnight and continuous.

4. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts 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 cash 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. If futures contracts are exchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

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 either privately

 

MIST-15

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

negotiated in the OTC market (“OTC swaps”) or 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 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.

Centrally Cleared Swaps: Clearinghouses currently offer clearing derivative transactions which include interest rate and 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.

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 upon entering into the swap agreement 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: The Portfolio may enter into currency swap agreements to gain or mitigate exposure to currency risk. 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: (1) 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”; (2) 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 (3) 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

 

MIST-16

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

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 contract’s 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 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.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of 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 centrally cleared swap contracts (a) (b)    $ 33,717,455   
   Unrealized appreciation on futures contracts (a) (c)    $ 314,521       Unrealized depreciation on futures contracts (a) (c)      716,205   
Equity    OTC swap contracts at market value (d)      3,286,408         
   Unrealized appreciation on futures contracts (a) (c)      41,050,403       Unrealized depreciation on futures contracts (a) (c)      12,450,031   
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts      1,501,324         
   Unrealized appreciation on futures contracts (a) (c)      9,113,141       Unrealized depreciation on futures contracts (a) (c)      8,404,019   
Commodity          OTC swap contracts at market value (d)      14,227,753   
     

 

 

        

 

 

  
Total       $ 55,265,797            $69,515,463   
     

 

 

        

 

 

  

 

  (a) Financial instrument not subject to a master netting agreement.
  (b) 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.
  (c) 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.
  (d) Excludes OTC swap interest receivable of $289,780 and OTC swap interest payable of $25,142.

The Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Consolidated Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized 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 (“MNA”) (see Note 5), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2015.

 

Counterparty

      Derivative Assets
subject to an MNA
by Counterparty		        Financial
Instruments
available for offset		        Collateral
Received†		      Net
Amount*		  

Credit Suisse International

      $ 680,686         $ —         $ (520,000 )     $ 160,686   

Goldman Sachs & Co.

        1,501,324           —           (1,501,324 )       —   

UBS AG

        2,605,722           —           (2,605,722 )       —   
    

 

 

       

 

 

       

 

 

     

 

 

  
     $ 4,787,732         $ —         $ (4,627,046 )     $ 160,686   
    

 

 

       

 

 

       

 

 

     

 

 

  

 

MIST-17

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under an MNA, or similar agreement, and net of the related collateral pledged by the Portfolio as of December 31, 2015.

 

Counterparty

      Derivative Liabilities
subject to an MNA
by Counterparty		        Financial
Instruments
available for offset		        Collateral
Pledged†		      Net
Amount**		  

JPMorgan Chase Bank N.A.

      $ 14,227,753         $ —         $ (11,120,000 )     $ 3,107,753   
    

 

 

       

 

 

       

 

 

     

 

 

  

 

  * Net amount represents the net amount receivable from the counterparty in the event of default.
  ** Net amount represents the net amount payable due to the counterparty in the event of default.
  † In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

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

    Interest Rate     Equity     Commodity     Foreign
Exchange		     Total  

Forward foreign currency transactions

    $ —      $ —      $ —      $ (1,112,080 )    $ (1,112,080 ) 

Futures contracts

      (14,184,565 )      69,442,805        —        (34,215,659 )      21,042,581   

Swap contracts

      182,034,002        29,158,456        (134,310,719 )      —        76,881,739   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   $ 167,849,437      $ 98,601,261      $ (134,310,719 )    $ (35,327,739 )    $ 96,812,240   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

    Interest Rate     Equity     Commodity     Foreign
Exchange		     Total  

Forward foreign currency transactions

    $ —      $ —      $ —      $ 1,501,324      $ 1,501,324   

Futures contracts

      (333,431 )      (7,947,910 )      —        12,727,673        4,446,332   

Swap contracts

      (113,107,769 )      (1,464,071 )      20,144,836        —        (94,427,004 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   $ (113,441,200 )    $ (9,411,981 )    $ 20,144,836      $ 14,228,997      $ (88,479,348 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Forward foreign currency transactions

    $ 50,251,940   

Futures contracts long

      1,203,428,171   

Futures contracts short

      (497,866,667 ) 

Swap contracts

      2,493,329,670   

 

  ‡ Averages are based on activity levels during 2015.

5. Certain Risks

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”).

Market 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, interest rate, and price fluctuations.

Commodities Risk: 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 factors affecting a particular industry or commodity.

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

 

MIST-18

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC 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 (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to Portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 2,305,066,793       $ 0       $ 4,076,350,337   

7. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$51,480,160      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

 

MIST-19

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. The Subadviser is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, for the period May 1, 2015 to April 30, 2016, 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
0.030%    $3 billion to $5 billion
0.060%    Over $ 5 billion

An identical agreement was in place for the period January 1, 2015 to April 30, 2015. Amounts waived, if applicable, for the period ended December 31, 2015 are shown as a management fee waiver 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, LLC, 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 year ended December 31, 2015 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 Underlying ETFs

The Portfolio does not invest in the Underlying ETFs for the purpose of exercising control; however, investments by the Portfolio within its principal investment strategies may represent a significant portion of the Underlying ETFs’ net assets. Transactions in the Underlying ETFs for the year ended December 31, 2015 were as follows:

 

Underlying ETF/Security

    Number of
shares held at
December 31, 2014		      Shares
purchased		      Shares
sold		     Number of
shares held at
December 31, 2015		  

iShares 1-3 Year Credit Bond ETF

      4,618,949         —         —        4,618,949   

iShares Core U.S. Aggregate Bond ETF

      7,646,966         542,141         (4,769,892 )      3,419,215   

iShares iBoxx $ Investment Grade Corporate Bond ETF

      3,858,200         —         —        3,858,200   

iShares Intermediate Credit Bond ETF

      1,173,627         —         —        1,173,627   

iShares MSCI EAFE Fund

      5,418,553         6,741,215         (6,561,276 )      5,598,492   

iShares MSCI EMU ETF

      1,694,629         —         (1,694,629 )      —   

iShares MSCI Japan Fund

      —         2,978,237         —        2,978,237   

iShares U.S. Real Estate ETF

      —         2,947,617         (867,209 )      2,080,408   

 

MIST-20

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(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
December 31, 2015		  

iShares 1-3 Year Credit Bond ETF

    $ —      $ —       $ 5,717,792       $ 483,142,065   

iShares Core U.S. Aggregate Bond ETF

      (5,753,719 )      553,735         14,854,619         369,309,412   

iShares iBoxx $ Investment Grade Corporate Bond ETF

      —        —         15,281,431         439,873,382   

iShares Intermediate Credit Bond ETF

      —        —         3,165,542         125,906,705   

iShares MSCI EAFE Fund

      31,006,441        —         8,867,617         328,911,405   

iShares MSCI EMU ETF

      (6,117,183 )      —         1,165,132         —   

iShares MSCI Japan Fund

      —        —         261,263         36,096,232   

iShares U.S. Real Estate ETF

      (9,389,518 )      —         6,451,251         156,259,445   
  

 

 

    

 

 

     

 

 

     

 

 

  
   $ 9,746,021      $ 553,735       $ 55,764,647       $ 1,939,498,646   
  

 

 

    

 

 

     

 

 

     

 

 

  

9. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$298,087,382    $ 281,859,284       $ 137,092,075       $ 223,399,580       $ 435,179,457       $ 505,258,864   

As of December 31, 2015, 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		     Other
Accumulated
Capital Losses		      Total  
$223,769,165    $ 491,408,850       $ (32,793,797 )    $ —       $ 682,384,218   

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.

As of December 31, 2015, the Portfolio had no accumulated capital losses.

11. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-21

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of BlackRock Global Tactical Strategies 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 BlackRock Global Tactical Strategies Portfolio and subsidiary, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, and the consolidated financial highlights for each of the four years in the period then ended and for the period from May 2, 2011 (commencement of operations) to December 31, 2011. These consolidated financial statements and consolidated financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these consolidated financial statements and consolidated 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 December 31, 2015, by correspondence with custodians, transfer agent, and brokers; when the 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 consolidated financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock Global Tactical Strategies Portfolio and subsidiary of the Met Investors Series Trust as of December 31, 2015, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the consolidated financial highlights for each of the four years in the period then ended and for the period from May 2, 2011 (commencement of operations) to December 31, 2011, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-22

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-23

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-24

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-25

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

 

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-26

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

BlackRock Global Tactical Strategies Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and BlackRock Financial Management, Inc. regarding the Portfolio:

The Board considered and found that the advisory fee to be paid to the Adviser with respect to the Portfolio was based on services to be provided that were in addition to, rather than duplicative of, the services provided pursuant to the advisory agreements for the underlying portfolios in which the Portfolio invests.

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the one- and three-year and since-inception (beginning May 2, 2011) periods ended June 30, 2015. The Board further considered that the Portfolio outperformed its benchmark, the Dow Jones Moderate Index, for the one-year period ended October 31, 2015, but underperformed this benchmark for the three-year and since-inception periods ended October 31, 2015. The Board also noted that the Portfolio underperformed its blended index for the one-year, three-year and since-inception periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees were above the Expense Group median and the Expense Universe median. The Board noted that the Portfolio’s total expenses (exclusive of 12b-l fees) were below the Expense Group median and Expense Universe median. The Board also noted that the Portfolio’s contractual management fees were above the asset-weighted average of the Expense Group at the Portfolio’s current size.

 

MIST-27

Met Investors Series Trust

BlackRock High Yield Portfolio

Managed by BlackRock Financial Management, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A and B shares of the BlackRock High Yield Portfolio returned -3.74% and -4.05%, respectively. The Portfolio’s benchmark, the Barclays U.S. Corporate High Yield 2% Issuer Capped Index1, returned -4.43%.

MARKET ENVIRONMENT / CONDITIONS

The end of the year proved challenging for the high yield market, and following November’s -2.2% descent, U.S. high yield toppled another -2.5% in December per the Barclays U.S. Corporate High Yield Index. The market’s 2-month return of -4.7% was enough to cancel gains generated in October, and consequently, quarterly results suffered, with the asset class trading -2.1% lower. For the year, U.S. high yield returns totaled -4.4%, and albeit negative, it was only the third negative performance year in the last 15. Weakness in commodity-related sectors was by far the largest driver of high yield returns for the year. In fact, ex-commodities, market returns were roughly flat for full-year 2015. Energy, roughly 11% of the U.S. high yield universe, was the key focal point for investors, and the sector declined -24% in 2015, including a -12.9% plunge in the fourth quarter, and a staggering -12.2% setback in December. From a rating perspective, higher quality high yield assets have outperformed throughout 2015, with BB-rated high yield assets returning -1.0% in 2015, while single-B and CCC-rated credit names contracted -4.7%, and -12.1%, respectively. Broadly, volatility and uncertainty dominated the 2015 storyline, and while high yield risks remained acute, market participants also grappled with mounting deflationary pressures, global growth concerns, a slowing China, and monetary policy divergence. The combination of these factors led to spreads moving 188 basis points higher for the year to Treasury plus 707 basis points, representing a final yield-to-worst (“YTW”) of 8.7% and average price of 89. For context, today’s YTW is 213 basis points higher than 2014 year-end, and 383 basis points higher than June of 2014 when the Energy correction commenced.

December new-issue volumes were negligible, with only 10 high yield bonds priced, totaling $4.7 billion, the lowest monthly total since $4.2 billion were priced in December 2011. High yield new-issue volumes have remained subdued for the last seven months. For context, the average of new-issue volumes per month since May has been $17.8 billion, which is about half of the average of the first five months ($33.7 billion) and of the full-year 2014 ($29.6 billion). Overall, high yield bond volume totaled $293 billion for 2015, representing an 18% year-over-year fall from last year’s $365 billion.

Default activity was elevated in 2015, fueled by deterioration in the commodity space and led by defaults in the Energy and Metals & Mining sectors. For context, these two commodity sectors accounted for more than seventy percent of 2015’s default volume. In 2015, 37 companies defaulted, totaling $37.7 billion in bonds and loans, the sixth highest total on record and the second highest total since the credit crisis, behind 2014’s 27 defaults totaling $69.6 billion. Notably, bond and loan defaults were not evenly divided this year, with 17 bond-only defaults, 8 loan-only defaults, and 12 defaults where the company had both outstanding bonds and loans.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio’s 2015 performance was driven by security selection within the Independent Energy sector, as well as underweights to the Metals & Mining and Oil Field Services sectors. Conversely, security selection within the Banking, Gaming, and Transportation Services sectors detracted from performance. As bank loans outperformed high yield bonds for the year, the Portfolio’s tactical 8% loan allocation has been beneficial, especially within the Gaming sector. However, the Portfolio’s tactical allocation to equity and equity-like assets weighed on performance as the equity market has experienced significant volatility throughout the year.

The Portfolio implemented derivatives during the period as part of its investment strategy. Derivatives are used by the portfolio management team as a means to hedge and/or take outright views on interest rates, credit risk and/or macro factors which could impact the Portfolio. During the period, the Portfolio used equity futures as a means to tactically hedge the Portfolio against volatility in global markets. The use of hedges slightly detracted from performance during the period; however we continue to believe in the benefits of managing market risk/volatility.

Over the period, the Portfolio’s core issuer/credit biases remained consistent based on bottom up fundamental analysis while factoring either our cash-flow views, determination of a specific catalyst or idiosyncratic characteristics. During the period, the Portfolio increased its exposure to names in the Banking and Pharmaceuticals sectors, while reducing risk in the Gaming and Electric sectors.

 

MIST-1

Met Investors Series Trust

BlackRock High Yield Portfolio

Managed by BlackRock Financial Management, Inc.

Portfolio Manager Commentary*—(Continued)

 

As of December 31, 2015, the Portfolio’s top overweights relative to the benchmark index included Ally Financial (Banking), First Data (Technology), and American Capital (Finance Companies).

James Keenan

David Delbos

Mitch Garfin

Derek Schoenhofen

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, 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 subject to change at any time based upon economic, market, or other conditions and the advisory 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year        Since Inception2  
BlackRock High Yield Portfolio                      

Class A

        -3.74           5.52           6.69           —   

Class B

        -4.05           5.27           —           6.84   
Barclays U.S. Corporate High Yield 2% Issuer Capped Index        -4.43           5.03           6.95           —   

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 dates of the Class A and Class B shares are 8/30/1996 and 4/28/2008, respectively.

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 DECEMBER 31, 2015

Top Sectors

 

     % of
Net Assets		  
Corporate Bonds & Notes      79.5   
Floating Rate Loans      6.9   
Common Stocks      4.9   
Mutual Funds      1.0   
Asset-Backed Securities      1.0   
Preferred Stocks      0.8   
Convertible Preferred Stocks      0.7   
Convertible Bonds      0.5   

 

MIST-3

Met Investors Series Trust

BlackRock High Yield 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual      0.67 %     $ 1,000.00         $ 937.60         $ 3.27   
   Hypothetical*      0.67 %     $ 1,000.00         $ 1,021.83         $ 3.41   

Class B(a)

    Actual      0.92 %     $ 1,000.00         $ 936.90         $ 4.49   
   Hypothetical*      0.92 %     $ 1,000.00         $ 1,020.57         $ 4.69   

* 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 (184 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

BlackRock High Yield Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—79.5% of Net Assets

 

Security Description   Principal
Amount*		     Value  

Advertising—0.3%

  

Acosta, Inc.
7.750%, 10/01/22 (144A) (a)

     790,000      $ 697,175   

Clear Channel International B.V.

    

8.750%, 12/15/20 (144A)

     1,119,000        1,113,406   

Outfront Media Capital LLC / Outfront Media Capital Corp.

    

5.625%, 02/15/24

     243,000        249,683   
   

 

 

  
      2,060,264   
   

 

 

  

Aerospace/Defense—1.4%

  

Accudyne Industries Borrower / Accudyne Industries LLC
7.750%, 12/15/20 (144A) (a)

     1,374,000        989,280   

Meccanica Holdings USA, Inc.
6.250%, 07/15/19 (144A)

     278,000        299,545   

National Air Cargo Group, Inc.

    

11.875%, 05/02/18 (b) (c)

     589,436        589,436   

11.875%, 05/08/18 (b) (c)

     604,072        604,072   

TransDigm, Inc.

    

5.500%, 10/15/20

     760,000        735,300   

6.000%, 07/15/22

     3,822,000        3,736,005   

6.500%, 07/15/24

     2,025,000        2,013,863   
   

 

 

  
      8,967,501   
   

 

 

  

Airlines—0.9%

  

American Airlines Pass-Through Trust
6.000%, 01/15/17 (144A)

     3,251,846        3,316,493   

Continental Airlines Pass-Through Certificates

    

6.125%, 04/29/18

     900,000        918,000   

Virgin Australia Trust

    

7.125%, 10/23/18 (144A)

     1,399,786        1,410,285   

8.500%, 10/23/16 (144A)

     506,884        514,487   
   

 

 

  
      6,159,265   
   

 

 

  

Apparel—0.2%

  

Levi Strauss & Co.
5.000%, 05/01/25 (a)

     717,000        713,415   

6.875%, 05/01/22

     388,000        415,160   
   

 

 

  
      1,128,575   
   

 

 

  

Auto Manufacturers—0.2%

  

CNH Industrial Finance Europe S.A.
2.750%, 03/18/19 (EUR)

     685,000        738,202   

Jaguar Land Rover Automotive plc

    

5.000%, 02/15/22 (GBP)

     412,000        625,591   
   

 

 

  
      1,363,793   
   

 

 

  

Auto Parts & Equipment—1.1%

  

Affinia Group, Inc.
7.750%, 05/01/21

     295,000        300,251   

Dakar Finance S.A.

    

9.000%, 11/15/20 (EUR) (d)

     175,000        183,335   

Delphi Corp.

    

5.000%, 02/15/23

     390,000        412,620   

Auto Parts & Equipment—(Continued)

  

Goodyear Tire & Rubber Co. (The)

    

6.500%, 03/01/21

     1,595,000      1,676,744   

Schaeffler Finance B.V.

    

4.750%, 05/15/23 (144A)

     395,000        387,100   

Schaeffler Holding Finance B.V.

    

5.750%, 11/15/21 (EUR) (d)

     190,000        221,194   

6.750%, 11/15/22 (144A) (a) (d)

     2,240,000        2,408,000   

6.875%, 08/15/18 (EUR) (d)

     730,000        821,411   

ZF North America Capital, Inc.

    

2.750%, 04/27/23 (EUR)

     300,000        311,223   

4.500%, 04/29/22 (144A)

     458,000        447,695   
   

 

 

  
      7,169,573   
   

 

 

  

Banks—4.3%

  

Allied Irish Banks plc
4.125%, 11/26/25 (EUR) (e)

     125,000        136,523   

Banca Monte dei Paschi di Siena S.p.A.

    

3.625%, 04/01/19 (EUR)

     100,000        108,758   

Banco Espirito Santo S.A.

    

2.625%, 05/08/17 (EUR)

     400,000        51,295   

Banco Popolare SC

    

2.750%, 07/27/20 (EUR)

     100,000        108,287   

Bank of America Corp.

    

5.125%, 06/17/19 (a) (e)

     1,075,000        1,023,937   

6.100%, 03/17/25 (a) (e)

     462,000        468,353   

6.250%, 09/05/24 (e)

     3,688,000        3,697,220   

6.500%, 10/23/24 (a) (e)

     1,830,000        1,928,362   

Bankia S.A.

    

4.000%, 05/22/24 (EUR) (e)

     400,000        430,896   

CIT Group, Inc.

    

5.000%, 08/01/23 (a)

     650,000        659,750   

5.500%, 02/15/19 (144A)

     296,000        309,320   

6.000%, 04/01/36

     1,550,000        1,495,750   

6.625%, 04/01/18 (144A)

     145,000        152,975   

Citigroup, Inc.

    

5.950%, 08/15/20 (e)

     425,000        423,672   

5.950%, 05/15/25 (e)

     4,100,000        3,946,250   

6.125%, 11/15/20 (e)

     630,000        642,600   

HSH Nordbank AG

    

0.719%, 02/14/17 (EUR) (e)

     295,000        289,667   

0.759%, 02/14/17 (EUR) (e)

     285,000        280,331   

Ibercaja Banco S.A.

    

5.000%, 07/28/25 (EUR) (e)

     300,000        311,930   

JPMorgan Chase & Co.

    

5.000%, 07/01/19 (e)

     1,060,000        1,007,000   

5.300%, 05/01/20 (e)

     4,030,000        4,014,887   

Morgan Stanley

    

5.550%, 07/15/20 (e)

     1,125,000        1,125,000   

Novo Banco S.A.

    

4.750%, 01/15/18 (EUR)

     1,000,000        123,889   

UniCredit S.p.A.

    

6.950%, 10/31/22 (EUR)

     100,000        126,993   

Wells Fargo & Co.

    

5.875%, 06/15/25 (a) (e)

     4,125,000        4,341,562   

5.900%, 06/15/24 (e) (f)

     1,100,000        1,109,625   
   

 

 

  
      28,314,832   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Biotechnology—0.0%

  

Concordia Healthcare Corp.
7.000%, 04/15/23 (144A) (a)

     232,000      $ 201,260   
   

 

 

  

Building Materials—1.3%

    

Builders FirstSource, Inc.
10.750%, 08/15/23 (144A)

     513,000        509,152   

Building Materials Corp. of America

    

6.000%, 10/15/25 (144A)

     2,119,000        2,161,380   

Cemex S.A.B. de C.V.

    

4.375%, 03/05/23 (EUR)

     147,000        144,176   

CPG Merger Sub LLC

    

8.000%, 10/01/21 (144A) (a)

     2,117,000        2,074,660   

Kerneos Corporate SAS

    

5.750%, 03/01/21 (EUR)

     131,000        144,073   

Norbord, Inc.

    

6.250%, 04/15/23 (144A)

     540,000        533,250   

Ply Gem Industries, Inc.

    

6.500%, 02/01/22

     991,000        906,765   

Unifrax I LLC / Unifrax Holding Co.

    

7.500%, 02/15/19 (144A)

     535,000        473,475   

USG Corp.

    

5.500%, 03/01/25 (144A)

     207,000        210,105   

5.875%, 11/01/21 (144A) (a)

     842,000        875,680   

9.750%, 01/15/18

     310,000        344,875   

Vulcan Materials Co.

    

7.500%, 06/15/21

     42,000        48,930   
   

 

 

  
      8,426,521   
   

 

 

  

Chemicals—0.9%

  

Axalta Coating Systems U.S. Holdings, Inc. / Axalta Coating Systems Dutch Holding B
7.375%, 05/01/21 (144A)

     960,000        1,012,200   

Chemours Co. (The)

    

7.000%, 05/15/25 (144A)

     390,000        266,175   

Huntsman International LLC

    

4.875%, 11/15/20 (a)

     591,000        539,287   

5.125%, 04/15/21 (EUR)

     892,000        901,524   

5.125%, 11/15/22 (144A) (a)

     81,000        72,900   

Ineos Finance plc

    

4.000%, 05/01/23 (EUR)

     122,000        126,617   

Momentive Performance Materials, Inc.

    

3.880%, 10/24/21

     1,398,000        964,620   

Monitchem HoldCo 3 S.A.

    

5.250%, 06/15/21 (EUR)

     160,000        172,590   

Platform Specialty Products Corp.

    

6.500%, 02/01/22 (144A) (a)

     1,513,000        1,308,745   

10.375%, 05/01/21 (144A)

     148,000        147,630   

PSPC Escrow Corp.

    

6.000%, 02/01/23 (EUR)

     138,000        128,226   

WR Grace & Co.

    

5.125%, 10/01/21 (144A)

     162,000        163,620   
   

 

 

  
      5,804,134   
   

 

 

  

Coal—0.4%

  

CONSOL Energy, Inc.
5.875%, 04/15/22 (a)

     3,632,000      2,251,840   

Peabody Energy Corp.

    

6.000%, 11/15/18

     1,385,000        256,225   

SunCoke Energy Partners L.P. / SunCoke Energy Partners Finance Corp.

    

7.375%, 02/01/20 (144A)

     489,000        303,180   
   

 

 

  
      2,811,245   
   

 

 

  

Commercial Services—2.4%

    

AA Bond Co., Ltd.
5.500%, 07/31/43 (GBP)

     375,000        524,493   

Ashtead Capital, Inc.

    

5.625%, 10/01/24 (144A)

     470,000        475,875   

Avis Budget Car Rental LLC / Avis Budget Finance, Inc.

    

5.125%, 06/01/22 (144A)

     345,000        340,688   

5.250%, 03/15/25 (144A) (a)

     376,000        356,260   

5.500%, 04/01/23 (a)

     405,000        406,012   

Brand Energy & Infrastructure Services, Inc.

    

8.500%, 12/01/21 (144A)

     679,000        583,940   

Ceridian HCM Holding, Inc.

    

11.000%, 03/15/21 (144A)

     612,000        480,420   

Cognita Financing plc

    

7.750%, 08/15/21 (GBP)

     125,000        190,187   

EC Finance plc

    

5.125%, 07/15/21 (EUR)

     445,000        499,514   

ExamWorks Group, Inc.

    

5.625%, 04/15/23 (a)

     676,000        672,620   

Hertz Corp. (The)

    

5.875%, 10/15/20 (a)

     210,000        216,563   

6.750%, 04/15/19

     910,000        929,565   

Igloo Holdings Corp.

    

8.250%, 12/15/17 (144A) (d)

     509,000        509,000   

Interactive Data Corp.

    

5.875%, 04/15/19 (144A) (a)

     1,600,000        1,632,000   

Jaguar Holding Co. II / Pharmaceutical Product Development LLC

    

6.375%, 08/01/23 (144A)

     2,303,000        2,245,425   

Laureate Education, Inc.

    

9.250%, 09/01/19 (144A) (a)

     561,000        347,820   

Live Nation Entertainment, Inc.

    

7.000%, 09/01/20 (144A)

     383,000        396,405   

Safway Group Holding LLC / Safway Finance Corp.

    

7.000%, 05/15/18 (144A)

     561,000        559,597   

Service Corp. International

    

5.375%, 05/15/24

     862,000        887,860   

Truven Health Analytics, Inc.

    

10.625%, 06/01/20

     405,000        407,025   

United Rentals North America, Inc.

    

5.500%, 07/15/25 (a)

     1,127,000        1,093,190   

5.750%, 11/15/24

     927,000        917,730   

6.125%, 06/15/23 (a)

     557,000        569,532   

8.250%, 02/01/21

     198,000        207,158   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Commercial Services—(Continued)

    

Verisure Holding AB

    

6.000%, 11/01/22 (EUR)

     225,000      $ 254,299   
   

 

 

  
      15,703,178   
   

 

 

  

Computers—0.2%

  

Dell, Inc.
6.500%, 04/15/38

     132,000        108,240   

Riverbed Technology, Inc.

    

8.875%, 03/01/23 (144A)

     1,165,000        1,077,625   
   

 

 

  
      1,185,865   
   

 

 

  

Distribution/Wholesale—1.8%

  

American Builders & Contractors Supply Co., Inc.
5.750%, 12/15/23 (144A)

     386,000        388,895   

American Tire Distributors, Inc.

    

10.250%, 03/01/22 (144A) (a)

     1,784,000        1,632,360   

Beacon Roofing Supply, Inc.

    

6.375%, 10/01/23 (144A) (a)

     541,000        551,144   

HD Supply, Inc.

    

5.250%, 12/15/21 (144A)

     3,691,000        3,764,820   

7.500%, 07/15/20

     5,598,000        5,821,920   
   

 

 

  
      12,159,139   
   

 

 

  

Diversified Financial Services—4.1%

  

AerCap Ireland Capital, Ltd. / AerCap Global Aviation Trust
4.500%, 05/15/21

     340,000        345,525   

4.625%, 10/30/20

     1,551,000        1,587,836   

5.000%, 10/01/21

     1,930,000        1,987,900   

Aircastle, Ltd.

    

5.125%, 03/15/21 (a)

     513,000        527,108   

5.500%, 02/15/22

     325,000        333,125   

7.625%, 04/15/20

     48,000        54,000   

Alliance Data Systems Corp.

    

5.375%, 08/01/22 (144A)

     350,000        333,375   

Ally Financial, Inc.

    

4.625%, 03/30/25 (a)

     572,000        564,850   

5.125%, 09/30/24 (a)

     1,522,000        1,558,147   

8.000%, 11/01/31

     7,484,000        8,644,020   

American Express Co.

    

4.900%, 03/15/20 (e)

     1,595,000        1,515,250   

DFC Finance Corp.

    

10.500%, 06/15/20 (144A)

     1,055,000        622,450   

E*Trade Financial Corp.

    

4.625%, 09/15/23

     1,054,000        1,071,128   

Garfunkelux Holdco 3 S.A.

    

8.500%, 11/01/22 (GBP)

     150,000        222,236   

Icahn Enterprises L.P. / Icahn Enterprises Finance Corp.

    

5.875%, 02/01/22

     1,607,000        1,570,842   

International Lease Finance Corp.

    

4.625%, 04/15/21

     261,000        267,525   

5.875%, 04/01/19

     410,000        434,600   

5.875%, 08/15/22

     975,000        1,038,375   

8.250%, 12/15/20 (a)

     150,000        177,375   

Diversified Financial Services—(Continued)

  

Jefferies Finance LLC / JFIN Co-Issuer Corp.

    

6.875%, 04/15/22 (144A)

     1,692,000      1,421,280   

7.375%, 04/01/20 (144A)

     305,000        270,688   

Lehman Brothers Holdings, Inc.

    

Zero Coupon, 02/05/14 (EUR) (g) (h)

     4,500,000        464,586   

4.750%, 01/16/14 (EUR) (g) (h)

     2,140,000        226,750   

5.375%, 10/17/12 (EUR) (g) (h)

     350,000        37,085   

Mercury Bondco plc

    

8.250%, 05/30/21 (EUR) (d)

     600,000        648,881   

Navient Corp.

    

5.500%, 01/25/23 (a)

     65,000        52,000   

5.875%, 10/25/24

     110,000        88,000   

6.125%, 03/25/24 (a)

     65,000        52,975   

Pershing Square Holdings, Ltd.

    

5.500%, 07/15/22 (144A) (f)

     1,000,000        927,450   
   

 

 

  
      27,045,362   
   

 

 

  

Electric—1.5%

  

AES Corp.
4.875%, 05/15/23 (a)

     455,000        398,125   

5.500%, 03/15/24 (a)

     106,000        94,605   

Calpine Corp.

    

5.375%, 01/15/23 (a)

     1,494,000        1,340,865   

5.500%, 02/01/24

     391,000        345,057   

5.875%, 01/15/24 (144A) (a)

     1,110,000        1,137,750   

6.000%, 01/15/22 (144A)

     320,000        330,301   

Dynegy, Inc.

    

6.750%, 11/01/19

     1,625,000        1,527,500   

7.375%, 11/01/22

     64,000        55,680   

FPL Energy National Wind Portfolio LLC

    

6.125%, 03/25/19 (144A)

     4,311        4,311   

Homer City Generation L.P.

    

8.137%, 10/01/19 (d)

     340,326        282,471   

NRG Energy, Inc.

    

6.250%, 07/15/22

     428,000        364,656   

6.250%, 05/01/24 (a)

     1,258,000        1,056,972   

6.625%, 03/15/23

     49,000        42,508   

7.875%, 05/15/21

     303,000        284,062   

NRG Yield Operating LLC

    

5.375%, 08/15/24

     610,000        505,537   

Texas Competitive Electric Holdings Co. LLC / TCEH Finance, Inc.

    

10.250%, 11/01/15

     190,000        12,350   

10.500%, 11/01/16 (g)

     31,143,000        2,024,295   

Viridian Group FundCo II, Ltd.

    

7.500%, 03/01/20 (EUR)

     280,000        312,658   
   

 

 

  
      10,119,703   
   

 

 

  

Electrical Components & Equipment—0.1%

  

Belden, Inc.
5.500%, 04/15/23 (EUR)

     781,000        856,815   

Rapid Holding GmbH

    

6.625%, 11/15/20 (EUR)

     100,000        111,674   
   

 

 

  
      968,489   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Electronics—0.1%

  

Trionista Holdco GmbH
5.000%, 04/30/20 (EUR)

     416,000      $ 465,108   

Trionista TopCo GmbH

    

6.875%, 04/30/21 (EUR)

     211,000        241,916   
   

 

 

  
      707,024   
   

 

 

  

Energy-Alternate Sources—0.1%

  

CE Energy A/S
7.000%, 02/01/21 (EUR)

     185,000        202,959   

TerraForm Power Operating LLC

    

6.125%, 06/15/25 (144A) (a)

     253,000        203,665   
   

 

 

  
      406,624   
   

 

 

  

Engineering & Construction—0.6%

  

AECOM
5.875%, 10/15/24

     541,000        551,820   

Aguila 3 S.A.

    

7.875%, 01/31/18 (144A)

     551,000        552,377   

Aldesa Financial Services S.A.

    

7.250%, 04/01/21 (EUR)

     485,000        409,800   

Novafives SAS

    

4.500%, 06/30/21 (EUR)

     160,000        146,758   

Officine Maccaferri S.p.A.

    

5.750%, 06/01/21 (EUR)

     383,000        378,765   

SBA Communications Corp.

    

4.875%, 07/15/22

     1,240,000        1,221,400   

Swissport Investments S.A.

    

6.750%, 12/15/21 (EUR)

     200,000        225,229   

Weekley Homes LLC / Weekley Finance Corp.

    

6.000%, 02/01/23

     505,000        474,700   
   

 

 

  
      3,960,849   
   

 

 

  

Entertainment—0.6%

  

Cedar Fair L.P. / Canada’s Wonderland Co. / Magnum Management Corp.
5.375%, 06/01/24

     405,000        409,050   

CPUK Finance, Ltd.

    

7.000%, 02/28/42 (GBP)

     150,000        226,105   

DreamWorks Animation SKG, Inc.

    

6.875%, 08/15/20 (144A)

     258,000        254,130   

International Game Technology plc

    

4.125%, 02/15/20 (EUR)

     176,000        191,276   

4.750%, 02/15/23 (EUR)

     150,000        152,417   

6.250%, 02/15/22 (144A)

     200,000        187,000   

Intralot Capital Luxembourg S.A.

    

6.000%, 05/15/21 (EUR)

     158,000        152,218   

Pinnacle Entertainment, Inc.

    

6.375%, 08/01/21

     1,489,000        1,565,311   

PortAventura Entertainment Barcelona B.V.

    

7.250%, 12/01/20 (EUR)

     100,000        111,390   

Regal Entertainment Group

    

5.750%, 02/01/25 (a)

     271,000        261,515   

Vougeot Bidco plc

    

7.875%, 07/15/20 (GBP)

     182,000        282,337   

Entertainment—(Continued)

  

Waterford Gaming LLC / Waterford Gaming Financial Corp.

    

8.625%, 09/15/49 (144A) (b)

     294,455      0   
   

 

 

  
      3,792,749   
   

 

 

  

Environmental Control—0.1%

  

ADS Waste Holdings, Inc.
8.250%, 10/01/20

     388,000        390,910   

Bilbao Luxembourg S.A.

    

10.500%, 12/01/18 (EUR) (d)

     273,132        279,165   

Covanta Holding Corp.

    

5.875%, 03/01/24

     334,000        302,270   
   

 

 

  
      972,345   
   

 

 

  

Food—0.9%

  

Bakkavor Finance 2 plc
8.750%, 06/15/20 (GBP)

     296,000        472,145   

Boparan Finance plc

    

4.375%, 07/15/21 (EUR)

     220,000        211,590   

5.500%, 07/15/21 (GBP)

     300,000        391,400   

JBS USA LLC / JBS USA Finance, Inc.

    

5.750%, 06/15/25 (144A)

     805,000        700,350   

Post Holdings, Inc.

    

7.750%, 03/15/24 (144A)

     1,289,000        1,350,227   

8.000%, 07/15/25 (144A) (a)

     675,000        715,500   

R&R Pik plc

    

9.250%, 05/15/18 (EUR) (d)

     526,000        580,205   

Smithfield Foods, Inc.

    

5.875%, 08/01/21 (144A) (a)

     352,000        362,560   

6.625%, 08/15/22

     331,000        343,413   

WhiteWave Foods Co. (The)

    

5.375%, 10/01/22

     465,000        491,738   
   

 

 

  
      5,619,128   
   

 

 

  

Food Service—0.3%

    

Aramark Services, Inc.
5.125%, 01/15/24 (144A)

     617,000        628,569   

5.750%, 03/15/20

     769,000        795,434   

Brakes Capital

    

7.125%, 12/15/18 (GBP)

     185,000        279,545   
   

 

 

  
      1,703,548   
   

 

 

  

Forest Products & Paper—0.0%

  

Clearwater Paper Corp.
4.500%, 02/01/23

     309,000        290,460   
   

 

 

  

Healthcare-Products—1.1%

    

3AB Optique Developpement SAS
5.625%, 04/15/19 (EUR)

     150,000        145,896   

Alere, Inc.

    

6.375%, 07/01/23 (144A) (a)

     788,000        736,780   

6.500%, 06/15/20

     269,000        258,240   

7.250%, 07/01/18

     300,000        306,750   

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Healthcare-Products—(Continued)

  

Crimson Merger Sub, Inc.

    

6.625%, 05/15/22 (144A)

     1,623,000      $ 1,111,755   

DJO Finco, Inc. / DJO Finance LLC / DJO Finance Corp.

    

8.125%, 06/15/21 (144A)

     2,139,000        1,898,362   

Fresenius U.S. Finance II, Inc.

    

4.500%, 01/15/23 (144A)

     407,000        411,070   

Hologic, Inc.

    

5.250%, 07/15/22 (144A)

     867,000        884,340   

IDH Finance plc

    

6.000%, 12/01/18 (GBP)

     397,000        583,209   

6.000%, 12/01/18 (144A) (GBP)

     100,000        146,904   

Mallinckrodt International Finance S.A. / Mallinckrodt CB LLC

    

4.875%, 04/15/20 (144A)

     485,000        466,813   

5.500%, 04/15/25 (144A)

     220,000        202,400   

Sterigenics-Nordion Holdings LLC

    

6.500%, 05/15/23 (144A)

     241,000        230,155   
   

 

 

  
      7,382,674   
   

 

 

  

Healthcare-Services—4.4%

  

Acadia Healthcare Co., Inc.
5.125%, 07/01/22

     435,000        406,725   

5.625%, 02/15/23

     677,000        639,765   

Amsurg Corp.

    

5.625%, 07/15/22

     1,476,000        1,461,240   

Care UK Health & Social Care plc

    

5.579%, 07/15/19 (GBP) (e)

     326,000        436,135   

Centene Corp.

    

4.750%, 05/15/22 (a)

     946,000        915,255   

CHS/Community Health Systems, Inc.

    

6.875%, 02/01/22 (a)

     749,000        710,614   

DaVita HealthCare Partners, Inc.

    

5.000%, 05/01/25

     1,768,000        1,706,120   

5.125%, 07/15/24

     708,000        708,000   

Envision Healthcare Corp.

    

5.125%, 07/01/22 (144A)

     275,000        269,500   

Ephios Bondco plc

    

6.250%, 07/01/22 (EUR)

     355,000        400,187   

Ephios Holdco II plc

    

8.250%, 07/01/23 (EUR)

     200,000        219,523   

HCA, Inc.

    

4.750%, 05/01/23

     218,000        215,820   

5.000%, 03/15/24 (f)

     2,030,000        2,024,925   

5.250%, 04/15/25

     951,000        958,132   

5.375%, 02/01/25

     2,178,000        2,150,775   

5.875%, 03/15/22

     2,005,000        2,115,275   

5.875%, 05/01/23 (a)

     672,000        688,800   

5.875%, 02/15/26

     1,123,000        1,127,211   

7.500%, 02/15/22

     1,772,000        1,962,490   

HealthSouth Corp.

    

5.125%, 03/15/23

     488,000        467,260   

5.750%, 11/01/24 (144A)

     509,000        485,459   

5.750%, 11/01/24

     459,000        437,771   

5.750%, 09/15/25 (144A) (a)

     736,000        684,480   

Healthcare-Services—(Continued)

  

MEDNAX, Inc.

    

5.250%, 12/01/23 (144A)

     529,000      531,645   

MPH Acquisition Holdings LLC

    

6.625%, 04/01/22 (144A)

     470,000        471,175   

Surgical Care Affiliates, Inc.

    

6.000%, 04/01/23 (144A)

     336,000        327,600   

Tenet Healthcare Corp.

    

4.375%, 10/01/21 (a)

     135,000        130,275   

4.500%, 04/01/21 (a)

     260,000        253,500   

4.750%, 06/01/20

     435,000        437,175   

6.000%, 10/01/20

     1,546,000        1,627,165   

6.750%, 06/15/23 (a)

     2,149,000        1,993,197   

8.125%, 04/01/22

     535,000        533,663   

Voyage Care Bondco plc

    

6.500%, 08/01/18 (GBP)

     704,000        1,032,648   

WellCare Health Plans, Inc.

    

5.750%, 11/15/20

     403,000        415,090   
   

 

 

  
      28,944,595   
   

 

 

  

Holding Companies-Diversified—0.5%

  

Carlson Travel Holdings, Inc.
7.500%, 08/15/19 (144A) (d)

     249,000        245,265   

HRG Group, Inc.

    

7.875%, 07/15/19 (144A)

     517,000        540,265   

ProGroup AG

    

5.125%, 05/01/22 (EUR)

     131,000        148,956   

WaveDivision Escrow LLC / WaveDivision Escrow Corp.

    

8.125%, 09/01/20 (144A)

     2,413,000        2,307,431   
   

 

 

  
      3,241,917   
   

 

 

  

Home Builders—2.0%

  

Allegion U.S. Holding Co., Inc.
5.750%, 10/01/21

     257,000        260,213   

Ashton Woods USA LLC / Ashton Woods Finance Co.

    

6.875%, 02/15/21 (144A)

     744,000        632,400   

Beazer Homes USA, Inc.

    

5.750%, 06/15/19 (a)

     904,000        831,680   

6.625%, 04/15/18

     373,000        377,196   

7.500%, 09/15/21

     395,000        362,413   

Brookfield Residential Properties, Inc. / Brookfield Residential U.S. Corp.

    

6.125%, 07/01/22 (144A)

     793,000        733,525   

CalAtlantic Group, Inc.

    

8.375%, 01/15/21 (a)

     2,092,000        2,426,720   

K Hovnanian Enterprises, Inc.

    

7.250%, 10/15/20 (144A)

     167,000        143,620   

Lennar Corp.

    

4.750%, 11/15/22

     665,000        659,347   

4.875%, 12/15/23

     614,000        610,930   

PulteGroup, Inc.

    

6.375%, 05/15/33

     974,000        988,610   

Ryland Group, Inc. (The)

    

6.625%, 05/01/20

     110,000        119,900   

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Home Builders—(Continued)

  

Shea Homes L.P. / Shea Homes Funding Corp.

    

5.875%, 04/01/23 (144A)

     396,000      $ 405,900   

6.125%, 04/01/25 (144A)

     866,000        889,815   

Taylor Morrison Communities, Inc. / Monarch Communities, Inc.

    

5.250%, 04/15/21 (144A)

     435,000        435,000   

TRI Pointe Holdings, Inc.

    

5.875%, 06/15/24

     595,000        578,638   

TRI Pointe Holdings, Inc. / TRI Pointe Group, Inc.

    

4.375%, 06/15/19

     875,000        855,312   

William Lyon Homes, Inc.

    

8.500%, 11/15/20

     1,040,000        1,099,800   

Woodside Homes Co. LLC / Woodside Homes Finance, Inc.

    

6.750%, 12/15/21 (144A)

     660,000        567,600   
   

 

 

  
      12,978,619   
   

 

 

  

Household Products/Wares—0.4%

  

Jarden Corp.
5.000%, 11/15/23 (144A)

     365,000        373,213   

Spectrum Brands, Inc.

    

5.750%, 07/15/25 (144A)

     1,234,000        1,264,850   

6.125%, 12/15/24 (144A)

     831,000        864,240   

6.375%, 11/15/20

     310,000        329,375   
   

 

 

  
      2,831,678   
   

 

 

  

Insurance—0.4%

  

CNO Financial Group, Inc.
4.500%, 05/30/20

     225,000        229,500   

Genworth Holdings, Inc.

    

4.800%, 02/15/24 (a)

     410,000        276,750   

HUB International, Ltd.

    

7.875%, 10/01/21 (144A)

     795,000        715,500   

Pension Insurance Corp. plc

    

6.500%, 07/03/24 (GBP)

     300,000        431,251   

Radian Group, Inc.

    

5.250%, 06/15/20

     574,000        555,173   

UNIQA Insurance Group AG

    

6.000%, 07/27/46 (EUR) (e)

     100,000        112,210   
   

 

 

  
      2,320,384   
   

 

 

  

Internet—1.4%

  

Blue Coat Holdings, Inc.
8.375%, 06/01/23 (144A) (a)

     1,033,000        1,038,165   

Netflix, Inc.

    

5.375%, 02/01/21 (a)

     1,310,000        1,375,500   

Zayo Group LLC / Zayo Capital, Inc.

    

6.000%, 04/01/23

     2,590,000        2,447,550   

6.375%, 05/15/25 (a)

     1,025,000        953,250   

10.125%, 07/01/20 (a)

     3,257,000        3,509,417   
   

 

 

  
      9,323,882   
   

 

 

  

Iron/Steel—0.3%

  

ArcelorMittal
6.125%, 06/01/18

     62,000      56,730   

Ovako AB

    

6.500%, 06/01/19 (EUR)

     250,000        193,523   

Steel Dynamics, Inc.

    

5.125%, 10/01/21

     1,155,000        1,068,375   

5.250%, 04/15/23

     439,000        400,587   

5.500%, 10/01/24

     140,000        127,750   

6.375%, 08/15/22

     260,000        249,600   
   

 

 

  
      2,096,565   
   

 

 

  

Leisure Time—0.2%

  

Cirsa Funding Luxembourg S.A.
5.875%, 05/15/23 (EUR)

     375,000        386,136   

Sabre GLBL, Inc.

    

5.250%, 11/15/23 (144A)

     268,000        264,985   

5.375%, 04/15/23 (144A)

     741,000        737,295   
   

 

 

  
      1,388,416   
   

 

 

  

Lodging—1.8%

  

Boyd Gaming Corp.
6.875%, 05/15/23

     2,023,000        2,078,632   

Caesars Entertainment Resort Properties LLC

    

8.000%, 10/01/20

     1,165,000        1,106,750   

FelCor Lodging L.P.

    

6.000%, 06/01/25

     1,114,000        1,130,710   

Hilton Worldwide Finance LLC / Hilton Worldwide Finance Corp.

    

5.625%, 10/15/21

     500,000        518,125   

MGM Resorts International

    

5.250%, 03/31/20 (a)

     857,000        848,430   

6.000%, 03/15/23 (a)

     2,020,000        2,004,850   

6.625%, 12/15/21

     913,000        934,684   

6.750%, 10/01/20

     651,000        668,902   

7.750%, 03/15/22

     225,000        239,063   

Station Casinos LLC

    

7.500%, 03/01/21 (a)

     2,528,000        2,578,560   
   

 

 

  
      12,108,706   
   

 

 

  

Machinery-Construction & Mining—0.1%

  

BlueLine Rental Finance Corp.
7.000%, 02/01/19 (144A)

     651,000        585,900   
   

 

 

  

Media—8.8%

    

Altice Financing S.A.
5.250%, 02/15/23 (EUR)

     326,000        352,615   

6.500%, 01/15/22 (144A)

     1,040,000        1,029,600   

6.625%, 02/15/23 (144A)

     1,459,000        1,440,762   

Altice Luxembourg S.A.

    

6.250%, 02/15/25 (EUR)

     355,000        325,516   

7.250%, 05/15/22 (EUR)

     639,000        649,295   

7.625%, 02/15/25 (144A) (a)

     1,104,000        952,200   

7.750%, 05/15/22 (144A) (a)

     1,290,000        1,164,225   

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Media—(Continued)

    

Altice U.S. Finance I Corp.

    

5.375%, 07/15/23 (144A)

     2,821,000      $ 2,828,052   

Altice U.S. Finance II Corp.

    

7.750%, 07/15/25 (144A)

     1,075,000        983,625   

Altice U.S. Finance S.A.

    

7.750%, 07/15/25 (144A)

     1,325,000        1,212,375   

AMC Networks, Inc.

    

4.750%, 12/15/22

     1,092,000        1,092,000   

CCO Holdings LLC / CCO Holdings Capital Corp.

  

  

5.875%, 05/01/27 (144A) (a)

     2,287,000        2,275,565   

6.500%, 04/30/21

     285,000        296,400   

CCOH Safari LLC

    

5.750%, 02/15/26 (144A)

     2,249,000        2,254,622   

Cequel Communications Holdings I LLC / Cequel Capital Corp.

    

5.125%, 12/15/21 (144A)

     435,000        391,500   

Clear Channel Worldwide Holdings, Inc.

    

6.500%, 11/15/22

     1,548,000        1,501,710   

7.625%, 03/15/20

     2,870,000        2,651,162   

Columbus International, Inc.

    

7.375%, 03/30/21 (144A) (a)

     1,042,000        1,031,580   

CSC Holdings LLC

    

5.250%, 06/01/24 (a)

     1,167,000        1,024,043   

DISH DBS Corp.

    

4.250%, 04/01/18

     575,000        576,438   

5.000%, 03/15/23

     1,290,000        1,119,075   

5.125%, 05/01/20

     640,000        633,600   

5.875%, 11/15/24

     1,739,000        1,547,710   

6.750%, 06/01/21

     185,000        186,388   

Harron Communications L.P. / Harron Finance Corp.

    

9.125%, 04/01/20 (144A)

     690,000        729,675   

iHeartCommunications, Inc.

    

9.000%, 12/15/19

     949,000        692,770   

9.000%, 03/01/21

     926,000        645,885   

9.000%, 09/15/22 (a)

     1,445,000        997,050   

LGE HoldCo VI B.V.

    

7.125%, 05/15/24 (EUR)

     150,000        176,086   

Midcontinent Communications & Midcontinent Finance Corp.

    

6.250%, 08/01/21 (144A)

     605,000        611,050   

MPL 2 Acquisition Canco, Inc.

    

9.875%, 08/15/18 (144A)

     1,151,000        1,197,040   

NBCUniversal Enterprise, Inc.

    

5.250%, 06/15/24 (144A)

     255,000        270,300   

Neptune Finco Corp.

    

6.625%, 10/15/25 (144A)

     1,261,000        1,311,440   

10.125%, 01/15/23 (144A)

     1,211,000        1,262,467   

Nielsen Finance LLC / Nielsen Finance Co.

    

5.000%, 04/15/22 (144A)

     1,669,000        1,648,137   

Numericable-SFR SAS

    

5.375%, 05/15/22 (EUR)

     145,000        160,730   

5.625%, 05/15/24 (EUR)

     381,000        418,710   

6.000%, 05/15/22 (144A)

     3,359,000        3,258,230   

6.250%, 05/15/24 (144A)

     325,000        313,625   

Media—(Continued)

    

Radio One, Inc.

    

7.375%, 04/15/22 (144A)

     220,000      195,800   

RCN Telecom Services LLC / RCN Capital Corp.

    

8.500%, 08/15/20 (144A)

     555,000        560,550   

Sirius XM Radio, Inc.

    

4.625%, 05/15/23 (144A) (a)

     215,000        210,700   

5.375%, 04/15/25 (144A)

     1,635,000        1,645,219   

6.000%, 07/15/24 (144A)

     740,000        773,300   

Sterling Entertainment Enterprises LLC

    

9.750%, 12/15/19 (144A) (b) (c)

     2,750,000        2,722,500   

TEGNA Inc.

    

5.500%, 09/15/24 (144A)

     508,000        508,000   

Townsquare Media, Inc.

    

6.500%, 04/01/23 (144A) (a)

     185,000        169,275   

Tribune Media Co.

    

5.875%, 07/15/22 (144A) (a)

     1,286,000        1,286,000   

Unitymedia Hessen GmbH & Co. KG / Unitymedia NRW GmbH

    

3.500%, 01/15/27 (EUR)

     100,000        99,981   

4.000%, 01/15/25 (EUR)

     584,000        610,862   

5.000%, 01/15/25 (144A)

     422,000        403,010   

5.500%, 01/15/23 (144A)

     1,160,000        1,157,100   

5.625%, 04/15/23 (EUR)

     83,200        95,504   

Univision Communications, Inc.

    

5.125%, 05/15/23 (144A)

     1,380,000        1,328,250   

5.125%, 02/15/25 (144A)

     2,595,000        2,465,250   

8.500%, 05/15/21 (144A) (a)

     769,000        786,303   

Ziggo Bond Finance B.V.

    

4.625%, 01/15/25 (EUR)

     333,000        335,651   

5.875%, 01/15/25 (144A)

     1,530,000        1,419,075   
   

 

 

  
      57,985,583   
   

 

 

  

Metal Fabricate/Hardware—0.4%

  

Eco-Bat Finance plc
7.750%, 02/15/17 (EUR)

     637,000        674,953   

Global Brass & Copper, Inc.

    

9.500%, 06/01/19

     575,000        609,500   

Wise Metals Group LLC / Wise Alloys Finance Corp.

    

8.750%, 12/15/18 (144A)

     1,483,000        1,123,373   
   

 

 

  
      2,407,826   
   

 

 

  

Mining—1.1%

  

Alcoa, Inc.
5.125%, 10/01/24 (a)

     1,797,000        1,635,270   

5.900%, 02/01/27

     58,000        53,215   

5.950%, 02/01/37

     70,000        56,350   

6.750%, 01/15/28

     128,000        121,600   

Constellium NV

    

5.750%, 05/15/24 (144A) (a)

     2,821,000        1,918,280   

8.000%, 01/15/23 (144A)

     2,355,000        1,842,787   

First Quantum Minerals, Ltd.

    

7.000%, 02/15/21 (144A) (a)

     259,000        162,523   

7.250%, 05/15/22 (144A) (a)

     631,000        394,375   

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Mining—(Continued)

  

Glencore Finance Europe S.A.

    

4.625%, 04/03/18 (EUR)

     170,000      $ 172,870   

Joseph T Ryerson & Son, Inc.

    

9.000%, 10/15/17

     545,000        419,650   

Teck Resources, Ltd.

    

3.000%, 03/01/19 (a)

     454,000        281,480   

5.200%, 03/01/42 (a)

     303,000        127,260   

5.400%, 02/01/43

     138,000        57,960   
   

 

 

  
      7,243,620   
   

 

 

  

Miscellaneous Manufacturing—0.1%

  

Bombardier, Inc.
7.500%, 03/15/25 (144A)

     566,000        396,200   

Gates Global LLC / Gates Global Co.

    

5.750%, 07/15/22 (EUR)

     465,000        359,670   

Trinseo Materials Operating SCA / Trinseo Materials Finance, Inc.

    

6.375%, 05/01/22 (EUR)

     117,000        126,196   
   

 

 

  
      882,066   
   

 

 

  

Office/Business Equipment—0.4%

  

CDW LLC / CDW Finance Corp.
5.000%, 09/01/23

     271,000        275,065   

5.500%, 12/01/24 (a)

     1,790,000        1,875,025   

6.000%, 08/15/22

     775,000        817,625   
   

 

 

  
      2,967,715   
   

 

 

  

Oil & Gas—4.8%

    

Antero Resources Corp.
5.125%, 12/01/22 (a)

     421,000        319,960   

5.375%, 11/01/21

     887,000        709,600   

Berry Petroleum Co. LLC

    

6.375%, 09/15/22

     333,000        80,753   

Bonanza Creek Energy, Inc.

    

5.750%, 02/01/23

     920,000        478,400   

6.750%, 04/15/21

     665,000        402,325   

California Resources Corp.

    

5.500%, 09/15/21

     561,000        176,715   

6.000%, 11/15/24

     548,000        167,140   

8.000%, 12/15/22 (144A)

     3,055,000        1,607,694   

Carrizo Oil & Gas, Inc.

    

6.250%, 04/15/23

     726,000        588,060   

Concho Resources, Inc.

    

5.500%, 10/01/22

     234,000        212,940   

5.500%, 04/01/23

     633,000        585,525   

6.500%, 01/15/22

     118,000        113,280   

CrownRock L.P. / CrownRock Finance, Inc.

    

7.125%, 04/15/21 (144A)

     871,000        816,562   

7.750%, 02/15/23 (144A) (a)

     391,000        367,540   

Denbury Resources, Inc.

    

4.625%, 07/15/23

     76,000        24,463   

5.500%, 05/01/22

     662,000        219,771   

6.375%, 08/15/21

     134,000        48,240   

Oil & Gas—(Continued)

  

Diamondback Energy, Inc.

    

7.625%, 10/01/21 (a)

     816,000      824,160   

EP Energy LLC / Everest Acquisition Finance, Inc.

    

6.375%, 06/15/23

     339,000        169,500   

9.375%, 05/01/20 (a)

     903,000        575,662   

Gulfport Energy Corp.

    

7.750%, 11/01/20

     759,000        679,305   

Halcon Resources Corp.

    

8.625%, 02/01/20 (144A) (a)

     715,000        493,350   

Hilcorp Energy I L.P. / Hilcorp Finance Co.

    

5.000%, 12/01/24 (144A)

     308,000        255,640   

Jones Energy Holdings LLC / Jones Energy Finance Corp.

    

6.750%, 04/01/22

     493,000        276,080   

Laredo Petroleum, Inc.

    

7.375%, 05/01/22

     325,000        299,000   

Linn Energy LLC / Linn Energy Finance Corp.

    

7.750%, 02/01/21

     716,000        103,820   

8.625%, 04/15/20

     21,000        3,596   

12.000%, 12/15/20 (144A)

     276,000        138,000   

Matador Resources Co.

    

6.875%, 04/15/23

     235,000        218,550   

MEG Energy Corp.

    

6.375%, 01/30/23 (144A)

     798,000        546,630   

6.500%, 03/15/21 (144A)

     1,701,000        1,190,700   

7.000%, 03/31/24 (144A)

     2,856,000        2,027,760   

Memorial Production Partners L.P. / Memorial Production Finance Corp.

    

6.875%, 08/01/22

     811,000        243,300   

7.625%, 05/01/21

     329,000        98,700   

Memorial Resource Development Corp.

    

5.875%, 07/01/22 (a)

     1,930,000        1,688,750   

Oasis Petroleum, Inc.

    

6.500%, 11/01/21

     450,000        298,125   

6.875%, 01/15/23

     450,000        279,000   

Paramount Resources, Ltd.

    

6.875%, 06/30/23 (144A)

     603,000        476,370   

Parsley Energy LLC / Parsley Finance Corp.

    

7.500%, 02/15/22 (144A)

     874,000        834,670   

Precision Drilling Corp.

    

5.250%, 11/15/24 (144A) (a)

     1,365,000        928,200   

QEP Resources, Inc.

    

5.250%, 05/01/23

     705,000        500,550   

5.375%, 10/01/22 (a)

     411,000        295,920   

Range Resources Corp.

    

5.000%, 08/15/22 (a)

     217,000        162,208   

5.750%, 06/01/21

     39,000        30,810   

RSP Permian, Inc.

    

6.625%, 10/01/22

     512,000        471,040   

6.625%, 10/01/22 (144A)

     252,000        231,840   

Sanchez Energy Corp.

    

6.125%, 01/15/23 (a)

     2,201,000        1,188,540   

Seven Generations Energy, Ltd.

    

6.750%, 05/01/23 (144A) (a)

     523,000        439,320   

8.250%, 05/15/20 (144A)

     2,405,000        2,164,500   

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Oil & Gas—(Continued)

  

SM Energy Co.

    

5.000%, 01/15/24 (a)

     442,000      $ 287,300   

5.625%, 06/01/25 (a)

     113,000        74,580   

6.125%, 11/15/22

     3,580,000        2,631,300   

6.500%, 11/15/21 (a)

     476,000        354,620   

6.500%, 01/01/23

     163,000        119,805   

Transocean, Inc.

    

3.000%, 10/15/17 (a)

     726,000        643,871   

4.300%, 10/15/22 (a)

     108,000        57,240   

6.000%, 03/15/18 (a)

     986,000        877,540   

6.500%, 11/15/20 (a)

     317,000        218,730   

Whiting Petroleum Corp.

    

5.000%, 03/15/19

     547,000        412,985   

6.250%, 04/01/23 (a)

     286,000        205,920   

6.500%, 10/01/18 (a)

     315,000        238,612   

WPX Energy, Inc.

    

5.250%, 09/15/24 (a)

     649,000        428,340   
   

 

 

  
      31,603,407   
   

 

 

  

Oil & Gas Services—0.1%

  

Calfrac Holdings L.P.
7.500%, 12/01/20 (144A) (a)

     1,537,000        610,958   
   

 

 

  

Packaging & Containers—2.0%

    

Ardagh Packaging Finance plc / Ardagh Holdings USA, Inc.
4.250%, 01/15/22 (EUR)

     700,000        766,430   

6.000%, 06/30/21 (144A) (a)

     1,025,000        955,812   

6.250%, 01/31/19 (144A)

     769,000        738,240   

6.750%, 01/31/21 (144A)

     590,000        566,400   

Ball Corp.

    

4.375%, 12/15/20

     613,000        622,578   

Beverage Packaging Holdings Luxembourg II S.A. / Beverage Packaging Holdings II

    

5.625%, 12/15/16 (144A)

     236,000        233,345   

6.000%, 06/15/17 (144A)

     265,000        256,388   

Crown European Holdings S.A.

    

4.000%, 07/15/22 (EUR)

     280,000        314,940   

Greif Nevada Holdings, Inc.

    

7.375%, 07/15/21 (144A) (EUR)

     330,000        415,793   

Horizon Holdings I SASU

    

7.250%, 08/01/23 (EUR)

     125,000        140,566   

JH-Holding Finance S.A.

    

8.250%, 12/01/22 (EUR) (d)

     125,000        141,829   

Novelis, Inc.

    

8.375%, 12/15/17 (a)

     350,000        340,375   

8.750%, 12/15/20 (a)

     2,826,000        2,592,855   

Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC

    

5.750%, 10/15/20 (a)

     1,135,000        1,154,511   

6.875%, 02/15/21

     145,000        149,350   

8.250%, 02/15/21

     912,000        877,800   

9.000%, 04/15/19

     665,000        655,025   

9.875%, 08/15/19

     389,000        391,917   

Packaging & Containers—(Continued)

  

Sealed Air Corp.

    

4.875%, 12/01/22 (144A)

     448,000      449,120   

5.125%, 12/01/24 (144A)

     428,000        428,000   

5.500%, 09/15/25 (144A)

     463,000        472,260   

6.500%, 12/01/20 (144A)

     136,000        149,940   

6.875%, 07/15/33 (144A)

     388,000        396,730   

SGD Group SAS

    

5.625%, 05/15/19 (EUR)

     210,000        232,942   
   

 

 

  
      13,443,146   
   

 

 

  

Pharmaceuticals—3.2%

  

Capsugel S.A.
7.000%, 05/15/19 (144A) (d)

     369,000        359,775   

DPx Holdings B.V.

    

7.500%, 02/01/22 (144A)

     1,255,000        1,223,625   

Endo Finance LLC & Endo Finco, Inc.

    

7.750%, 01/15/22 (144A) (a)

     255,000        260,737   

Endo, Ltd. / Endo Finance LLC / Endo Finco, Inc.

    

6.000%, 07/15/23 (144A)

     1,854,000        1,844,730   

6.000%, 02/01/25 (144A)

     1,879,000        1,850,815   

Grifols Worldwide Operations, Ltd.

    

5.250%, 04/01/22

     629,000        632,145   

PRA Holdings, Inc.

    

9.500%, 10/01/23 (144A)

     214,000        232,725   

Valeant Pharmaceuticals International, Inc.

    

4.500%, 05/15/23 (EUR)

     675,000        636,360   

5.375%, 03/15/20 (144A)

     2,989,000        2,809,660   

5.500%, 03/01/23 (144A)

     885,000        778,800   

5.625%, 12/01/21 (144A)

     1,486,000        1,367,120   

5.875%, 05/15/23 (144A)

     1,978,000        1,765,365   

6.375%, 10/15/20 (144A)

     4,368,000        4,215,120   

6.750%, 08/15/18 (144A) (a)

     406,000        402,346   

6.750%, 08/15/21 (144A)

     503,000        485,395   

7.000%, 10/01/20 (144A) (a)

     1,390,000        1,386,525   

7.250%, 07/15/22 (144A) (a)

     330,000        322,575   

7.500%, 07/15/21 (144A)

     598,000        596,505   
   

 

 

  
      21,170,323   
   

 

 

  

Pipelines—3.1%

  

Energy Transfer Equity L.P.
5.875%, 01/15/24

     1,245,000        1,014,675   

7.500%, 10/15/20

     628,000        580,900   

Genesis Energy L.P. / Genesis Energy Finance Corp.

    

5.750%, 02/15/21

     166,000        140,270   

6.000%, 05/15/23

     478,000        382,400   

6.750%, 08/01/22

     267,000        226,950   

Kinder Morgan, Inc.

    

6.700%, 02/15/27

     62,930        56,955   

MPLX L.P.

    

4.500%, 07/15/23 (144A)

     550,000        492,085   

4.875%, 06/01/25 (144A)

     918,000        821,610   

NGPL PipeCo LLC

    

7.119%, 12/15/17 (144A)

     567,000        527,310   

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Pipelines—(Continued)

  

NGPL PipeCo LLC

    

7.768%, 12/15/37 (144A)

     1,359,000      $ 1,073,610   

9.625%, 06/01/19 (144A)

     445,000        416,075   

ONEOK, Inc.

    

7.500%, 09/01/23 (a)

     370,000        308,025   

PBF Logistics L.P. / PBF Logistics Finance Corp.

    

6.875%, 05/15/23

     157,000        142,870   

Rockies Express Pipeline LLC

    

6.000%, 01/15/19 (144A)

     1,305,000        1,239,750   

6.850%, 07/15/18 (144A)

     92,000        90,160   

6.875%, 04/15/40 (144A)

     1,180,000        1,014,800   

Rose Rock Midstream L.P. / Rose Rock Finance Corp.

    

5.625%, 07/15/22

     485,000        344,350   

5.625%, 11/15/23 (144A)

     351,000        249,210   

Sabine Pass Liquefaction LLC

    

5.625%, 02/01/21

     711,000        654,120   

5.625%, 04/15/23

     1,443,000        1,266,232   

5.625%, 03/01/25 (144A)

     450,000        380,813   

5.750%, 05/15/24

     6,341,000        5,516,670   

6.250%, 03/15/22 (a)

     148,000        136,900   

Sabine Pass LNG L.P.

    

7.500%, 11/30/16

     1,415,000        1,407,925   

Targa Resources Partners L.P. / Targa Resources Partners Finance Corp.

    

6.375%, 08/01/22

     420,000        362,250   

Tesoro Logistics L.P. / Tesoro Logistics Finance Corp.

    

6.250%, 10/15/22 (144A)

     1,159,000        1,098,153   

Williams Cos., Inc. (The)

    

3.700%, 01/15/23

     152,000        104,996   

4.550%, 06/24/24

     521,000        361,876   
   

 

 

  
      20,411,940   
   

 

 

  

Real Estate—0.6%

  

Annington Finance No. 5 plc
13.000%, 01/15/23 (GBP) (d)

     520,724        892,241   

Aroundtown Property Holdings plc

    

3.000%, 12/09/21 (EUR)

     400,000        428,180   

Crescent Resources LLC / Crescent Ventures, Inc.

    

10.250%, 08/15/17 (144A)

     325,000        325,000   

Realogy Group LLC / Realogy Co-Issuer Corp.

    

4.500%, 04/15/19 (144A) (a)

     524,000        538,410   

5.250%, 12/01/21 (144A) (a)

     1,164,000        1,193,100   

Rialto Holdings LLC / Rialto Corp.

    

7.000%, 12/01/18 (144A)

     545,000        553,175   

Tropicana Entertainment LLC / Tropicana Finance Corp.

    

9.625%, 12/15/14 (b) (g) (h)

     70,000        0   
   

 

 

  
      3,930,106   
   

 

 

  

Real Estate Investment Trusts—0.9%

  

Communications Sales & Leasing, Inc. / CSL Capital LLC
8.250%, 10/15/23

     1,224,000        1,034,280   

Real Estate Investment Trusts—(Continued)

  

Corrections Corp. of America

    

4.625%, 05/01/23

     104,000      100,360   

Crown Castle International Corp.

    

4.875%, 04/15/22

     351,000        364,163   

5.250%, 01/15/23

     926,000        973,457   

Equinix, Inc.

    

5.875%, 01/15/26

     933,000        960,990   

ESH Hospitality, Inc.

    

5.250%, 05/01/25 (144A)

     245,000        238,875   

GEO Group, Inc. (The)

    

5.125%, 04/01/23 (a)

     355,000        336,363   

5.875%, 10/15/24

     590,000        572,300   

iStar, Inc.

    

4.000%, 11/01/17

     340,000        333,370   

RHP Hotel Properties L.P. / RHP Finance Corp.

    

5.000%, 04/15/23

     771,000        771,000   
   

 

 

  
      5,685,158   
   

 

 

  

Retail—3.3%

  

1011778 BC ULC / New Red Finance, Inc.
6.000%, 04/01/22 (144A) (a)

     1,054,000        1,085,620   

Asbury Automotive Group, Inc.

    

6.000%, 12/15/24

     566,000        584,395   

CST Brands, Inc.

    

5.000%, 05/01/23

     336,000        332,640   

Dollar Tree, Inc.

    

5.250%, 03/01/20 (144A)

     304,000        313,880   

5.750%, 03/01/23 (144A)

     4,389,000        4,542,615   

Dufry Finance SCA

    

5.500%, 10/15/20 (144A)

     346,000        359,840   

Family Dollar Stores, Inc.

    

5.000%, 02/01/21

     670,000        685,963   

Hema Bondco I B.V.

    

6.250%, 06/15/19 (EUR)

     407,000        329,077   

Hillman Group, Inc. (The)

    

6.375%, 07/15/22 (144A) (a)

     532,000        441,560   

L Brands, Inc.

    

6.875%, 11/01/35 (144A)

     1,329,000        1,365,547   

Neiman Marcus Group, Ltd. LLC

    

8.000%, 10/15/21 (144A) (a)

     2,017,000        1,492,580   

New Look Secured Issuer plc

    

6.500%, 07/01/22 (GBP)

     280,000        408,772   

Party City Holdings, Inc.

    

6.125%, 08/15/23 (144A) (a)

     375,000        363,750   

Penske Automotive Group, Inc.

    

5.750%, 10/01/22

     1,109,000        1,139,498   

Punch Taverns Finance B, Ltd.

    

5.943%, 09/30/22 (GBP)

     263,000        368,737   

Punch Taverns Finance plc

    

6.079%, 10/15/27 (144A) (GBP) (e)

     449,000        590,786   

Rite Aid Corp.

    

6.125%, 04/01/23 (144A)

     2,745,000        2,841,075   

6.750%, 06/15/21

     886,000        928,085   

7.700%, 02/15/27

     305,000        355,325   

9.250%, 03/15/20

     750,000        793,125   

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Retail—(Continued)

  

Sonic Automotive, Inc.

    

5.000%, 05/15/23 (a)

     227,000      $ 215,650   

THOM Europe SAS

    

7.375%, 07/15/19 (EUR)

     590,000        666,028   

Travis Perkins plc

    

4.375%, 09/15/21 (GBP)

     351,000        522,431   

Unique Pub Finance Co. plc (The)

    

5.659%, 06/30/27 (GBP)

     395,835        582,978   

6.464%, 03/30/32 (GBP)

     300,000        378,499   

6.542%, 03/30/21 (GBP)

     224,520        344,141   
   

 

 

  
      22,032,597   
   

 

 

  

Semiconductors—0.8%

  

Advanced Micro Devices, Inc.
7.000%, 07/01/24

     160,000        104,000   

7.500%, 08/15/22

     235,000        159,800   

Micron Technology, Inc.

    

5.250%, 01/15/24 (144A) (a)

     1,170,000        1,029,600   

NXP B.V. / NXP Funding LLC

    

4.125%, 06/15/20 (144A)

     2,970,000        2,970,000   

4.625%, 06/15/22 (144A)

     220,000        216,150   

Sensata Technologies B.V.

    

5.000%, 10/01/25 (144A) (a)

     976,000        954,040   
   

 

 

  
      5,433,590   
   

 

 

  

Software—3.6%

  

Audatex North America, Inc.
6.125%, 11/01/23 (144A)

     1,200,000        1,207,500   

Ensemble S Merger Sub, Inc.

    

9.000%, 09/30/23 (144A)

     574,000        554,627   

First Data Corp.

    

5.000%, 01/15/24 (144A)

     1,548,000        1,540,260   

5.375%, 08/15/23 (144A)

     2,580,000        2,592,900   

5.750%, 01/15/24 (144A)

     6,076,000        5,984,860   

7.000%, 12/01/23 (144A) (a)

     6,152,000        6,152,000   

Infor Software Parent LLC / Infor Software Parent, Inc.

    

7.125%, 05/01/21 (144A) (d)

     1,222,000        882,895   

Infor U.S., Inc.

    

6.500%, 05/15/22 (144A)

     1,557,000        1,315,665   

Informatica LLC

    

7.125%, 07/15/23 (144A)

     1,348,000        1,219,940   

MSCI, Inc.

    

5.750%, 08/15/25 (144A)

     626,000        641,650   

Nuance Communications, Inc.

    

5.375%, 08/15/20 (144A)

     755,000        755,997   

SS&C Technologies Holdings, Inc.

    

5.875%, 07/15/23 (144A)

     958,000        989,135   
   

 

 

  
      23,837,429   
   

 

 

  

Storage/Warehousing—0.1%

  

Mobile Mini, Inc.
7.875%, 12/01/20

     540,000        558,900   
   

 

 

  

Telecommunications—8.5%

    

Alcatel-Lucent USA, Inc.
6.450%, 03/15/29

     1,273,000      1,288,912   

6.750%, 11/15/20 (144A)

     1,749,000        1,843,009   

8.875%, 01/01/20 (144A)

     1,560,000        1,653,600   

Avaya, Inc.

    

7.000%, 04/01/19 (144A) (a)

     521,000        385,540   

10.500%, 03/01/21 (144A) (a)

     475,000        161,500   

CenturyLink, Inc.

    

5.625%, 04/01/20 (a)

     742,000        733,653   

6.450%, 06/15/21

     512,000        499,200   

CommScope Technologies Finance LLC

    

6.000%, 06/15/25 (144A)

     882,000        848,925   

CommScope, Inc.

    

4.375%, 06/15/20 (144A)

     868,000        874,510   

5.500%, 06/15/24 (144A)

     955,000        907,250   

Consolidated Communications, Inc.

    

6.500%, 10/01/22

     540,000        453,600   

Digicel Group, Ltd.

    

7.125%, 04/01/22 (144A) (a)

     770,000        577,500   

Digicel, Ltd.

    

6.000%, 04/15/21 (144A) (a)

     2,502,000        2,107,935   

Frontier Communications Corp.

    

6.250%, 09/15/21

     945,000        800,888   

6.875%, 01/15/25

     1,570,000        1,293,287   

7.125%, 01/15/23

     575,000        495,938   

7.625%, 04/15/24

     647,000        543,480   

11.000%, 09/15/25 (144A)

     750,000        742,500   

Intelsat Jackson Holdings S.A.

    

5.500%, 08/01/23

     2,981,000        2,340,085   

Level 3 Financing, Inc.

    

5.125%, 05/01/23 (144A)

     576,000        571,680   

5.375%, 08/15/22

     850,000        862,750   

5.375%, 01/15/24 (144A)

     996,000        1,000,980   

5.375%, 05/01/25 (144A) (a)

     2,397,000        2,385,015   

5.625%, 02/01/23

     1,339,000        1,365,780   

6.125%, 01/15/21

     205,000        212,175   

Nokia Oyj

    

6.625%, 05/15/39

     1,117,000        1,142,836   

Orange S.A.

    

4.000%, 10/01/21 (EUR) (e)

     475,000        509,392   

Play Finance 2 S.A.

    

5.250%, 02/01/19 (EUR)

     550,000        611,280   

Sable International Finance, Ltd.

    

6.875%, 08/01/22 (144A)

     340,000        328,100   

Sprint Capital Corp.

    

6.875%, 11/15/28

     1,205,000        840,487   

8.750%, 03/15/32

     960,000        720,000   

Sprint Communications, Inc.

    

7.000%, 03/01/20 (144A) (a)

     593,000        594,483   

9.000%, 11/15/18 (144A)

     4,195,000        4,415,237   

Sprint Corp.

    

7.125%, 06/15/24

     2,250,000        1,622,812   

7.875%, 09/15/23

     3,392,000        2,547,392   

T-Mobile USA, Inc.

    

6.000%, 03/01/23 (a)

     840,000        850,500   

6.375%, 03/01/25

     1,520,000        1,535,200   

 

See accompanying notes to financial statements.

 

MIST-15

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Telecommunications—(Continued)

  

T-Mobile USA, Inc.

    

6.500%, 01/15/24 (a)

     1,000,000      $ 1,020,000   

6.500%, 01/15/26

     1,787,000        1,803,959   

6.633%, 04/28/21

     296,000        307,100   

6.731%, 04/28/22

     504,000        525,420   

6.836%, 04/28/23

     155,000        160,425   

Telecom Italia Capital S.A.

    

6.000%, 09/30/34

     1,305,000        1,203,862   

Telecom Italia Finance S.A.

    

7.750%, 01/24/33 (EUR)

     190,000        268,711   

Telecom Italia S.p.A.

    

5.303%, 05/30/24 (144A)

     200,000        197,500   

5.875%, 05/19/23 (GBP)

     1,000,000        1,585,081   

6.375%, 06/24/19 (GBP)

     700,000        1,120,817   

Telefonica Europe B.V.

    

4.200%, 12/04/19 (EUR) (e)

     300,000        320,727   

Telenet Finance V Luxembourg SCA

    

6.250%, 08/15/22 (EUR)

     710,000        830,426   

6.750%, 08/15/24 (EUR)

     543,000        644,690   

Virgin Media Finance plc

    

5.750%, 01/15/25 (144A) (a)

     1,095,000        1,053,937   

7.000%, 04/15/23 (GBP)

     513,000        791,809   

Virgin Media Secured Finance plc

    

6.000%, 04/15/21 (GBP)

     1,475,100        2,245,702   

Wind Acquisition Finance S.A.

    

4.000%, 07/15/20 (EUR)

     1,227,000        1,326,775   

6.500%, 04/30/20 (144A)

     200,000        209,250   

7.000%, 04/23/21 (EUR)

     100,000        107,317   
   

 

 

  
      56,390,919   
   

 

 

  

Textiles—0.1%

  

Springs Industries, Inc.
6.250%, 06/01/21

     803,000        794,970   
   

 

 

  

Transportation—1.2%

    

Air Medical Merger Sub Corp.
6.375%, 05/15/23 (144A) (a)

     517,000        460,130   

Florida East Coast Holdings Corp.

    

6.750%, 05/01/19 (144A)

     1,014,000        927,810   

Global Ship Lease, Inc.

    

10.000%, 04/01/19 (144A)

     2,535,000        2,294,175   

JCH Parent, Inc.

    

10.500%, 03/15/19 (144A) (d)

     1,912,657        1,166,721   

Silk Bidco A/S

    

7.500%, 02/01/22 (EUR)

     245,000        273,576   

Watco Cos. LLC / Watco Finance Corp.

    

6.375%, 04/01/23 (144A)

     617,000        607,745   

WFS Global Holding SAS

    

9.500%, 07/15/22 (EUR)

     100,000        113,798   

XPO Logistics, Inc.

    

5.750%, 06/15/21 (EUR)

     200,000        202,048   

6.500%, 06/15/22 (144A) (a)

     1,530,000        1,415,250   

7.875%, 09/01/19 (144A)

     690,000        701,571   
   

 

 

  
      8,162,824   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $574,112,813)

   

     525,797,839   
   

 

 

  
Floating Rate Loans (i)—6.9%   
Security Description   Principal
Amount*		     Value  

Aerospace/Defense—0.2%

  

Sequa Corp. Term Loan B,
5.250%, 06/19/17

     239,155      166,213   

Silver II U.S. Holdings LLC

    

Term Loan, 4.000%, 12/13/19

     1,227,688        1,050,696   
   

 

 

  
      1,216,909   
   

 

 

  

Air Freight & Logistics—0.1%

  

Ceva Logistics Canada ULC
Term Loan, 6.500%, 03/19/21

     104,197        87,179   

Ceva Logistics U.S. Holdings, Inc.

    

Term Loan, 6.500%, 03/19/21

     833,579        697,428   
   

 

 

  
      784,607   
   

 

 

  

Airlines—0.2%

  

Northwest Airlines, Inc.
Term Loan, 1.768%, 09/10/18

     818,500        793,945   

Term Loan, 2.388%, 03/10/17

     446,000        441,540   
   

 

 

  
      1,235,485   
   

 

 

  

Building Materials—0.0%

  

Stardust Finance Holdings, Inc.
Senior Lien Term Loan, 6.500%, 03/13/22

     258,098        251,001   
   

 

 

  

Chemicals—0.5%

  

Ascend Performance Materials Operations LLC
Term Loan B, 6.750%, 04/10/18

     3,291,750        3,083,274   

MacDermid, Inc.

    

Term Loan B3, 5.500%, 06/07/20

     414,960        402,822   
   

 

 

  
      3,486,096   
   

 

 

  

Commercial Services—0.4%

  

Hertz Corp. (The)
Term Loan B2, 3.000%, 03/11/18

     1,338,707        1,326,993   

Jaguar Holding Co. II

    

Term Loan B, 4.250%, 08/18/22

     1,028,335        1,001,855   
   

 

 

  
      2,328,848   
   

 

 

  

Electric—0.5%

  

Energy Future Intermediate Holding Co. LLC
Term Loan, 4.250%, 06/19/16

     912,723        911,154   

Texas Competitive Electric Holdings Co. LLC

    

Term Loan, 3.750%, 11/07/16

     2,110,693        2,100,140   
   

 

 

  
      3,011,294   
   

 

 

  

Entertainment—0.3%

  

Amaya Holdings B.V.
1st Lien Term Loan, 5.000%, 08/01/21

     871,804        816,590   

2nd Lien Term Loan, 8.000%, 08/01/22

     958,654        958,654   
   

 

 

  
      1,775,244   
   

 

 

  

Health Care Equipment & Supplies—0.1%

  

Air Medical Group Holdings, Inc. Term Loan B,
4.500%, 04/28/22

     616,900        598,008   

 

See accompanying notes to financial statements.

 

MIST-16

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of December 31, 2015

Floating Rate Loans (i)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Health Care Equipment & Supplies—(Continued)

  

Surgery Center Holdings, Inc.

    

1st Lien Term Loan, 5.250%, 11/03/20

     361,634      $ 359,675   
   

 

 

  
      957,683   
   

 

 

  

Healthcare-Products—0.2%

  

Alere, Inc.
Term Loan B, 4.250%, 06/18/22

     280,961        278,955   

DJO Finance LLC

    

Term Loan, 4.250%, 06/08/20

     798,000        777,385   

Sterigenics-Nordion Holdings LLC

    

Term Loan B, 4.250%, 05/15/22

     209,475        204,238   
   

 

 

  
      1,260,578   
   

 

 

  

Healthcare-Services—0.1%

  

Envision Healthcare Corp.
Term Loan B2, 4.500%, 10/28/22

     451,000        449,732   
   

 

 

  

Insurance—0.1%

    

AssuredPartners, Inc.
1st Lien Term Loan, 5.750%, 10/21/22

     493,000        491,151   
   

 

 

  

Internet—0.0%

    

Blue Coat Holdings, Inc.
Term Loan, 4.500%, 05/20/22

     210,000        203,525   
   

 

 

  

Internet Software & Services—0.4%

  

New Lightsquared LLC

    

Term Loan, 9.250%, 06/15/20

     3,030,000        2,817,900   
   

 

 

  

Lodging—0.7%

    

Caesars Entertainment Resort Properties LLC / Caesars Growth Properties Finance, Inc. Term Loan B, 7.000%, 10/11/20

     4,201,538        3,826,026   

Station Casinos LLC

    

Term Loan B, 4.250%, 03/02/20

     599,745        589,500   
   

 

 

  
      4,415,526   
   

 

 

  

Machinery—0.1%

  

Gates Global, Inc.
Term Loan B, 4.250%, 07/05/21

     1,046,576        984,653   
   

 

 

  

Media—0.7%

    

Advantage Sales & Marketing, Inc.
1st Lien Term Loan, 4.250%, 07/23/21

     617,188        595,586   

Cengage Learning Acquisitions, Inc.

    

1st Lien Term Loan, 7.000%, 03/31/20 (h)

     1,986,177        1,931,557   

Houghton Mifflin Harcourt Publishing Co.

    

Term Loan B, 4.000%, 05/31/21

     741,275        720,890   

iHeartCommunications, Inc.

    

Term Loan D, 7.174%, 01/30/19

     1,736,173        1,224,002   

Media—(Continued)

    

Univision Communications, Inc.

    

Term Loan C4, 4.000%, 03/01/20

     268,622      263,529   
   

 

 

  
      4,735,564   
   

 

 

  

Office/Business Equipment—0.1%

  

Brand Energy & Infrastructure Services, Inc.
Term Loan B, 11/26/20 (j)

     463,817        439,853   
   

 

 

  

Oil & Gas—0.2%

    

CITGO Holding, Inc.
Term Loan B, 9.500%, 05/12/18

     1,081,247        1,079,896   
   

 

 

  

Pharmaceuticals—0.2%

    

Valeant Pharmaceuticals International, Inc.
Term Loan B, 3.750%, 08/05/20

     522,000        502,099   

Term Loan B F1, 4.000%, 04/01/22

     726,595        701,921   
   

 

 

  
      1,204,020   
   

 

 

  

Real Estate—0.0%

  

Realogy Corp.
Extended Letter of Credit, 2.252%, 10/10/16

     127,564        125,727   
   

 

 

  

Retail—0.1%

    

BJ’s Wholesale Club, Inc.
2nd Lien Term Loan, 8.500%, 03/26/20

     550,000        495,458   

Rite Aid Corp.

    

2nd Lien Term Loan, 5.750%, 08/21/20

     350,000        351,823   
   

 

 

  
      847,281   
   

 

 

  

Semiconductors—0.6%

  

Avago Technologies Cayman, Ltd.
Term Loan B, 11/06/22 (j)

     2,345,000        2,319,923   

CEVA Intercompany B.V.

    

Term Loan, 6.500%, 03/19/21

     604,345        505,636   

Microsemi Corp.

    

Term Loan B, 12/02/22 (j)

     240,000        236,325   

NXP B.V.

    

Term Loan B, 3.750%, 12/07/20

     1,225,866        1,222,035   
   

 

 

  
      4,283,919   
   

 

 

  

Software—0.9%

  

Epicor Software Corp.
1st Lien Term Loan, 4.750%, 06/01/22

     1,033,805        1,011,837   

First Data Corp.

    

Extended Term Loan, 3.918%, 03/24/18

     2,143,808        2,119,690   

Term Loan, 3.918%, 09/24/18

     200,000        197,775   

Informatica Corp.

    

Term Loan, 4.500%, 08/05/22

     742,140        716,011   

Kronos, Inc.

    

2nd Lien Term Loan, 9.750%, 04/30/20

     1,906,969        1,901,406   

Tibco Software, Inc.

    

Term Loan B, 6.500%, 12/04/20

     152,840        138,702   
   

 

 

  
      6,085,421   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-17

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of December 31, 2015

Floating Rate Loans (i)—(Continued)

 

Security Description   Shares/
Principal
Amount*		     Value  

Telecommunications—0.1%

  

Avaya, Inc.
Term Loan B7, 6.250%, 05/29/20

     563,798      $ 396,538   

CommScope, Inc.

    

Term Loan B5, 3.827%, 12/29/22

     276,308        274,969   

Hawaiian Telcom Communications, Inc.

    

Term Loan B, 5.000%, 06/06/19

     259,742        258,334   
   

 

 

  
      929,841   
   

 

 

  

Transportation—0.1%

  

CEVA Group plc
Term Loan, 6.500%, 03/19/21

     583,293        488,022   
   

 

 

  

Total Floating Rate Loans
(Cost $47,641,460)

       45,889,776   
   

 

 

  
Common Stocks—4.9%   

Capital Markets—1.6%

    

American Capital, Ltd. (a) (k)

     707,716        9,759,404   

E*Trade Financial Corp. (k)

     24,729        732,967   

Uranium Participation Corp. (k)

     28,400        105,292   
   

 

 

  
      10,597,663   
   

 

 

  

Chemicals—0.0%

  

Advanced Emissions Solutions, Inc. (a) (k)

     11,202        79,982   
   

 

 

  

Communications Equipment—0.3%

    

Nokia Oyj

     251,046        1,787,204   
   

 

 

  

Consumer Finance—1.4%

    

Ally Financial, Inc. (Private Placement) (k)

     481,235        8,970,221   
   

 

 

  

Diversified Telecommunication Services—0.2%

  

Broadview Networks Holdings, Inc. (k)

     52,943        76,767   

Level 3 Communications, Inc. (a) (k)

     28,670        1,558,501   
   

 

 

  
      1,635,268   
   

 

 

  

Hotels, Restaurants & Leisure—0.3%

    

Amaya, Inc. (k)

     143,483        1,807,407   
   

 

 

  

Household Durables—0.1%

    

Stanley-Martin Communities LLC (b) (c) (k)

     450        624,600   
   

 

 

  

Insurance—0.3%

    

American International Group, Inc.

     28,070        1,739,498   
   

 

 

  

Media—0.2%

    

Time Warner Cable, Inc.

     8,587        1,593,661   
   

 

 

  

Metals & Mining—0.0%

    

African Minerals, Ltd. (b) (h) (k)

     159,753        2   
   

 

 

  

Oil, Gas & Consumable Fuels—0.4%

    

Gener8 Maritime, Inc. (k)

     266,132        2,514,947   
   

 

 

  

Wireless Telecommunication Services—0.1%

  

  

T-Mobile U.S., Inc. (a) (k)

     22,900      $ 895,848   
   

 

 

  

Total Common Stocks
(Cost $37,000,330)

       32,246,301   
   

 

 

  
Mutual Fund—1.0%                

Investment Company Security—1.0%

  

iShares iBoxx $ High Yield Corporate Bond ETF (a) (l)
(Cost $7,099,204)

     84,049        6,772,668   
   

 

 

  
Asset-Backed Securities—1.0%                

Asset-Backed - Other—1.0%

    

ALM VIII, Ltd.
3.517%, 01/20/26 (144A) (e)

     550,000        511,432   

4.817%, 01/20/26 (144A) (e)

     500,000        401,529   

ALM XIV, Ltd.

    

3.773%, 07/28/26 (144A) (e)

     250,000        234,129   

5.173%, 07/28/26 (144A) (e)

     250,000        189,712   

Apidos CLO XVIII

    

3.970%, 07/22/26 (144A) (e)

     550,000        508,506   

Atlas Senior Loan Fund, Ltd.

    

3.317%, 07/16/26 (144A) (e)

     250,000        241,020   

3.767%, 07/16/26 (144A) (e)

     250,000        220,453   

Avalon IV Capital, Ltd.

    

3.139%, 04/17/23 (144A) (e)

     250,000        246,379   

Benefit Street Partners CLO, Ltd.

    

3.817%, 07/20/26 (144A) (e)

     500,000        428,185   

Cedar Funding III CLO, Ltd.

    

3.920%, 05/20/26 (144A) (e)

     270,000        240,030   

CIFC Funding, Ltd.

    

3.120%, 07/22/26 (144A) (e)

     250,000        238,293   

Highbridge Loan Management, Ltd.

    

3.323%, 07/28/25 (144A) (e)

     300,000        289,147   

LCM X L.P.

    

5.821%, 04/15/22 (144A) (e)

     1,000,000        954,969   

Madison Park Funding XIV, Ltd.

    

3.917%, 07/20/26 (144A) (e)

     250,000        236,492   

Madison Park Funding, Ltd.

    

3.095%, 04/22/22 (144A) (e)

     250,000        249,980   

4.145%, 04/22/22 (144A) (e)

     250,000        249,985   

Octagon Investment Partners XII, Ltd.

    

5.779%, 05/05/23 (144A) (e)

     400,000        372,049   

OneMain Financial Issuance Trust

    

4.320%, 07/18/25 (144A)

     200,000        198,558   

5.640%, 07/18/25 (144A)

     200,000        197,290   

Palmer Square CLO, Ltd.

    

4.165%, 10/17/22 (144A) (e)

     300,000        296,771   

WhiteHorse IX, Ltd.

    

3.015%, 07/17/26 (144A) (e)

     250,000        219,637   
   

 

 

  

Total Asset-Backed Securities
(Cost $7,025,999)

       6,724,546   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-18

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of December 31, 2015

Preferred Stocks—0.8%

 

Security Description   Shares/
Principal
Amount*		     Value  

Banks—0.6%

    

GMAC Capital Trust I, 8.125% (e)

     143,228      $ 3,632,262   
   

 

 

  

Consumer Finance—0.0%

    

Ally Financial, Inc., 8.500% (e)

     9,513        245,055   
   

 

 

  

Diversified Financial Services—0.2%

    

Marsico Parent Superholdco LLC (144A) (b) (k)

     25        0   

RBS Capital Funding Trust VII Series G, 6.080%

     65,156        1,624,339   
   

 

 

  
      1,624,339   
   

 

 

  

Total Preferred Stocks
(Cost $5,608,926)

       5,501,656   
   

 

 

  
Convertible Preferred Stock—0.7%                

Hotels, Restaurants & Leisure—0.7%

    

Amaya, Inc.

    

Zero Coupon, 12/31/49 (CAD)
(Cost $6,986,453)

     7,581,000        4,769,286   
   

 

 

  
Convertible Bonds—0.5%   

Diversified Financial Services—0.0%

  

E*Trade Financial Corp.

    

Zero Coupon, 08/31/19 (144A)

     76,000        220,724   

Zero Coupon, 08/31/19

     11,000        31,947   
   

 

 

  
      252,671   
   

 

 

  

Insurance—0.0%

  

Radian Group, Inc.

    

3.000%, 11/15/17

     169,000        211,567   
   

 

 

  

Oil & Gas—0.4%

  

SandRidge Energy, Inc.

    

7.500%, 02/16/23

     381,000        69,532   

8.125%, 10/16/22

     288,000        55,260   

Whiting Petroleum Corp.

    

1.250%, 04/01/20 (144A)

     3,298,000        2,242,640   
   

 

 

  
      2,367,432   
   

 

 

  

Retail—0.1%

    

Enterprise Funding, Ltd.

    

3.500%, 09/10/20 (GBP)

     300,000        377,911   
   

 

 

  

Total Convertible Bonds
(Cost $4,303,950)

       3,209,581   
   

 

 

  
Escrow Shares—0.0%   

Auto Parts & Equipment—0.0%

  

Lear Corp. (b) (h)

     1,395,000        12,206   

Lear Corp. (b) (h)

     1,530,000        13,388   
   

 

 

  
      25,594   
   

 

 

  

Chemicals—0.0%

    

Momentive Performance Materials, Inc.

     1,398,000      $ 0   
   

 

 

  
      0   
   

 

 

  

Diversified Financial Services—0.0%

    

Lehman Brothers Holdings, Inc. (h)

     489,000        36,064   

Lehman Brothers Holdings, Inc. (h)

     1,740,000        128,325   
   

 

 

  
      164,389   
   

 

 

  

Media—0.0%

    

Cengage Learning Acquisitions, Inc. Term Loan (b) (h)

     295,300        0   
   

 

 

  
      0   
   

 

 

  

Total Escrow Shares
(Cost $219,861)

       189,983   
   

 

 

  
Warrant—0.0%   

Media—0.0%

  

HMH Publishing Co., Ltd.,
Expires 06/22/19 (c) (k)
(Cost $16)

     1,601        10,090   
   

 

 

  
Short-Term Investments—11.7%                

Mutual Fund—8.5%

    

State Street Navigator Securities Lending MET Portfolio (m)

     56,097,078        56,097,078   
   

 

 

  

Repurchase Agreement—3.2%

    

Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $21,115,280 on 01/04/16, collateralized by $21,815,000 U.S. Treasury Note at 0.625% due 04/30/18 with a value of $21,542,313.

     21,115,210        21,115,210   
   

 

 

  

Total Short-Term Investments
(Cost $77,212,288)

       77,212,288   
   

 

 

  

Total Investments—107.0%
(Cost $767,211,300) (n)

       708,324,014   

Other assets and liabilities (net)—(7.0)%

       (46,422,583 ) 
   

 

 

  
Net Assets—100.0%     $ 661,901,431   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of December 31, 2015, the market value of securities loaned was $102,597,294 and the collateral received consisted of cash in the amount of $56,097,078 and non-cash collateral with a value of $50,312,773. 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.

 

See accompanying notes to financial statements.

 

MIST-19

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of December 31, 2015

 

(b) Security was valued in good faith under procedures approved by the Board of Trustees. As of December 31, 2015, these securities represent 0.7% of net assets.
(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 December 31, 2015, the market value of restricted securities was $4,550,698, which is 0.7% of net assets. See details shown in the Restricted Securities table that follows.
(d) Payment-in-kind security for which part of the income earned may be paid as additional principal.
(e) Variable or floating rate security. The stated rate represents the rate at December 31, 2015. Maturity date shown for callable securities reflects the earliest possible call date.
(f) All or a portion of the security was pledged as collateral against open reverse repurchase agreements. As of December 31, 2015, the value of securities pledged amounted to $4,062,000.
(g) Non-income producing; security is in default and/or issuer is in bankruptcy.
(h) Illiquid security. As of December 31, 2015, these securities represent 0.4% of net assets.
(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 December 31, 2015, at which time the interest rate will be determined.
(k) Non-income producing security.
(l) Affiliated Issuer. (See of the Notes to Financial Statements for a summary of transactions in securities of affiliated issuers.)
(m) Represents investment of cash collateral received from securities on loan as of December 31, 2015.
(n) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $770,695,191. The aggregate unrealized appreciation and depreciation of investments were $6,294,497 and $(68,665,674), respectively, resulting in net unrealized depreciation of $(62,371,177) for federal income tax purposes.
(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 December 31, 2015, the market value of 144A securities was $245,310,728, which is 37.1% of net assets.
(CAD)— Canadian Dollar
(CLO)— Collateralized Loan Obligation
(ETF)— Exchange-Traded Fund
(EUR)— Euro
(GBP)— British Pound

 

Restricted Securities

    Acquisition
Date		    Shares/
Principal
Amount		      Cost      Value  

HMH Publishing Co., Ltd.

    06/22/14      1,601       $ 16       $ 10,090   

National Air Cargo Group, Inc. 11.875%, 05/08/18

    08/11/15      604,072         604,072         604,072   

National Air Cargo Group, Inc. 11.875%, 05/02/18

    08/11/15      589,436         589,436         589,436   

Stanley-Martin Communities LLC

    10/22/07      450         282,182         624,600   

Sterling Entertainment Enterprises LLC 9.750%, 12/15/19

    12/28/12      2,750,000         2,750,000         2,722,500   
           

 

 

  
            $ 4,550,698   
           

 

 

  

Reverse Repurchase Agreements

 

Counterparty

    Interest
Rate		     Settlement
Date		      Maturity
Date(a)		    Principal
Amount		      Net
Closing
Amount		  

Credit Suisse Securities (USA) LLC

      0.750 %      12/18/15       OPEN      USD         882,750       $ 882,750   

Credit Suisse Securities (USA) LLC

      0.750 %      12/18/15       OPEN      USD         2,772,638         2,772,638   
                

 

 

  

Total

  

    $ 3,655,388   
                

 

 

  

 

(a) Certain agreements have no stated maturity and can be terminated by either party at any time.

Securities pledged as collateral against open reverse repurchase agreements are noted in the Schedule of Investments.

 

See accompanying notes to financial statements.

 

MIST-20

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of December 31, 2015

Forward Foreign Currency Exchange Contracts

 

 

Contracts to Buy

     

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  
CAD     827,000      

Morgan Stanley & Co. International plc

        01/06/16         $          608,693         $ (11,019 ) 
CAD     458,000      

Northern Trust Co.

        01/06/16             329,488           1,510   
CAD     460,000      

Northern Trust Co.

        01/06/16             339,567           (7,125 ) 
EUR     500,000      

Morgan Stanley & Co. International plc

        01/06/16             541,671           1,718   

Contracts to Deliver

                                 
CAD     12,856,000      

HSBC Bank plc

        01/06/16             9,618,723           327,672   
EUR     483,000      

Northern Trust Co.

        01/06/16             529,681           4,767   
EUR     28,215,000      

UBS AG

        01/06/16             29,885,526           (777,926 ) 
GBP     10,371,000      

BNP Paribas S.A.

        01/06/16             15,583,153           294,181   
                     

 

 

  

Net Unrealized Depreciation

  

      $ (166,222 ) 
                     

 

 

  

Futures Contracts

 

Futures Contracts—Short

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

Euro-Bobl Futures

      03/08/16         (14 )      EUR         (1,845,630 )    $ 17,659   

Euro-Bund Futures

      03/08/16         (6 )      EUR         (961,076 )      14,732   

Russell 2000 Mini Index Futures

      03/18/16         (61 )      USD         (6,755,019 )      (147,131 ) 

S&P 500 E-Mini Index Futures

      03/18/16         (501 )      USD         (50,349,532 )      (637,238 ) 

U.S. Treasury Note 10 Year Futures

      03/21/16         (1 )      USD         (126,169 )      263   

United Kingdom Long Gilt Bond Futures

      03/29/16         (15 )      GBP         (1,759,650 )      11,941   
            

 

 

  

Net Unrealized Depreciation

              $ (739,774 ) 
            

 

 

  

Swap Agreements

Centrally Cleared Credit Default Swaps on Credit Indices—Sell Protection (a)

 

Reference Obligation

    Fixed Deal
Receive Rate		   Maturity
Date		      Implied Credit
Spread at
December 31,
2015(b)		   Notional
Amount(c)		      Unrealized
Appreciation		  

CDX.NA.HY.25.V1

    5.000%     12/20/20       4.726%     USD         20,370,000       $ 268,152   
               

 

 

  

OTC Credit Default Swaps on Corporate and Sovereign Issues—Sell Protection (a)

 

Reference Obligation

   Fixed Deal
Receive Rate		     Maturity
Date		     Counterparty   Implied Credit
Spread at
December 31,
2015(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
Paid		     Unrealized
Appreciation		  

CCO Holdings LLC / CCO Holdings Capital Corp.
7.250%, due 10/30/17

     8.000 %      09/20/17      Deutsche Bank AG     0.461 %      USD         1,500,000      $ 194,120      $ —      $  194,120   
              

 

 

    

 

 

    

 

 

  

 

(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.

 

See accompanying notes to financial statements.

 

MIST-21

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of December 31, 2015

 

(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 of purchased protection credit default swap contracts entered into by the Portfolio for the same referenced debt obligation.

Cash in the amount of $196 has been deposited in segregated accounts held by the counterparties as collateral for OTC swap contracts.

 

(CAD)— Canadian Dollar
(EUR)— Euro
(GBP)— British Pound
(USD)— United States Dollar
(CDX.NA.HY)— Markit North America High Yield CDS Index

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2      Level 3      Total  
Corporate Bonds & Notes            

Advertising

    $ —         $ 2,060,264       $ —         $ 2,060,264   

Aerospace/Defense

      —           7,773,993         1,193,508         8,967,501   

Airlines

      —           6,159,265         —           6,159,265   

Apparel

      —           1,128,575         —           1,128,575   

Auto Manufacturers

      —           1,363,793         —           1,363,793   

Auto Parts & Equipment

      —           7,169,573         —           7,169,573   

Banks

      —           28,314,832         —           28,314,832   

Biotechnology

      —           201,260         —           201,260   

Building Materials

      —           8,426,521         —           8,426,521   

Chemicals

      —           5,804,134         —           5,804,134   

Coal

      —           2,811,245         —           2,811,245   

Commercial Services

      —           15,703,178         —           15,703,178   

Computers

      —           1,185,865         —           1,185,865   

Distribution/Wholesale

      —           12,159,139         —           12,159,139   

Diversified Financial Services

      —           27,045,362         —           27,045,362   

Electric

      —           10,119,703         —           10,119,703   

Electrical Components & Equipment

      —           968,489         —           968,489   

Electronics

      —           707,024         —           707,024   

Energy-Alternate Sources

      —           406,624         —           406,624   

Engineering & Construction

      —           3,960,849         —           3,960,849   

Entertainment

      —           3,792,749         0         3,792,749   

Environmental Control

      —           972,345         —           972,345   

Food

      —           5,619,128         —           5,619,128   

 

See accompanying notes to financial statements.

 

MIST-22

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of December 31, 2015

Fair Value Hierarchy—(Continued)

 

Description    Level 1      Level 2      Level 3      Total  

Food Service

    $ —         $ 1,703,548       $ —         $ 1,703,548   

Forest Products & Paper

      —           290,460         —           290,460   

Healthcare-Products

      —           7,382,674         —           7,382,674   

Healthcare-Services

      —           28,944,595         —           28,944,595   

Holding Companies-Diversified

      —           3,241,917         —           3,241,917   

Home Builders

      —           12,978,619         —           12,978,619   

Household Products/Wares

      —           2,831,678         —           2,831,678   

Insurance

      —           2,320,384         —           2,320,384   

Internet

      —           9,323,882         —           9,323,882   

Iron/Steel

      —           2,096,565         —           2,096,565   

Leisure Time

      —           1,388,416         —           1,388,416   

Lodging

      —           12,108,706         —           12,108,706   

Machinery-Construction & Mining

      —           585,900         —           585,900   

Media

      —           55,263,083         2,722,500         57,985,583   

Metal Fabricate/Hardware

      —           2,407,826         —           2,407,826   

Mining

      —           7,243,620         —           7,243,620   

Miscellaneous Manufacturing

      —           882,066         —           882,066   

Office/Business Equipment

      —           2,967,715         —           2,967,715   

Oil & Gas

      —           31,603,407         —           31,603,407   

Oil & Gas Services

      —           610,958         —           610,958   

Packaging & Containers

      —           13,443,146         —           13,443,146   

Pharmaceuticals

      —           21,170,323         —           21,170,323   

Pipelines

      —           20,411,940         —           20,411,940   

Real Estate

      —           3,930,106         0         3,930,106   

Real Estate Investment Trusts

      —           5,685,158         —           5,685,158   

Retail

      —           22,032,597         —           22,032,597   

Semiconductors

      —           5,433,590         —           5,433,590   

Software

      —           23,837,429         —           23,837,429   

Storage/Warehousing

      —           558,900         —           558,900   

Telecommunications

      —           56,390,919         —           56,390,919   

Textiles

      —           794,970         —           794,970   

Transportation

      —           8,162,824         —           8,162,824   

Total Corporate Bonds & Notes

      —           521,881,831         3,916,008         525,797,839   

Total Floating Rate Loans*

      —           45,889,776         —           45,889,776   
Common Stocks            

Capital Markets

      10,597,663         —           —           10,597,663   

Chemicals

      79,982         —           —           79,982   

Communications Equipment

      —           1,787,204         —           1,787,204   

Consumer Finance

      8,970,221         —           —           8,970,221   

Diversified Telecommunication Services

      1,635,268         —           —           1,635,268   

Hotels, Restaurants & Leisure

      1,807,407         —           —           1,807,407   

Household Durables

      —           —           624,600         624,600   

Insurance

      1,739,498         —           —           1,739,498   

Media

      1,593,661         —           —           1,593,661   

Metals & Mining

      —           —           2         2   

Oil, Gas & Consumable Fuels

      2,514,947         —           —           2,514,947   

Real Estate Investment Trusts

      0         —           —           0   

Wireless Telecommunication Services

      895,848         —           —           895,848   

Total Common Stocks

      29,834,495         1,787,204         624,602         32,246,301   

Total Mutual Fund*

      6,772,668         —           —           6,772,668   

Total Asset-Backed Securities*

      —           6,724,546         —           6,724,546   
Preferred Stocks            

Banks

      3,632,262         —           —           3,632,262   

Consumer Finance

      245,055         —           —           245,055   

Diversified Financial Services

      1,624,339         —           0         1,624,339   

Total Preferred Stocks

      5,501,656         —           0         5,501,656   

Total Convertible Preferred Stock*

      —           4,769,286         —           4,769,286   

Total Convertible Bonds*

      —           3,209,581         —           3,209,581   

 

See accompanying notes to financial statements.

 

MIST-23

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of December 31, 2015

Fair Value Hierarchy—(Continued)

 

Description    Level 1     Level 2     Level 3      Total  
Escrow Shares          

Auto Parts & Equipment

    $ —        $ —        $ 25,594       $ 25,594   

Chemicals

      —          —          0         0   

Diversified Financial Services

      —          164,389        —           164,389   

Media

      —          —          0         0   

Total Escrow Shares

      —          164,389        25,594         189,983   

Total Warrant*

      —          10,090        —           10,090   
Short-Term Investments          

Mutual Fund

      56,097,078        —          —           56,097,078   

Repurchase Agreement

      —          21,115,210        —           21,115,210   

Total Short-Term Investments

      56,097,078        21,115,210        —           77,212,288   

Total Investments

    $ 98,205,897      $ 605,551,913      $ 4,566,204       $ 708,324,014   
                                   

Collateral for Securities Loaned (Liability)

    $ —        $ (56,097,078 )    $ —         $ (56,097,078 ) 
Forward Contracts          

Forward Foreign Currency Exchange Contracts (Unrealized Appreciation)

    $ —        $ 629,848      $ —         $ 629,848   

Forward Foreign Currency Exchange Contracts (Unrealized Depreciation)

      —          (796,070 )      —           (796,070 ) 

Total Forward Contracts

    $ —        $ (166,222 )    $ —         $ (166,222 ) 
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 44,595      $ —        $ —         $ 44,595   

Futures Contracts (Unrealized Depreciation)

      (784,369 )      —          —           (784,369 ) 

Total Futures Contracts

    $ (739,774 )    $ —        $ —         $ (739,774 ) 
Centrally Cleared Swap Contracts          

Centrally Cleared Swap Contracts (Unrealized Appreciation)

    $ —        $ 268,152      $ —         $ 268,152   
OTC Swap Contracts          

OTC Swap Contracts at Value (Assets)

    $ —        $ 194,120      $ —         $ 194,120   

Total Reverse Repurchase Agreements (Liability)

    $ —        $ (3,655,388 )    $ —         $ (3,655,388 ) 

 

* See Schedule of Investments for additional detailed categorizations.

Transfers of Common Stock from Level 2 to Level 1 in the amount of $13,297,115 were due to the discontinuation of a liquidity discount as the result of a lock-up period expiration.

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,
2014		     Realized
Gain
(Loss)		     Change in
Unrealized
Appreciation/
(Depreciation)		     Purchases     Sales     Transfers
into
Level 3		     Transfers
out of
Level 3		     Balance
as of
December 31,
2015		     Change in
Unrealized
Appreciation/
(Depreciation)
from
Investments
Still Held at
December 31,
2015		  
Corporate Bonds & Notes                  

Aerospace & Defense

   $ 1,715,086      $ —      $ 0      $ 1,361,158      $ (1,882,736 )(a)    $ —      $ —      $ 1,193,508      $ 0   

Entertainment

     0          42,971        —        (57,030 )      14,059        —        0        0   

Media

     2,805,000        —        (82,500 )        —        —        —        2,722,500        (82,500 ) 

Real Estate

     0        —        —          —        —        —        0        —   
Common Stocks                  

Household Durables

     633,150        —        (8,550 )      —        —        —        —        624,600        (8,550 ) 

Metals & Mining

     24,899        —        (24,897 )      —        —        —        —        2        (24,897 ) 

Oil, Gas & Consu
mable Fuels

     4,058,188        —        —        —        —        —        (4,058,188 )      —        —   
Preferred Stocks                  

Diversified Financial Services

     0        —        —        —        —        —        —        0        —   
Escrow Shares                  

Auto Parts & Equipment

     —        —        —        —        —        25,594        —        25,594        —   

Chemicals

     —        —        —        —        —        0        —        0        —   

Media

     —        —        —        —        —        0        —        0        —   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 9,236,323      $ —      $ (72,976 )    $ 1,361,158      $ (1,939,766 )    $ 39,653      $ (4,058,188 )    $ 4,566,204      $ (115,947 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Sales include principal reductions.

Common Stock in the amount of $4,058,188 was transferred out of Level 3 due to the initiation of a vendor or broker providing prices that are based on market activity which has been determined to be significant observable inputs.

Corporate Bonds & Notes in the amount of $14,059 and Escrow Shares in the amount of $25,294 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.

 

See accompanying notes to financial statements.

 

MIST-24

Met Investors Series Trust

BlackRock High Yield Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 701,551,346   

Affiliated investments at value (c)

      6,772,668   

Cash

      86,427   

Cash denominated in foreign currencies (d)

      422,933   

Cash collateral (e)

      3,966,970   

OTC swap contracts at market value

      194,120   

Unrealized appreciation on forward foreign currency exchange contracts

      629,848   

Receivable for:

   

Investments sold

      4,259,414   

Open cash collateral on centrally cleared swaps

      10,000   

Fund shares sold

      9,925   

Dividends and interest

      9,618,782   

Variation margin on futures contracts

      551,110   

Interest on OTC swap contracts

      4,000   

Variation margin on centrally cleared swap contracts

      11,842   

Prepaid expenses

      2,111   

Other assets

      113,350  
  

 

 

  

Total Assets

      728,204,846  

Liabilities

   

Reverse repurchase agreements

      3,655,388   

Cash collateral for OTC swap contracts

      400,000   

Unrealized depreciation on forward foreign currency exchange contracts

      796,070   

Collateral for securities loaned

      56,097,078   

Commitments (f)

      0   

Payables for:

   

Investments purchased

      4,527,934   

Fund shares redeemed

      164,013   

Variation margin on futures contracts

      1,678   

Accrued Expenses:

   

Management fees

      337,065   

Distribution and service fees

      51,356   

Deferred trustees’ fees

      81,937   

Other expenses

      190,896  
  

 

 

  

Total Liabilities

      66,303,415  
  

 

 

  

Net Assets

    $ 661,901,431  
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 697,913,372   

Undistributed net investment income

      45,343,979   

Accumulated net realized loss

      (22,002,291 ) 

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

      (59,353,629 )
  

 

 

  

Net Assets

    $ 661,901,431  
  

 

 

  

Net Assets

   

Class A

    $ 422,244,633   

Class B

      239,656,798   

Capital Shares Outstanding*

   

Class A

      58,575,765   

Class B

      33,621,551   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 7.21   

Class B

      7.13   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding affiliated investments, was $760,112,096.
(b) Includes securities loaned at value of $102,597,294.
(c) Identified cost of affiliated investments was $7,099,204.
(d) Identified cost of cash denominated in foreign currencies was $426,008.
(e) Includes collateral of $2,719,470 for futures contracts and $1,247,500 for centrally cleared swap contracts.
(f) See Note 2 of the Notes to Financial Statements for details of commitments.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends (a)

    $ 756,166   

Dividends from affiliated investments

      337,565   

Interest

      42,825,669   

Securities lending income

      332,479  
  

 

 

  

Total investment income

      44,251,879  

Expenses

   

Management fees

      4,491,939   

Administration fees

      18,412   

Custodian and accounting fees

      230,384   

Distribution and service fees—Class B

      676,441   

Interest expense

      85,004   

Audit and tax services

      75,298   

Legal

      26,460   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      48,962   

Insurance

      5,144   

Miscellaneous

      17,383  
  

 

 

  

Total expenses

      5,710,600  

Less management fee waiver

      (28,592 )
  

 

 

  

Net expenses

      5,682,008  
  

 

 

  

Net Investment Income

      38,569,871  
  

 

 

  

Net Realized and Unrealized Loss

   
Net realized gain (loss) on:   

Investments

      (20,100,796 ) 

Affiliated investments

      (824,631 ) 

Futures contracts

      (2,021,930 ) 

Written options

      87,639   

Swap contracts

      813,309   

Foreign currency transactions

      12,238,269  
  

 

 

  

Net realized loss

      (9,808,140 )
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (51,947,948 ) 

Affiliated investments

      (326,536 ) 

Futures contracts

      1,285,291   

Swap contracts

      63,053   

Foreign currency transactions

      (4,091,016 )
  

 

 

  

Net change in unrealized depreciation

      (55,017,156 )
  

 

 

  

Net realized and unrealized loss

      (64,825,296 )
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (26,255,425 )
  

 

 

  

 

(a) Net of foreign withholding taxes of $42.

 

See accompanying notes to financial statements.

 

MIST-25

Met Investors Series Trust

BlackRock High Yield Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 38,569,871      $ 45,655,709   

Net realized gain (loss)

      (9,808,140 )      19,460,989   

Net change in unrealized depreciation

      (55,017,156 )     (35,158,014 )
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (26,255,425 )     29,958,684  
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (40,375,454 )      (32,850,868 ) 

Class B

      (21,629,568 )      (18,650,271 ) 

Net realized capital gains

     

Class A

      (4,472,730 )      (24,118,359 ) 

Class B

      (2,481,532 )     (14,259,906 )
  

 

 

    

 

 

  

Total distributions

      (68,959,284 )     (89,879,404 )
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (11,616,482 )     (18,612,421 )
  

 

 

    

 

 

  

Total decrease in net assets

      (106,831,191 )      (78,533,141 ) 

Net Assets

     

Beginning of period

      768,732,622       847,265,763  
  

 

 

    

 

 

  

End of period

    $ 661,901,431      $ 768,732,622   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 45,343,979      $ 57,025,627   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      3,875,950      $ 31,673,653        11,132,160      $ 92,750,541   

Reinvestments

      5,809,350        44,848,184        6,964,453        56,969,227   

Redemptions

      (11,404,097 )      (89,044,428 )      (18,523,055 )      (154,702,014 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (1,718,797 )    $ (12,522,591 )      (426,442 )    $ (4,982,246 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      6,243,034      $ 49,449,796        8,398,737      $ 71,047,469   

Reinvestments

      3,155,903        24,111,100        4,057,975        32,910,177   

Redemptions

      (9,338,421 )      (72,654,787 )      (14,083,717 )      (117,587,821 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      60,516      $ 906,109        (1,627,005 )    $ (13,630,175 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (11,616,482 )      $ (18,612,421 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-26

Met Investors Series Trust

BlackRock High Yield Portfolio

Financial Highlights

 

Selected per share data  
     Class A  
     Year Ended December 31,  
     2015     2014     2013      2012     2011  

Net Asset Value, Beginning of Period

    $ 8.22      $ 8.86     $ 8.93       $ 8.36      $ 8.70  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Income (Loss) from Investment Operations

            

Net investment income (a)

      0.42        0.48        0.54         0.59        0.59   

Net realized and unrealized gain (loss) on investments

      (0.69 )     (0.16 )     0.26        0.73       (0.35 )
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total from investment operations

      (0.27 )     0.32       0.80        1.32       0.24  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Less Distributions

            

Distributions from net investment income

      (0.67 )      (0.55 )      (0.62 )       (0.64 )      (0.58 ) 

Distributions from net realized capital gains

      (0.07 )     (0.41 )     (0.25 )      (0.11 )     0.00  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total distributions

      (0.74 )     (0.96 )     (0.87 )      (0.75 )     (0.58 )
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 7.21      $ 8.22     $ 8.86       $ 8.93      $ 8.36  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total Return (%) (b)

      (3.86 )(d)     3.65  (d)     9.52        16.80  (c)     2.50  

Ratios/Supplemental Data

            

Gross ratio of expenses to average net assets (%)

      0.67        0.68        0.69         0.65        0.65   

Gross ratio of expenses to average net assets excluding interest expense (%)

      0.66        0.67        0.66         0.65        0.65   

Net ratio of expenses to average net assets (%)

      0.67        0.68        0.66         0.65        0.65   

Net ratio of expenses to average net assets excluding interest expense (%)

      0.66        0.67        0.66         0.65        0.65   

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

      5.24        5.60        6.18         6.90        6.91   

Portfolio turnover rate (%)

      75        70        108         85        99   

Net assets, end of period (in millions)

    $ 422.2      $ 495.7      $ 538.3       $ 589.6      $ 518.4   
     Class B  
     Year Ended December 31,  
     2015     2014     2013      2012     2011  

Net Asset Value, Beginning of Period

    $ 8.14      $ 8.78     $ 8.85       $ 8.29      $ 8.64  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Income (Loss) from Investment Operations

            

Net investment income (a)

      0.39        0.45        0.51         0.56        0.56   

Net realized and unrealized gain (loss) on investments

      (0.68 )     (0.15 )     0.27        0.74       (0.34 )
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total from investment operations

      (0.29 )     0.30       0.78        1.30       0.22  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Less Distributions

            

Distributions from net investment income

      (0.65 )      (0.53 )      (0.60 )       (0.63 )      (0.57 ) 

Distributions from net realized capital gains

      (0.07 )     (0.41 )     (0.25 )      (0.11 )     0.00  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total distributions

      (0.72 )     (0.94 )     (0.85 )      (0.74 )     (0.57 )
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 7.13      $ 8.14     $ 8.78       $ 8.85      $ 8.29  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total Return (%) (b)

      (4.16 )(d)     3.42  (d)     9.33        16.54  (c)     2.34  

Ratios/Supplemental Data

            

Gross ratio of expenses to average net assets (%)

      0.92        0.93        0.94         0.90        0.90   

Gross ratio of expenses to average net assets excluding interest expense (%)

      0.91        0.92        0.91         0.90        0.90   

Net ratio of expenses to average net assets (%)

      0.92        0.93        0.91         0.90        0.90   

Net ratio of expenses to average net assets excluding interest expense (%)

      0.91        0.92        0.91         0.90        0.90   

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

      4.99        5.34        5.94         6.65        6.66   

Portfolio turnover rate (%)

      75        70        108         85        99   

Net assets, end of period (in millions)

    $ 239.7      $ 273.0      $ 309.0       $ 324.9      $ 270.4   

 

(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) 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.
(d) Generally accepted accounting principles may require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from the returns reported in the portfolio manager commentary section of this report.

 

See accompanying notes to financial statements.

 

MIST-27

Met Investors Series Trust

BlackRock High Yield Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946- Financial Services- Investment Companies. 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, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 and subject to general oversight by the Board. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity

 

MIST-28

Met Investors Series Trust

BlackRock High Yield Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 through an independent pricing service based on the mean between closing bid and ask prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or broker-dealer. These contracts are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

Options, including swaptions, and futures contracts that are traded OTC are generally valued on the basis of quotations provided by broker-dealers or prices provided by 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, yield curves, credit curves, measures of volatility and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts (other than centrally cleared swaps) are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and other pricing services. Such quotations and prices are derived utilizing observable data, including the underlying reference securities or indices, credit spread quotations and expected default recovery rates determined by the pricing service. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or an independent pricing service when the exchange price is not available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third party prices are used to produce daily settlement prices. These securities are categorized as Level 2 within the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates, including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

 

MIST-29

Met Investors Series Trust

BlackRock High Yield Portfolio

Notes to Financial Statements—December 31, 2015—(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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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, convertible bonds, distribution redesignations and premium amortization adjustments. These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

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 generally 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.

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

 

MIST-30

Met Investors Series Trust

BlackRock High Yield Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

connection with purchasing participations, 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. The purchase of assignments will typically result in the Portfolio having a direct contractual relationship with the borrower, and the Portfolio may enforce compliance by the borrower with the terms of the loan agreement.

The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments it acquires direct rights against the borrower of the loan. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing.

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.

Commitments - The Portfolio may enter into commitments, or agreements, to acquire an investment at a future date (subject to certain conditions) in connection with a potential public or non-public offering. Such agreements may obligate the Portfolio to make future cash payments. As of December 31, 2015, the Portfolio had outstanding commitments of $22,510,000 in connection with the Chapter 11 case of Energy Future Holdings Corp. This commitment is not included in the net assets of the Portfolio as of December 31, 2015.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $21,115,210, 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 December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

 

MIST-31

Met Investors Series Trust

BlackRock High Yield Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

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 re-acquire 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 in connection with any reverse repurchase transaction, the MRA entitles the non-defaulting party with a right to set-off claims and apply property held by it in respect of any reverse 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 Reverse repurchase agreements on the Statement of Assets and Liabilities.

For the year ended December 31, 2015, the Portfolio had an outstanding reverse repurchase agreement balance for 365 days. The average amount of borrowings was $12,968,283 and the weighted average interest rate was 0.66% during the 365 day period.

The following table summarizes open reverse repurchase agreements by counterparty which are subject to offset under an MRA on a net basis as of December 31, 2015:

 

Counterparty

    Reverse Repurchase
Agreements		      Collateral Pledged1      Net
Amount*		  

Credit Suisse Securities (USA) LLC

    $ 3,655,388       $ (3,655,388 )       —   
  

 

 

     

 

 

     

 

 

  
   $ 3,655,388       $ (3,655,388 )       —   
  

 

 

     

 

 

     

 

 

  

 

  1  Collateral with a value of $4,062,000 has been pledged in connection with open reverse repurchase agreements. In some instances, the actual collateral pledged may be more than the amount shown here due to overcollateralization.
  * Net amount represents the net amount payable due to the counterparty in the event of default.

The following table provides a breakdown of the collateral received/pledged and the remaining contractual maturities for securities lending transactions and reverse repurchase agreements, which are accounted for as secured borrowings.

 

     Remaining Contractual Maturity of the Agreements
As of December 31, 2015		  
      Overnight and
Continuous		     Up to
30 Days		      31 - 90
Days		      Greater than
90 days		     Total  
Securities Lending Transactions             

Common Stocks

    $ (7,777,462 )    $ —       $ —       $ —      $ (7,777,462 ) 

Corporate Bonds & Notes

      (48,319,616 )      —         —         —        (48,319,616 ) 

Total

    $ (56,097,078 )    $ —       $ —       $ —      $ (56,097,078 ) 
Reverse Repurchase Agreements             

Corporate Bonds & Notes

      (3,655,388 )      —         —         —        (3,655,388 ) 

Total Borrowings

    $ (59,752,466 )    $ —       $ —       $ —      $ (59,752,466 ) 

Gross amount of recognized liabilities for securities lending transactions and reverse repurchase agreements

  

   $ (59,752,466 ) 

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 valuation 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

 

MIST-32

Met Investors Series Trust

BlackRock High Yield Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 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 cash 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. If futures contracts are exchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

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 investment exposure to a target asset class or to enhance return. Writing puts or buying calls tends to increase the Portfolio’s exposure to the underlying instrument and writing calls or buying puts tends 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 is worthless when it expires and the premium paid for the option is considered a realized 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 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 subsequently marked to market to reflect the current value of the option written. 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

 

MIST-33

Met Investors Series Trust

BlackRock High Yield Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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.

Written Options

The Portfolio transactions in written options during the year ended December 31, 2015:

 

Put Options

    Number of
Contracts		      Premium
Received		  

Options outstanding December 31, 2014

      —       $ —   

Options written

      5,228         (517,467 ) 

Options bought back

      (5,228 )       517,467   
  

 

 

     

 

 

  

Options outstanding December 31, 2015

      —       $ —   
  

 

 

     

 

 

  

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 either privately negotiated in the OTC market (“OTC swaps”) or 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 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.

Centrally Cleared Swaps: Clearinghouses currently offer clearing derivative transactions which include interest rate and 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.

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 upon entering into the swap agreement 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 they are not

 

MIST-34

Met Investors Series Trust

BlackRock High Yield Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 be worthless when it expires 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 involving an entity in the index, the credit event is settled based on that entity’s 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 December 31, 2015, 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: The Portfolio may enter into currency swap agreements to gain or mitigate exposure to currency risk. 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.

 

MIST-35

Met Investors Series Trust

BlackRock High Yield Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of 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) (b)    $ 44,595         
Credit    OTC swap contracts at market value (c)      194,120         
   Unrealized appreciation on centrally cleared swap contracts (b) (d)      268,152         
Equity          Unrealized depreciation on futures contracts (a) (b)    $ 784,369   
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts      629,848       Unrealized depreciation on forward foreign currency exchange contracts      796,070   
     

 

 

        

 

 

  
Total       $  1,136,715          $ 1,580,439   
     

 

 

        

 

 

  

 

  (a) 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.
  (b) Financial instrument not subject to a master netting agreement.
  (c) Excludes OTC swap interest receivable of $4,000.
  (d) 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 Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized 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 (“MNA”) (see Note 4), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Assets
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Received†		     Net
Amount*		  

BNP Paribas S.A.

    $ 294,181       $ —      $ —      $ 294,181   

Deutsche Bank AG

      194,120         —        (194,120 )      —   

HSBC Bank plc

      327,672         —        —        327,672   

Morgan Stanley & Co. International plc

      1,718         (1,718 )      —        —   

Northern Trust Co.

      6,277         (6,277 )      —        —   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 823,968       $ (7,995 )    $ (194,120 )    $ 621,853   
  

 

 

     

 

 

    

 

 

    

 

 

  

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under an MNA, or similar agreement, and net of the related collateral pledged by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Liabilities
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Pledged†		      Net
Amount**		  

Morgan Stanley & Co. International plc

    $ 11,019       $ (1,718 )    $ —       $ 9,301   

Northern Trust Co.

      7,125         (6,277 )      —         848   

UBS AG

      777,926         —        —         777,926   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 796,070       $ (7,995 )    $ —       $ 788,075   
  

 

 

     

 

 

    

 

 

     

 

 

  

 

  * Net amount represents the net amount receivable from the counterparty in the event of default.
  ** Net amount represents the net amount payable due to the counterparty in the event of default.
  † In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.

 

MIST-36

Met Investors Series Trust

BlackRock High Yield Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Interest Rate      Credit      Equity     Foreign
Exchange		     Total  

Investments (a)

    $ —       $ —       $ (133,837 )    $ —      $ (133,837 ) 

Forward foreign currency transactions

      —         —         —        11,982,331        11,982,331   

Futures contracts

      182,024         —         (2,203,954 )      —        (2,021,930 ) 

Swap contracts

      —         813,309         —        —        813,309   

Written options

      —         —         87,639        —        87,639   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  
   $ 182,024       $ 813,309       $ (2,250,152 )    $ 11,982,331      $ 10,727,512   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

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

    Interest Rate      Credit      Equity     Foreign
Exchange		     Total  

Forward foreign currency transactions

    $ —       $ —       $ —      $ (4,132,590 )    $ (4,132,590 ) 

Futures contracts

      44,595         —         1,240,696        —        1,285,291   

Swap contracts

      —         63,053         —        —        63,053   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  
   $ 44,595       $ 63,053       $ 1,240,696      $ (4,132,590 )    $ (2,784,246 ) 
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Investments (a)

    $ 161,133   

Forward foreign currency transactions

      83,970,991   

Futures contracts short

      (4,218,991 ) 

Swap contracts

      34,554,249   

Written options

      (193,100 ) 

 

  ‡ Averages are based on activity levels during 2015.
  (a) Represents purchased options which are part of net realized gain (loss) on investments and net change in unrealized appreciation (depreciation) on investments as shown in the Statement of Operations.

4. Certain Risks

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”).

Market 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, 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC options).

 

MIST-37

Met Investors Series Trust

BlackRock High Yield Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to Portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 551,416,671       $ 0       $ 616,102,159   

The Portfolio engaged in security transactions with other accounts managed by BlackRock Advisors, LLC, that amounted to $194,579 in purchases of investments, which are included above.

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the annual rate of 0.600% of average daily net assets. Fees earned by MetLife Advisers with respect to the Portfolio for the year ended December 31, 2015 were $4,491,939.

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. BlackRock Financial Management, Inc. is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

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 year ended December 31, 2015 are shown as a management fee waiver in the Statement of Operations.

 

MIST-38

Met Investors Series Trust

BlackRock High Yield Portfolio

Notes to Financial Statements—December 31, 2015—(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 B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, LLC, 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 year ended December 31, 2015 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 Underlying ETFs

A summary of the Portfolio’s transactions in the securities of affiliated Underlying ETFs during the year ended December 31, 2015 is as follows:

 

Security Description

   Number of
shares held at
December 31, 2014		     Shares
purchased		     Shares
sold		     Number of
shares held at
December 31, 2015		     Realized
Gain on
shares sold		     Income earned
from affiliates
during the
period		  

iShares iBoxx $ High Yield Corporate Bond ETF

     0        340,083        (256,034 )      84,049      $ (824,631 )    $ 337,565   

8. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$64,861,263    $ 70,879,327       $ 4,098,021       $ 19,000,077       $ 68,959,284       $ 89,879,404   

As of December 31, 2015, 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		     Other
Accumulated
Capital Losses		     Total  
$45,746,744    $ —       $ (62,395,580 )    $ (19,281,168 )    $ (35,930,004 ) 

 

MIST-39

Met Investors Series Trust

BlackRock High Yield Portfolio

Notes to Financial Statements—December 31, 2015—(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, 2015, the Portfolio had post-enactment accumulated short term capital losses of $12,374,997 and post enactment accumulated long term capital losses of $6,906,171.

10. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-40

Met Investors Series Trust

BlackRock High Yield Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of BlackRock High Yield 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 BlackRock High Yield Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian, brokers, and agent banks; when replies were not received from brokers or agent banks, 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 BlackRock High Yield Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-41

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-42

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-43

Met Investors Series Trust

BlackRock High Yield Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-44

Met Investors Series Trust

BlackRock High Yield Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-45

Met Investors Series Trust

BlackRock High Yield Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

BlackRock High Yield Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and BlackRock Financial Management, Inc. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed both the median of its Performance Universe and its Lipper Index for the one-, three-, and five-year periods ended June 30, 2015. The Board further considered that the Portfolio outperformed its benchmark, the Barclays U.S. Corporate High Yield 2% Issuer Capped Index, for the one-, three-, and five-year periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees were slightly above the Expense Group median, Expense Universe median, and Sub-Advised Expense Universe median. The Board further considered that the Portfolio’s total expenses (exclusive of 12b-1 fees) were below the Expense Group median, Expense Universe median, and Sub-Advised Expense Universe median. The Board noted that the Portfolio’s contractual management fees were above the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also noted that the Portfolio’s contractual sub-advisory fees were above the averages of the Sub-advised Expense Group and Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-46

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Managed by CBRE Clarion Securities, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A, B, and E shares of the Clarion Global Real Estate Portfolio returned -1.23%, -1.40%, and -1.30%, respectively. The Portfolio’s benchmark, the FTSE EPRA/NAREIT Developed Index1, returned -0.79%.

MARKET ENVIRONMENT / CONDITIONS

Global real estate shares generated a return of -0.79% over the past twelve months, as measured by the FTSE EPRA/NAREIT Developed Index, as positive performance in Europe and the Americas was offset by negative returns in the Asia-Pacific region. From a fundamental standpoint, real estate stocks continued to benefit from a favorable environment of limited new supply, improving demand for real estate space—leading to higher occupancies, rents and values—and access to attractively-priced capital. While economic growth is expanding in most developed markets around the globe, the rate of improvement varies dramatically—from a relatively robust U.S. and U.K. to tepid but positively trending recoveries in the eurozone and Japan. Sentiment towards growth in Europe has benefited from an aggressive quantitative easing program announced by the European Central Bank (the “ECB”) in January 2015, which has buoyed the markets. The U.S. has delivered modestly positive returns as economic and employment data have improved to the point where the Federal Reserve (the “Fed”) recently decided to move from its zero interest rate policy. The Asia-Pacific region has lagged, largely as the result of investor uncertainty surrounding China’s devaluing its currency in August, which catalyzed worries about the overall health of the Chinese economy and its implications on the trajectory of global economic growth. Meanwhile, inflationary pressures remained low, aided by a softening in the price of commodities, particularly a lower price of oil which bodes well for continued low intermediate and long-term interest rates.

Demand for real estate remains high, given the desire for total return anchored by current yield. The significant sources of capital seeking real estate include institutional investors, sovereign wealth funds, private equity, and listed property companies. The spread between cap rates and 10-year sovereign bond yields remains at historically wide levels, which suggests that there is plenty of “cushion” as bond yields increase, especially considering that we are still in the early to middle stages in the rental rate recovery cycle in many real estate markets globally. Moreover, we believe a move up in short-term rates in the U.S. is not the key data point to watch, rather it is long-term rates around the globe, whose increase we expect to be muted given continued sluggish economic growth globally, generally accommodative central bank policy, a decelerating China, and low rates on a relative basis in Europe and Japan. In fact, many market observers are calling for a “new normal” of long-term rates well below those observed in the late 20th century.

The combination of moderate yet steady economic growth and historically low long-term interest rates bodes well for real estate and real estate securities. Despite a global economic recovery that seems perennially challenged, the underlying business of real estate is very good. Earnings have generally been solid, with improving occupancies, higher trending rents, active transaction markets, and deep capital markets. Economic growth, while slow, is expanding in most developed markets. Sentiment towards growth in Europe was improved earlier this year via an aggressive quantitative easing program announced by the ECB in January 2015, which has been reinforced throughout the year. While the rumblings out of China, weak commodity markets, and continued geo-political risk in the eurozone and Middle East are reason for caution, we believe any meaningful volatility creates an opportunity to buy high-quality real estate companies with visible earnings at discounted prices. Low levels of new construction globally also suggest that owners of existing properties should continue to enjoy improved pricing power.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio underperformed its benchmark during the period as the result of positioning in Europe and the Asia-Pacific region. This was marginally offset by favorable positioning in the Americas, where the strongest contribution to relative performance was delivered via the value added from a high-conviction underweight to Canada, which was one of the poorest-performing markets during the period. This was followed closely by the contribution from stock selection in the U.S., which was particularly strong in the healthcare and residential property sectors. Stock selection in Hong Kong and Australia also contributed to relative performance during the period. In Europe, an overweight to the outperforming U.K. market added value. Detractors from relative performance during the period included stock selection and asset allocation in Japan and Europe.

At the end of the period, we remained cautious on the Asia-Pacific region due to China’s slowing economy and its disproportionate impact on the region. We liked Tokyo office properties, Australian retail markets and remained selective elsewhere. The Tokyo office market continued to show improved occupancies and accelerating rental growth after years of stagnation, providing more pricing power to landlords. Land values in Tokyo are improving and office vacancy has tightened, with vacancy in the five central wards now trending towards 4%. While gradual, improvement in Tokyo office rents is steady and visible with 5-10% mark-to-market for expiring rents. Australian investments benefit from an attractive combination of yield and growth, plus mergers and acquisitions activity which increased given wide access to attractively priced capital by quality institutional investors with scale, including listed real estate companies. The indirect impact of slowing Chinese growth on the Australian economy, however, warrants some caution over the longer term. We became more selective in Hong Kong and Singapore as the result of the indirect impact of weaker demand from mainland China, which weighed on demand across all property types in these markets.

We continued to like the prospects for property companies in Europe. U.K. property companies especially have generated robust

 

MIST-1

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Managed by CBRE Clarion Securities, LLC

Portfolio Manager Commentary*—(Continued)

 

capital growth in recent years, but cap rate compression has largely run its course. Future gains will depend on top-line rental growth, which remains robust, but is decelerating. Property companies on Continental Europe are in an earlier stage of cyclical recovery and offer more attractive value based on a wide spread between in-place cash flows or cap rates and the cost of capital. The ECB has indicated its intent to continue monetary stimulus via additional quantitative easing through March 2017. The investment market remains extremely active with elevated demand for prime properties in major European cities, including London and Paris, and associated downward pressure on cap rates as investors compete with one another for these deals. Cap rates on transactions at year end approached the 4% range.

We liked the U.S. for its good economy relative to the rest of the world, its strong property fundamentals with rising occupancies and rents, limited new supply, and material discounts to NAV. We favored the apartment, office and data center sectors and high-end mall companies. We remained more selective in the net lease and healthcare sectors. By geography, this includes many of the gateway cities located in the northeast and in California, including New York, San Francisco, and Los Angeles. We remained cautious on the Washington D.C. metro area, which continued to be soft, particularly in northern Virginia. We remained cautious on the more bond-like sectors of net lease and healthcare, but take into account potential syndicate activity and takeover possibilities in our Portfolio positioning, as well as acknowledge safe and growing dividend yields.

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, 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 subject to change at any time based upon economic, market, or other conditions and the advisory 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year  
Clarion Global Real Estate Portfolio                 

Class A

        -1.23           6.87           4.16   

Class B

        -1.40           6.58           3.91   

Class E

        -1.30           6.71           4.01   
FTSE EPRA /NAREIT Developed Index        -0.79           7.17           4.67   

1 The FTSE EPRA/NAREIT Developed Index is designed to track the performance of listed real estate companies and Real Estate Investment Trusts worldwide.

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
Simon Property Group, Inc. (REIT)      5.9   
Equity Residential (REIT)      4.3   
Mitsui Fudosan Co., Ltd.      3.5   
Mitsubishi Estate Co., Ltd.      3.5   
Public Storage (REIT)      3.4   
Welltower, Inc. (REIT)      3.2   
General Growth Properties, Inc. (REIT)      2.9   
ProLogis, Inc. (REIT)      2.9   
Unibail-Rodamco SE (REIT)      2.9   
AvalonBay Communities, Inc. (REIT)      2.8   

Top Countries

 

     % of
Net Assets		  
United States      56.1   
Japan      11.9   
France      7.2   
Hong Kong      6.8   
United Kingdom      6.6   
Australia      5.7   
Germany      3.0   
Netherlands      1.0   
Singapore      0.5   
Sweden      0.5   

 

MIST-3

Met Investors Series Trust

Clarion Global Real Estate 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A

    Actual      0.65 %     $ 1,000.00         $ 1,021.70         $ 3.31   
   Hypothetical*      0.65 %     $ 1,000.00         $ 1,021.93         $ 3.31   

Class B

    Actual      0.90 %     $ 1,000.00         $ 1,020.90         $ 4.58   
   Hypothetical*      0.90 %     $ 1,000.00         $ 1,020.67         $ 4.58   

Class E

    Actual      0.80 %     $ 1,000.00         $ 1,021.70         $ 4.08   
   Hypothetical*      0.80 %     $ 1,000.00         $ 1,021.17         $ 4.08   

* 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 (184 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 December 31, 2015

Common Stocks—99.1% of Net Assets

 

Security Description   Shares     Value  

Australia—5.7%

    

GPT Group (The) (REIT)

     5,861,685      $ 20,260,897   

Investa Office Fund (REIT)

     4,097,053        11,865,934   

Mirvac Group (REIT)

     10,946,327        15,664,040   

Scentre Group (REIT)

     5,764,912        17,470,951   

Vicinity Centres (REIT)

     7,456,999        15,111,863   

Westfield Corp. (REIT)

     1,120,097        7,705,707   
   

 

 

  
      88,079,392   
   

 

 

  

France—7.2%

    

Gecina S.A. (REIT)

     124,713        15,130,583   

ICADE (REIT)

     172,467        11,578,665   

Klepierre (REIT)

     897,682        39,808,803   

Unibail-Rodamco SE (REIT)

     173,470        43,984,007   
   

 

 

  
      110,502,058   
   

 

 

  

Germany—3.0%

    

Deutsche Wohnen AG

     319,452        8,892,145   

LEG Immobilien AG (a)

     425,489        34,922,727   

Vonovia SE

     93,867        2,907,503   
   

 

 

  
      46,722,375   
   

 

 

  

Hong Kong—6.8%

    

Cheung Kong Property Holdings, Ltd. (b)

     3,202,500        20,803,264   

Hongkong Land Holdings, Ltd.

     2,854,245        19,904,331   

Link REIT (The) (REIT) (b)

     2,953,600        17,677,580   

New World Development Co., Ltd.

     14,683,400        14,426,525   

Sun Hung Kai Properties, Ltd. (b)

     2,566,300        30,849,697   
   

 

 

  
      103,661,397   
   

 

 

  

Japan—11.9%

    

GLP J-REIT (REIT)

     6,818        6,596,090   

Japan Retail Fund Investment Corp. (REIT)

     13,452        25,832,064   

Kenedix Realty Investment Corp. (REIT)

     2,280        10,673,963   

Mitsubishi Estate Co., Ltd.

     2,594,756        53,781,360   

Mitsui Fudosan Co., Ltd.

     2,160,574        54,138,521   

Nippon Prologis REIT, Inc. (REIT)

     8,179        14,780,086   

Orix JREIT, Inc. (REIT) (b)

     6,270        8,113,378   

Sumitomo Realty & Development Co., Ltd.

     258,239        7,357,990   

Tokyo Tatemono Co., Ltd.

     123,000        1,337,325   
   

 

 

  
      182,610,777   
   

 

 

  

Netherlands—1.0%

    

Eurocommercial Properties NV (REIT)

     196,474        8,469,218   

NSI NV (REIT)

     1,447,767        6,247,059   
   

 

 

  
      14,716,277   
   

 

 

  

Singapore—0.5%

    

City Developments, Ltd.

     1,363,900        7,335,871   
   

 

 

  

Spain—0.2%

    

Hispania Activos Inmobiliarios S.A. (a)

     212,385        3,008,055   
   

 

 

  

Sweden—0.5%

    

Hufvudstaden AB - A Shares

     505,223      7,153,987   
   

 

 

  

United Kingdom—6.6%

    

British Land Co. plc (The) (REIT)

     1,958,745        22,545,552   

Derwent London plc (REIT)

     251,462        13,584,720   

Great Portland Estates plc (REIT)

     1,224,254        14,923,260   

Hammerson plc (REIT)

     1,522,733        13,457,915   

Land Securities Group plc (REIT)

     1,695,156        29,389,011   

Safestore Holdings plc (REIT)

     911,484        4,794,282   

Unite Group plc (The)

     235,145        2,270,372   
   

 

 

  
      100,965,112   
   

 

 

  

United States—55.7%

    

Alexandria Real Estate Equities, Inc. (REIT)

     210,600        19,029,816   

AvalonBay Communities, Inc. (REIT)

     231,180        42,567,173   

Boston Properties, Inc. (REIT)

     236,662        30,183,871   

DCT Industrial Trust, Inc. (REIT)

     404,327        15,109,700   

DDR Corp. (REIT)

     1,188,433        20,013,212   

Digital Realty Trust, Inc. (REIT)

     297,539        22,499,899   

Douglas Emmett, Inc. (REIT)

     454,359        14,166,914   

Equinix, Inc. (REIT)

     41,737        12,621,269   

Equity Residential (REIT)

     813,750        66,393,862   

Essex Property Trust, Inc. (REIT)

     116,000        27,771,560   

General Growth Properties, Inc. (REIT)

     1,630,144        44,356,218   

Healthcare Realty Trust, Inc. (REIT)

     411,775        11,661,468   

Healthcare Trust of America, Inc. (REIT) - Class A

     397,250        10,713,832   

Highwoods Properties, Inc. (REIT)

     245,378        10,698,481   

Host Hotels & Resorts, Inc. (REIT) (b)

     1,874,477        28,754,477   

Kilroy Realty Corp. (REIT) (b)

     382,800        24,223,584   

Kimco Realty Corp. (REIT)

     1,212,600        32,085,396   

Paramount Group, Inc. (REIT)

     767,400        13,889,940   

Pebblebrook Hotel Trust (REIT)

     551,188        15,444,288   

Post Properties, Inc. (REIT)

     154,100        9,116,556   

ProLogis, Inc. (REIT)

     1,031,692        44,280,221   

Public Storage (REIT)

     211,960        52,502,492   

Simon Property Group, Inc. (REIT)

     463,379        90,099,413   

SL Green Realty Corp. (REIT)

     289,160        32,669,297   

Spirit Realty Capital, Inc. (REIT)

     1,416,200        14,190,324   

Sun Communities, Inc. (REIT)

     163,700        11,218,361   

Sunstone Hotel Investors, Inc. (REIT)

     871,512        10,885,185   

UDR, Inc. (REIT)

     722,875        27,158,414   

VEREIT, Inc. (REIT) (b)

     1,695,481        13,428,209   

Vornado Realty Trust (REIT)

     375,652        37,550,174   

Welltower, Inc. (REIT)

     723,057        49,189,568   
   

 

 

  
      854,473,174   
   

 

 

  

Total Common Stocks
(Cost $1,416,960,349)

       1,519,228,475   
   

 

 

  
Short-Term Investments—3.0%   

Mutual Fund—2.6%

    

State Street Navigator Securities Lending MET Portfolio (c)

     39,901,976        39,901,976   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Schedule of Investments as of December 31, 2015

Short-Term Investments—(Continued)

 

Security Description   Principal
Amount*		     Value  

Repurchase Agreement—0.4%

    

Fixed Income Clearing Corp.
Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $5,359,311 on 01/04/16, collateralized by $5,430,000 Federal Home Loan Mortgage Corp. at 1.680% due 02/25/20 with a value of $5,470,725.

     5,359,293      $ 5,359,293   
   

 

 

  

Total Short-Term Investments
(Cost $45,261,269)

       45,261,269   
   

 

 

  

Total Investments—102.1%
(Cost $1,462,221,618) (d)

       1,564,489,744   

Other assets and liabilities (net)—(2.1)%

       (31,991,667 ) 
   

 

 

  
Net Assets—100.0%     $ 1,532,498,077   
   

 

 

  

 

* 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 December 31, 2015, the market value of securities loaned was $53,289,625 and the collateral received consisted of cash in the amount of $39,901,976 and non-cash collateral with a value of $15,949,572. 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 on loan as of December 31, 2015.
(d) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $1,480,171,575. The aggregate unrealized appreciation and depreciation of investments were $141,838,131 and $(57,519,962), respectively, resulting in net unrealized appreciation of $84,318,169 for federal income tax purposes.
(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
December 31, 2015 (Unaudited)

   

% of
Net Assets

  

Retail REIT’s

      24.5   

Office REIT’s

      15.1   

Specialized REIT’s

      14.3   

Residential REIT’s

      12.0   

Diversified Real Estate Activities

      11.0   

Diversified REIT’s

      10.4   

Industrial REIT’s

      5.3   

Real Estate Operating Companies

      5.2   

Real Estate Development

      1.4   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2     Level 3      Total  
Common Stocks           

Australia

    $ —         $ 88,079,392      $ —         $ 88,079,392   

France

      —           110,502,058        —           110,502,058   

Germany

      —           46,722,375        —           46,722,375   

Hong Kong

      —           103,661,397        —           103,661,397   

Japan

      —           182,610,777        —           182,610,777   

Netherlands

      —           14,716,277        —           14,716,277   

Singapore

      —           7,335,871        —           7,335,871   

Spain

      —           3,008,055        —           3,008,055   

Sweden

      —           7,153,987        —           7,153,987   

United Kingdom

      —           100,965,112        —           100,965,112   

United States

      854,473,174         —          —           854,473,174   

Total Common Stocks

      854,473,174         664,755,301        —           1,519,228,475   
Short-Term Investments           

Mutual Fund

      39,901,976         —          —           39,901,976   

Repurchase Agreement

      —           5,359,293        —           5,359,293   

Total Short-Term Investments

      39,901,976         5,359,293        —           45,261,269   

Total Investments

    $ 894,375,150       $ 670,114,594      $ —         $ 1,564,489,744   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (39,901,976 )    $ —         $ (39,901,976 ) 

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Clarion Global Real Estate Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 1,564,489,744   

Cash denominated in foreign currencies (c)

      727   

Receivable for:

   

Investments sold

      1,464,376   

Fund shares sold

      727,130   

Dividends and interest

      7,577,084   

Prepaid expenses

      4,380  
  

 

 

  

Total Assets

      1,574,263,441  

Liabilities

   

Collateral for securities loaned

      39,901,976   

Payables for:

   

Fund shares redeemed

      510,337   

Accrued Expenses:

   

Management fees

      786,100   

Distribution and service fees

      133,463   

Deferred trustees’ fees

      81,937   

Other expenses

      351,551  
  

 

 

  

Total Liabilities

      41,765,364  
  

 

 

  

Net Assets

    $ 1,532,498,077  
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 1,581,943,859   

Undistributed net investment income

      23,904,493   

Accumulated net realized loss

      (175,575,751 ) 

Unrealized appreciation on investments and foreign currency transactions

      102,225,476   
  

 

 

  

Net Assets

    $ 1,532,498,077  
  

 

 

  

Net Assets

   

Class A

    $ 887,276,029   

Class B

      605,216,555   

Class E

      40,005,493   

Capital Shares Outstanding*

   

Class A

      75,293,596   

Class B

      51,630,741   

Class E

      3,399,547   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 11.78   

Class B

      11.72   

Class E

      11.77   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,462,221,618.
(b) Includes securities loaned at value of $53,289,625.
(c) Identified cost of cash denominated in foreign currencies was $713.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends (a)

    $ 45,599,600   

Interest

      38   

Securities lending income

      381,987  
  

 

 

  

Total investment income

      45,981,625   

Expenses

   

Management fees

      10,320,524   

Administration fees

      41,345   

Custodian and accounting fees

      450,835   

Distribution and service fees—Class B

      1,642,047   

Distribution and service fees—Class E

      65,153   

Audit and tax services

      53,633   

Legal

      26,460   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      140,490   

Insurance

      11,401   

Miscellaneous

      22,870  
  

 

 

  

Total expenses

      12,809,931  

Less broker commission recapture

      (281,056 )
  

 

 

  

Net expenses

      12,528,875  
  

 

 

  

Net Investment Income

      33,452,750   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      132,051,709   

Foreign currency transactions

      2,108,982  
  

 

 

  

Net realized gain

      134,160,691   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (180,250,163 ) 

Foreign currency transactions

      3,562  
  

 

 

  

Net change in unrealized depreciation

      (180,246,601 ) 
  

 

 

  

Net realized and unrealized loss

      (46,085,910 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (12,633,160 )
  

 

 

  

 

(a) Net of foreign withholding taxes of $1,922,046.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 33,452,750      $ 38,394,342   

Net realized gain

      134,160,691        151,348,992   

Net change in unrealized appreciation (depreciation)

      (180,246,601 )      55,369,377  
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (12,633,160 )     245,112,711  
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (38,353,440 )      (23,262,027 ) 

Class B

      (25,028,170 )      (8,533,728 ) 

Class E

      (1,690,094 )     (725,223 )
  

 

 

    

 

 

  

Total distributions

      (65,071,704 )     (32,520,978 )
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (354,800,651 )     (16,568,464 )
  

 

 

    

 

 

  

Total increase (decrease) in net assets

      (432,505,515 )      196,023,269   

Net Assets

     

Beginning of period

      1,965,003,592       1,768,980,323  
  

 

 

    

 

 

  

End of period

    $ 1,532,498,077      $ 1,965,003,592   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 23,904,493      $ 12,158,819   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      1,910,174      $ 23,691,816        6,814,925      $ 78,205,262   

Reinvestments

      3,239,311        38,353,440        2,040,529        23,262,027   

Redemptions

      (28,686,808 )      (361,434,363 )      (17,702,714 )      (210,017,444 )
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (23,537,323 )    $ (299,389,107 )      (8,847,260 )    $ (108,550,155 )
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      2,807,691      $ 34,431,723        6,188,707      $ 71,902,954   

Fund subscription in kind (a)

      0        0        11,028,735        126,168,723   

Reinvestments

      2,121,031        25,028,170        751,208        8,533,728   

Redemptions

      (9,216,215 )      (111,883,074 )      (9,509,141 )      (112,468,877 )
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (4,287,493 )    $ (52,423,181 )      8,459,509      $ 94,136,528  
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      276,389      $ 3,415,274        399,419      $ 4,780,019   

Reinvestments

      142,744        1,690,094        63,616        725,223   

Redemptions

      (670,580 )      (8,093,731 )      (648,455 )      (7,660,079 )
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (251,447 )    $ (2,988,363 )      (185,420 )    $ (2,154,837 )
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (354,800,651 )      $ (16,568,464 )
    

 

 

      

 

 

  

 

(a) Includes cash and securities amounting to $6,771,829 and $119,396,894, respectively. Securities were valued at market as of April 25, 2014.

 

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  
     Year Ended December 31,  
     2015      2014     2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 12.43       $ 11.14      $ 11.50       $ 9.32       $ 10.23   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (a)

      0.25         0.24        0.24         0.27         0.23   

Net realized and unrealized gain (loss) on investments

      (0.40 )      1.26       0.23        2.15        (0.73 )
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.15 )      1.50       0.47        2.42        (0.50 )
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.50 )      (0.21 )     (0.83 )      (0.24 )      (0.41 )
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total distributions

      (0.50 )      (0.21 )     (0.83 )      (0.24 )      (0.41 )
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.78       $ 12.43      $ 11.14       $ 11.50       $ 9.32   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (1.23 )      13.67       3.76        26.30        (5.28 )

Ratios/Supplemental Data

              

Ratio of expenses to average net assets (%)

      0.64         0.64        0.65         0.66         0.67   

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

      2.03         2.07        2.12         2.54         2.35   

Portfolio turnover rate (%)

      44         39  (c)      36         43         31   

Net assets, end of period (in millions)

    $ 887.3       $ 1,228.3      $ 1,200.0       $ 1,080.7       $ 939.0   
     Class B  
     Year Ended December 31,  
     2015      2014     2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 12.36       $ 11.09      $ 11.45       $ 9.28       $ 10.20   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (a)

      0.22         0.22        0.21         0.24         0.21   

Net realized and unrealized gain (loss) on investments

      (0.39 )      1.24       0.23        2.14        (0.74 )
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.17 )      1.46       0.44        2.38        (0.53 )
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.47 )      (0.19 )     (0.80 )      (0.21 )      (0.39 )
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total distributions

      (0.47 )      (0.19 )     (0.80 )      (0.21 )      (0.39 )
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.72       $ 12.36      $ 11.09       $ 11.45       $ 9.28   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (1.40 )      13.27       3.55        25.99        (5.59 )

Ratios/Supplemental Data

              

Ratio of expenses to average net assets (%)

      0.89         0.89        0.90         0.91         0.92   

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

      1.81         1.84        1.86         2.29         2.09   

Portfolio turnover rate (%)

      44         39  (c)      36         43         31   

Net assets, end of period (in millions)

    $ 605.2       $ 691.4      $ 526.2       $ 518.7       $ 443.6   

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  
     Year Ended December 31,  
     2015      2014     2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 12.41       $ 11.13      $ 11.49       $ 9.31       $ 10.22   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (a)

      0.23         0.23        0.22         0.25         0.22   

Net realized and unrealized gain (loss) on investments

      (0.39 )      1.25       0.24        2.15        (0.74 )
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.16 )      1.48       0.46        2.40        (0.52 )
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.48 )      (0.20 )     (0.82 )      (0.22 )      (0.39 )
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total distributions

      (0.48 )      (0.20 )     (0.82 )      (0.22 )      (0.39 )
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.77       $ 12.41      $ 11.13       $ 11.49       $ 9.31   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (1.30 )      13.42       3.63        26.13        (5.41 )

Ratios/Supplemental Data

              

Ratio of expenses to average net assets (%)

      0.79         0.79        0.80         0.81         0.82   

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

      1.91         1.92        1.96         2.38         2.17   

Portfolio turnover rate (%)

      44         39  (c)      36         43         31   

Net assets, end of period (in millions)

    $ 40.0       $ 45.3      $ 42.7       $ 41.5       $ 35.3   

 

(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) Excludes the effect of subscriptions in kind activity for the year ended December 31, 2014.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

 

MIST-12

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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), real estate investment trust (REIT) adjustments, and broker commission recapture. These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

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.

 

MIST-13

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $5,359,293, 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 December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2015, with a contractual maturity of overnight and continuous.

3. Certain Risks

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”).

Market 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, 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

 

MIST-14

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may 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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 741,693,508       $ 0       $ 1,110,570,391   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$10,320,524      0.700 %    First $200 million
     0.650 %    $200 million to $750 million
     0.550 %    Over $750 million

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. CBRE Clarion Securities LLC is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

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, LLC, 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

 

MIST-15

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 year ended December 31, 2015 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 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$65,071,704    $ 32,520,978       $ —       $ —       $ 65,071,704       $ 32,520,978   

As of December 31, 2015, 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  

$35,191,204

    $ —       $ 84,275,680       $ (168,830,719 )    $ —       $ (49,363,835 ) 

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.

During the year ended December 31, 2015 the Portfolio utilized capital loss carryforwards of $90,765,367.

As of December 31, 2015, the Portfolio had no post-enactment accumulated capital losses and the pre-enactment accumulated capital loss carryforwards and expiration dates were as follows:

 

Expiring
12/31/17

    Expiring
12/31/18		      Total  
$81,135,512    $ 87,695,207       $ 168,830,719   

8. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-16

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Clarion Global Real Estate 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 Clarion Global Real Estate Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 Clarion Global Real Estate Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-17

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-18

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-19

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

 

MIST-20

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-21

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

Clarion Global Real Estate Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and CBRE Clarion Securities LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio underperformed the median of its Performance Universe for the one- and three-year periods ended June 30, 2015 and outperformed the median of its Performance Universe for the five-year period ended June 30, 2015. The Board also considered that the Portfolio underperformed its Lipper Index for the one-, three- and five-year periods ended June 30, 2015. The Board further considered that the Portfolio underperformed its benchmark, the FTSE EPRA/NAREIT Developed Index, for the one-, three-, and five-year period ended October 31, 2015. The Board took into account management’s discussion of the Portfolio’s performance, including prevailing market conditions.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-l fees) were below the Expense Group median, Expense Universe median, and Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size and were the lowest in the Expense Group. The Board also noted that the Portfolio’s contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-22

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio

Managed by ClearBridge Investments, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A, B, and E shares of the ClearBridge Aggressive Growth Portfolio returned -3.81%, -4.04%, and -3.99%, respectively. The Portfolio’s benchmark, the Russell 3000 Growth Index1, returned 5.09%.

MARKET ENVIRONMENT / CONDITIONS

2015 was an unusual year for stocks as market breadth became increasingly narrow, with most of the market’s gain concentrated in a handful of mega cap technology and internet companies. This tech dominance masked underlying weakness in much of the overall market, where many stocks traded well off their highs. Most major U.S. indices managed to deliver positive results for the past year, supported by ample liquidity, a steadily improving job market and sharply lower commodity prices that were enough to offset global growth concerns centered in China. The S&P 500 Index experienced its first 10% correction in nearly four years in the third quarter, sparked by China’s surprise devaluation of its currency. But stocks rebounded by year-end and the Federal Reserve affirmed the strength of the U.S. economic recovery by raising interest rates for the first time since 2006.

PORTFOLIO REVIEW / PERIOD END POSITIONING

During the 12-month period ended December 31, 2015, relative to the benchmark Russell 3000 Growth Index, both overall stock selection and overall sector allocation detracted from the Portfolio’s performance. In particular, an overweight to the Energy sector and stock selection in the Information Technology (“IT”), Consumer Discretionary, and Health Care sectors had the most negative impacts on relative performance.

In terms of individual positions, leading detractors from relative Portfolio performance for the period included Anadarko Petroleum, National Oilwell Varco, and Weatherford International in the Energy sector, Seagate Technology in the IT sector, and Valeant Pharmaceuticals in the Health Care sector.

On the positive side, stock selection in the Energy sector as well as underweights to the Industrials and Materials sector and an overweight to the Health Care sector contributed to relative performance for the period.

Leading individual contributors to relative Portfolio performance during the period included UnitedHealth Group and Allergan in the Health Care sector, Cablevision Systems in the Consumer Discretionary sector, Broadcom in the IT sector as well as Pall Corp. in the Industrials sector.

During the period, the Portfolio added new positions in Aduro BioTech and Spark Therapeutics in the Health Care sector as well as Twitter, Western Digital, and Fitbit in the IT sector. We received shares of Medtronic in the Health Care sector as a result of its acquisition of Covidien and shares of AT&T in the Telecommunication Services sector as a result of its acquisition of DirecTV. The Portfolio also acquired several classes of shares of companies that are part of or spinoffs from Liberty Media Corp. and MSG Networks. We sold positions in Pall Corp. in the Industrials sector, Cablevision Systems in the Consumer Discretionary, and Advent Software in the IT sector due to pending acquisitions.

For the year ended December 31, 2015, the Portfolio’s positioning with regard to sector weightings was largely consistent, with average allocations concentrated in the Health Care (41.9%), Consumer Discretionary (19.7%), IT (18.2%), Energy (10.4%), and Industrials (6.8%) sectors. The Portfolio had no holdings in the Consumer Staples, Financials, or Utilities sectors. As always, the Portfolio’s sector allocations were a function of our bottom up stock selection process.

While IT, Health Care, Media, and Energy remained our key sector exposures, at year end the Portfolio was positioned more on a contrarian basis than it has been in over a decade. We maintained sizeable exposures to certain sectors and little or no exposure to others. The capitulation-level selling across the U.S. equity market in the third quarter left many stocks attractively valued and we remained selective in putting cash to work across the Portfolio. In addition to commodity stocks being at cyclical lows, at year end we believed large cap biopharmaceutical stocks traded at their most compelling levels in several years while parts of the technology and media spaces were attractively priced.

Richard Freeman

Evan Bauman

Portfolio Managers

ClearBridge Investments, 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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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

ClearBridge Aggressive Growth Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE RUSSELL 3000 GROWTH INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year  
ClearBridge Aggressive Growth Portfolio                 

Class A

        -3.81           15.52           7.70   

Class B

        -4.04           15.24           7.44   

Class E

        -3.99           15.37           7.55   
Russell 3000 Growth Index        5.09           13.30           8.49   

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
UnitedHealth Group, Inc.      9.1   
Amgen, Inc.      8.5   
Biogen, Inc.      8.1   
Comcast Corp. - Class A      8.0   
Allergan plc      7.5   
Broadcom Corp. - Class A      3.6   
Vertex Pharmaceuticals, Inc.      3.6   
Anadarko Petroleum Corp.      3.5   
SanDisk Corp.      3.4   
Seagate Technology plc      2.8   

Top Sectors

 

     % of
Net Assets		  
Health Care      43.2   
Information Technology      20.3   
Consumer Discretionary      18.7   
Energy      8.4   
Industrials      5.7   
Materials      0.5   
Telecommunication Services      0.2   

 

MIST-2

Met Investors Series Trust

ClearBridge Aggressive 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, July 1, 2015 through December 31, 2015.

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

         Annualized
Expense
Ratio		      Beginning
Account Value
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual      0.57 %     $ 1,000.00         $ 926.20         $ 2.77   
   Hypothetical*      0.57 %     $ 1,000.00         $ 1,022.33         $ 2.91   

Class B(a)

    Actual      0.82 %     $ 1,000.00         $ 925.00         $ 3.98   
   Hypothetical*      0.82 %     $ 1,000.00         $ 1,021.07         $ 4.18   

Class E(a)

    Actual      0.72 %     $ 1,000.00         $ 925.10         $ 3.49   
   Hypothetical*      0.72 %     $ 1,000.00         $ 1,021.58         $ 3.67   

* 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 (184 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

ClearBridge Aggressive Growth Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—97.0% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—2.2%

  

Engility Holdings, Inc.

     57,266      $ 1,860,000   

L-3 Communications Holdings, Inc.

     582,900        69,662,379   
   

 

 

  
      71,522,379   
   

 

 

  

Biotechnology—21.6%

  

Aduro Biotech, Inc. (a) (b)

     31,570        888,380   

Agios Pharmaceuticals, Inc. (a) (b)

     30,800        1,999,536   

Amgen, Inc.

     1,710,100        277,600,533   

Biogen, Inc. (a)

     867,860        265,868,911   

ImmunoGen, Inc. (a) (b)

     499,700        6,780,929   

Ionis Pharmaceuticals, Inc. (a) (b)

     498,335        30,861,886   

ProQR Therapeutics NV (a)

     88,300        766,444   

Spark Therapeutics, Inc. (a) (b)

     33,520        1,518,791   

Vertex Pharmaceuticals, Inc. (a)

     932,672        117,358,118   
   

 

 

  
      703,643,528   
   

 

 

  

Commercial Services & Supplies—2.1%

  

ADT Corp. (The) (b)

     701,612        23,139,164   

Tyco International plc

     1,473,125        46,977,956   
   

 

 

  
      70,117,120   
   

 

 

  

Communications Equipment—0.1%

  

ARRIS Group, Inc. (a)

     122,915        3,757,512   
   

 

 

  

Construction & Engineering—0.8%

  

Fluor Corp.

     519,410        24,526,540   
   

 

 

  

Diversified Telecommunication Services—0.2%

  

AT&T, Inc.

     157,745        5,428,005   
   

 

 

  

Electronic Equipment, Instruments & Components—2.9%

  

Dolby Laboratories, Inc. - Class A (b)

     295,300        9,936,845   

Fitbit, Inc. - Class A (a) (b)

     54,350        1,608,217   

TE Connectivity, Ltd.

     1,269,625        82,030,471   
   

 

 

  
      93,575,533   
   

 

 

  

Energy Equipment & Services—4.6%

  

Core Laboratories NV (b)

     514,070        55,899,972   

Frank’s International NV

     30,500        509,045   

National Oilwell Varco, Inc. (b)

     916,878        30,706,244   

Weatherford International plc (a) (b)

     7,614,500        63,885,655   
   

 

 

  
      151,000,916   
   

 

 

  

Health Care Equipment & Supplies—2.1%

  

Medtronic plc

     861,379        66,257,273   

Wright Medical Group NV (a) (b)

     58,679        1,418,858   
   

 

 

  
      67,676,131   
   

 

 

  

Health Care Providers & Services—9.1%

  

UnitedHealth Group, Inc.

     2,520,450        296,505,738   
   

 

 

  

Internet & Catalog Retail—2.3%

  

Liberty Interactive Corp. - Class A (a)

     1,867,200        51,011,904   

Liberty TripAdvisor Holdings, Inc. - Class A (a)

     154,420        4,685,103   

Internet & Catalog Retail—(Continued)

  

Liberty Ventures - Series A (a)

     419,879      18,940,741   
   

 

 

  
      74,637,748   
   

 

 

  

Internet Software & Services—1.9%

  

Facebook, Inc. - Class A (a)

     535,500        56,045,430   

Twitter, Inc. (a) (b)

     300,000        6,942,000   
   

 

 

  
      62,987,430   
   

 

 

  

Machinery—0.5%

  

Pentair plc (b)

     339,804        16,830,492   
   

 

 

  

Media—16.4%

    

AMC Networks, Inc. - Class A (a) (b)

     825,825        61,672,611   

CBS Corp. - Class B

     323,200        15,232,416   

Comcast Corp. - Class A (b)

     4,609,600        260,119,728   

Liberty Broadband Corp. - Class A (a)

     117,647        6,076,468   

Liberty Broadband Corp. - Class C (a)

     305,883        15,863,092   

Liberty Global plc - Class A (a)

     299,400        12,682,584   

Liberty Global plc - Class C (a)

     299,400        12,206,538   

Liberty LiLAC Group - Class A (a)

     14,970        619,309   

Liberty LiLAC Group - Class C (a) (b)

     14,970        643,710   

Liberty Media Corp. - Class A (a)

     470,588        18,470,579   

Liberty Media Corp. - Class C (a)

     941,176        35,839,982   

Madison Square Garden Co. (The) - Class A (a)

     286,049        46,282,728   

MSG Networks, Inc. - Class A (a)

     858,150        17,849,520   

Starz - Class A (a)

     513,888        17,215,248   

Viacom, Inc. - Class B

     344,700        14,187,852   
   

 

 

  
      534,962,365   
   

 

 

  

Metals & Mining—0.5%

  

Freeport-McMoRan, Inc.

     770,800        5,218,316   

Nucor Corp.

     274,700        11,070,410   
   

 

 

  
      16,288,726   
   

 

 

  

Oil, Gas & Consumable Fuels—3.7%

  

Anadarko Petroleum Corp.

     2,369,860        115,127,799   

Newfield Exploration Co. (a)

     205,400        6,687,824   
   

 

 

  
      121,815,623   
   

 

 

  

Pharmaceuticals—10.5%

  

Allergan plc (a)

     786,777        245,867,812   

Mallinckrodt plc (a)

     143,915        10,740,376   

Teva Pharmaceutical Industries, Ltd. (ADR)

     298,100        19,567,284   

Valeant Pharmaceuticals International, Inc. (a)

     653,070        66,384,566   
   

 

 

  
      342,560,038   
   

 

 

  

Semiconductors & Semiconductor Equipment—5.7%

  

Broadcom Corp. - Class A

     2,035,545        117,695,212   

Cree, Inc. (a) (b)

     887,200        23,661,624   

Intel Corp.

     1,288,348        44,383,589   
   

 

 

  
      185,740,425   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-4

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares/
Principal
Amount*		     Value  

Software—3.4%

    

Autodesk, Inc. (a)

     944,300      $ 57,536,199   

Citrix Systems, Inc. (a)

     616,100        46,607,965   

Nuance Communications, Inc. (a)

     400,000        7,956,000   
   

 

 

  
      112,100,164   
   

 

 

  

Technology Hardware, Storage & Peripherals—6.3%

  

SanDisk Corp.

     1,443,190        109,668,008   

Seagate Technology plc (b)

     2,448,500        89,762,010   

Western Digital Corp. (b)

     100,000        6,005,000   
   

 

 

  
      205,435,018   
   

 

 

  

Trading Companies & Distributors—0.1%

  

NOW, Inc. (a) (b)

     229,219        3,626,245   
   

 

 

  

Total Common Stocks
(Cost $2,242,574,349)

       3,164,737,676   
   

 

 

  
Rights—0.0%   

Health Care Equipment & Supplies—0.0%

  

Wright Medical Group NV (a)
(Cost $573,350)

     229,340        231,633   
   

 

 

  
Short-Term Investments—12.1%   

Mutual Fund—9.0%

  

State Street Navigator Securities Lending MET Portfolio (c)

     294,829,785        294,829,785   
   

 

 

  

Repurchase Agreement—3.1%

  

Fixed Income Clearing Corp.
Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $100,644,383 on 01/04/16, collateralized by $102,405,000 U.S. Treasury Note at 1.625% due 06/30/20 with a value of $102,661,013.

     100,644,048        100,644,048   
   

 

 

  

Total Short-Term Investments
(Cost $395,473,833)

       395,473,833   
   

 

 

  

Total Investments—109.1%
(Cost $2,638,621,532) (d)

       3,560,443,142   

Other assets and liabilities (net)—(9.1)%

       (296,756,534 ) 
   

 

 

  
Net Assets—100.0%     $ 3,263,686,608   
   

 

 

  

 

* 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 December 31, 2015, the market value of securities loaned was $291,409,939 and the collateral received consisted of cash in the amount of $294,829,785 and non-cash collateral with a value of $4,847,769. 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 on loan as of December 31, 2015.
(d) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $2,637,227,530. The aggregate unrealized appreciation and depreciation of investments were $1,155,303,069 and $(232,087,457), respectively, resulting in net unrealized appreciation of $923,215,612 for federal income tax purposes.
(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

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2     Level 3      Total  

Total Common Stocks*

    $ 3,164,737,676       $ —        $ —         $ 3,164,737,676   

Total Rights*

      231,633         —          —           231,633   
Short-Term Investments           

Mutual Fund

      294,829,785         —          —           294,829,785   

Repurchase Agreement

      —           100,644,048        —           100,644,048   

Total Short-Term Investments

      294,829,785         100,644,048        —           395,473,833   

Total Investments

    $ 3,459,799,094       $ 100,644,048      $ —         $ 3,560,443,142   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (294,829,785 )    $ —         $ (294,829,785 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 3,560,443,142   

Receivable for:

   

Fund shares sold

      176,355   

Dividends and interest

      925,347   

Prepaid expenses

      9,890   
  

 

 

  

Total Assets

      3,561,554,734   

Liabilities

   

Collateral for securities loaned

      294,829,785   

Payables for:

   

Fund shares redeemed

      767,253   

Accrued Expenses:

   

Management fees

      1,531,482   

Distribution and service fees

      259,847   

Deferred trustees’ fees

      150,747   

Other expenses

      329,012   
  

 

 

  

Total Liabilities

      297,868,126   
  

 

 

  

Net Assets

    $ 3,263,686,608   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 2,883,683,752   

Undistributed net investment income

      19,250,798   

Accumulated net realized loss

      (561,057,451 ) 

Unrealized appreciation on investments and foreign currency transactions

      921,809,509   
  

 

 

  

Net Assets

    $ 3,263,686,608   
  

 

 

  

Net Assets

   

Class A

    $ 2,029,045,839   

Class B

      1,190,763,573   

Class E

      43,877,196   

Capital Shares Outstanding*

   

Class A

      132,591,265   

Class B

      79,769,998   

Class E

      2,910,920   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 15.30   

Class B

      14.93   

Class E

      15.07   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $2,638,621,532.
(b) Includes securities loaned at value of $291,409,939.

 

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends (a)

    $ 41,716,713   

Interest

      1,373   

Securities lending income

      1,313,355   
  

 

 

  

Total investment income

      43,031,441   

Expenses

   

Management fees

      19,599,687   

Administration fees

      85,019   

Custodian and accounting fees

      225,777   

Distribution and service fees—Class B

      3,295,511   

Distribution and service fees—Class E

      74,499   

Audit and tax services

      40,446   

Legal

      25,416   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      285,691   

Insurance

      23,273   

Miscellaneous

      30,014   
  

 

 

  

Total expenses

      23,720,506   

Less management fee waiver

      (179,984 ) 

Less broker commission recapture

      (4,032 ) 
  

 

 

  

Net expenses

      23,536,490   
  

 

 

  

Net Investment Income

      19,494,951   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   

Net realized gain on investments

      228,518,383   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (373,908,454 ) 

Foreign currency transactions

      (1,101 ) 
  

 

 

  

Net change in unrealized depreciation

      (373,909,555 ) 
  

 

 

  

Net realized and unrealized loss

      (145,391,172 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (125,896,221 ) 
  

 

 

  

 

(a) Net of foreign withholding taxes of $233,444.

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 19,494,951      $ 13,195,121   

Net realized gain

      228,518,383        270,279,442   

Net change in unrealized appreciation (depreciation)

      (373,909,555 )      285,972,583   
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (125,896,221 )      569,447,146   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (9,246,828 )      (4,659,929 ) 

Class B

      (2,851,224 )      (980,727 ) 

Class E

      (146,653 )      (52,111 ) 
  

 

 

    

 

 

  

Total distributions

      (12,244,705 )      (5,692,767 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      (270,613,517 )      860,283,324   
  

 

 

    

 

 

  

Total increase (decrease) in net assets

      (408,754,443 )      1,424,037,703   

Net Assets

     

Beginning of period

      3,672,441,051        2,248,403,348   
  

 

 

    

 

 

  

End of period

    $ 3,263,686,608      $ 3,672,441,051   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 19,250,798      $ 12,004,584   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      5,892,809      $ 96,021,904        11,450,519      $ 165,200,393   

Shares issued through acquisition (a)

      0        0        52,772,184        743,032,347   

Reinvestments

      548,773        9,246,828        334,046        4,659,929   

Redemptions

      (16,893,721 )      (276,327,418 )      (32,745,499 )      (484,905,741 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (10,452,139 )    $ (171,058,686 )      31,811,250      $ 427,986,928   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      8,154,039      $ 127,565,821        10,599,811      $ 154,932,775   

Shares issued through acquisition (a)

      0        0        37,694,063        519,047,253   

Reinvestments

      173,222        2,851,224        71,900        980,727   

Redemptions

      (14,243,929 )      (224,246,819 )      (18,072,447 )      (262,049,156 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (5,916,668 )    $ (93,829,774 )      30,293,327      $ 412,911,599   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      420,911      $ 6,698,551        485,039      $ 7,145,254   

Shares issued through acquisition (a)

      0        0        3,216,498        44,677,162   

Reinvestments

      8,829        146,653        3,787        52,111   

Redemptions

      (787,954 )      (12,570,261 )      (2,290,344 )      (32,489,730 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (358,214 )    $ (5,725,057 )      1,414,980      $ 19,384,797   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ (270,613,517 )      $ 860,283,324   
    

 

 

      

 

 

  

 

(a) See Note 8 of the Notes to Financial Statements.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio

Financial Highlights

 

Selected per share data                                  
     Class A  
     Year Ended December 31,  
     2015      2014     2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 15.97       $ 13.45      $ 9.26       $ 7.81       $ 7.55   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (a)

      0.10         0.07        0.05         0.05         0.02   

Net realized and unrealized gain (loss) on investments

      (0.70 )       2.50        4.19         1.42         0.25   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.60 )       2.57        4.24         1.47         0.27   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.07 )       (0.05 )      (0.05 )       (0.02 )       (0.01 ) 
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total distributions

      (0.07 )       (0.05 )      (0.05 )       (0.02 )       (0.01 ) 
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 15.30       $ 15.97      $ 13.45       $ 9.26       $ 7.81   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (3.81 )       19.12        45.90         18.81         3.55   

Ratios/Supplemental Data

              

Gross ratio of expenses to average net assets (%)

      0.57         0.57        0.61         0.64         0.65   

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

      0.57         0.56        0.61         0.64         0.65   

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

      0.64         0.50        0.43         0.61         0.27   

Portfolio turnover rate (%)

      1         0  (d)      7         4         6   

Net assets, end of period (in millions)

    $ 2,029.0       $ 2,285.1      $ 1,496.3       $ 974.5       $ 657.9   
     Class B  
     Year Ended December 31,  
     2015      2014     2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 15.59       $ 13.13      $ 9.04       $ 7.63       $ 7.39   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (a)

      0.06         0.04        0.02         0.03         0.00  (e) 

Net realized and unrealized gain (loss) on investments

      (0.69 )       2.44        4.10         1.38         0.24   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.63 )       2.48        4.12         1.41         0.24   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.03 )       (0.02 )      (0.03 )       (0.00 )(f)       0.00   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total distributions

      (0.03 )       (0.02 )      (0.03 )       (0.00 )(f)       0.00   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 14.93       $ 15.59      $ 13.13       $ 9.04       $ 7.63   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (4.04 )       18.89        45.60         18.51         3.25   

Ratios/Supplemental Data

              

Gross ratio of expenses to average net assets (%)

      0.82         0.82        0.86         0.89         0.90   

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

      0.82         0.81        0.86         0.89         0.90   

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

      0.39         0.25        0.18         0.31         0.04   

Portfolio turnover rate (%)

      1         0  (d)      7         4         6   

Net assets, end of period (in millions)

    $ 1,190.8       $ 1,335.9      $ 727.5       $ 467.3       $ 421.4   

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

Financial Highlights

 

Selected per share data                                  
     Class E  
     Year Ended December 31,  
     2015      2014     2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 15.74       $ 13.26      $ 9.12       $ 7.70       $ 7.44   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (a)

      0.08         0.05        0.03         0.03         0.01   

Net realized and unrealized gain (loss) on investments

      (0.70 )       2.46        4.14         1.40         0.25   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.62 )       2.51        4.17         1.43         0.26   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.05 )       (0.03 )      (0.03 )       (0.01 )       0.00   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total distributions

      (0.05 )       (0.03 )      (0.03 )       (0.01 )       0.00   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 15.07       $ 15.74      $ 13.26       $ 9.12       $ 7.70   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (3.99 )       18.94        45.85         18.57         3.49   

Ratios/Supplemental Data

              

Gross ratio of expenses to average net assets (%)

      0.72         0.72        0.76         0.79         0.80   

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

      0.72         0.71        0.76         0.79         0.80   

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

      0.49         0.36        0.28         0.40         0.18   

Portfolio turnover rate (%)

      1         0  (d)      7         4         6   

Net assets, end of period (in millions)

    $ 43.9       $ 51.5      $ 24.6       $ 17.7       $ 17.2   

 

(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) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).
(d) Rounds to less than 1%.
(e) Net investment income was less than $0.01.
(f) Distributions from net investment income were less than $0.01.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally categorized as Level 2 within the fair value hierarchy.

 

MIST-11

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 broker commission recapture. These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

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

 

MIST-12

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $100,644,048, 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 December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2015, with a contractual maturity of overnight and continuous.

3. Certain Risks

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”).

Market 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, 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-13

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio

Notes to Financial Statements—December 31, 2015—(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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 19,425,178       $ 0       $ 340,085,079   

The Portfolio engaged in security transactions with other accounts managed by Clearbridge Investments, LLC, that amounted to $19,089,000 in sales of investments, which are included above.

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management

Fees earned by

MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$19,599,687      0.650 %    First $500 million
     0.600 %    $500 million to $1 billion
     0.550 %    $1 billion to $2 billion
     0.500 %    Over $2 billion

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. ClearBridge Investments, LLC is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

Management Fee Waiver - Pursuant to an expense agreement, MetLife Advisers has agreed, for the period May 1, 2015 to April 30, 2016, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

 

% per annum

   

Average Daily Net Assets

  
0.025%    On amounts in excess of $ 2.85 billion   

An identical agreement was in place for the period April 28, 2014 to April 30, 2015. Amounts waived for the period ended December 31, 2015 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.

 

MIST-14

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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, LLC, 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 year ended December 31, 2015 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 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$12,244,705    $ 5,692,767       $ —       $ —       $ 12,244,705       $ 5,692,767   

As of December 31, 2015, 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  
$19,401,545    $ —       $ 923,203,516       $ (562,451,458 )    $ —       $ 380,153,603   

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.

During the year ended December 31, 2015, the Portfolio utilized capital loss carryforwards of $228,523,087.

 

MIST-15

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

As of December 31, 2015, the Portfolio had no post-enactment accumulated capital losses and the pre-enactment accumulated capital loss carryforwards and expiration dates were as follows:

 

Expiring
12/31/16

    Expiring
12/31/17		      Expiring
12/31/18		      Total  
$418,021,150*    $ 130,530,096       $ 13,900,212       $ 562,451,458   

 

  * The Portfolio acquired capital losses in its merger with Legg Mason Value Equity Portfolio on April 29, 2011.

8. Acquisition

At the close of business on April 25, 2014, the Portfolio, with aggregate Class A, Class B and Class E net assets of $1,458,844,544, $750,816,679 and $26,132,387, respectively, acquired all of the assets and liabilities of ClearBridge Aggressive Growth Portfolio II of the Trust (“ClearBridge Aggressive Growth Portfolio II”).

The acquisition was accomplished by a tax-free exchange of 52,772,184 Class A shares of the Portfolio (valued at $743,032,347) for 19,421,836 Class A shares of ClearBridge Aggressive Growth Portfolio II, 37,694,063 Class B shares of the Portfolio (valued at $519,047,253) for 15,292,346 Class B shares of ClearBridge Aggressive Growth Portfolio II and 3,216,498 Class E shares of the Portfolio (valued at $44,677,162) for 1,247,466 Class E shares of ClearBridge Aggressive Growth Portfolio II. Each shareholder of ClearBridge Aggressive Growth Portfolio II 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 25, 2014. 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 ClearBridge Aggressive Growth Portfolio II 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 ClearBridge Aggressive Growth Portfolio II. All other costs associated with the merger were not borne by the shareholders of either portfolio.

ClearBridge Aggressive Growth Portfolio II’s net assets on April 25, 2014, were $743,032,347, $519,047,253 and $44,677,162 for Class A, Class B and Class E shares, respectively, including investments valued at $1,306,129,563 with a cost basis of $1,182,214,634. 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 ClearBridge Aggressive Growth Portfolio II 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 $3,542,550,372, which included $123,923,016 of acquired unrealized appreciation on investments and foreign currency transactions.

Assuming the acquisition had been completed on January 1, 2014, the Portfolio’s pro-forma results of operations for the year ended December 31, 2014 are as follows:

 

Net Investment income

    $ 14,159,995 (a) 

Net realized and unrealized gain on investments

      616,885,954 (b) 
  

 

 

  

Net increase in net assets from operations

    $ 631,045,949   
  

 

 

  

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 ClearBridge Aggressive Growth Portfolio II that have been included in the Portfolio’s Statement of Operations since April 25, 2014.

 

(a) $13,195,121 net investment income as reported at December 31, 2014, plus $950,528 from ClearBridge Aggressive Growth Portfolio II pre-merger net investment income, minus $23,126 in higher net advisory fees, plus $37,472 of pro-forma eliminated other expenses.
(b) $1,295,719,064 unrealized appreciation as reported at December 31, 2014, minus $958,055,577 pro-forma December 31, 2013 unrealized appreciation, plus $270,279,442 net realized gain as reported at December 31, 2014, plus $8,943,025 in net realized gain from ClearBridge Aggressive Growth Portfolio II pre-merger.

9. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-16

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of ClearBridge Aggressive 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 ClearBridge Aggressive Growth Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 ClearBridge Aggressive Growth Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-17

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-18

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-19

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment

 

MIST-20

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of

 

MIST-21

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

ClearBridge Aggressive Growth Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and ClearBridge Investments, LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio underperformed the median of its Performance Universe and Lipper Index for the one-year period ended June 30, 2015, and outperformed the median of its Performance Universe and its Lipper Index for the three- and five-year periods ended June 30, 2015. The Board further considered that the Portfolio outperformed its benchmark, the Russell 3000 Growth Index, for the three- and five-year periods ended October 31, 2015, and underperformed this benchmark for the one-year period ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-l fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also noted that the Portfolio’s contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-22

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Managed by Goldman Sachs Asset Management, L.P.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A and B shares of the Goldman Sachs Mid Cap Value Portfolio returned -8.95% and -9.12%, respectively. The Portfolio’s benchmark, the Russell Midcap Value Index1, returned -4.78%.

MARKET ENVIRONMENT / CONDITIONS

The S&P 500 Index returned 7.04% during the fourth quarter and gained 1.38% in 2015. Central bank policy, a commodity selloff and global growth concerns were the key themes for U.S. equities throughout 2015. As evidence of a U.S. economic recovery mounted, the expectations of a Federal Reserve Board (the “Fed”) rate hike increased. The resulting U.S. dollar strength paradoxically hurt U.S. equity performance, despite economic fundamentals. The S&P 500 Index further fell victim to the sharp global correction in August, due to concerns over China’s economic weakness and was exacerbated by a surprise devaluation of its currency. After holding the Federal funds rate steady in September and October, the Fed unanimously voted for a 25 basis point hike in December, a move that was largely expected by markets. The fairly dovish language in the Fed’s announcement, which emphasized “gradual” future adjustments to policy, helped assuage market concerns. Consumer sectors, such as Consumer Discretionary, Health Care and Consumer Staples, were the best performing sectors in the S&P 500 Index for 2015, in part benefiting from further oil price declines. In contrast, declining oil prices hurt the Energy sector, which was down -21.8% in 2015 and the worst performing sector.

PORTFOLIO REVIEW / PERIOD END POSITIONING

For the year ended December 31, 2015, stock selection within the Financials and Consumer Discretionary sectors were the largest detractors from relative returns, while selection in the Energy and Materials sectors contributed to results.

Over the previous year, Southwestern Energy, a natural gas & oil exploration & production company, was a top detractor from performance. The primary driver was weak natural gas prices, as they declined more than 20% in 2015. In addition, the announcement of dividend reductions by prominent companies within the energy landscape weakened investor demand for stocks with direct commodity exposure. While we remained positive on the management team’s commitment to disciplined growth, we moderated the size of the Portfolio’s position in favor of other opportunities that we believed had higher upside potential. Navient, a leading loan management, servicing and asset recovery company in the U.S., was also a top detractor from performance during the year. Following a weak second quarter, its shares declined after the company disclosed that it received a letter from the Consumer Financial Protection Bureau (CFPB) stating that it may take legal action over Navient’s student loan practices. Navient’s shares were further pressured by concerns around a potential downgrade of the company’s asset backed securities. While we do not believe these issues pose a material risk to Navient’s operations in isolation, we moderated the size of the Portfolio’s position in favor of other opportunities that we believed had a more favorable risk-reward profile.

Maxim Integrated Products, a semiconductor manufacturer, was the overall top contributor to performance in 2015. The company’s shares outperformed throughout the year as management continued to deliver on its restructuring initiatives and operational cost reductions. These actions contributed to the company’s fourth quarter earnings, which exceeded expectations. Additionally, shares rose in October after potential merger news. At year end, we continued to believe that the company remained an attractive opportunity in the semiconductor industry—regardless of whether it becomes acquired. Further, we are encouraged by the management team’s commitment to shareholder-friendly actions. Citizens Financial Group, a consumer and commercial banking company, was another top contributor to performance for the year. The company’s strong performance was driven by management’s consistent progress toward long-term profitability initiatives. Despite a challenging industry backdrop, which was partially due to the Fed’s slower than anticipated increase in interest rates, management was able to execute on expense management to preserve the company’s profitability. Share prices also rallied in late October after its company’s parent, Royal Bank of Scotland, sold its remaining stake, alleviating an overhang. At year end, we continued to believe Citizens Financial Group can further improve its operational efficiency through its cost-savings program and we remained positive on the company’s asset-sensitivity to higher interest rates. Additionally, we are encouraged by the management team’s commitment to creating shareholder value.

At the end of year, the Portfolio’s two largest overweight sectors relative to the Russell Midcap Value Index were Consumer Discretionary and Consumer Staples, while the two largest underweight sectors were Utilities and Financials.

Regardless of the market direction, our fundamental, bottom-up stock selection continues to drive our process, rather than headlines or sentiment. We maintained high conviction in the companies that we own and believe they have the potential to outperform relative to the broader market regardless of the growth environment. We continued to focus on undervalued companies that we believe are in control of their own future, such as innovators with differentiated products, companies with low-cost structures, or ones that have been investing in their own businesses and are poised to gain market share.

 

MIST-1

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Managed by Goldman Sachs Asset Management, L.P.

Portfolio Manager Commentary*—(Continued)

 

We maintained our discipline in identifying companies with strong or improving balance sheets, led by quality management teams, trading at discounted valuations, and remain focused on the long-term outperformance of the Portfolio.

Sun Cho

Tim Ryan

Sean Gallagher

Portfolio Managers

Goldman Sachs Asset Management, 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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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

Goldman Sachs Mid Cap Value Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE RUSSELL MIDCAP VALUE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year  
Goldman Sachs Mid Cap Value Portfolio                 

Class A

        -8.95           8.86           6.86   

Class B

        -9.12           8.60           6.59   
Russell Midcap Value Index        -4.78           11.25           7.61   

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.

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
Citizens Financial Group, Inc.      2.6   
Lincoln National Corp.      2.4   
Raymond James Financial, Inc.      2.1   
Sempra Energy      1.9   
Huntington Bancshares, Inc.      1.9   
Ralph Lauren Corp.      1.9   
FirstEnergy Corp.      1.9   
Brixmor Property Group, Inc.      1.8   
Brocade Communications Systems, Inc.      1.7   
Prologis, Inc.      1.7   

Top Sectors

 

     % of
Net Assets		  
Financials      33.7   
Information Technology      11.3   
Consumer Discretionary      10.0   
Industrials      8.8   
Energy      7.8   
Utilities      7.2   
Health Care      6.7   
Consumer Staples      5.7   
Materials      5.3   

 

MIST-3

Met Investors Series Trust

Goldman Sachs Mid Cap Value 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A

   Actual      0.75 %     $ 1,000.00         $ 911.20         $ 3.61   
   Hypothetical*      0.75 %     $ 1,000.00         $ 1,021.43         $ 3.82   

Class B

   Actual      1.00 %     $ 1,000.00         $ 910.30         $ 4.82   
   Hypothetical*      1.00 %     $ 1,000.00         $ 1,020.16         $ 5.09   

* 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 (184 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 December 31, 2015

Common Stocks—96.5% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—1.6%

  

Textron, Inc.

     141,056      $ 5,925,763   

Triumph Group, Inc.

     105,100        4,177,725   
   

 

 

  
      10,103,488   
   

 

 

  

Airlines—1.3%

  

United Continental Holdings, Inc. (a)

     138,290        7,924,017   
   

 

 

  

Banks—9.2%

  

Citizens Financial Group, Inc.

     617,389        16,169,418   

First Horizon National Corp. (b)

     233,556        3,391,233   

Huntington Bancshares, Inc.

     1,093,722        12,096,565   

KeyCorp

     360,908        4,760,377   

M&T Bank Corp.

     84,510        10,240,922   

PacWest Bancorp

     95,573        4,119,196   

Zions Bancorporation

     282,112        7,701,658   
   

 

 

  
      58,479,369   
   

 

 

  

Biotechnology—0.6%

  

Baxalta, Inc.

     100,490        3,922,125   
   

 

 

  

Building Products—2.3%

  

Armstrong World Industries, Inc. (a)

     122,046        5,581,164   

Fortune Brands Home & Security, Inc. (b)

     159,494        8,851,917   
   

 

 

  
      14,433,081   
   

 

 

  

Capital Markets—2.6%

  

Affiliated Managers Group, Inc. (a)

     18,438        2,945,655   

Raymond James Financial, Inc.

     233,249        13,521,444   
   

 

 

  
      16,467,099   
   

 

 

  

Chemicals—3.1%

  

Axalta Coating Systems, Ltd. (a)

     196,679        5,241,495   

Celanese Corp. - Series A

     124,153        8,359,221   

CF Industries Holdings, Inc.

     142,592        5,819,180   
   

 

 

  
      19,419,896   
   

 

 

  

Communications Equipment—2.8%

  

Brocade Communications Systems, Inc.

     1,200,973        11,024,932   

F5 Networks, Inc. (a)

     31,244        3,029,418   

Viavi Solutions, Inc. (a)

     570,677        3,475,423   
   

 

 

  
      17,529,773   
   

 

 

  

Construction Materials—1.0%

  

Martin Marietta Materials, Inc. (b)

     45,174        6,169,865   
   

 

 

  

Consumer Finance—1.5%

  

Navient Corp.

     172,794        1,978,491   

SLM Corp. (a)

     1,112,468        7,253,292   
   

 

 

  
      9,231,783   
   

 

 

  

Containers & Packaging—1.3%

  

Packaging Corp. of America

     129,685        8,176,639   
   

 

 

  

Diversified Financial Services—0.7%

  

Voya Financial, Inc.

     124,461      $ 4,593,856   
   

 

 

  

Electric Utilities—1.9%

  

FirstEnergy Corp.

     375,227        11,905,953   
   

 

 

  

Electrical Equipment—0.3%

  

Hubbell, Inc.

     20,193        2,040,301   
   

 

 

  

Food & Staples Retailing—1.4%

  

Whole Foods Market, Inc. (b)

     263,383        8,823,330   
   

 

 

  

Food Products—3.3%

  

ConAgra Foods, Inc.

     205,284        8,654,773   

Mead Johnson Nutrition Co. (b)

     66,686        5,264,860   

Tyson Foods, Inc. - Class A (b)

     134,602        7,178,325   
   

 

 

  
      21,097,958   
   

 

 

  

Health Care Equipment & Supplies—1.4%

  

Zimmer Biomet Holdings, Inc. (c)

     87,141        8,939,795   
   

 

 

  

Health Care Providers & Services—2.6%

  

Cardinal Health, Inc.

     43,023        3,840,663   

Envision Healthcare Holdings, Inc. (a)

     132,144        3,431,780   

Laboratory Corp. of America Holdings (a)

     73,447        9,080,987   
   

 

 

  
      16,353,430   
   

 

 

  

Hotels, Restaurants & Leisure—1.1%

  

MGM Resorts International (a)

     310,999        7,065,897   
   

 

 

  

Household Durables—0.7%

  

Mohawk Industries, Inc. (a)

     22,126        4,190,443   
   

 

 

  

Independent Power and Renewable Electricity Producers—0.3%

  

NRG Energy, Inc.

     141,977        1,671,069   
   

 

 

  

Insurance—8.3%

  

Arthur J. Gallagher & Co.

     149,046        6,101,943   

Everest Re Group, Ltd.

     50,399        9,227,553   

Genworth Financial, Inc. - Class A (a) (b)

     597,413        2,228,351   

Lincoln National Corp.

     302,394        15,198,322   

Principal Financial Group, Inc.

     145,665        6,552,012   

W.R. Berkley Corp. (b)

     148,124        8,109,789   

XL Group plc

     136,544        5,349,794   
   

 

 

  
      52,767,764   
   

 

 

  

Internet Software & Services—1.1%

  

IAC/InterActiveCorp

     76,520        4,595,026   

Pandora Media, Inc. (a) (b)

     164,411        2,204,751   
   

 

 

  
      6,799,777   
   

 

 

  

IT Services—3.1%

  

Fidelity National Information Services, Inc.

     147,816        8,957,650   

First Data Corp. - Class A (a)

     338,396        5,421,104   

WEX, Inc. (a) (b)

     59,311        5,243,092   
   

 

 

  
      19,621,846   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description       
    
Shares		     Value  

Machinery—1.4%

  

Ingersoll-Rand plc

     165,938      $ 9,174,712   
   

 

 

  

Marine—0.5%

  

Kirby Corp. (a)

     56,963        2,997,393   
   

 

 

  

Media—2.4%

  

Discovery Communications, Inc. - Class A (a) (b)

     165,026        4,402,894   

Liberty Media Corp. - Class C (a)

     118,007        4,493,706   

Scripps Networks Interactive, Inc. - Class A (b)

     112,476        6,209,800   
   

 

 

  
      15,106,400   
   

 

 

  

Multi-Utilities—5.0%

  

Ameren Corp.

     96,265        4,161,536   

PG&E Corp.

     151,504        8,058,498   

SCANA Corp. (b)

     121,388        7,342,760   

Sempra Energy

     129,070        12,133,871   
   

 

 

  
      31,696,665   
   

 

 

  

Oil, Gas & Consumable Fuels—7.8%

  

Antero Resources Corp. (a) (b)

     354,683        7,732,089   

Concho Resources, Inc. (a)

     99,414        9,231,584   

Continental Resources, Inc. (a) (b)

     160,952        3,698,677   

Gulfport Energy Corp. (a)

     229,869        5,647,881   

Newfield Exploration Co. (a)

     130,914        4,262,560   

Noble Energy, Inc.

     228,332        7,518,973   

Pioneer Natural Resources Co.

     71,734        8,994,009   

Southwestern Energy Co. (a) (b)

     147,509        1,048,789   

Tesoro Corp.

     13,014        1,371,285   
   

 

 

  
      49,505,847   
   

 

 

  

Personal Products—1.0%

  

Edgewell Personal Care Co.

     81,437        6,382,218   
   

 

 

  

Pharmaceuticals—2.1%

  

Endo International plc (a)

     154,270        9,444,409   

Mylan NV (a) (b)

     65,457        3,539,260   
   

 

 

  
      12,983,669   
   

 

 

  

Real Estate Investment Trusts—11.3%

  

Brixmor Property Group, Inc.

     441,299        11,394,340   

DDR Corp.

     465,577        7,840,317   

Federal Realty Investment Trust

     50,091        7,318,295   

Mid-America Apartment Communities, Inc.

     55,930        5,079,003   

Prologis, Inc.

     244,312        10,485,871   

RLJ Lodging Trust (b)

     335,300        7,252,539   

Starwood Property Trust, Inc.

     423,782        8,712,958   

Ventas, Inc.

     114,319        6,451,021   

Vornado Realty Trust

     70,374        7,034,585   
   

 

 

  
      71,568,929   
   

 

 

  

Road & Rail—1.4%

  

Hertz Global Holdings, Inc. (a)

     622,920        8,864,152   
   

 

 

  

Semiconductors & Semiconductor Equipment—2.1%

  

Intersil Corp. - Class A

     118,929      1,517,534   

Maxim Integrated Products, Inc.

     212,966        8,092,708   

Xilinx, Inc.

     75,598        3,550,838   
   

 

 

  
      13,161,080   
   

 

 

  

Software—2.2%

  

Symantec Corp.

     343,574        7,215,054   

VMware, Inc. - Class A (a) (b)

     120,805        6,833,939   
   

 

 

  
      14,048,993   
   

 

 

  

Specialty Retail—3.9%

  

Gap, Inc. (The) (b)

     295,019        7,286,969   

Sally Beauty Holdings, Inc. (a)

     179,470        5,005,418   

Staples, Inc.

     402,033        3,807,253   

Urban Outfitters, Inc. (a) (b)

     139,004        3,162,341   

Williams-Sonoma, Inc. (b)

     92,193        5,384,993   
   

 

 

  
      24,646,974   
   

 

 

  

Textiles, Apparel & Luxury Goods—1.9%

  

Ralph Lauren Corp. (b)

     108,481        12,093,462   
   

 

 

  

Total Common Stocks
(Cost $629,081,777)

       609,959,048   
   

 

 

  
Short-Term Investments—16.0%   

Mutual Fund—12.5%

  

State Street Navigator Securities Lending MET Portfolio (d)

     78,833,050        78,833,050   
   

 

 

  

Repurchase Agreement—3.5%

  

Fixed Income Clearing Corp.
Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $22,205,036 on 01/04/16, collateralized by $22,850,000 U.S. Treasury Note at 1.375% due 02/29/20 with a value of $22,650,063.

     22,204,962        22,204,962   
   

 

 

  

Total Short-Term Investments
(Cost $101,038,012)

       101,038,012   
   

 

 

  

Total Investments—112.5%
(Cost $730,119,789) (e)

       710,997,060   

Other assets and liabilities (net)—(12.5)%

       (78,943,202 ) 
   

 

 

  
Net Assets—100.0%     $ 632,053,858   
   

 

 

  

 

* 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 December 31, 2015, the market value of securities loaned was $91,829,258 and the collateral received consisted of cash in the amount of $78,833,050 and non-cash collateral with a value of $15,618,034. 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

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Schedule of Investments as of December 31, 2015

 

  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 December 31, 2015, the market value of restricted securities was $8,939,795, which is 1.4% of net assets. See details shown in the Restricted Securities table that follows.
(d) Represents investment of cash collateral received from securities on loan as of December 31, 2015.
(e) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $734,573,979. The aggregate unrealized appreciation and depreciation of investments were $35,947,270 and $(59,524,189), respectively, resulting in net unrealized depreciation of $(23,576,919) for federal income tax purposes.

 

Restricted Securities

    Acquisition
Date		      Shares      Cost      Value  

Zimmer Biomet Holdings, Inc.

      05/02/14 - 10/15/14         87,141       $ 8,633,193       $ 8,939,795   

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2     Level 3      Total  

Total Common Stocks*

    $ 609,959,048       $ —      $ —       $ 609,959,048   
Short-Term Investments           

Mutual Fund

      78,833,050         —        —         78,833,050   

Repurchase Agreement

      —         22,204,962        —         22,204,962   

Total Short-Term Investments

      78,833,050         22,204,962        —         101,038,012   

Total Investments

    $ 688,792,098       $ 22,204,962      $ —       $ 710,997,060   
                                    

Collateral for Securities Loaned (Liability)

    $ —       $ (78,833,050 )    $ —       $ (78,833,050 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 710,997,060   

Cash

      72,233   

Receivable for:

   

Investments sold

      1,009,093   

Fund shares sold

      6,070   

Dividends and interest

      1,098,513   

Prepaid expenses

      1,914   
  

 

 

  

Total Assets

      713,184,883   

Liabilities

   

Collateral for securities loaned

      78,833,050   

Payables for:

   

Investments purchased

      1,532,331   

Fund shares redeemed

      151,223   

Accrued Expenses:

   

Management fees

      387,632   

Distribution and service fees

      38,293   

Deferred trustees’ fees

      81,937   

Other expenses

      106,559   
  

 

 

  

Total Liabilities

      81,131,025   
  

 

 

  

Net Assets

    $ 632,053,858   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 610,942,475   

Undistributed net investment income

      5,033,576   

Accumulated net realized gain

      35,200,536   

Unrealized depreciation on investments

      (19,122,729 ) 
  

 

 

  

Net Assets

    $ 632,053,858   
  

 

 

  

Net Assets

   

Class A

    $ 454,291,301   

Class B

      177,762,557   

Capital Shares Outstanding*

   

Class A

      40,589,037   

Class B

      15,932,280   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 11.19   

Class B

      11.16   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $730,119,789.
(b) Includes securities loaned at value of $91,829,258.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends

    $ 8,761,136   

Interest

      265   

Securities lending income

      149,342   
  

 

 

  

Total investment income

      8,910,743   

Expenses

   

Management fees

      4,987,906   

Administration fees

      17,223   

Custodian and accounting fees

      78,607   

Distribution and service fees—Class B

      508,320   

Audit and tax services

      40,454   

Legal

      26,460   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      26,487   

Insurance

      4,621   

Miscellaneous

      15,812   
  

 

 

  

Total expenses

      5,741,063   

Less broker commission recapture

      (34,270 ) 
  

 

 

  

Net expenses

      5,706,793   
  

 

 

  

Net Investment Income

      3,203,950   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   

Net realized gain on investments

      38,413,388   
  

 

 

  

Net change in unrealized depreciation on investments

      (103,624,187 ) 
  

 

 

  

Net realized and unrealized loss

      (65,210,799 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (62,006,849 ) 
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 3,203,950      $ 7,615,433   

Net realized gain

      38,413,388        170,581,898   

Net change in unrealized depreciation

      (103,624,187 )      (74,541,994 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (62,006,849 )      103,655,337   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (4,456,638 )      (6,633,773 ) 

Class B

      (1,304,004 )      (1,172,145 ) 

Net realized capital gains

     

Class A

      (122,465,974 )      (149,603,013 ) 

Class B

      (50,792,863 )      (37,949,648 ) 
  

 

 

    

 

 

  

Total distributions

      (179,019,479 )      (195,358,579 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      124,380,491        (215,012,894 ) 
  

 

 

    

 

 

  

Total decrease in net assets

      (116,645,837 )      (306,716,136 ) 

Net Assets

     

Beginning of period

      748,699,695        1,055,415,831   
  

 

 

    

 

 

  

End of period

    $ 632,053,858      $ 748,699,695   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 5,033,576      $ 7,397,538   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      270,944      $ 3,238,973        745,178      $ 11,581,159   

Reinvestments

      10,057,259        126,922,612        10,723,183        156,236,786   

Redemptions

      (1,886,400 )      (30,261,083 )      (26,632,402 )      (402,992,633 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      8,441,803      $ 99,900,502        (15,164,041 )    $ (235,174,688 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      1,176,317      $ 16,326,991        1,825,154      $ 28,555,772   

Reinvestments

      4,134,672        52,096,867        2,688,784        39,121,793   

Redemptions

      (3,103,325 )      (43,943,869 )      (2,936,587 )      (47,515,771 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      2,207,664      $ 24,479,989        1,577,351      $ 20,161,794   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ 124,380,491        $ (215,012,894 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Financial Highlights

 

Selected per share data                                   
     Class A  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 16.34       $ 17.76       $ 14.05       $ 11.96       $ 12.82   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.07         0.16         0.15         0.19         0.13   

Net realized and unrealized gain (loss) on investments

      (1.06 )       1.84         4.32         2.01         (0.91 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.99 )       2.00         4.47         2.20         (0.78 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.15 )       (0.15 )       (0.18 )       (0.11 )       (0.08 ) 

Distributions from net realized capital gains

      (4.01 )       (3.27 )       (0.58 )       0.00         0.00   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (4.16 )       (3.42 )       (0.76 )       (0.11 )       (0.08 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.19       $ 16.34       $ 17.76       $ 14.05       $ 11.96   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (8.95 )       13.57         32.95         18.46         (6.13 ) 

Ratios/Supplemental Data

               

Ratio of expenses to average net assets (%)

      0.75         0.75         0.74         0.75         0.76   

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

      0.53         0.98         0.95         1.45         1.05   

Portfolio turnover rate (%)

      95         85         112         81         74   

Net assets, end of period (in millions)

    $ 454.3       $ 525.1       $ 840.2       $ 643.9       $ 529.5   
     Class B  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 16.29       $ 17.72       $ 14.02       $ 11.94       $ 12.80   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.04         0.11         0.11         0.16         0.10   

Net realized and unrealized gain (loss) on investments

      (1.06 )       1.83         4.31         2.00         (0.90 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (1.02 )       1.94         4.42         2.16         (0.80 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.10 )       (0.10 )       (0.14 )       (0.08 )       (0.06 ) 

Distributions from net realized capital gains

      (4.01 )       (3.27 )       (0.58 )       0.00         0.00   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (4.11 )       (3.37 )       (0.72 )       (0.08 )       (0.06 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.16       $ 16.29       $ 17.72       $ 14.02       $ 11.94   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (9.12 )       13.23         32.65         18.12         (6.29 ) 

Ratios/Supplemental Data

               

Ratio of expenses to average net assets (%)

      1.00         1.00         0.99         1.00         1.01   

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

      0.28         0.69         0.70         1.18         0.78   

Portfolio turnover rate (%)

      95         85         112         81         74   

Net assets, end of period (in millions)

    $ 177.8       $ 223.6       $ 215.2       $ 175.8       $ 164.6   

 

(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.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally categorized as Level 2 within the fair value hierarchy.

 

 

MIST-11

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 broker commission recapture and real estate investment trust (REIT) adjustments. These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

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.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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.

 

 

MIST-12

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

At December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $22,204,962, 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 December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2015, with a contractual maturity of overnight and continuous.

3. Certain Risks

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”).

Market 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, 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

 

 

MIST-13

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 640,774,069       $ 0       $ 688,302,168   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$4,987,906      0.750 %    First $200 million
     0.700 %    Over $200 million

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Goldman Sachs Asset Management, L.P. is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

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, LLC, 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 year ended December 31, 2015 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-14

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Affiliated Broker - During the year ended December 31, 2015 the Portfolio paid brokerage commissions to affiliated brokers/dealers:

 

Affiliate

    Commission  
Goldman Sachs & Co.    $ 40,479   

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$69,501,929    $ 77,779,694       $ 109,517,550       $ 117,578,885       $ 179,019,479       $ 195,358,579   

As of December 31, 2015, 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		     Other
Accumulated
Capital Losses		      Total  
$21,032,407    $ 23,737,835       $ (23,576,922 )    $ —       $ 21,193,320   

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, 2015, the Portfolio had no post-enactment accumulated capital losses and no pre-enactment accumulated capital loss carryforwards.

8. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-15

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Goldman Sachs Mid Cap Value 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 Goldman Sachs Mid Cap Value Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 Goldman Sachs Mid Cap Value Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-16

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-17

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-18

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment

 

MIST-19

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of

 

MIST-20

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

Goldman Sachs Mid Cap Value Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Goldman Sachs Asset Management, L.P. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe for the one- and three-year periods ended June 30, 2015 and slightly underperformed the median of its Performance Universe for the five-year period ended June 30, 2015. The Board also considered that the Portfolio outperformed its Lipper Index for the one- and five-year periods ended June 30, 2015 and underperformed its Lipper Index for the three-year period ended June 30, 2015. The Board also considered that the Portfolio underperformed its benchmark, the Russell Midcap Value Index, for the one-, three-, and five-year periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, Expense Universe median, and Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also noted that the Portfolio’s contractual sub-advisory fees were below the average of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-21

Met Investors Series Trust

Harris Oakmark International Portfolio

Managed by Harris Associates L.P.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A, B, and E shares of the Harris Oakmark International Portfolio returned -4.31%, -4.52%, and -4.45%, respectively. The Portfolio’s benchmark, the MSCI EAFE Index1, returned -0.81%.

MARKET ENVIRONMENT / CONDITIONS

In 2015, global markets were impacted by a number of macro and geopolitical events. These included terrorist attacks in France and the U.S., two Greek elections, continued slowdown in the BRIC economies—with slower growth in China causing the most concern, ongoing political crisis in Brazil, the rise of ISIS, low inflation and stalled growth concerns in Japan, and depressed energy and commodity prices. Considering how share prices often reflect the mood of investors in the short term, the persistent negative news was perhaps another reason for the lack of buoyancy in global equity markets. Despite the challenges posed by global events, some encouraging developments emerged in 2015. The Eurozone saw limited reforms (especially in periphery countries), a stabilized situation in Greece, a weaker euro, and an easing of monetary policy. In Latin America, reformers had won elections in Argentina and Venezuela. Japan announced an annual 3% minimum wage hike and eased regulations to spur corporate investment. In the U.S., the unemployment rate fell during the year, consumer spending marked an all-time high in the third quarter, and the Federal Reserve met the market’s expectation with a fourth quarter rate hike.

PORTFOLIO REVIEW / PERIOD END POSITIONING

Stock selection contributed to the Portfolio’s relative underperformance, while country weightings delivered a positive relative result for the period. Holdings in Switzerland, Japan, Italy, and Hong Kong were the main detractors from relative performance for the year. Relative to the benchmark, performance was helped most by holdings in Germany and China along with a lack of exposure to Spain.

In terms of absolute collective performance, only 6 of 17 countries in which we were invested delivered positive absolute returns for the year, with the most significant losses coming from Hong Kong (-34%), Switzerland (-19%), and Australia (-14%). Of the 12 underlying holdings in these countries, only four delivered positive returns for the period. The U.S. (+11%), Ireland and Germany (both +7%) generated positive collective absolute returns for full-year 2015.

The Portfolio’s worst detractors for the year were Glencore (Switzerland), Prada (based in Italy and Hong Kong listed), and Daiwa Securities Group (Japan). Glencore’s share price was pressured mainly in the latter half of the year, as commodity and energy prices declined significantly. We consider Glencore’s leadership team to be highly effective, and had many interactions with them. We believe protecting and elevating shareholder value is a top priority for the company’s management. In December, Glencore hosted a conference call and provided a review of their business and the progress made toward strengthening their balance sheet. The company planned to reduce debt by another $3 billion, bringing total projected cost cuts to $13 billion. Of that amount, nearly $9 billion in savings has already been achieved or otherwise earmarked. Keeping in mind members of the company’s management team are large stakeholders (having purchased 22% of the recent $2.5 billion equity offering), we think management’s actions remained aligned with all of Glencore’s shareholders as they navigated through some challenges.

Prada’s share price declined beginning in the second quarter, as its first-quarter results fell short of market expectations. After posting solid second-quarter net income and earnings, which outpaced investors’ projections by nearly 13% and 16%, respectively, third-quarter earnings results missed investors’ projections. Sales in China have declined this year, which led management to believe Chinese customers’ buying habits are transitioning away from just desiring global products found in the West to desiring bespoke products. In response, Prada launched a new strategy, which included custom tailoring clothing by geographic region to appeal to Chinese consumers, whose propensity toward travel may help them become aware these products are designed exclusively for them. Prada’s lean and efficient distribution network has enabled the company to move new products from the design stage to the retail floor in approximately four to five weeks’ time. In our view, Prada is attractively valued, despite potentially facing some short-term obstacles.

Daiwa Securities Group’s share price weakened beginning in the third quarter, owing in part to general macroeconomic pressures. Although fiscal first-quarter results showed continued growth in the retail and asset management segments, fiscal second-quarter earnings results released in October missed investors’ expectations. Late in the fourth quarter, Daiwa’s share price fell further along with other Japanese financial companies, as investors expressed concerns over a media report the Japan Financial Services Agency (FSA) considered increasing capital ratios to more closely meet international standards. As of the end of September, Daiwa comfortably exceeded the CET 1 ratio required minimums, with a CET 1 ratio of 20.2%. After having met with management, our investment thesis for Daiwa remained intact given the continued flow of funds from savings to investments. Despite temporary negative economic sentiment in Japan and uncertainty on the effects of global violence on market stability, we believe Daiwa’s fundamentals are solid.

The Portfolio’s top contributors to performance for the year were Intesa Sanpaolo (Italy), Baidu (China), and Allianz (Germany). Over the past 12 months, Intesa Sanpaolo’s share price rebounded as fears over Italy’s banking system and government have subsided. When these concerns arose a few years ago and pressured Intesa’s price, we were patient and added to the Portfolio’s position, a strategy that has benefited our shareholders upon the turnaround. During the year, investors reacted positively to Intesa’s impressive revenue growth numbers in spite of challenging headwinds: Italian GDP has been static and banking penetration remained low, while the household

 

MIST-1

Met Investors Series Trust

Harris Oakmark International Portfolio

Managed by Harris Associates L.P.

Portfolio Manager Commentary*—(Continued)

 

savings rate remained high. Intesa’s common equity Tier 1 (“CET 1”) ratio reached 13.4% at the end of its fiscal third quarter, and under the current business plan, management has committed to paying EUR 2 billion in dividends to shareholders for full-year 2015, resulting in a payout ratio in excess of 70%.

Baidu was a new name added to the Portfolio in the third quarter of 2015, and the company’s share price rose in the fourth quarter after the release of its nine-month earnings report in addition to news that it is combining its majority controlled travel business Qunar with Ctrip, potentially affecting subsidies paid and profitability. We considered this is an important deal, as it merges the top two online travel sites in China. Furthermore, management has been investing heavily in new businesses such as online-to-offline services (e.g. food delivery, ride sharing, etc.). We believed these investments are masking the strength of the core search business, which continued to grow at a healthy rate and generated high levels of profitability. Baidu’s management is shareholder focused, as evidenced by the new $2 billion share repurchase program announced during the fourth quarter.

Allianz’s results for the first three quarters of the year met expectations. First-quarter earnings per share exceeded market expectations by more than 11%. Positive trends continued into the second quarter, as the company’s earnings per share (EUR 4.38 vs. EUR 3.90) and revenues (EUR 30.2 billion vs. EUR 29.5 billion) both surpassed market projections by 12% and 2%, respectively. Even though third-quarter earnings per share and net income fell short of market expectations, we were pleased that PIMCO experienced net inflows in October for the first time since mid-2013. In addition, management reiterated its full-year operating profit guidance and expected to reach the upper end of the range.

Currency hedging was actively utilized throughout the year, as we still believe that many currencies are overvalued compared to the U.S. dollar. Approximately 9% of the Australian dollar and 21% of the Portfolio’s Swiss franc exposure were hedged at year-end.

The Portfolio finished the year with most of its equity assets invested in Europe (outside of the U.K.) and within that region, Switzerland (16%) held the most Portfolio weight on an equity-only basis. Japan (20%) held the next largest weighting. Both Israel (less than 1%) and Latin America (1%) accounted for the smallest Portfolio weightings, as these countries contained only one holding each.

As active value managers, we believe that today’s market provides exploitable opportunities, and we are constantly looking for ways to capitalize on these opportunities in order to add value for our shareholders.

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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year  
Harris Oakmark International Portfolio                 

Class A

        -4.31           5.66           6.13   

Class B

        -4.52           5.40           5.87   

Class E

        -4.45           5.51           5.98   
MSCI EAFE Index        -0.81           3.60           3.03   

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
Credit Suisse Group AG      4.7   
Honda Motor Co., Ltd.      3.7   
BNP Paribas S.A.      3.6   
Nomura Holdings, Inc.      3.4   
Daimler AG      3.3   
Toyota Motor Corp.      3.2   
Allianz SE      3.2   
Bayerische Motoren Werke AG      2.9   
Daiwa Securities Group, Inc.      2.8   
Glencore plc      2.7   

Top Countries

 

     % of
Net Assets		  
Japan      19.3   
Switzerland      15.3   
France      13.2   
United Kingdom      12.6   
Germany      9.4   
Netherlands      5.1   
Italy      4.8   
Sweden      3.5   
Australia      3.2   
United States      2.8   

 

MIST-3

Met Investors Series Trust

Harris Oakmark International 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

   Actual      0.81 %     $ 1,000.00         $ 906.80         $ 3.89   
   Hypothetical*      0.81 %     $ 1,000.00         $ 1,021.12         $ 4.13   

Class B(a)

   Actual      1.06 %     $ 1,000.00         $ 906.40         $ 5.09   
   Hypothetical*      1.06 %     $ 1,000.00         $ 1,019.86         $ 5.40   

Class E(a)

   Actual      0.96 %     $ 1,000.00         $ 906.40         $ 4.61   
   Hypothetical*      0.96 %     $ 1,000.00         $ 1,020.37         $ 4.89   

* 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 (184 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 December 31, 2015

Common Stocks—97.3% of Net Assets

 

Security Description   Shares     Value  

Australia—3.2%

  

AMP, Ltd.

     10,871,382      $ 45,828,421   

Orica, Ltd. (a)

     4,480,931        50,124,301   
   

 

 

  
      95,952,722   
   

 

 

  

China—1.5%

  

Baidu, Inc. (ADR) (b)

     240,700        45,501,928   
   

 

 

  

France—13.2%

  

BNP Paribas S.A.

     1,922,076        108,797,186   

Bureau Veritas S.A.

     2,713,500        53,999,710   

Danone S.A.

     678,612        45,797,744   

Kering

     439,900        74,982,639   

LVMH Moet Hennessy Louis Vuitton SE

     248,100        38,784,644   

Pernod-Ricard S.A.

     324,800        36,926,836   

Safran S.A.

     93,400        6,396,639   

Valeo S.A. (a)

     202,500        31,262,926   
   

 

 

  
      396,948,324   
   

 

 

  

Germany—9.4%

  

Allianz SE

     544,600        96,478,973   

Bayerische Motoren Werke AG

     815,800        85,918,825   

Daimler AG

     1,175,400        98,110,916   
   

 

 

  
      280,508,714   
   

 

 

  

Hong Kong—1.8%

  

Melco Crown Entertainment, Ltd. (ADR) (a)

     3,168,159        53,225,071   
   

 

 

  

Indonesia—2.0%

  

Bank Mandiri Persero Tbk PT

     92,063,800        61,114,520   
   

 

 

  

Ireland—1.6%

  

Experian plc

     2,785,000        49,212,322   
   

 

 

  

Israel—0.3%

 

Check Point Software Technologies, Ltd. (a) (b)

     92,300        7,511,374   
   

 

 

  

Italy—4.8%

  

Exor S.p.A.

     1,096,500        49,623,637   

Intesa Sanpaolo S.p.A.

     14,423,600        48,068,039   

Prada S.p.A. (a)

     14,513,902        45,037,669   
   

 

 

  
      142,729,345   
   

 

 

  

Japan—19.3%

  

Daiwa Securities Group, Inc.

     13,811,000        84,440,834   

Honda Motor Co., Ltd.

     3,420,800        109,607,694   

Komatsu, Ltd.

     3,937,200        64,152,064   

Nomura Holdings, Inc.

     18,580,500        103,264,713   

Olympus Corp.

     395,800        15,589,168   

Omron Corp.

     1,959,500        65,268,431   

Secom Co., Ltd.

     132,800        8,986,523   

Sumitomo Mitsui Financial Group, Inc.

     806,600        30,426,803   

Toyota Motor Corp.

     1,581,500        97,072,541   
   

 

 

  
      578,808,771   
   

 

 

  

Mexico—1.0%

  

Grupo Televisa S.A.B. (ADR)

     1,086,600      $ 29,566,386   
   

 

 

  

Netherlands—5.1%

  

Akzo Nobel NV (a)

     136,461        9,114,709   

CNH Industrial NV (a)

     11,205,100        76,381,002   

Koninklijke Philips NV

     2,607,533        66,297,614   
   

 

 

  
      151,793,325   
   

 

 

  

South Korea—2.7%

  

Samsung Electronics Co., Ltd.

     75,715        80,850,869   
   

 

 

  

Sweden—3.5%

  

Atlas Copco AB - B Shares

     1,337,594        30,753,869   

Hennes & Mauritz AB - B Shares

     764,000        27,205,551   

SKF AB - B Shares

     2,669,490        43,036,958   

Swedish Match AB

     130,544        4,618,586   
   

 

 

  
      105,614,964   
   

 

 

  

Switzerland—15.3%

  

Cie Financiere Richemont S.A.

     872,147        62,649,256   

Credit Suisse Group AG (b)

     6,481,454        140,085,867   

Glencore plc (b)

     60,978,100        81,135,732   

Kuehne & Nagel International AG (a)

     267,200        36,637,052   

LafargeHolcim, Ltd. (b)

     1,375,405        68,918,325   

Nestle S.A.

     96,300        7,138,108   

Schindler Holding AG (Participation Certificate)

     84,500        14,149,242   

Swatch Group AG (The) - Bearer Shares (a)

     136,600        47,670,109   
   

 

 

  
      458,383,691   
   

 

 

  

United Kingdom—12.6%

  

Ashtead Group plc

     1,182,400        19,455,932   

Burberry Group plc (a)

     1,390,448        24,456,437   

Diageo plc

     2,159,800        58,898,802   

G4S plc

     7,652,500        25,416,827   

GlaxoSmithKline plc

     453,200        9,153,732   

Lloyds Banking Group plc

     58,406,100        62,863,615   

Meggitt plc

     4,695,218        25,897,678   

Schroders plc (a)

     637,062        27,744,941   

Schroders plc (non-voting shares)

     10,427        347,731   

Smiths Group plc

     2,721,009        37,642,817   

Willis Group Holdings plc

     1,301,400        63,208,998   

Wolseley plc

     57,200        3,109,326   

WPP plc

     875,700        20,156,611   
   

 

 

  
      378,353,447   
   

 

 

  

Total Common Stocks
(Cost $3,283,274,187)

       2,916,075,773   
   

 

 

  
Short-Term Investments—11.0%   

Mutual Fund—8.2%

  

State Street Navigator Securities Lending MET Portfolio (c)

     246,451,867        246,451,867   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Harris Oakmark International Portfolio

Schedule of Investments as of December 31, 2015

Short-Term Investments—(Continued)

 

 

Security Description   Principal
Amount*		     Value  

Repurchase Agreement—2.8%

    

Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $84,523,642 on 01/04/16, collateralized by $86,325,000 Federal National Mortgage Association at 1.670% due 02/10/20 with a value of $86,217,094.

     84,523,361      $ 84,523,361   
   

 

 

  

Total Short-Term Investments
(Cost $330,975,228)

       330,975,228   
   

 

 

  

Total Investments—108.3%
(Cost $3,614,249,415) (d)

       3,247,051,001   

Other assets and liabilities (net)—(8.3)%

       (247,684,661 ) 
   

 

 

  
Net Assets—100.0%     $ 2,999,366,340   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of December 31, 2015, the market value of securities loaned was $243,544,806 and the collateral received consisted of cash in the amount of $246,451,867 and non-cash collateral with a value of $11,463,553. 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 on loan as of December 31, 2015.
(d) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $3,647,014,076. The aggregate unrealized appreciation and depreciation of investments were $102,294,125 and $(502,257,200), respectively, resulting in net unrealized depreciation of $(399,963,075) for federal income tax purposes.
(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
December 31, 2015 (Unaudited)

   

% of
Net Assets

  

Automobiles

      13.0   

Capital Markets

      11.9   

Banks

      10.4   

Textiles, Apparel & Luxury Goods

      9.8   

Machinery

      7.6   

Insurance

      6.8   

Industrial Conglomerates

      3.5   

Professional Services

      3.4   

Beverages

      3.2   

Metals & Mining

      2.7   

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy

     

Counterparty

    Settlement
Date		      In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
AUD     7,357,000      

State Street Bank and Trust

      03/16/16       $ 5,365,460       $ (23,153 ) 
AUD     7,988,000      

State Street Bank and Trust

      03/16/16         5,679,572         120,939   

Contracts to Deliver

                            
AUD     27,920,000      

State Street Bank and Trust

      03/16/16       $ 21,159,451       $ 885,258   
CHF     79,027,000      

State Street Bank and Trust

      03/16/16         82,042,897         2,903,246   
             

 

 

  

Net Unrealized Appreciation

  

    $ 3,886,290   
             

 

 

  

 

(AUD)— Australian Dollar
(CHF)— Swiss Franc

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Harris Oakmark International Portfolio

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2     Level 3      Total  
Common Stocks           

Australia

    $ —         $ 95,952,722      $ —         $ 95,952,722   

China

      45,501,928         —          —           45,501,928   

France

      —           396,948,324        —           396,948,324   

Germany

      —           280,508,714        —           280,508,714   

Hong Kong

      53,225,071         —          —           53,225,071   

Indonesia

      —           61,114,520        —           61,114,520   

Ireland

      —           49,212,322        —           49,212,322   

Israel

      7,511,374         —          —           7,511,374   

Italy

      —           142,729,345        —           142,729,345   

Japan

      —           578,808,771        —           578,808,771   

Mexico

      29,566,386         —          —           29,566,386   

Netherlands

      —           151,793,325        —           151,793,325   

South Korea

      —           80,850,869        —           80,850,869   

Sweden

      —           105,614,964        —           105,614,964   

Switzerland

      —           458,383,691        —           458,383,691   

United Kingdom

      63,208,998         315,144,449        —           378,353,447   

Total Common Stocks

      199,013,757         2,717,062,016        —           2,916,075,773   
Short-Term Investments           

Mutual Fund

      246,451,867         —          —           246,451,867   

Repurchase Agreement

      —           84,523,361        —           84,523,361   

Total Short-Term Investments

      246,451,867         84,523,361        —           330,975,228   

Total Investments

    $ 445,465,624       $ 2,801,585,377      $ —         $ 3,247,051,001   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (246,451,867 )    $ —         $ (246,451,867 ) 
Forward Contracts           

Forward Foreign Currency Exchange Contracts (Unrealized Appreciation)

    $ —         $ 3,909,443      $ —         $ 3,909,443   

Forward Foreign Currency Exchange Contracts (Unrealized Depreciation)

      —           (23,153 )      —           (23,153 ) 

Total Forward Contracts

    $ —         $ 3,886,290      $ —         $ 3,886,290   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Harris Oakmark International Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 3,247,051,001   

Cash denominated in foreign currencies (c)

      98   

Unrealized appreciation on forward foreign currency exchange contracts

      3,909,443   

Receivable for:

   

Investments sold

      620,037   

Fund shares sold

      231,896   

Dividends and interest

      5,121,904   

Prepaid expenses

      8,990   
  

 

 

  

Total Assets

      3,256,943,369   

Liabilities

   

Unrealized depreciation on forward foreign currency exchange contracts

      23,153   

Collateral for securities loaned

      246,451,867   

Payables for:

   

Investments purchased

      7,441,138   

Fund shares redeemed

      505,915   

Accrued Expenses:

   

Management fees

      1,937,015   

Distribution and service fees

      265,205   

Deferred trustees’ fees

      81,937   

Other expenses

      870,799   
  

 

 

  

Total Liabilities

      257,577,029   
  

 

 

  

Net Assets

    $ 2,999,366,340   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 3,135,177,364   

Undistributed net investment income

      62,868,278   

Accumulated net realized gain

      164,986,139   

Unrealized depreciation on investments and foreign currency transactions

      (363,665,441 ) 
  

 

 

  

Net Assets

    $ 2,999,366,340   
  

 

 

  

Net Assets

   

Class A

    $ 1,722,379,529   

Class B

      1,163,921,858   

Class E

      113,064,953   

Capital Shares Outstanding*

   

Class A

      128,218,417   

Class B

      88,379,769   

Class E

      8,520,280   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 13.43   

Class B

      13.17   

Class E

      13.27   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $3,614,249,415.
(b) Includes securities loaned at value of $243,544,806.
(c) Identified cost of cash denominated in foreign currencies was $99.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends (a)

    $ 83,682,813   

Interest

      1,221   

Securities lending income

      4,871,397   
  

 

 

  

Total investment income

      88,555,431   

Expenses

   

Management fees

      25,204,059   

Administration fees

      78,341   

Custodian and accounting fees

      1,566,279   

Distribution and service fees—Class B

      3,196,129   

Distribution and service fees—Class E

      190,345   

Audit and tax services

      58,140   

Legal

      26,460   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      168,006   

Insurance

      22,001   

Miscellaneous

      33,403   
  

 

 

  

Total expenses

      30,578,336   

Less management fee waiver

      (571,802 ) 
  

 

 

  

Net expenses

      30,006,534   
  

 

 

  

Net Investment Income

      58,548,897   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      200,319,711   

Foreign currency transactions

      18,688,914   
  

 

 

  

Net realized gain

      219,008,625   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (392,797,233 ) 

Foreign currency transactions

      (10,142,564 ) 
  

 

 

  

Net change in unrealized depreciation

      (402,939,797 ) 
  

 

 

  

Net realized and unrealized loss

      (183,931,172 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (125,382,275 ) 
  

 

 

  

 

(a) Net of foreign withholding taxes of $7,475,984.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Harris Oakmark International Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 58,548,897      $ 71,038,984   

Net realized gain

      219,008,625        336,305,777   

Net change in unrealized depreciation

      (402,939,797 )      (599,780,055 ) 
  

 

 

    

 

 

  

Decrease in net assets from operations

      (125,382,275 )      (192,435,294 ) 
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (59,540,773 )      (54,140,114 ) 

Class B

      (38,314,087 )      (32,348,334 ) 

Class E

      (3,931,196 )      (3,509,332 ) 

Net realized capital gains

     

Class A

      (170,035,793 )      (199,114,057 ) 

Class B

      (119,137,811 )      (130,351,257 ) 

Class E

      (11,832,899 )      (13,643,974 ) 
  

 

 

    

 

 

  

Total distributions

      (402,792,559 )      (433,107,068 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      207,146,217        240,929,389   
  

 

 

    

 

 

  

Total decrease in net assets

      (321,028,617 )      (384,612,973 ) 

Net Assets

     

Beginning of period

      3,320,394,957        3,705,007,930   
  

 

 

    

 

 

  

End of period

    $ 2,999,366,340      $ 3,320,394,957   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 62,868,278      $ 87,416,523   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      3,342,548      $ 50,477,518        6,627,066      $ 112,469,627   

Reinvestments

      15,335,776        229,576,566        15,065,685        253,254,171   

Redemptions

      (9,864,350 )      (164,073,964 )      (16,042,559 )      (279,251,145 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      8,813,974      $ 115,980,120        5,650,192      $ 86,472,653   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      6,602,222      $ 99,080,464        8,507,973      $ 144,082,806   

Reinvestments

      10,711,013        157,451,898        9,830,791        162,699,591   

Redemptions

      (11,127,550 )      (169,871,829 )      (9,369,611 )      (157,893,264 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      6,185,685      $ 86,660,533        8,969,153      $ 148,889,133   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      623,789      $ 9,478,971        705,693      $ 12,072,397   

Reinvestments

      1,065,142        15,764,095        1,030,229        17,153,306   

Redemptions

      (1,372,340 )      (20,737,502 )      (1,390,810 )      (23,658,100 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      316,591      $ 4,505,564        345,112      $ 5,567,603   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 207,146,217        $ 240,929,389   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Harris Oakmark International Portfolio

Financial Highlights

 

Selected per share data       
     Class A  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 15.94       $ 19.13       $ 15.06       $ 11.85       $ 13.78   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.29         0.37         0.31         0.29         0.24   

Net realized and unrealized gain (loss) on investments

      (0.76 )       (1.31 )       4.22         3.16         (2.17 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.47 )       (0.94 )       4.53         3.45         (1.93 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.53 )       (0.48 )       (0.46 )       (0.24 )       (0.00 )(b) 

Distributions from net realized capital gains

      (1.51 )       (1.77 )       0.00         0.00         0.00   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (2.04 )       (2.25 )       (0.46 )       (0.24 )       (0.00 )(b) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 13.43       $ 15.94       $ 19.13       $ 15.06       $ 11.85   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      (4.31 )       (5.52 )       30.80         29.47         (13.98 ) 

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      0.83         0.83         0.83         0.83         0.85   

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

      0.81         0.81         0.81         0.81         0.83   

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

      1.88         2.12         1.79         2.26         1.79   

Portfolio turnover rate (%)

      49         45         58         41         48   

Net assets, end of period (in millions)

    $ 1,722.4       $ 1,903.6       $ 2,176.6       $ 1,929.3       $ 1,775.7   
     Class B  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 15.66       $ 18.84       $ 14.84       $ 11.67       $ 13.61   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.25         0.32         0.25         0.25         0.21   

Net realized and unrealized gain (loss) on investments

      (0.75 )       (1.29 )       4.17         3.13         (2.15 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.50 )       (0.97 )       4.42         3.38         (1.94 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.48 )       (0.44 )       (0.42 )       (0.21 )       0.00   

Distributions from net realized capital gains

      (1.51 )       (1.77 )       0.00         0.00         0.00   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (1.99 )       (2.21 )       (0.42 )       (0.21 )       0.00   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 13.17       $ 15.66       $ 18.84       $ 14.84       $ 11.67   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      (4.52 )       (5.79 )       30.49         29.25         (14.25 ) 

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      1.08         1.08         1.08         1.08         1.10   

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

      1.06         1.06         1.06         1.06         1.08   

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

      1.64         1.88         1.50         1.98         1.60   

Portfolio turnover rate (%)

      49         45         58         41         48   

Net assets, end of period (in millions)

    $ 1,163.9       $ 1,287.4       $ 1,379.5       $ 1,102.6       $ 948.2   

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  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 15.77       $ 18.95       $ 14.92       $ 11.74       $ 13.67   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.26         0.34         0.27         0.27         0.23   

Net realized and unrealized gain (loss) on investments

      (0.75 )       (1.29 )       4.20         3.13         (2.16 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.49 )       (0.95 )       4.47         3.40         (1.93 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.50 )       (0.46 )       (0.44 )       (0.22 )       0.00   

Distributions from net realized capital gains

      (1.51 )       (1.77 )       0.00         0.00         0.00   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (2.01 )       (2.23 )       (0.44 )       (0.22 )       0.00   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 13.27       $ 15.77       $ 18.95       $ 14.92       $ 11.74   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      (4.45 )       (5.67 )       30.65         29.27         (14.12 ) 

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      0.98         0.98         0.98         0.98         1.00   

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

      0.96         0.96         0.96         0.96         0.98   

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

      1.75         1.98         1.60         2.10         1.74   

Portfolio turnover rate (%)

      49         45         58         41         48   

Net assets, end of period (in millions)

    $ 113.1       $ 129.4       $ 148.9       $ 116.6       $ 101.9   

 

(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) Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Harris Oakmark International Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally categorized as Level 2 within the fair value hierarchy.

 

 

MIST-12

Met Investors Series Trust

Harris Oakmark International Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Forward foreign currency exchange contracts are valued through an independent pricing service based on the mean between closing bid and ask prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or broker-dealer. These contracts are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

Options, including swaptions, and futures contracts that are traded OTC are generally valued on the basis of quotations provided by broker-dealers or prices provided by 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, yield curves, credit curves, measures of volatility 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 market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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—December 31, 2015—(Continued)

 

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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $84,523,361, 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 December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2015, with a contractual maturity of overnight and continuous.

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

 

MIST-14

Met Investors Series Trust

Harris Oakmark International Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 valuation 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.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of 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    $ 3,909,443       Unrealized depreciation on forward foreign currency exchange contracts    $ 23,153   
     

 

 

        

 

 

  

The Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized 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 (“MNA”) (see Note 4), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Assets
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Received†		      Net Amount*  

State Street Bank and Trust

    $ 3,909,443       $ (23,153 )    $ —       $ 3,886,290   
  

 

 

     

 

 

    

 

 

     

 

 

  

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under an MNA, or similar agreement, and net of the related collateral pledged by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Liabilities
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Pledged†		      Net Amount**  

State Street Bank and Trust

    $ 23,153       $ (23,153 )    $ —       $ —   
  

 

 

     

 

 

    

 

 

     

 

 

  

 

  * Net amount represents the net amount receivable from the counterparty in the event of default.
  ** Net amount represents the net amount payable due to the counterparty in the event of default.
  † In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Foreign
Exchange		  

Forward foreign currency transactions

    $ 19,102,712   
  

 

 

  

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

    Foreign
Exchange		  

Forward foreign currency transactions

    $ (10,309,972 ) 
  

 

 

  

 

MIST-15

Met Investors Series Trust

Harris Oakmark International Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Forward foreign currency transactions

    $ 232,075,869   

 

  ‡ Averages are based on activity levels during 2015.

4. Certain Risks

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”).

Market 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, 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC 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 (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may 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

 

MIST-16

Met Investors Series Trust

Harris Oakmark International Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 1,550,492,810       $ 0       $ 1,617,288,923   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers

for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$25,204,059      0.850 %    First $100 million
     0.800 %    $100 million to $1 billion
     0.750 %    Over $1 billion

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Harris Associates L.P. is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, for the period May 1, 2015 to April 30, 2016, 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 28, 2014 to April 30, 2015. Amounts waived for the year ended December 31, 2015 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, LLC, 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 year ended December 31, 2015 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

Harris Oakmark International Portfolio

Notes to Financial Statements—December 31, 2015—(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 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$149,387,085    $ 89,997,780       $ 253,405,474       $ 343,109,288       $ 402,792,559       $ 433,107,068   

As of December 31, 2015, 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		     Other
Accumulated
Capital Losses		      Total  
$85,462,093    $ 179,128,079       $ (400,319,259 )    $ —       $ (135,729,087 ) 

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, 2015, the Portfolio had no post-enactment accumulated capital losses and no pre-enactment accumulated capital loss carryforwards.

9. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-18

Met Investors Series Trust

Harris Oakmark International Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Harris Oakmark International 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 Harris Oakmark International Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 Harris Oakmark International Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-19

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-20

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-21

Met Investors Series Trust

Harris Oakmark International Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment

 

MIST-22

Met Investors Series Trust

Harris Oakmark International Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of

 

MIST-23

Met Investors Series Trust

Harris Oakmark International Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

Harris Oakmark International Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Harris Associates L.P. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the one-, three-, and five-year periods ended June 30, 2015. The Board further considered that the Portfolio outperformed its benchmark, the MSCI EAFE Index, for the one-, three-, and five-year periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees were below the Expense Group median and the Expense Universe median and equal to the Sub-advised Expense Universe median. The Board also considered that the Portfolio’s total expenses (exclusive of 12b-1 fees) were below the Expense Group median, Expense Universe median, and Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also noted that the Portfolio’s contractual sub-advisory fees were above the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-24

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Managed by Invesco Advisers, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class B shares of the Invesco Balanced-Risk Allocation Portfolio returned -4.20%. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned -1.21%.

MARKET ENVIRONMENT / CONDITIONS

During the year ended December 31, 2015, global markets produced mixed results due to volatility from a variety of geopolitical developments. Global stock markets disappointed in 2015 as investors were forced to deal with sluggish global growth and the challenge of central banks’ ability to continue to elevate returns. The year began with declines across equity markets as concerns over Greece, weak economic growth in China, and a strong dollar weighed on earnings in the U.S. Equity markets quickly recovered and substantial gains followed in Hong Kong, Japan, and Europe as stimulus efforts proved favorable. As we approached the mid-point of the year, markets gave back some gains as the situation in Greece reached a crescendo and the Chinese stock market plummeted into bear market territory. The third quarter found stocks under significant pressure again as the global economy showed further signs of weakness. Despite a rebound in October and November, stocks came under stress once again in December over concerns about monetary policy and strains in the corporate debt markets.

Government bond returns were positive in 2015 due to broad gains in the first and third quarters. The asset class continued to defy consensus expectations as global economic weakness led to divergent interest rate and stimulus policies from major central banks. While the U.S. Federal Reserve (the “Fed”) spent most of the year jawboning for higher interest rates, and ultimately raising them in December, Canadian and Australian central banks were forced to cut interest rates due to collapsing commodity prices. Additionally, the European Central Bank felt compelled to make a late year extension of the quantitative easing program it initiated in early 2015. In general, government bond prices were driven by European and U.S. policy expectations and reached their highs early in the year when fears of broader European deflation and concerns over Greece drove 10-year German bund yields to a record low of 0.07%. The second quarter brought losses as European inflation and growth forecasts were reported higher than expected in April and led to a spike in 10-year bund yields that ultimately reached their peak at approximately 1% in June. The rapid selloff in bunds triggered a contagion across several global bond markets that was further fueled by the rising rate rhetoric coming out of the Fed and the Bank of England. Yields resumed their decline in the third quarter as equity volatility increased and investors sought refuge in government bonds. The fourth quarter provided marginal losses as bond markets struggled for clarity with the Fed raising rates for the first time since 2006 against signs of global weakness.

Commodities were punished by oversupply, fading demand due to weak global economic growth, and a strong US dollar. Energy led the decline as the Organization of Petroleum Exporting Countries (“OPEC”) and U.S. exploration & production firms continued to flood global markets with supply. OPEC continued refusing to cut production knowing full well the pressure they can place on heavily indebted U.S. frackers. Evidence of this pressure was most notable in December as the corporate high yield debt market, a major source of funding for U.S. energy firms, began to unwind. The pressure on energy prices was further compounded by the El Nino weather phenomena resulting in unusually warm temperatures in many parts of the U.S. during the fourth quarter, which added to the decline of natural gas and heating oil prices. Slowing growth in China was another source of trouble and caused prices of copper and aluminum to collapse, while gold and silver were hurt by the strong dollar and expectations for higher interest rates in the U.S. Agricultural prices were depressed by the strong dollar, which negatively impacted demand from emerging market importers, and high production resulting from a combination of good weather and attempts to counteract low prices.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Invesco Balanced-Risk Allocation Portfolio strategically balances the amount of risk exposure to equities, fixed income, and commodities and targets a strategic risk level of 8%. This is intended to limit the impact of surprise outcomes on the Portfolio. Secondarily, the Portfolio tactically shifts from the strategic equal risk in order to emphasize those assets that are more likely to outperform cash on a monthly basis. Tactical allocation is applied at the individual asset level and aggregated with the strategic allocation allowing the Portfolio risk target to fluctuate between 6% and 10%.

The Portfolio’s strategic equity allocation was responsible for a small gain due to mixed results across markets. Europe and Japan fared best, owing to the high degree of monetary stimulus continuing to support their markets. U.S. large caps finished with small gains despite significant headwinds from a stronger dollar and declining earnings in Energy and Basic Materials. Hong Kong and the U.K. finished the year in negative territory, with the former suffering from the negative impact connected with the Chinese economic issues while the latter was pushed lower by commodity-related exposures. U.S. small caps also declined, impacted by fading risk appetite and having to price in the impact of higher interest rates in the U.S. Tactical equity adjustments slightly detracted for the calendar year owing mainly to the negative results in June and August, when the strategy got whipsawed as a result of the heightened market volatility.

The Portfolio’s strategic bond allocation posted a small gain. Canadian and German bond exposures drove Portfolio performance followed by U.K. and Japanese bond exposures. The Australian and U.S. bond markets declined for the year. Australian bonds suffered as weak commodity prices forced the Reserve Bank of Australia to cut interest rates twice during the year. The rate cuts have led to a decline in the Australian dollar making the country’s bond market relatively less attractive. The U.S. bond market declined as the Fed’s interest rate increase signaled favorable growth prospects. Overall, tactical

 

MIST-1

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Managed by Invesco Advisers, Inc.

Portfolio Manager Commentary*—(Continued)

 

bond exposure was a slight detractor for the year due to the second quarter spike in yields against select overweight positions.

As a result of the early year collapse in bond yields, we made a further augmentation to our strategic bond allocation process. The enhancement reduces exposure to bond markets where current yields are not high enough to absorb a one standard deviation decline in yield without ending-up in negative territory. Consequently, the Portfolio’s strategic allocation to both German bunds and Japanese bonds were, at times, reduced by this process during the year. As yields climbed in the second quarter from their lows, relative reallocations among the various markets have been more muted.

The Portfolio’s commodity allocation was the largest drag on performance of the three asset classes. All four sub-complexes in the Portfolio declined during the year with the Energy sub-complex being the worst performer. Given the profound weakness across the commodity asset class, tactical exposure hovered close to the minimum allowable risk contribution of 16% throughout much of the year. As a result, tactical strategies within the commodity segment were additive to results, given the consistent underweight allocation versus a neutral targeted risk allocation weight of 33%.

Please note that our strategy is principally implemented with derivative instruments including futures and total return swaps, and other instruments that provide economic leverage, such as commodity-linked notes. Therefore, all or most of the performance of the strategy, both positive and negative, can be attributed to these instruments. Derivatives and other instruments that provide economic leverage can be a cost-effective way to gain exposure to asset classes. However, they may amplify traditional investment risks through the creation of leverage and may be less liquid than traditional securities.

At year end, tactical positioning continued to overweight all bond markets except Australia, which has shifted to neutral, resulting in a slightly elevated targeted risk contribution from the fixed income segment. Equities remained overweight, but on a reduced basis in Europe, Japan, and both U.S. exposures. Positioning in commodities remained defensive across all four complexes with the targeted risk contribution remaining close to the minimum allowable target of 16%.

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, 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 subject to change at any time based upon economic, market, or other conditions and the advisory 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        Since Inception2  
Invesco Balanced-Risk Allocation Portfolio            

Class B

        -4.20           2.50   
Dow Jones Moderate Index        -1.21           6.15   

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 date of the Class B shares is 4/23/2012. Index since inception return is based on the Portfolio’s inception date.

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 DECEMBER 31, 2015

Exposures by Asset Class*

 

     % of
Net Assets		  
Global Developed Bonds      86.6   
Global Developed Equities      37.1   
Commodities - Production Weighted      21.8   

 

  * 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

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, July 1, 2015 through December 31, 2015.

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.

 

Invesco Balanced-Risk Allocation Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class B(a)

   Actual      0.89 %     $ 1,000.00         $ 953.30         $ 4.38   
   Hypothetical*      0.89 %     $ 1,000.00         $ 1,020.72         $ 4.53   

* 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 (184 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 December 31, 2015

U.S. Treasury & Government Agencies—4.2% of Net Assets

 

Security Description   Shares/
Principal
Amount*		     Value  

U.S. Treasury—4.2%

  

U.S. Treasury Floating Rate Notes
0.305%, 01/31/16 (a)

     11,050,000      $ 11,050,376   

0.329%, 04/30/16 (a) (b) (c)

     35,556,000        35,563,964   

0.330%, 07/31/16 (a)

     8,310,000        8,311,928   
   

 

 

  

Total U.S. Treasury & Government Agencies
(Cost $54,923,564)

       54,926,268   
   

 

 

  
Commodity-Linked Securities—2.5%   

Canadian Imperial Bank of Commerce Commodity Linked EMTN, U.S. Federal Funds (Effective) Rate minus 0.040% (linked to Canadian Imperial Bank of Commerce Custom 3 Agriculture Commodity Index, multiplied by 2), 06/21/16 (144A)

     8,020,000        7,283,764   

Cargill, Inc. Commodity Linked Note, one month LIBOR Rate minus 0.010% (linked to Monthly Rebalance Commodity Excess Return Index, multiplied by 2), 06/15/16 (144A)

     15,866,996        14,699,631   

Royal Bank of Canada Commodity Linked Note, U.S. Federal Funds (Effective) Rate minus 0.040% (linked to Royal Bank of Canada Enhanced Agriculture Basket 02 Excess Return Index, multiplied by 2), 06/27/16 (144A) (a)

     10,490,000        9,813,495   
   

 

 

  

Total Commodity-Linked Securities
(Cost $34,376,996)

       31,796,890   
   

 

 

  
Short-Term Investments—92.9%   

Municipals—1.0%

  

Gainesville & Hall County, GA, Development Authority Revenue
0.300%, 03/01/21 (a)

     12,900,000        12,900,000   
   

 

 

  

Mutual Funds—21.9%

  

Premier Portfolio, Institutional Class
0.016% (d) (e)

     43,021,130        43,021,130   

STIC (Global Series) plc - U.S. Dollar Liquidity Portfolio, Institutional Class
0.000% (d) (e)

     199,439,842        199,439,842   

STIT-Liquid Assets Portfolio, Institutional Class
0.052% (d) (e)

     39,252,711        39,252,711   
   

 

 

  
      281,713,683   
   

 

 

  

U.S. Treasury—6.0%

  

U.S. Treasury Bills
0.069%, 01/07/16 (b) (f)

     17,330,000        17,329,770   

0.094%, 01/14/16 (b) (f)

     5,740,000        5,739,793   

0.126%, 01/21/16 (f)

     5,360,000        5,359,613   

0.231%, 03/10/16 (b) (f)

     19,180,000        19,171,511   

0.240%, 03/03/16 (c) (f)

     5,370,000        5,367,780   

U.S. Treasury—(Continued)

  

U.S. Treasury Bills

    

0.248%, 03/17/16 (f)

     3,130,000      3,128,365   

0.411%, 01/28/16 (b) (f)

     20,740,000        20,733,458   
   

 

 

  
      76,830,290   
   

 

 

  

Certificate of Deposit—10.0%

  

Citibank N.A.
0.290%, 01/05/16 (f)

     27,620,000        27,620,215   

DBS Bank, Ltd.
0.298%, 01/19/16 (144A) (f)

     20,000,000        19,996,900   

Norinchukin Bank (NY)
0.310%, 01/19/16 (f)

     37,500,000        37,500,000   

0.390%, 02/03/16 (f)

     2,500,000        2,500,000   

United Overseas Bank, Ltd.
0.365%, 01/05/16 (144A) (f)

     41,000,000        40,997,950   
   

 

 

  
      128,615,065   
   

 

 

  

Commercial Paper—54.0%

  

Apple, Inc.
0.130%, 01/05/16 (144A) (f)

     38,500,000        38,499,316   

Barton Capital Corp.
0.162%, 01/05/16 (144A) (f)

     34,000,000        33,999,244   

BMW U.S. Capital LLC
0.161%, 01/06/16 (f)

     10,000,000        9,999,736   

Caisse Centrale Desjardins
0.424%, 01/20/16 (144A) (f)

     25,500,000        25,494,078   

Caisse des Depots et Consignations
0.341%, 01/26/16 (f)

     11,600,000        11,597,181   

Caterpillar Financial Services Co.
0.129%, 01/04/16 (f)

     20,015,000        20,014,716   

CDP Financial, Inc.
0.280%, 01/05/16 (f)

     14,000,000        13,999,704   

1.000%, 01/05/16 (f)

     30,000,000        29,999,167   

Chevron Corp.
0.403%, 02/01/16 (f)

     40,000,000        39,985,878   

Exxon Mobil Corp.
0.126%, 01/21/16 (f)

     41,000,000        40,997,039   

Intel Corp.
0.362%, 01/28/16 (144A) (f)

     40,000,000        39,988,900   

Johnson & Johnson
0.137%, 01/04/16 (f)

     5,000,000        4,999,925   

Kimberly-Clark Corp.
0.330%, 01/11/16 (f)

     10,000,000        9,999,583   

Landesbank Hessen-Thueringen
0.152%, 01/04/16 (144A) (f)

     41,000,000        40,999,317   

Liberty Funding LLC
0.440%, 01/27/16 (144A) (f)

     41,000,000        40,986,675   

Nieuw Amsterdam Receivables Corp.
0.154%, 01/05/16 (144A) (f)

     25,500,000        25,499,462   

PepsiCo, Inc.
0.138%, 01/11/16 (144A) (f)

     24,500,000        24,498,979   

Proctor & Gamble Co.
0.204%, 01/08/16 (144A) (f)

     38,500,000        38,498,278   

 

§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 December 31, 2015

Short-Term Investments—(Continued)

 

Security Description   Principal
Amount*		     Value  

Commercial Paper—(Continued)

  

Siemens Capital Co. LLC
0.266%, 01/08/16 (f)

     24,000,000      $ 23,998,600   

Sumitomo Mitsui Banking Corp. (NY)
0.300%, 01/04/16 (f)

     22,500,000        22,500,000   

0.367%, 01/21/16 (144A) (f)

     15,000,000        14,996,833   

Thunder Bay Funding LLC
0.401%, 03/01/16 (144A) (f)

     14,000,000        14,000,000   

Total Capital Canada, Ltd.
0.195%, 01/25/16 (144A) (f)

     9,000,000        8,998,800   

Toyota Motor Credit Corp.
0.100%, 01/29/16 (f)

     35,000,000        34,991,425   

Unilever Capital Corp.
0.223%, 02/16/16 (144A) (f)

     12,000,000        11,996,550   

Victory Receivables Corp.
0.281%, 01/13/16 (144A) (f)

     33,000,000        32,996,700   

Working Capital Management Co.
0.435%, 01/15/16 (144A) (f)

     41,000,000        40,992,666   
   

 

 

  
      695,528,752   
   

 

 

  

Total Short-Term Investments (Cost $1,195,587,790)

       1,195,587,790   
   

 

 

  

Total Investments—99.6% (Cost $1,284,888,350) (g)

       1,282,310,948   

Other assets and liabilities (net)—0.4%

       4,932,513   
   

 

 

  
Net Assets—100.0%     $ 1,287,243,461   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Variable or floating rate security. The stated rate represents the rate at December 31, 2015. Maturity date shown for callable securities reflects the earliest possible call date.
(b) All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2015, the market value of securities pledged was $66,695,936.
(c) All or a portion of the security was pledged as collateral against open swap contracts. As of December 31, 2015, the market value of securities pledged was $5,815,611.
(d) Affiliated Issuer. (See Note 8 of the Notes to Consolidated Financial Statements for a summary of transactions in securities of affiliated issuers.)
(e) The rate shown represents the annualized seven-day yield as of December 31, 2015.
(f) The rate shown represents current yield to maturity.
(g) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $1,284,891,255. The aggregate unrealized appreciation and depreciation of investments were $3,430 and $(2,583,737), respectively, resulting in net unrealized depreciation of $(2,580,307) for federal income tax purposes.
(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 December 31, 2015, the market value of 144A securities was $525,237,538, which is 40.8% 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)		  

Australian 10 Year Treasury Bond Futures

      03/15/16         1,835         AUD         231,892,414       $ 695,930   

Brent Crude Oil Futures

      01/29/16         240         USD         12,662,978         (3,622,178 ) 

Canada Government Bond 10 Year Futures

      03/21/16         2,378         CAD         328,909,899         4,599,495   

Euro Stoxx 50 Index Futures

      03/18/16         2,430         EUR         78,104,741         1,790,811   

Euro-Bund Futures

      03/08/16         1,145         EUR         182,878,974         (2,239,328 ) 

FTSE 100 Index Futures

      03/18/16         925         GBP         55,077,010         3,323,570   

Gasoline RBOB Futures

      01/29/16         307         USD         16,097,188         291,086   

Hang Seng Index Futures

      01/28/16         536         HKD         585,945,868         160,274   

Japanese Government 10 Year Bond Futures

      03/14/16         103         JPY         15,316,308,116         289,628   

Russell 2000 Mini Index Futures

      03/18/16         605         USD         67,317,258         1,138,492   

S&P 500 E-Mini Index Futures

      03/18/16         665         USD         67,458,841         218,209   

Silver Futures

      03/29/16         436         USD         30,900,627         (810,087 ) 

TOPIX Index Futures

      03/10/16         688         JPY         10,869,770,588         (1,855,074 ) 

U.S. Treasury Long Bond Futures

      03/21/16         809         USD         124,222,479         161,271   

United Kingdom Long Gilt Bond Futures

      03/29/16         1,493         GBP         175,131,052         (1,169,691 ) 

WTI Light Sweet Crude Oil Futures

      05/19/16         174         USD         7,971,755         (888,215 ) 
              

 

 

  

Net Unrealized Appreciation

  

    $ 2,084,193   
              

 

 

  

 

§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 December 31, 2015

Swap Agreements

 

OTC Total Return Swaps

 

Fixed
Rate

    Maturity
Date		   

Counterparty

   

Underlying Reference
Instrument

    Notional Amount      Market
Value		     Upfront
Premium
Paid/(Received)		     Unrealized
Appreciation/
(Depreciation)		  
0.330%    10/21/16    Barclays Bank plc    Barclays Commodity Strategy 1452 Excess Return Index      USD         10,304,838       $ 326,661      $ (61,231 )    $ 387,892   
0.450%    05/05/16    Barclays Bank plc    Barclays Commodity Strategy 1715 Index      USD         4,400,075         2,219        —        2,219   
0.300%    04/11/16    Canadian Imperial Bank of Commerce    CIBC Dynamic Roll LME Copper Excess Return Index 2      USD         26,678,703         28,250        —        28,250   
0.400%    05/31/16    Goldman Sachs International    Goldman Sachs Alpha Basket B784 Excess      USD         15,265,588         —        —        —   
0.000%    01/31/16    Goldman Sachs International    Hang Seng Index      HKD         45,992,300         2,413        —        2,413   
0.140%    06/27/16    Bank of America N.A.    Merrill Lynch Gold Excess Return Index      USD         22,068,151         —        —        —   
0.470%    05/05/16    Cargill, Inc.    Monthly Rebalance Commodity Excess Return Index      USD         18,335,853         —        —        —   
0.380%    10/14/16    Morgan Stanley Capital Services, LLC    S&P GSCI Aluminum Dynamic Roll Index      USD         26,836,287         406,277        —        406,277   
0.090%    10/14/16    JPMorgan Chase Bank N.A.    S&P GSCI Gold Official Close Index      USD         18,706,891         (242,089 )      —        (242,089 ) 
0.120%    01/12/16    Cargill, Inc.    Single Commodity Index Excess Return      USD         8,694,537         —        —        —   
                 

 

 

    

 

 

    

 

 

  

Totals

  

    $ 523,731      $ (61,231 )    $ 584,962   
                 

 

 

    

 

 

    

 

 

  

Cash in the amount of $900,485 has been deposited in a segragated account held by the counterparty as collateral for swap contracts.

 

(AUD)— Australian Dollar
(CAD)— Canadian Dollar
(EUR)— Euro
(GBP)— British Pound
(HKD)— Hong Kong Dollar
(JPY)— Japanese Yen
(USD)— United States Dollar

Index Information:

Barclays Commodity Strategy 1452 Index—a commodity index that provide exposure to future contracts on copper.

Barclays Commodity Strategy 1715 Index—a commodity index that provide exposure to future contracts on Coffee ‘C’, Corn, Cotton, Soybeans, Soybean Meal, Soybean Oil, Sugar and Wheat.

Canadian Imperial Bank of Commerce Custom 3 Agriculture Commodity Index—a basket of indices that provide exposure to various components of the agriculture markets. The underlying commodities comprising the indices are: Coffee ‘C’, Corn, Cotton, Sugar, Soybeans, Soybean meal, Soybean oil, and Wheat.

Goldman Sachs Alpha Basket B784 Excess Return Strategy Index—a basket of indices that provide exposure to various components of the agriculture markets. The underlying commodities comprising the indices are: Corn, Coffee, Cotton, Soybeans, Soybean meal, Soybean oil, Sugar and Wheat.

Monthly Rebalance Commodity Excess Return Index—a commodity index composed of futures contracts on Coffee ‘C’, Corn, Cotton No. 2, Soybean Meal, Soybean Oil, Soybeans, Sugar No. 11 and Wheat.

Royal Bank of Canada Enhanced Agricultural Basket 02 Excess Return Index—a commodity index composed of futures contracts on Corn, Coffee, Wheat, Cotton, Soybeans, Soybean meal, Soybean oil and Sugar.

Single Commodity Index Excess Return—a commodity index composed of future contracts on gold.

 

§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 December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1     Level 2     Level 3      Total  

Total U.S. Treasury & Government Agencies*

    $ —      $ 54,926,268      $ —       $ 54,926,268   

Total Commodity-Linked Securities

      —        31,796,890        —         31,796,890   
Short-Term Investments          

Municipals

      —        12,900,000        —         12,900,000   

Mutual Funds

      281,713,683        —        —         281,713,683   

U.S. Treasury

      —        76,830,290        —         76,830,290   

Certificate of Deposit

      —        128,615,065        —         128,615,065   

Commercial Paper

      —        695,528,752        —         695,528,752   

Total Short-Term Investments

      281,713,683        913,874,107        —         1,195,587,790   

Total Investments

    $ 281,713,683      $ 1,000,597,265      $ —       $ 1,282,310,948   
                                   
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 12,668,766      $ —      $ —       $ 12,668,766   

Futures Contracts (Unrealized Depreciation)

      (10,584,573 )      —        —         (10,584,573 ) 

Total Futures Contracts

    $ 2,084,193      $ —      $ —       $ 2,084,193   
OTC Swap Contracts          

OTC Swap Contracts at Value (Assets)

    $ —      $ 765,820      $ —       $ 765,820   

OTC Swap Contracts at Value (Liabilities)

      —        (242,089 )      —         (242,089 ) 

Total OTC Swap Contracts

    $ —      $ 523,731      $ —       $ 523,731   

 

* 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-8

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Consolidated§ Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a)

    $ 1,000,597,265   

Affiliated investments at value (b)

      281,713,683   

Cash collateral for futures contracts

      6,751,000   

OTC swap contracts at market value (c)

      765,820   

Receivable for:

   

Fund shares sold

      220,483   

Interest

      119,269   

Prepaid expenses

      3,635  
  

 

 

  

Total Assets

      1,290,171,155  

Liabilities

   

OTC swap contracts at market value

      242,089   

Payables for:

   

OTC swap contracts

      586,564   

Fund shares redeemed

      252,834   

Variation margin on futures contracts

      633,559   

Interest on OTC swap contracts

      28,613   

Accrued Expenses:

   

Management fees

      666,270   

Distribution and service fees

      274,254   

Deferred trustees’ fees

      56,734   

Other expenses

      186,777  
  

 

 

  

Total Liabilities

      2,927,694  
  

 

 

  

Net Assets

    $ 1,287,243,461  
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 1,289,930,730   

Undistributed net investment income

      1,777,171   

Accumulated net realized loss

      (4,705,982 ) 

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

      241,542  
  

 

 

  

Net Assets

    $ 1,287,243,461  
  

 

 

  

Net Assets

   

Class B

    $ 1,287,243,461   

Capital Shares Outstanding*

   

Class B

      140,228,783   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 9.18   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding affiliated investments, was $1,003,174,667.
(b) Identified cost of affiliated investments was $281,713,683.
(c) Net premium received on OTC swap contract was $61,231.

Consolidated§ Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends from affiliated investments

    $ 146,491   

Interest (a)

      1,616,711  
  

 

 

  

Total investment income

      1,763,202  

Expenses

   

Management fees

      8,595,690   

Administration fees

      82,401   

Custodian and accounting fees

      155,608   

Distribution and service fees—Class B

      3,373,204   

Audit and tax services

      81,364   

Legal

      31,159   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      53,226   

Insurance

      8,607   

Miscellaneous

      16,357  
  

 

 

  

Total expenses

      12,432,789  

Less management fee waiver

      (426,674 )
  

 

 

  

Net expenses

      12,006,115  
  

 

 

  

Net Investment Loss

      (10,242,913 )
  

 

 

  

Net Realized and Unrealized Loss

   
Net realized gain (loss) on:   

Investments

      (9,470,725 ) 

Futures contracts

      6,120,180   

Swap contracts

      (30,231,798 ) 

Foreign currency transactions

      1,481,212  
  

 

 

  

Net realized loss

      (32,101,131 )
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      439,536   

Futures contracts

      (16,426,327 ) 

Swap contracts

      1,174,801   

Foreign currency transactions

      99,804  
  

 

 

  

Net change in unrealized depreciation

      (14,712,186 )
  

 

 

  

Net realized and unrealized loss

      (46,813,317 )
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (57,056,230 )
  

 

 

  

 

(a) Net of foreign withholding taxes of $3,048.

 

§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§ Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment loss

    $ (10,242,913 )    $ (10,513,011 ) 

Net realized gain (loss)

      (32,101,131 )      81,315,159   

Net change in unrealized appreciation (depreciation)

      (14,712,186 )     1,152,382  
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (57,056,230 )     71,954,530  
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (37,877,864 )      0   

Net realized capital gains

     

Class B

      (97,181,591 )     (62,513,812 )
  

 

 

    

 

 

  

Total distributions

      (135,059,455 )     (62,513,812 )
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      128,026,610       1,426,135  
  

 

 

    

 

 

  

Total increase (decrease) in net assets

      (64,089,075 )      10,866,853   

Net Assets

     

Beginning of period

      1,351,332,536       1,340,465,683  
  

 

 

    

 

 

  

End of period

    $ 1,287,243,461      $ 1,351,332,536   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 1,777,171      $ 37,667,173   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      10,319,861      $ 104,117,206        8,227,235      $ 87,209,317   

Reinvestments

      14,068,693        135,059,455        6,087,031        62,513,812   

Redemptions

      (11,170,496 )      (111,150,051 )      (13,978,245 )      (148,296,994 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      13,218,058      $ 128,026,610        336,021      $ 1,426,135   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 128,026,610        $ 1,426,135   
    

 

 

      

 

 

  

 

§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  
     Year Ended December 31,  
     2015     2014     2013     2012(a)  

Net Asset Value, Beginning of Period

    $ 10.64      $ 10.58     $ 10.49      $ 10.00   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income (Loss) from Investment Operations

         

Net investment loss (b)

      (0.08 )      (0.08 )      (0.08 )      (0.06 ) 

Net realized and unrealized gain (loss) on investments

      (0.32 )     0.65       0.27       0.69  
  

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      (0.40 )     0.57       0.19       0.63  
  

 

 

    

 

 

    

 

 

    

 

 

  

Less Distributions

         

Distributions from net investment income

      (0.30 )      0.00        0.00        (0.03 ) 

Distributions from net realized capital gains

      (0.76 )     (0.51 )     (0.10 )     (0.11 )
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (1.06 )     (0.51 )     (0.10 )     (0.14 )
  

 

 

    

 

 

    

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 9.18      $ 10.64     $ 10.58      $ 10.49   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Return (%) (c)

      (4.20 )     5.58       1.86       6.34  (d)

Ratios/Supplemental Data

         

Gross ratio of expenses to average net assets (%)

      0.92        0.94        0.93        1.03  (e) 

Gross ratio of expenses to average net assets excluding interest expense (%)

      0.92        0.93        0.91        1.03  (e) 

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

      0.89        0.91        0.90        0.90  (e) 

Net ratio of expenses to average net assets excluding interest expense (%) (f)

      0.89        0.90        0.88        0.90  (e) 

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

      (0.76 )      (0.78 )      (0.76 )      (0.80 )(e) 

Portfolio turnover rate (%)

      40        44        34        0  (g) 

Net assets, end of period (in millions)

    $ 1,287.2      $ 1,351.3      $ 1,340.5      $ 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 (see Note 7 of the Notes to Consolidated Financial Statements).
(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—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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”), 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 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 may invest in commodity derivatives, exchange-traded notes, exchange-traded funds, 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 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
December 31, 2015		      % of
Total Assets at
December 31, 2015		  

Invesco Balanced-Risk Allocation Portfolio, Ltd.

      4/23/2012       $ 305,567,407         23.7 % 

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 December 31, 2015 through the date the consolidated financial statements were issued.

 

MIST-12

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and 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.

Investments in unregistered open-end management investment companies are reported at net asset value (“NAV”) per share on the valuation date and are categorized as Level 1 within the fair value heirarchy provided the NAV is observable, calculated daily and are the value at which both purchases and sales will be conducted.

Forward foreign currency exchange contracts are valued through an independent pricing service based on the mean between closing bid and ask prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or broker-dealer. These contracts are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

Swap contracts (other than centrally cleared swaps) are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and other pricing services. Such quotations and prices are derived utilizing observable data, including the underlying reference securities or indices, credit spread quotations and expected default recovery rates determined by the pricing service. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or an independent pricing service when the exchange price is not available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third party prices are used to produce daily settlement prices. These securities are categorized as Level 2 within the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates, including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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

 

MIST-13

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 redesignation, premium amortization and controlled foreign corporations. These adjustments have no impact on net assets or the results 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 remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

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.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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.

 

MIST-14

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

4. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts 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 cash 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. If futures contracts are exchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

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 either privately negotiated in the OTC market (“OTC swaps”) or 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 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.

Centrally Cleared Swaps: Clearinghouses currently offer clearing derivatives transactions which include interest rate and 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.

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 upon entering into the swap agreement 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

 

MIST-15

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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: The Portfolio may enter into currency swap agreements to gain or mitigate exposure to currency risk. 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.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of 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 appreciation on futures contracts (a) (b)    $ 5,746,325       Unrealized depreciation on futures contracts (a) (b)    $ 3,409,020   

Equity

    OTC swap contracts at market value (c)      2,413         
   Unrealized appreciation on futures contracts (a) (b)      6,631,355       Unrealized depreciation on futures contracts (a) (b)      1,855,074   

Commodity

    OTC swap contracts at market value (c)      763,407       OTC swap contracts at market value (c)      242,089   
   Unrealized appreciation on futures contracts (a) (b)      291,086       Unrealized depreciation on futures contracts (a) (b)      5,320,479   
     

 

 

        

 

 

  
Total       $ 13,434,586          $ 10,826,662   
     

 

 

        

 

 

  

 

  (a) 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.
  (b) Financial instrument not subject to a master netting agreement.
  (c) Excludes OTC swap interest payable of $28,613.

The Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Consolidated Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized assets and liabilities.

 

MIST-16

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

The following table presents the Portfolio’s derivative assets by counterparty net of amounts available for offset under a master netting agreement (“MNA”) (see Note 5), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Assets
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		      Collateral
Received†		     Net
Amount*		  

Barclays Bank plc

    $ 328,880       $ —       $ —      $ 328,880   

Canadian Imperial Bank of Commerce

      28,250         —         —        28,250   

Goldman Sachs International

      2,413         —         (485 )      1,928   

Morgan Stanley Capital Services, LLC

      406,277         —         (406,277 )      —   
  

 

 

     

 

 

     

 

 

    

 

 

  
   $ 765,820       $ —       $ (406,762 )    $ 359,058   
  

 

 

     

 

 

     

 

 

    

 

 

  

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under an MNA, or similar agreement, and net of the related collateral pledged by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Liabilities
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		      Collateral
Pledged†		      Net
Amount**		  

JPMorgan Chase Bank N.A.

    $ 242,089       $ —       $ —       $ 242,089   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

  * Net amount represents the net amount receivable from the counterparty in the event of default.
  ** Net amount represents the net amount payable due to the counterparty in the event of default.
  † In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

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

    Interest Rate     Equity     Commodity     Total  

Futures contracts

    $ 29,857,197      $ (599,001 )    $ (23,138,016 )    $ 6,120,180   

Swap contracts

      505,485        (550,440 )      (30,186,843 )      (30,231,798 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 30,362,682      $ (1,149,441 )    $ (53,324,859 )    $ (24,111,618 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

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

    Interest Rate     Equity     Commodity     Total  

Futures contracts

    $ (18,245,206 )    $ (3,369,138 )    $ 5,188,017      $ (16,426,327 ) 

Swap contracts

      (708,048 )      (293,328 )      2,176,177        1,174,801   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ (18,953,254 )    $ (3,662,466 )    $ 7,364,194      $ (15,251,526 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Futures contracts long

    $ 828,978,206   

Swap contracts

      1,182,384   

 

  ‡ Averages are based on activity levels during 2015.

5. Certain Risks

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”).

Market 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, interest rate, and price fluctuations.

Commodities Risk: 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 factors affecting a particular industry or commodity.

 

MIST-17

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Notes to Financial Statements—December 31, 2015—(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 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC 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 (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to Portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 34,376,996       $ 10,300,735       $ 22,756,380   

 

MIST-18

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

7. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$8,595,690      0.675 %    First $250 million
     0.650 %   $250 million to $750 million
     0.625 %   $750 million to $1 billion
     0.600 %    Over $1 billion

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Invesco Advisers, Inc. is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

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 year ended December 31, 2015 are shown as a management fee waiver 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, LLC, 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 year ended December 31, 2015 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 year ended December 31, 2015 is as follows:

 

Security Description

    Number of
shares held at
December 31, 2014		      Shares
purchased		      Shares sold     Number of
shares held at
December 31, 2015		  

Premier Portfolio, Institutional Class

      43,003,154         449,010,377         (448,992,401 )    $ 43,021,130   

STIC (Global Series) plc - U.S. Dollar Liquidity Portfolio, Institutional Class

      195,268,089         367,894,136         (363,722,383 )      199,439,842   

STIT-Liquid Assets Portfolio, Institutional Class

      43,003,154         444,945,421         (448,695,864 )      39,252,711   

 

MIST-19

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

 

Security Description

    Net Realized
Gain/(Loss) on sales
of Affiliated
Investments		      Capital Gain
Distributions
from Affiliated
Investments		      Dividend Income
from Affiliated
Investments		      Ending Value
as of
December 31, 2015		  

Premier Portfolio, Institutional Class

    $ —       $ —       $ —       $ 41,136,921   

STIC (Global Series) plc - U.S. Dollar Liquidity Portfolio, Institutional Class

      —         —         146,491         199,439,842   

STIT-Liquid Assets Portfolio, Institutional Class

      —         —         —         41,136,920   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ —       $ —       $ 146,491       $ 281,713,683   
  

 

 

     

 

 

     

 

 

     

 

 

  

9. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$84,957,994    $ 37,239,673       $ 50,101,461       $ 25,274,139       $ 135,059,455       $ 62,513,812   

As of December 31, 2015, 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		     Other
Accumulated
Capital Losses		     Total  
$1,833,904    $ —       $ (2,984,696 )    $ (1,479,744 )    $ (2,630,536 ) 

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.

As of December 31, 2015, the Portfolio had accumulated long term capital losses of $1,479,744.

11. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-20

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Invesco Balanced-Risk Allocation 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 the Invesco Balanced-Risk Allocation Portfolio and subsidiary, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, and the consolidated financial highlights for each of the three years in the period then ended and for the period from April 23, 2012 (commencement of operations) to December 31, 2012. These consolidated financial statements and consolidated financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these consolidated financial statements and consolidated 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 consolidated financial highlights referred to above present fairly, in all material respects, the financial position of Invesco Balanced-Risk Allocation Portfolio and subsidiary of the Met Investors Series Trust as of December 31, 2015, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the consolidated financial highlights for each of the three years in the period then ended and for the period from April 23, 2012 (commencement of operations) to December 31, 2012, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-21

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-22

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-23

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

 

MIST-24

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-25

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

Invesco Balanced-Risk Allocation Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Invesco Advisers, Inc. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe for the one-year period ended June 30, 2015, and underperformed the median of its Performance Universe for the three-year and since-inception (beginning April 23, 2012) periods ended June 30, 2015. The Board also considered that the Portfolio underperformed its Lipper Index for the one-, three-, and since-inception periods ended June 30, 2015. The Board further considered that the Portfolio underperformed its benchmark, the Dow Jones Moderate Index, and its blended benchmark for the one-year, three-year, and since-inception periods ended October 31, 2015. The Board took into account management’s discussion of the Portfolio’s performance, including prevailing market conditions.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-l fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were above the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also noted that the Portfolio’s contractual sub-advisory fees were below the average of the Sub-advised Expense Group and the average of the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-26

Met Investors Series Trust

Invesco Comstock Portfolio

Managed by Invesco Advisers, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A and B shares of the Invesco Comstock Portfolio returned -5.73% and -5.97%, respectively. The Portfolio’s benchmark, the Russell 1000 Value Index1, returned -3.83%.

MARKET ENVIRONMENT / CONDITIONS

The U.S. economy continued a modest, but steady growth pace, during the year ended December 31, 2015; however, the health of individual economic sectors varied dramatically. The headline economic story was a steady decline in already-battered energy markets, as oil prices plummeted when increased supply overwhelmed demand. This decline particularly affected companies with U.S.-based offshore or shale-based resources—companies whose cost to recover oil is higher than many traditional producers. On the other end of the spectrum, the improved position of the U.S. consumer was the more subtle story, which drove the U.S. economy forward during the fiscal year. As the year began, economic growth appeared to be stronger in the U.S. than in the rest of the world. U.S. equity markets were recovering from the crash of oil prices initiated by the Organization of Petroleum Exporting Countries’ (OPEC) decision to maintain high production despite low prices and slowing global growth. The view that the U.S. Federal Reserve (the “Fed”) would begin raising rates while other central banks were loosening fiscal policy led the U.S. dollar to strengthen against many currencies. This hurt commodity- and materials-based economies, and subsequently, companies in sectors exposed to these economies. Additionally, U.S.-based multinational companies faced foreign exchange headwinds. Low interest rates, the increasing availability of credit and an improving employment picture all contributed to higher consumer confidence and consumer spending, which drove U.S. equity markets higher, particularly through the spring, and helped overcome fears that Greece and the Eurozone would fail to reach an agreement on a financial bailout plan.

In the summer of 2015, U.S. equity markets moved sharply lower. A significant downturn in China’s financial markets and weak global economic growth led the Fed to delay raising interest rates; this, in turn, increased investor uncertainty and market volatility. A continued decline in oil prices also contributed to market volatility through year end. Ultimately, the Fed raised interest rates in December for the first time since 2006 and the market ended flat for the year.

For the reporting period, most U.S. broad equity market indexes delivered flat to barely positive returns. Sectors within the Russell 1000 Value Index were mixed for the reporting period, with most sectors posting negative returns. Only Industrials, Telecommunication Services, and Health Care posted positive returns.

PORTFOLIO REVIEW / PERIOD END POSITIONING

On the negative side, weak stock selection and an underweight to Health Care stocks was a large detractor to relative performance. The Portfolio’s underweight within the health care equipment & services industry hurt relative performance, as did not owning select names within pharmaceuticals, like Eli Lilly, which returned over 20% for the period.

Stock selection and an overweight within the Energy sector hurt performance, driven mainly on declining oil prices. Notably, Royal Dutch Shell plc (U.K.) and Murphy Oil were two of the largest relative detractors. Despite having a strong balance sheet and maintaining an attractive dividend, Royal Dutch Shell, a non-benchmark and a Portfolio top holding, underperformed the sector and benchmark for the period.

Weak stock selection and overweight exposure within Consumer Discretionary detracted from relative performance. Media holding, Viacom, was the largest relative detractor.

Stock selection and an underweight to Financials also acted as a large detractor to performance. Within diversified financials, Morgan Stanley and State Street underperformed the sector and benchmark, posting double digit negative returns. Morgan Stanley reported profits and revenues that beat estimates, but financial stocks in general declined in the latter part of the period due to concerns about a prolonged low interest rate environment. Not owning Real Estate Investment Trusts (“REITs”) contributed to relative underperformance.

On the positive side, stock selection within Consumer Staples contributed to relative performance. ConAgra Foods was a notable contributor within the food, beverage & tobacco industry, posting a double digit return after activist investor Jana Partners announced a stake in the company and sought seats on the board of directors, and after the company reported earnings that exceeded analysts’ estimates. Avoiding Proctor & Gamble, a large benchmark weight, contributed to relative performance.

Strong stock selection within Industrials boosted relative performance. Additionally, having no exposure to holdings such as United Technologies and CSX helped results, as those stocks underperformed the sector and benchmark.

A material underweight in Utilities contributed to relative performance, as Utilities’ stocks posted negative returns for the period.

Currency forward contracts were used during the year for the purpose of hedging currency exposure of non-U.S.-based companies held in the Portfolio. Derivatives were used solely for the purpose of hedging and not for speculative purposes or leverage. The use of currency forward contracts had a large positive impact on the Portfolio’s performance relative to the Russell 1000 Value Index for the year. The contribution from hedging was mainly due to the strength of the U.S. dollar versus the foreign currencies of the Portfolio’s non-U.S. holdings.

 

MIST-1

Met Investors Series Trust

Invesco Comstock Portfolio

Managed by Invesco Advisers, Inc.

Portfolio Manager Commentary*—(Continued)

 

At year end, although the Portfolio was underweight Financials and overweight in Energy compared to the benchmark, we maintained a favorable view of large diversified financials companies and had been taking advantage of weakness in the Energy sector to add to the Portfolio’s Energy position. At year end, the Portfolio’s exposure to each sector had a higher beta than the benchmark.

Kevin Holt

Devin Armstrong

Charles DyReyes

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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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

 

A $10,000 INVESTMENT COMPARED TO THE RUSSELL 1000 VALUE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year  
Invesco Comstock Portfolio                 

Class A

        -5.73           10.47           5.78   

Class B

        -5.97           10.18           5.52   
Russell 1000 Value Index        -3.83           11.27           6.16   

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
Citigroup, Inc.      5.0   
JPMorgan Chase & Co.      3.9   
Bank of America Corp.      3.0   
Carnival Corp.      2.9   
Cisco Systems, Inc.      2.3   
General Electric Co.      2.3   
Wells Fargo & Co.      2.1   
Suncor Energy, Inc.      2.1   
General Motors Co.      2.0   
PNC Financial Services Group, Inc. (The)      2.0   

Top Sectors

 

     % of
Net Assets		  
Financials      27.5   
Consumer Discretionary      15.0   
Energy      12.9   
Information Technology      12.7   
Health Care      11.3   
Industrials      6.9   
Consumer Staples      4.7   
Materials      1.7   
Utilities      1.1   
Telecommunication Services      0.8   

 

MIST-3

Met Investors Series Trust

Invesco Comstock 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, July 1, 2015 through December 31, 2015.

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

        Annualized
Expense
Ratio		     Beginning
Account Value
July 1,
2015		      Ending
Account Value
December 31,
2015		      Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual     0.57 %    $ 1,000.00       $ 935.10       $ 2.78   
   Hypothetical*     0.57 %    $ 1,000.00       $ 1,022.33       $ 2.91   

Class B(a)

    Actual     0.82 %    $ 1,000.00       $ 934.10       $ 4.00   
   Hypothetical*     0.82 %    $ 1,000.00       $ 1,021.07       $ 4.18   

* 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 (184 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

Schedule of Investments as of December 31, 2015

Common Stocks—94.6% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—1.2%

  

Textron, Inc.

     674,172      $ 28,321,966   
   

 

 

  

Auto Components—1.6%

  

Johnson Controls, Inc.

     1,010,544        39,906,383   
   

 

 

  

Automobiles—2.0%

  

General Motors Co.

     1,425,619        48,485,302   
   

 

 

  

Banks—18.6%

  

Bank of America Corp.

     4,275,108        71,950,068   

Citigroup, Inc.

     2,324,854        120,311,195   

Citizens Financial Group, Inc.

     730,053        19,120,088   

Fifth Third Bancorp

     1,757,962        35,335,036   

JPMorgan Chase & Co.

     1,414,222        93,381,079   

PNC Financial Services Group, Inc. (The)

     508,343        48,450,171   

U.S. Bancorp

     240,824        10,275,960   

Wells Fargo & Co.

     932,356        50,682,872   
   

 

 

  
      449,506,469   
   

 

 

  

Beverages—1.6%

  

Coca-Cola Co. (The)

     914,914        39,304,705   
   

 

 

  

Biotechnology—0.9%

  

AbbVie, Inc.

     351,321        20,812,256   
   

 

 

  

Capital Markets—5.5%

  

Bank of New York Mellon Corp. (The)

     659,688        27,192,339   

Goldman Sachs Group, Inc. (The)

     149,513        26,946,728   

Morgan Stanley

     1,244,922        39,600,969   

State Street Corp.

     586,615        38,927,772   
   

 

 

  
      132,667,808   
   

 

 

  

Communications Equipment—2.3%

  

Cisco Systems, Inc.

     2,093,625        56,852,387   
   

 

 

  

Consumer Finance—1.0%

  

Ally Financial, Inc. (a)

     1,276,890        23,801,230   
   

 

 

  

Containers & Packaging—0.9%

  

International Paper Co.

     574,200        21,647,340   
   

 

 

  

Diversified Telecommunication Services—0.8%

  

Frontier Communications Corp. (b)

     3,906,511        18,243,406   
   

 

 

  

Electric Utilities—0.5%

  

FirstEnergy Corp.

     379,667        12,046,834   
   

 

 

  

Electrical Equipment—1.4%

  

Emerson Electric Co.

     717,589        34,322,282   
   

 

 

  

Electronic Equipment, Instruments & Components—0.6%

  

Corning, Inc.

     821,466        15,016,399   
   

 

 

  

Energy Equipment & Services—2.8%

  

Halliburton Co.

     591,933        20,149,399   

Noble Corp. plc (b)

     1,046,382        11,039,330   

Energy Equipment & Services—(Continued)

  

Weatherford International plc (a) (b)

     4,343,825      36,444,692   
   

 

 

  
      67,633,421   
   

 

 

  

Food & Staples Retailing—1.4%

  

CVS Health Corp.

     114,179        11,163,281   

Wal-Mart Stores, Inc.

     360,043        22,070,636   
   

 

 

  
      33,233,917   
   

 

 

  

Food Products—1.2%

  

ConAgra Foods, Inc.

     433,661        18,283,148   

Mondelez International, Inc. - Class A

     242,460        10,871,906   
   

 

 

  
      29,155,054   
   

 

 

  

Health Care Equipment & Supplies—0.8%

  

Medtronic plc

     245,896        18,914,320   
   

 

 

  

Health Care Providers & Services—1.9%

  

Anthem, Inc.

     163,342        22,776,408   

Express Scripts Holding Co. (a)

     258,951        22,634,907   
   

 

 

  
      45,411,315   
   

 

 

  

Hotels, Restaurants & Leisure—2.9%

  

Carnival Corp.

     1,310,031        71,370,489   
   

 

 

  

Industrial Conglomerates—2.3%

  

General Electric Co.

     1,801,417        56,114,140   
   

 

 

  

Insurance—2.5%

  

Aflac, Inc.

     482,101        28,877,850   

Allstate Corp. (The)

     497,039        30,861,151   
   

 

 

  
      59,739,001   
   

 

 

  

Internet Software & Services—1.8%

    

eBay, Inc. (a)

     1,146,291        31,500,077   

Yahoo!, Inc. (a)

     395,055        13,139,529   
   

 

 

  
      44,639,606   
   

 

 

  

IT Services—0.9%

  

PayPal Holdings, Inc. (a)

     634,574        22,971,579   
   

 

 

  

Leisure Products—0.4%

  

Mattel, Inc. (b)

     318,041        8,641,174   
   

 

 

  

Machinery—2.0%

  

Caterpillar, Inc. (b)

     490,381        33,326,293   

Ingersoll-Rand plc

     250,769        13,865,018   
   

 

 

  
      47,191,311   
   

 

 

  

Media—5.8%

  

CBS Corp. - Class B

     220,866        10,409,415   

Comcast Corp. - Class A

     693,372        39,126,982   

Time Warner Cable, Inc.

     131,035        24,318,786   

Time Warner, Inc.

     153,423        9,921,865   

Twenty-First Century Fox, Inc. - Class B

     1,019,273        27,754,804   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Invesco Comstock Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description       
    
Shares		     Value  

Media—(Continued)

  

Viacom, Inc. - Class B

     671,327      $ 27,631,819   
   

 

 

  
      139,163,671   
   

 

 

  

Metals & Mining—0.8%

  

Alcoa, Inc. (b)

     1,984,066        19,582,731   
   

 

 

  

Multi-Utilities—0.6%

  

PG&E Corp.

     291,302        15,494,353   
   

 

 

  

Multiline Retail—2.3%

  

Kohl’s Corp. (b)

     620,779        29,567,704   

Target Corp.

     371,931        27,005,910   
   

 

 

  
      56,573,614   
   

 

 

  

Oil, Gas & Consumable Fuels—10.1%

  

BP plc (ADR)

     1,221,545        38,185,497   

Chevron Corp.

     398,957        35,890,172   

Devon Energy Corp.

     604,858        19,355,456   

Hess Corp. (b)

     427,516        20,725,976   

Murphy Oil Corp. (b)

     128,710        2,889,539   

Occidental Petroleum Corp.

     317,594        21,472,530   

QEP Resources, Inc.

     1,118,934        14,993,716   

Royal Dutch Shell plc - Class A (ADR)

     909,942        41,666,244   

Suncor Energy, Inc.

     1,947,921        50,256,362   
   

 

 

  
      245,435,492   
   

 

 

  

Personal Products—0.5%

  

Unilever NV (b)

     261,791        11,340,786   
   

 

 

  

Pharmaceuticals—7.8%

  

GlaxoSmithKline plc (ADR) (b)

     236,712        9,551,329   

Merck & Co., Inc.

     911,838        48,163,283   

Novartis AG

     379,655        32,451,616   

Pfizer, Inc.

     1,346,896        43,477,803   

Roche Holding AG (ADR)

     673,589        23,218,613   

Sanofi (ADR)

     743,667        31,717,398   
   

 

 

  
      188,580,042   
   

 

 

  

Semiconductors & Semiconductor Equipment—1.0%

  

Intel Corp.

     692,363        23,851,905   
   

 

 

  

Software—3.8%

  

Citrix Systems, Inc. (a)

     236,661        17,903,404   

Microsoft Corp.

     725,889        40,272,322   

Symantec Corp.

     1,658,828        34,835,388   
   

 

 

  
      93,011,114   
   

 

 

  

Technology Hardware, Storage & Peripherals—2.1%

  

Hewlett Packard Enterprise Co.

     307,904        4,680,141   

HP, Inc.

     1,009,543        11,952,989   

NetApp, Inc.

     1,285,374        34,100,972   
   

 

 

  
      50,734,102   
   

 

 

  

Total Common Stocks
(Cost $2,087,020,683)

       2,289,717,904   
   

 

 

  
Short-Term Investments—8.7%   
Security Description   Shares/
Principal
Amount*		     Value  

Mutual Fund—3.7%

  

State Street Navigator Securities Lending MET Portfolio (c)

     88,088,459      $ 88,088,459   
   

 

 

  

Repurchase Agreement—5.0%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $121,611,001 on 01/04/16, collateralized by $123,945,000 U.S. Government Agency Obligations with rates ranging from 1.670% - 1.680%, maturity dates ranging from 02/10/20 - 02/25/20, with a value of $124,043,775.

     121,610,595        121,610,595   
   

 

 

  

Total Short-Term Investments (Cost $209,699,054)

       209,699,054   
   

 

 

  

Total Investments—103.3% (Cost $2,296,719,737) (d)

       2,499,416,958   

Other assets and liabilities (net)—(3.3)%

       (80,017,440 ) 
   

 

 

  
Net Assets—100.0%     $ 2,419,399,518   
   

 

 

  

 

* 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 December 31, 2015, the market value of securities loaned was $116,141,330 and the collateral received consisted of cash in the amount of $88,088,459 and non-cash collateral with a value of $31,977,759. 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 on loan as of December 31, 2015.
(d) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $2,300,302,269. The aggregate unrealized appreciation and depreciation of investments were $399,994,696 and $(200,880,007), respectively, resulting in net unrealized appreciation of $199,114,689 for federal income tax purposes.
(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

Schedule of Investments as of December 31, 2015

Forward Foreign Currency Exchange Contracts

 

 

Contracts to Deliver

     

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation		  
CAD     14,641,162      

Canadian Imperial Bank of Commerce

        01/22/16         $ 10,657,419         $ 75,894   
CAD     14,536,603      

Deutsche Bank AG

        01/22/16           10,580,616           74,659   
CAD     14,536,604      

Goldman Sachs International

        01/22/16           10,581,310           75,352   
CAD     14,536,604      

Royal Bank of Canada

        01/22/16           10,583,660           77,702   
CHF     11,124,112      

Canadian Imperial Bank of Commerce

        01/22/16           11,308,439           194,117   
CHF     11,123,450      

Deutsche Bank AG

        01/22/16           11,304,664           191,003   
CHF     11,124,113      

Goldman Sachs International

        01/22/16           11,314,767           200,444   
CHF     11,124,113      

Royal Bank of Canada

        01/22/16           11,313,674           199,350   
EUR     12,755,224      

Barclays Bank plc

        01/22/16           14,043,387           175,752   
EUR     12,755,224      

Canadian Imperial Bank of Commerce

        01/22/16           14,038,399           170,764   
EUR     12,755,224      

Deutsche Bank AG

        01/22/16           14,041,843           174,208   
EUR     12,756,838      

Goldman Sachs International

        01/22/16           14,042,957           173,567   
EUR     12,755,225      

Royal Bank of Canada

        01/22/16           14,034,204           166,568   
GBP     6,587,991      

Canadian Imperial Bank of Commerce

        01/22/16           9,968,948           256,459   
GBP     6,590,140      

Deutsche Bank AG

        01/22/16           9,975,983           260,326   
GBP     6,587,991      

Goldman Sachs International

        01/22/16           9,970,727           258,238   
GBP     6,587,990      

Royal Bank of Canada

        01/22/16           9,968,255           255,768   
                   

 

 

  

Net Unrealized Appreciation

  

      $ 2,980,171   
                   

 

 

  

 

(CAD)— Canadian Dollar
(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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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.

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Invesco Comstock Portfolio

Schedule of Investments as of December 31, 2015

Fair Value Hierarchy—(Continued)

 

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2015:

 

Description    Level 1      Level 2     Level 3      Total  
Common Stocks           

Aerospace & Defense

    $ 28,321,966       $ —        $ —         $ 28,321,966   

Auto Components

      39,906,383         —          —           39,906,383   

Automobiles

      48,485,302         —          —           48,485,302   

Banks

      449,506,469         —          —           449,506,469   

Beverages

      39,304,705         —          —           39,304,705   

Biotechnology

      20,812,256         —          —           20,812,256   

Capital Markets

      132,667,808         —          —           132,667,808   

Communications Equipment

      56,852,387         —          —           56,852,387   

Consumer Finance

      23,801,230         —          —           23,801,230   

Containers & Packaging

      21,647,340         —          —           21,647,340   

Diversified Telecommunication Services

      18,243,406         —          —           18,243,406   

Electric Utilities

      12,046,834         —          —           12,046,834   

Electrical Equipment

      34,322,282         —          —           34,322,282   

Electronic Equipment, Instruments & Components

      15,016,399         —          —           15,016,399   

Energy Equipment & Services

      67,633,421         —          —           67,633,421   

Food & Staples Retailing

      33,233,917         —          —           33,233,917   

Food Products

      29,155,054         —          —           29,155,054   

Health Care Equipment & Supplies

      18,914,320         —          —           18,914,320   

Health Care Providers & Services

      45,411,315         —          —           45,411,315   

Hotels, Restaurants & Leisure

      71,370,489         —          —           71,370,489   

Industrial Conglomerates

      56,114,140         —          —           56,114,140   

Insurance

      59,739,001         —          —           59,739,001   

Internet Software & Services

      44,639,606         —          —           44,639,606   

IT Services

      22,971,579         —          —           22,971,579   

Leisure Products

      8,641,174         —          —           8,641,174   

Machinery

      47,191,311         —          —           47,191,311   

Media

      139,163,671         —          —           139,163,671   

Metals & Mining

      19,582,731         —          —           19,582,731   

Multi-Utilities

      15,494,353         —          —           15,494,353   

Multiline Retail

      56,573,614         —          —           56,573,614   

Oil, Gas & Consumable Fuels

      245,435,492         —          —           245,435,492   

Personal Products

      11,340,786         —          —           11,340,786   

Pharmaceuticals

      156,128,426         32,451,616        —           188,580,042   

Semiconductors & Semiconductor Equipment

      23,851,905         —          —           23,851,905   

Software

      93,011,114         —          —           93,011,114   

Technology Hardware, Storage & Peripherals

      50,734,102         —          —           50,734,102   

Total Common Stocks

      2,257,266,288         32,451,616        —           2,289,717,904   
Short-Term Investments           

Mutual Fund

      88,088,459         —          —           88,088,459   

Repurchase Agreement

      —           121,610,595        —           121,610,595   

Total Short-Term Investments

      88,088,459         121,610,595        —           209,699,054   

Total Investments

    $ 2,345,354,747       $ 154,062,211      $ —         $ 2,499,416,958   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (88,088,459 )    $ —         $ (88,088,459 ) 
Forward Contracts           

Forward Foreign Currency Exchange Contracts (Unrealized Appreciation)

    $ —         $ 2,980,171      $ —         $ 2,980,171   

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Invesco Comstock Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 2,499,416,958   

Cash

      72,723   

Cash denominated in foreign currencies (c)

      617   

Unrealized appreciation on forward foreign currency exchange contracts

      2,980,171   

Receivable for:

   

Investments sold

      3,111,642   

Fund shares sold

      22,468   

Dividends and interest

      5,164,964   

Prepaid expenses

      7,194   
  

 

 

  

Total Assets

      2,510,776,737   

Liabilities

   

Collateral for securities loaned

      88,088,459   

Payables for:

   

Investments purchased

      1,220,312   

Fund shares redeemed

      398,402   

Accrued Expenses:

   

Management fees

      1,134,405   

Distribution and service fees

      221,207   

Deferred trustees’ fees

      81,937   

Other expenses

      232,497   
  

 

 

  

Total Liabilities

      91,377,219   
  

 

 

  

Net Assets

    $ 2,419,399,518   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 1,972,884,415   

Undistributed net investment income

      60,897,066   

Accumulated net realized gain

      179,994,783   

Unrealized appreciation on investments and foreign currency transactions

      205,623,254   
  

 

 

  

Net Assets

    $ 2,419,399,518   
  

 

 

  

Net Assets

   

Class A

    $ 1,390,608,732   

Class B

      1,028,790,786   

Capital Shares Outstanding*

   

Class A

      99,515,493   

Class B

      73,996,954   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 13.97   

Class B

      13.90   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $2,296,719,737.
(b) Includes securities loaned at value of $116,141,330.
(c) Identified cost of cash denominated in foreign currencies was $620.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends (a)

    $ 60,671,557   

Interest

      1,109   

Securities lending income

      590,121   
  

 

 

  

Total investment income

      61,262,787   

Expenses

   

Management fees

      14,875,394   

Administration fees

      63,136   

Custodian and accounting fees

      223,475   

Distribution and service fees—Class B

      2,847,102   

Audit and tax services

      40,454   

Legal

      26,460   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      135,311   

Insurance

      17,649   

Miscellaneous

      25,257   
  

 

 

  

Total expenses

      18,289,411   

Less management fee waiver

      (571,466 ) 

Less broker commission recapture

      (24,414 ) 
  

 

 

  

Net expenses

      17,693,531   
  

 

 

  

Net Investment Income

      43,569,256   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      184,155,502   

Foreign currency transactions

      22,377,863   
  

 

 

  

Net realized gain

      206,533,365   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (397,162,061 ) 

Foreign currency transactions

      (1,898,255 ) 
  

 

 

  

Net change in unrealized depreciation

      (399,060,316 ) 
  

 

 

  

Net realized and unrealized loss

      (192,526,951 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (148,957,695 ) 
  

 

 

  

 

(a) Net of foreign withholding taxes of $1,348,997.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Invesco Comstock Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 43,569,256      $ 50,796,331   

Net realized gain

      206,533,365        367,986,897   

Net change in unrealized depreciation

      (399,060,316 )      (159,023,139 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (148,957,695 )      259,760,089   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (45,937,469 )      (21,749,261 ) 

Class B

      (32,749,943 )      (7,092,034 ) 

Net realized capital gains

     

Class A

      (49,375,617 )      0   

Class B

      (38,048,811 )      0   
  

 

 

    

 

 

  

Total distributions

      (166,111,840 )      (28,841,295 ) 
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (66,175,990 )      (90,670,600 ) 
  

 

 

    

 

 

  

Total increase (decrease) in net assets

      (381,245,525 )      140,248,194   

Net Assets

     

Beginning of period

      2,800,645,043        2,660,396,849   
  

 

 

    

 

 

  

End of period

    $ 2,419,399,518      $ 2,800,645,043   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 60,897,066      $ 73,661,773   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      273,621      $ 3,957,553        1,649,454      $ 24,172,475   

Fund subscription in kind

      0        0        559,403        8,195,260  (a) 

Reinvestments

      6,258,246        95,313,086        1,510,366        21,749,261   

Redemptions

      (7,548,191 )      (118,170,549 )      (33,330,015 )      (500,326,589 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (1,016,324 )    $ (18,899,910 )      (29,610,792 )    $ (446,209,593 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      2,254,609      $ 33,539,557        4,513,337      $ 66,951,747   

Fund subscription in kind

      0        0        31,042,508        453,531,039  (a) 

Reinvestments

      4,667,024        70,798,754        493,875        7,092,034   

Redemptions

      (10,090,181 )      (151,614,391 )      (11,430,848 )      (172,035,827 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (3,168,548 )    $ (47,276,080 )      24,618,872      $ 355,538,993   
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (66,175,990 )      $ (90,670,600 ) 
    

 

 

      

 

 

  

 

(a) Includes cash and securities amounting to $139,245 and $8,056,015 for Class A, respectively and $7,705,906 and $445,825,133 for Class B, respectively. Securities were valued at market as of April 25, 2014.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Invesco Comstock Portfolio

Financial Highlights

 

Selected per share data       
     Class A  
     Year Ended December 31,  
     2015      2014     2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 15.79       $ 14.58      $ 10.90       $ 9.32       $ 9.55   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (a)

      0.26         0.30        0.20         0.19         0.17   

Net realized and unrealized gain (loss) on investments

      (1.08 )       1.08        3.65         1.55         (0.27 ) 
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.82 )       1.38        3.85         1.74         (0.10 ) 
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.48 )       (0.17 )      (0.17 )       (0.16 )       (0.13 ) 

Distributions from net realized capital gains

      (0.52 )       0.00        0.00         0.00         0.00   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total distributions

      (1.00 )       (0.17 )      (0.17 )       (0.16 )       (0.13 ) 
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 13.97       $ 15.79      $ 14.58       $ 10.90       $ 9.32   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (5.73 )       9.60        35.64         18.76         (1.17 ) 

Ratios/Supplemental Data

              

Gross ratio of expenses to average net assets (%)

      0.58         0.58        0.59         0.60         0.61   

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

      0.56         0.56        0.57         0.58         0.61   

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

      1.76         1.97        1.59         1.90         1.81   

Portfolio turnover rate (%)

      15         23  (d)      14         17         25   

Net assets, end of period (in millions)

    $ 1,390.6       $ 1,587.6      $ 1,897.6       $ 1,524.2       $ 1,406.5   
     Class B  
     Year Ended December 31,  
     2015      2014     2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 15.72       $ 14.52      $ 10.85       $ 9.28       $ 9.52   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (a)

      0.23         0.24        0.17         0.17         0.14   

Net realized and unrealized gain (loss) on investments

      (1.08 )       1.10        3.64         1.53         (0.27 ) 
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.85 )       1.34        3.81         1.70         (0.13 ) 
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.45 )       (0.14 )      (0.14 )       (0.13 )       (0.11 ) 

Distributions from net realized capital gains

      (0.52 )       0.00        0.00         0.00         0.00   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total distributions

      (0.97 )       (0.14 )      (0.14 )       (0.13 )       (0.11 ) 
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 13.90       $ 15.72      $ 14.52       $ 10.85       $ 9.28   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (5.97 )       9.31        35.39         18.43         (1.48 ) 

Ratios/Supplemental Data

              

Gross ratio of expenses to average net assets (%)

      0.83         0.83        0.84         0.85         0.86   

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

      0.81         0.81        0.82         0.83         0.86   

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

      1.51         1.60        1.33         1.65         1.50   

Portfolio turnover rate (%)

      15         23  (d)      14         17         25   

Net assets, end of period (in millions)

    $ 1,028.8       $ 1,213.1      $ 762.8       $ 607.1       $ 555.3   

 

(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) Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).
(d) Excludes the effect of subscriptions in kind activity for the year ended December 31, 2014.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Invesco Comstock Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Invesco 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally categorized as Level 2 within the fair value hierarchy.

 

MIST-12

Met Investors Series Trust

Invesco Comstock Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Forward foreign currency exchange contracts are valued through an independent pricing service based on the mean between closing bid and ask prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or broker-dealer. These contracts are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

Options, including swaptions, and futures contracts that are traded OTC are generally valued on the basis of quotations provided by broker-dealers or prices provided by 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, yield curves, credit curves, measures of volatility 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 market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 commission recapture and foreign currency transactions. These adjustments have no impact on net assets or the results of operations.

 

 

MIST-13

Met Investors Series Trust

Invesco Comstock Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

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.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $121,610,595, 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 December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2015, with a contractual maturity of overnight and continuous.

 

MIST-14

Met Investors Series Trust

Invesco Comstock Portfolio

Notes to Financial Statements—December 31, 2015—(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 valuation 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.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of risk exposure:

 

    

Asset Derivatives

  

Risk Exposure

   

Statement of Assets &
Liabilities Location

      Fair Value   
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts    $ 2,980,171   
     

 

 

  

The Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized 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 (“MNA”)(see Note 4), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Assets
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		      Collateral
Received†		      Net Amount*  

Barclays Bank plc

    $ 175,752       $ —       $ —       $ 175,752   

Canadian Imperial Bank of Commerce

      697,234         —         —         697,234   

Deutsche Bank AG

      700,196         —         —         700,196   

Goldman Sachs International

      707,601         —         —         707,601   

Royal Bank of Canada

      699,388         —         —         699,388   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 2,980,171       $ —       $ —       $ 2,980,171   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

  * Net amount represents the net amount receivable from the counterparty in the event of default.
  † In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Foreign
Exchange		  

Forward foreign currency transactions

    $ 22,451,486   
  

 

 

  

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

    Foreign
Exchange		  

Forward foreign currency transactions

    $ (1,883,522 ) 
  

 

 

  

 

 

MIST-15

Met Investors Series Trust

Invesco Comstock Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Forward foreign currency transactions

    $ 252,574,469   

 

  ‡ Averages are based on activity levels during 2015.

4. Certain Risks

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”).

Market 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, 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC 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 (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

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 Comstock Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 378,195,391       $ 0       $ 582,588,387   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$14,875,394      0.650 %    First $500 million
     0.600 %    $500 million to $1 billion
     0.525 %    Over $1 billion

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Invesco Advisers, Inc. is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, for the period May 1, 2015 to April 30, 2016, 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 28, 2014 to April 30, 2015. Amounts waived for the year ended December 31, 2015 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, LLC, 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 year ended December 31, 2015 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.

 

MIST-17

Met Investors Series Trust

Invesco Comstock Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 year ended December 31, 2015 the Portfolio paid brokerage commissions to affiliated brokers/dealers:

 

Affiliate

    Commission  
Invesco Capital Markets, Inc.    $ 4,455   

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$78,687,412    $ 28,841,295       $ 87,424,428       $ —       $ 166,111,840       $ 28,841,295   

As of December 31, 2015, 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		      Other
Accumulated
Capital Losses		      Total  
$70,194,710    $ 177,341,779       $ 199,060,551       $ —       $ 446,597,040   

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, 2015, the Portfolio had no post-enactment accumulated capital losses and no pre-enactment accumulated capital loss carryforwards.

9. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-18

Met Investors Series Trust

Invesco Comstock Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Invesco Comstock 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 Invesco Comstock Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 Invesco Comstock Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-19

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-20

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-21

Met Investors Series Trust

Invesco Comstock Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment

 

MIST-22

Met Investors Series Trust

Invesco Comstock Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of

 

MIST-23

Met Investors Series Trust

Invesco Comstock Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

Invesco Comstock Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Invesco Advisers, Inc. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio underperformed the median of its Performance Universe and its Lipper Index for the one-year period ended June 30, 2015, and outperformed the median of its Performance Universe and its Lipper Index for the three- and five-year periods ended June 30, 2015. The Board further considered that the Portfolio underperformed its benchmark, the Russell 1000 Value Index, for the one-, three- and five-year periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-l fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also noted that the Portfolio’s contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-24

Met Investors Series Trust

Invesco Mid Cap Value Portfolio

Managed by Invesco Advisers, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A, B, and E shares of the Invesco Mid Cap Value Portfolio returned -8.76%, -8.98%, and -8.88%, respectively. The Portfolio’s benchmark, the Russell Midcap Value Index1, returned -4.78%.

MARKET ENVIRONMENT / CONDITIONS

The U.S. economy continued a modest, but steady growth pace, during the year ended December 31, 2015. The headline economic story was a steady decline in already-battered energy markets, as oil prices plummeted when increased supply overwhelmed demand. This decline particularly affected companies with U.S.-based offshore or shale-based resources—companies whose cost to recover oil is higher than many traditional producers. On the other hand, the improved position of the U.S. consumer was a less obvious, but important driver of the U.S. economy during the year. As the year began, economic growth appeared to be stronger in the U.S. than in the rest of the world. U.S. equity markets were recovering from the crash of oil prices initiated by the Organization of Petroleum Exporting Countries’ (OPEC) decision to maintain high production despite low prices and slowing global growth. The view that the U.S. Federal Reserve (the “Fed”) would begin raising rates while other central banks were loosening fiscal policy led the U.S. dollar to strengthen against many currencies. This hurt commodity- and materials-based economies, and consequently, companies in sectors exposed to these economies. Additionally, U.S.-based multinational companies faced foreign exchange headwinds. Low interest rates, the increasing availability of credit and an improving employment picture all contributed to higher consumer confidence and consumer spending, which drove U.S. equity markets higher, particularly through the spring, and helped overcome fears that Greece and the Eurozone would fail to reach an agreement on a financial bailout plan. In the summer of 2015, U.S. equity markets moved sharply lower. A significant downturn in China’s financial markets and weak global economic growth led the Fed to delay raising interest rates; this, in turn, increased investor uncertainty and market volatility. A continued decline in oil prices also contributed to market volatility. In the fall, U.S. markets rallied and the Fed saw enough economic stabilization to finally raise interest rates, and most broad major U.S. market indexes ended the year barely in positive territory.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio underperformed the Russell Midcap Value Index for the 12 month period ending December 31, 2015. Only three sectors posted positive returns for the period: Consumer Staples, Telecommunications Services, and Industrials.

Stock selection in the Consumer Discretionary sector was the largest detractor from the Portfolio’s relative and absolute return. Performance in the sector was driven primarily by Fossil, which reported weakening sales and earnings due to declining demand for watches and leather goods. Auto parts suppliers Dana Holding and Johnson Controls also were detractors as the companies’ exposure to weakness in emerging markets hindered results.

Weak performance, driven by stock selection in the Health Care sector detracted from relative returns. Over the course of the year, Health Care was the Index’s best performing sector, and much of the Portfolio’s relative underperformance was in not owning stocks that had strong returns within the Index. A key detractor from the Portfolio’s relative and absolute return was assisted living operator Brookdale Senior Living. The firm’s earnings results were below expectations, and company management lowered earnings estimates for the remainder its fiscal year, as occupancy was lower than anticipated.

In the Information Technology sector, stock selection detracted from relative returns. Teradata was the largest underperformer as the company reported disappointing earnings due to shrinking margins and foreign currency headwinds. Stock selection and an underweight in Financials negatively impacted the Portfolio’s relative performance. The Portfolio’s significant underexposure to Real Estate Investment Trusts (‘REITs”), and to some of the stronger performing names detracted from relative results. Exposure to insurance and banks also drove the Portfolio’s relative underperformance. Banks in particular were hurt by ongoing uncertainty regarding the Fed’s intent to raise interest rates during the year.

Stock selection in the Industrials sector was the largest contributor to the Portfolio’s relative performance for the year. Owens Corning and Masco were strong contributors to performance as both companies continued to benefit from improvement in residential construction. Stock selection and an underweight to one of the worst performing sectors in the Index—Materials, benefited the Portfolio’s relative return, as did a lack of exposure to the weaker benchmark names. An underweight in the Energy sector positively impacted relative performance. Given the dislocation within the sector, particularly the oil & gas industry, the Portfolio’s relative performance was attributable not only to companies owned, but to companies avoided that sustained double digit losses in the Index. On an absolute return basis, Energy was the Portfolio’s largest detractor and a number of the Portfolio’s largest individual detractors included Williams Companies, Amec Foster Wheeler, and Devon Energy.

Currency forward contracts were used during the year, for the purpose of hedging currency exposure of non-U.S.-based companies held in the Portfolio. Due to the continued strength of the U.S. dollar, the use of these contracts had a slight positive impact on the Portfolio’s performance relative to the benchmark.

 

MIST-1

Met Investors Series Trust

Invesco Mid Cap Value Portfolio

Managed by Invesco Advisers, Inc.

Portfolio Manager Commentary*—(Continued)

 

During the year, we increased the Portfolio’s exposure to the Materials and Energy sectors and decreased exposure to Health Care and Industrials. At the end of the period, the Portfolio’s largest sector overweights relative to the Russell Midcap Value Index were in Industrials, Health Care, and Consumer Discretionary, while the largest underweights were in Utilities, Financials (specifically REITs), and Energy.

Thomas Copper

John Mazanec

Sergio Marcheli

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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 Mid Cap Value Portfolio

 


A $10,000 INVESTMENT COMPARED TO THE RUSSELL MIDCAP VALUE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year        Since Inception2  
Invesco Mid Cap Value Portfolio                      

Class A

        -8.76           7.79           4.92           —   

Class B

        -8.98           7.51           4.66           —   

Class E

        -8.88           —           —           9.24   
Russell Midcap Value Index        -4.78           11.25           7.61           —   

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 dates of the Class A, Class B and Class E shares are 8/20/1997, 4/3/2001 and 4/25/2012, respectively.

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
Forest City Enterprises, Inc. - Class A      3.4   
Willis Group Holdings plc      3.1   
ConAgra Foods, Inc.      3.1   
Johnson Controls, Inc.      3.0   
FNF Group      2.9   
Textron, Inc.      2.8   
Level 3 Communications, Inc.      2.8   
Universal Health Services, Inc. - Class B      2.7   
HealthSouth Corp.      2.7   
BB&T Corp.      2.7   

Top Sectors

 

     % of
Net Assets		  
Financials      28.1   
Industrials      16.7   
Information Technology      11.7   
Consumer Discretionary      10.8   
Health Care      8.8   
Materials      6.8   
Energy      6.1   
Consumer Staples      3.1   
Telecommunication Services      2.8   
Utilities      2.7   

 

MIST-3

Met Investors Series Trust

Invesco Mid Cap Value 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, July 1, 2015 through December 31, 2015.

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 Mid Cap Value Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual      0.65 %     $ 1,000.00         $ 865.80         $ 3.06   
   Hypothetical*      0.65 %     $ 1,000.00         $ 1,021.93         $ 3.31   

Class B(a)

    Actual      0.90 %     $ 1,000.00         $ 864.60         $ 4.23   
   Hypothetical*      0.90 %     $ 1,000.00         $ 1,020.67         $ 4.58   

Class E(a)

    Actual      0.80 %     $ 1,000.00         $ 865.20         $ 3.76   
   Hypothetical*      0.80 %     $ 1,000.00         $ 1,021.17         $ 4.08   

* 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 (184 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 Mid Cap Value Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—97.6% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—4.2%

  

BWX Technologies, Inc.

     507,038      $ 16,108,597   

Textron, Inc.

     757,222        31,810,896   
   

 

 

  
      47,919,493   
   

 

 

  

Auto Components—4.8%

  

Dana Holding Corp. (a)

     1,441,582        19,893,831   

Johnson Controls, Inc.

     877,283        34,643,906   
   

 

 

  
      54,537,737   
   

 

 

  

Banks—9.3%

  

BB&T Corp.

     810,609        30,649,126   

Comerica, Inc.

     673,685        28,180,244   

Wintrust Financial Corp. (a)

     597,043        28,968,526   

Zions Bancorporation (a)

     670,728        18,310,875   
   

 

 

  
      106,108,771   
   

 

 

  

Building Products—4.6%

  

Masco Corp.

     793,933        22,468,304   

Owens Corning

     638,159        30,012,618   
   

 

 

  
      52,480,922   
   

 

 

  

Capital Markets—6.2%

  

American Capital, Ltd. (a) (b)

     1,833,307        25,281,304   

Northern Trust Corp.

     278,415        20,070,937   

Stifel Financial Corp. (b)

     611,679        25,910,722   
   

 

 

  
      71,262,963   
   

 

 

  

Chemicals—4.8%

  

Eastman Chemical Co.

     443,652        29,950,947   

WR Grace & Co. (b)

     254,516        25,347,248   
   

 

 

  
      55,298,195   
   

 

 

  

Commercial Services & Supplies—1.9%

  

Clean Harbors, Inc. (a) (b)

     529,330        22,046,595   
   

 

 

  

Communications Equipment—2.3%

  

Ciena Corp. (a) (b)

     1,278,374        26,449,558   
   

 

 

  

Construction & Engineering—1.8%

  

Fluor Corp.

     438,863        20,723,111   
   

 

 

  

Construction Materials—1.9%

  

Eagle Materials, Inc.

     367,238        22,192,192   
   

 

 

  

Diversified Consumer Services—2.1%

  

DeVry Education Group, Inc. (a)

     953,507        24,133,262   
   

 

 

  

Diversified Telecommunication Services—2.8%

  

Level 3 Communications, Inc. (b)

     579,865        31,521,461   
   

 

 

  

Electric Utilities—1.9%

  

Edison International

     367,347        21,750,616   
   

 

 

  

Electrical Equipment—1.2%

  

Babcock & Wilcox Enterprises, Inc. (b)

     672,241      $ 14,029,670   
   

 

 

  

Electronic Equipment, Instruments & Components—2.1%

  

Keysight Technologies, Inc. (b)

     836,344        23,693,626   
   

 

 

  

Energy Equipment & Services—3.0%

    

Amec Foster Wheeler plc

     1,471,764        9,293,412   

Amec Foster Wheeler plc (ADR) (a)

     507,634        3,269,163   

Baker Hughes, Inc.

     479,397        22,124,172   
   

 

 

  
      34,686,747   
   

 

 

  

Food Products—3.1%

  

ConAgra Foods, Inc.

     846,101        35,671,618   
   

 

 

  

Health Care Providers & Services—6.3%

  

Brookdale Senior Living, Inc. (b)

     536,321        9,900,486   

HealthSouth Corp. (a)

     887,600        30,897,356   

Universal Health Services, Inc. - Class B

     259,612        31,021,038   
   

 

 

  
      71,818,880   
   

 

 

  

Insurance—9.2%

  

Arthur J. Gallagher & Co.

     518,597        21,231,361   

FNF Group

     940,492        32,606,858   

Marsh & McLennan Cos., Inc.

     279,757        15,512,526   

Willis Group Holdings plc

     735,157        35,706,575   
   

 

 

  
      105,057,320   
   

 

 

  

IT Services—1.9%

  

Teradata Corp. (a) (b)

     840,227        22,198,797   
   

 

 

  

Life Sciences Tools & Services—2.6%

  

PerkinElmer, Inc.

     545,915        29,244,667   
   

 

 

  

Machinery—2.2%

  

Ingersoll-Rand plc

     451,994        24,990,748   
   

 

 

  

Media—2.3%

  

TEGNA, Inc.

     1,006,954        25,697,466   
   

 

 

  

Multi-Utilities—0.8%

  

CenterPoint Energy, Inc.

     520,148        9,549,917   
   

 

 

  

Oil, Gas & Consumable Fuels—3.0%

  

Devon Energy Corp.

     626,278        20,040,896   

Williams Cos., Inc. (The)

     570,080        14,651,056   
   

 

 

  
      34,691,952   
   

 

 

  

Real Estate Management & Development—3.4%

  

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

     1,770,788        38,833,381   
   

 

 

  

Road & Rail—0.8%

  

Swift Transportation Co. (a) (b)

     679,865        9,395,734   
   

 

 

  

Software—2.2%

  

Citrix Systems, Inc. (b)

     324,726        24,565,522   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Invesco Mid Cap Value Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares/
Principal
Amount*		     Value  

Specialty Retail—1.7%

  

Ascena Retail Group, Inc. (a) (b)

     1,906,840      $ 18,782,374   
   

 

 

  

Technology Hardware, Storage & Peripherals—3.2%

  

Diebold, Inc. (a)

     604,300        18,183,387   

NetApp, Inc. (a)

     697,221        18,497,273   
   

 

 

  
      36,680,660   
   

 

 

  

Total Common Stocks
(Cost $1,143,835,916)

       1,116,013,955   
   

 

 

  
Short-Term Investments—11.2%   

Mutual Fund—8.9%

  

State Street Navigator Securities Lending MET Portfolio (c)

     101,219,406        101,219,406   
   

 

 

  

Repurchase Agreement—2.3%

    

Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $26,864,806 on 01/04/16, collateralized by $27,300,000 U.S. Treasury Note at 1.500% due 12/31/18 with a value of $27,402,375.

     26,864,716        26,864,716   
   

 

 

  

Total Short-Term Investments
(Cost $128,084,122)

       128,084,122   
   

 

 

  

Total Investments—108.8%
(Cost $1,271,920,038) (d)

       1,244,098,077   

Other assets and liabilities (net)—(8.8)%

       (100,317,415 ) 
   

 

 

  
Net Assets—100.0%     $ 1,143,780,662   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of December 31, 2015, the market value of securities loaned was $109,708,219 and the collateral received consisted of cash in the amount of $101,219,406 and non-cash collateral with a value of $12,501,220. 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 on loan as of December 31, 2015.
(d) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $1,272,538,377. The aggregate unrealized appreciation and depreciation of investments were $104,118,610 and $(132,558,910), respectively, resulting in net unrealized depreciation of $(28,440,300) for federal income tax purposes.
(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.

Forward Foreign Currency Exchange Contracts

 

Contracts to Deliver

     

Counterparty

    Settlement
Date		      In Exchange
for		      Unrealized
Appreciation		  
GBP     2,967,752      

Bank of New York Mellon Corp.

      01/15/16       $ 4,453,883       $ 78,697   
GBP     2,967,752      

State Street Bank and Trust

      01/15/16         4,455,367         80,181   
             

 

 

  

Net Unrealized Appreciation

  

    $ 158,878   
             

 

 

  

 

(GBP)— British Pound

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Invesco Mid Cap Value Portfolio

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2      Level 3      Total  
Common Stocks            

Aerospace & Defense

    $ 47,919,493       $ —         $ —         $ 47,919,493   

Auto Components

      54,537,737         —           —           54,537,737   

Banks

      106,108,771         —           —           106,108,771   

Building Products

      52,480,922         —           —           52,480,922   

Capital Markets

      71,262,963         —           —           71,262,963   

Chemicals

      55,298,195         —           —           55,298,195   

Commercial Services & Supplies

      22,046,595         —           —           22,046,595   

Communications Equipment

      26,449,558         —           —           26,449,558   

Construction & Engineering

      20,723,111         —           —           20,723,111   

Construction Materials

      22,192,192         —           —           22,192,192   

Diversified Consumer Services

      24,133,262         —           —           24,133,262   

Diversified Telecommunication Services

      31,521,461         —           —           31,521,461   

Electric Utilities

      21,750,616         —           —           21,750,616   

Electrical Equipment

      14,029,670         —           —           14,029,670   

Electronic Equipment, Instruments & Components

      23,693,626         —           —           23,693,626   

Energy Equipment & Services

      25,393,335         9,293,412         —           34,686,747   

Food Products

      35,671,618         —           —           35,671,618   

Health Care Providers & Services

      71,818,880         —           —           71,818,880   

Insurance

      105,057,320         —           —           105,057,320   

IT Services

      22,198,797         —           —           22,198,797   

Life Sciences Tools & Services

      29,244,667         —           —           29,244,667   

Machinery

      24,990,748         —           —           24,990,748   

Media

      25,697,466         —           —           25,697,466   

Multi-Utilities

      9,549,917         —           —           9,549,917   

Oil, Gas & Consumable Fuels

      34,691,952         —           —           34,691,952   

Real Estate Management & Development

      38,833,381         —           —           38,833,381   

Road & Rail

      9,395,734         —           —           9,395,734   

Software

      24,565,522         —           —           24,565,522   

Specialty Retail

      18,782,374         —           —           18,782,374   

Technology Hardware, Storage & Peripherals

      36,680,660         —           —           36,680,660   

Total Common Stocks

      1,106,720,543         9,293,412         —           1,116,013,955   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Invesco Mid Cap Value Portfolio

Schedule of Investments as of December 31, 2015

Fair Value Hierarchy—(Continued)

 

Description    Level 1      Level 2     Level 3      Total  
Short-Term Investments           

Mutual Fund

    $ 101,219,406       $ —        $ —         $ 101,219,406   

Repurchase Agreement

      —           26,864,716        —           26,864,716   

Total Short-Term Investments

      101,219,406         26,864,716        —           128,084,122   

Total Investments

    $ 1,207,939,949       $ 36,158,128      $ —         $ 1,244,098,077   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (101,219,406 )    $ —         $ (101,219,406 ) 
Forward Contracts           

Forward Foreign Currency Exchange Contracts (Unrealized Appreciation)

    $ —         $ 158,878      $ —         $ 158,878   

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Invesco Mid Cap Value Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 1,244,098,077   

Cash

      129,522   

Unrealized appreciation on forward foreign currency exchange contracts

      158,878   

Receivable for:

   

Fund shares sold

      704,243   

Dividends and interest

      1,814,923   

Prepaid expenses

      3,518   
  

 

 

  

Total Assets

      1,246,909,161   

Liabilities

   

Collateral for securities loaned

      101,219,406   

Payables for:

   

Investments purchased

      502,533   

Fund shares redeemed

      323,454   

Accrued Expenses:

   

Management fees

      612,507   

Distribution and service fees

      164,818   

Deferred trustees’ fees

      99,333   

Other expenses

      206,448   
  

 

 

  

Total Liabilities

      103,128,499   
  

 

 

  

Net Assets

    $ 1,143,780,662   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 1,113,408,792   

Undistributed net investment income

      7,160,952   

Accumulated net realized gain

      50,882,321   

Unrealized depreciation on investments and foreign currency transactions

      (27,671,403 ) 
  

 

 

  

Net Assets

    $ 1,143,780,662   
  

 

 

  

Net Assets

   

Class A

    $ 361,860,956   

Class B

      751,416,827   

Class E

      30,502,879   

Capital Shares Outstanding*

   

Class A

      20,549,913   

Class B

      43,435,624   

Class E

      1,747,089   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 17.61   

Class B

      17.30   

Class E

      17.46   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,271,920,038.
(b) Includes securities loaned at value of $109,708,219.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends

    $ 17,333,572   

Interest

      345   

Securities lending income

      214,375   
  

 

 

  

Total investment income

      17,548,292   

Expenses

   

Management fees

      8,248,382   

Administration fees

      31,048   

Custodian and accounting fees

      98,094   

Distribution and service fees—Class B

      2,089,610   

Distribution and service fees—Class E

      53,654   

Audit and tax services

      40,454   

Legal

      27,318   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      146,407   

Insurance

      8,408   

Miscellaneous

      18,349   
  

 

 

  

Total expenses

      10,796,897   

Less management fee waiver

      (225,000 ) 

Less broker commission recapture

      (44,290 ) 
  

 

 

  

Net expenses

      10,527,607   
  

 

 

  

Net Investment Income

      7,020,685   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      50,905,078   

Foreign currency transactions

      568,176   
  

 

 

  

Net realized gain

      51,473,254   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (168,238,847 ) 

Foreign currency transactions

      (6,205 ) 
  

 

 

  

Net change in unrealized depreciation

      (168,245,052 ) 
  

 

 

  

Net realized and unrealized loss

      (116,771,798 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (109,751,113 ) 
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Invesco Mid Cap Value Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 7,020,685      $ 5,908,715   

Net realized gain

      51,473,254        62,867,217   

Net change in unrealized appreciation (depreciation)

      (168,245,052 )      55,528,952   
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (109,751,113 )      124,304,884   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (2,901,094 )      (2,478,244 ) 

Class B

      (3,835,790 )      (3,703,019 ) 

Class E

      (197,094 )      (221,390 ) 

Net realized capital gains

     

Class A

      (19,763,702 )      (61,004,092 ) 

Class B

      (40,461,402 )      (138,417,488 ) 

Class E

      (1,741,888 )      (6,928,303 ) 
  

 

 

    

 

 

  

Total distributions

      (68,900,970 )      (212,752,536 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      (18,346,206 )      232,762,651   
  

 

 

    

 

 

  

Total increase (decrease) in net assets

      (196,998,289 )      144,314,999   

Net Assets

     

Beginning of period

      1,340,778,951        1,196,463,952   
  

 

 

    

 

 

  

End of period

    $ 1,143,780,662      $ 1,340,778,951   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 7,160,952      $ 6,641,667   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      1,175,606      $ 22,980,104        4,924,347      $ 92,479,547   

Reinvestments

      1,106,680        22,664,796        3,438,913        63,482,336   

Redemptions

      (2,922,243 )      (58,293,917 )      (2,812,267 )      (56,697,460 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (639,957 )    $ (12,649,017 )      5,550,993      $ 99,264,423   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      3,325,025      $ 63,729,421        1,462,513      $ 29,089,618   

Fund subscription in kind

      0        0        5,324,859        97,604,659  (a) 

Reinvestments

      2,198,372        44,297,192        7,813,112        142,120,507   

Redemptions

      (5,612,333 )      (110,987,540 )      (6,763,078 )      (136,061,717 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (88,936 )    $ (2,960,927 )      7,837,406      $ 132,753,067   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      28,242      $ 555,215        26,529      $ 532,168   

Reinvestments

      95,375        1,938,982        390,054        7,149,693   

Redemptions

      (263,681 )      (5,230,459 )      (340,291 )      (6,936,700 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (140,064 )    $ (2,736,262 )      76,292      $ 745,161   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ (18,346,206 )      $ 232,762,651   
    

 

 

      

 

 

  

 

(a) Includes cash and securities amounting to $5,931,767 and $91,672,892, respectively. Securities were valued at market as of April 25, 2014.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Invesco Mid Cap Value Portfolio

Financial Highlights

 

Selected per share data                                  
     Class A  
     Year Ended December 31,  
     2015      2014     2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 20.36       $ 22.73      $ 17.57       $ 15.38       $ 16.04   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (a)

      0.14         0.13        0.16         0.23         0.10   

Net realized and unrealized gain (loss) on investments

      (1.77 )       1.70        5.18         2.07         (0.64 ) 
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total from investment operations

      (1.63 )       1.83        5.34         2.30         (0.54 ) 
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.14 )       (0.16 )      (0.18 )       (0.11 )       (0.12 ) 

Distributions from net realized capital gains

      (0.98 )       (4.04 )      0.00         0.00         0.00   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total distributions

      (1.12 )       (4.20 )      (0.18 )       (0.11 )       (0.12 ) 
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 17.61       $ 20.36      $ 22.73       $ 17.57       $ 15.38   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (8.76 )       9.96        30.63         15.00         (3.46 ) 

Ratios/Supplemental Data

              

Gross ratio of expenses to average net assets (%)

      0.67         0.69        0.70         0.69         0.73   

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

      0.66         0.67        0.69         0.69         0.73   

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

      0.71         0.62        0.78         1.37         0.65   

Portfolio turnover rate (%)

      26         42  (d)      144         66         47   

Net assets, end of period (in millions)

    $ 361.9       $ 431.4      $ 355.5       $ 304.7       $ 35.6   
     Class B  
     Year Ended December 31,  
     2015      2014     2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 20.02       $ 22.42      $ 17.34       $ 15.18       $ 15.84   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (a)

      0.09         0.08        0.11         0.16         0.06   

Net realized and unrealized gain (loss) on investments

      (1.74 )       1.67        5.12         2.07         (0.64 ) 
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total from investment operations

      (1.65 )       1.75        5.23         2.23         (0.58 ) 
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.09 )       (0.11 )      (0.15 )       (0.07 )       (0.08 ) 

Distributions from net realized capital gains

      (0.98 )       (4.04 )      0.00         0.00         0.00   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total distributions

      (1.07 )       (4.15 )      (0.15 )       (0.07 )       (0.08 ) 
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 17.30       $ 20.02      $ 22.42       $ 17.34       $ 15.18   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (8.98 )       9.64        30.30         14.70         (3.70 ) 

Ratios/Supplemental Data

              

Gross ratio of expenses to average net assets (%)

      0.92         0.94        0.95         0.94         0.98   

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

      0.91         0.92        0.94         0.94         0.98   

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

      0.47         0.38        0.53         1.00         0.41   

Portfolio turnover rate (%)

      26         42  (d)      144         66         47   

Net assets, end of period (in millions)

    $ 751.4       $ 871.3      $ 800.0       $ 705.4       $ 357.1   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Invesco Mid Cap Value Portfolio

Financial Highlights

 

 

     Class E  
     Year Ended December 31,  
     2015      2014     2013      2012(e)  

Net Asset Value, Beginning of Period

    $ 20.19       $ 22.58      $ 17.46       $ 16.44   
  

 

 

     

 

 

    

 

 

     

 

 

  

Income (Loss) from Investment Operations

           

Net investment income (a)

      0.11         0.10        0.13         0.14   

Net realized and unrealized gain (loss) on investments

      (1.75 )       1.68        5.15         0.88   
  

 

 

     

 

 

    

 

 

     

 

 

  

Total from investment operations

      (1.64 )       1.78        5.28         1.02   
  

 

 

     

 

 

    

 

 

     

 

 

  

Less Distributions

           

Distributions from net investment income

      (0.11 )       (0.13 )      (0.16 )       0.00   

Distributions from net realized capital gains

      (0.98 )       (4.04 )      0.00         0.00   
  

 

 

     

 

 

    

 

 

     

 

 

  

Total distributions

      (1.09 )       (4.17 )      (0.16 )       0.00   
  

 

 

     

 

 

    

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 17.46       $ 20.19      $ 22.58       $ 17.46   
  

 

 

     

 

 

    

 

 

     

 

 

  

Total Return (%) (b)

      (8.88 )       9.74        30.46         6.20  (f) 

Ratios/Supplemental Data

           

Gross ratio of expenses to average net assets (%)

      0.82         0.84        0.85         0.84  (g) 

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

      0.81         0.82        0.84         0.84  (g) 

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

      0.56         0.47        0.62         1.26  (g) 

Portfolio turnover rate (%)

      26         42  (d)      144         66   

Net assets, end of period (in millions)

    $ 30.5       $ 38.1      $ 40.9       $ 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) Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).
(d) Excludes the effect of subscriptions in kind activity for the year ended December 31, 2014.
(e) Commencement of operations was April 25, 2012.
(f) Periods less than one year are not computed on an annualized basis.
(g) Computed on an annualized basis.

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

Invesco Mid Cap Value Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Invesco 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally categorized as Level 2 within the fair value hierarchy.

 

MIST-13

Met Investors Series Trust

Invesco Mid Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Forward foreign currency exchange contracts are valued through an independent pricing service based on the mean between closing bid and ask prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or broker-dealer. These contracts are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

Options, including swaptions, and futures contracts that are traded OTC are generally valued on the basis of quotations provided by broker-dealers or prices provided by 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, yield curves, credit curves, measures of volatility 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 market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 broker commission recapture, distribution redesignations and foreign currency transactions. These adjustments have no impact on net assets or the results of operations.

 

MIST-14

Met Investors Series Trust

Invesco Mid Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

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.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $26,864,716, 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 December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2015, with a contractual maturity of overnight and continuous.

 

MIST-15

Met Investors Series Trust

Invesco Mid Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(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 valuation 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.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of risk exposure:

 

    

Asset Derivatives

  

Risk Exposure

   

Statement of Assets &
Liabilities Location

      Fair Value   
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts    $ 158,878   
     

 

 

  

The Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized 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 (“MNA”)(see Note 4), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Assets
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		      Collateral
Received†		      Net Amount*  

Bank of New York Mellon Corp.

    $ 78,697       $ —       $ —       $ 78,697   

State Street Bank and Trust

      80,181         —         —         80,181   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 158,878       $ —       $ —       $ 158,878   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

  * Net amount represents the net amount receivable from the counterparty in the event of default.
  † In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Foreign
Exchange		  

Forward foreign currency transactions

    $ 671,418   
  

 

 

  

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

    Foreign
Exchange		  

Forward foreign currency transactions

    $ (1,557 ) 
  

 

 

  

 

MIST-16

Met Investors Series Trust

Invesco Mid Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Forward foreign currency transactions

    $ 20,707,814   

 

  ‡ Averages are based on activity levels during 2015.

4. Certain Risks

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”).

Market 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, 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC 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 (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

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

Invesco Mid Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 326,190,160       $ 0       $ 374,970,280   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers

for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$8,248,382      0.700 %    First $200 million
     0.650 %    $200 million to $500 million
     0.625 %    Over $500 million

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Invesco Advisers, Inc. is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, for the period May 1, 2015 to April 30, 2016, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

If average daily net assets are between $750 million and $1.4 billion:

 

% per annum reduction

    Average Daily Net Assets
0.075%    First $200 million
0.025%    $200 million to $500 million

If average daily net assets are less than $750 million or above $1.4 billion:

 

% per annum reduction

    Average Daily Net Assets  
0.025%      Over $500 million   

An identical agreement was in place for the period April 28, 2014 to April 30, 2015. Amounts waived for the year ended December 31, 2015 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, LLC, 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 year ended December 31, 2015 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-18

Met Investors Series Trust

Invesco Mid Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(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.

Affiliated Broker - During the year ended December 31, 2015 the Portfolio paid brokerage commissions to affiliated brokers/dealers:

 

Affiliate

    Commission  
Invesco Capital Markets, Inc.    $ 10,271   

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

    2015    

    2014      2015      2014      2015      2014  
$49,003,312    $ 6,402,653       $ 19,897,658       $ 206,349,883       $ 68,900,970       $ 212,752,536   

As of December 31, 2015, 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		     Other
Accumulated
Capital Losses		      Total  
$7,419,163    $ 51,500,658       $ (28,448,620 )    $ —       $ 30,471,201   

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, 2015, the Portfolio had no post-enactment accumulated capital losses and no pre-enactment accumulated capital loss carryforwards.

9. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-19

Met Investors Series Trust

Invesco Mid Cap Value Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Invesco Mid Cap Value 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 Invesco Mid Cap Value Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 Invesco Mid Cap Value Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-20

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-21

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-22

Met Investors Series Trust

Invesco Mid Cap Value Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment

 

MIST-23

Met Investors Series Trust

Invesco Mid Cap Value Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of

 

MIST-24

Met Investors Series Trust

Invesco Mid Cap Value Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

Invesco Mid Cap Value Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Invesco Advisers, Inc. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe for the one- and three-year periods ended June 30, 2015, and underperformed the median of its Performance Universe for the five-year period ended June 30, 2015. The Board also noted that the Portfolio outperformed its Lipper Index for the one-, three- and five-year periods ended June 30, 2015. The Board took into account that the Portfolio underperformed its benchmark, the Russell Midcap Value Index, for the one-, three-, and five-year periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also noted that the Portfolio’s contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-25

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Managed by Invesco Advisers, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A, B, and E shares of the Invesco Small Cap Growth Portfolio returned -1.42%, -1.71%, and -1.60%, respectively. The Portfolio’s benchmark, the Russell 2000 Growth Index1, returned -1.38%.

MARKET ENVIRONMENT / CONDITIONS

The U.S. economy continued a modest, but steady growth pace, during the year ended December 31, 2015; however, the health of individual economic sectors varied dramatically. The headline economic story was a steady decline in already-battered energy markets, as oil prices plummeted when increased supply overwhelmed demand. This decline particularly affected companies with U.S.-based offshore or shale-based resources—companies whose cost to recover oil is higher than many traditional producers. On the other end of the spectrum, the improved position of the U.S. consumer was the more subtle story which drove the U.S. economy forward during the fiscal year. As the year began, economic growth appeared to be stronger in the U.S. than in the rest of the world. U.S. equity markets were recovering from the crash of oil prices initiated by the Organization of Petroleum Exporting Countries’ (OPEC) decision to maintain high production despite low prices and slowing global growth. The view that the U.S. Federal Reserve (the “Fed”) would begin raising rates while other central banks were loosening fiscal policy led the U.S. dollar to strengthen against many currencies. This hurt commodity- and materials-based economies, and subsequently, companies in sectors exposed to these economies. Additionally, U.S.-based multinational companies faced foreign exchange headwinds. Low interest rates, the increasing availability of credit and an improving employment picture all contributed to higher consumer confidence and consumer spending, which drove U.S. equity markets higher, particularly through the spring, and helped overcome fears that Greece and the Eurozone would fail to reach an agreement on a financial bailout plan. In the summer of 2015, U.S. equity markets moved sharply lower. A significant downturn in China’s financial markets and weak global economic growth led the Fed to delay raising interest rates; this, in turn, increased investor uncertainty and market volatility. A continued decline in oil prices also contributed to market volatility. In the fall, however, U.S. markets rallied, ending the year relatively flat.

PORTFOLIO REVIEW / PERIOD END POSITIONING

Broadly, small cap stocks underperformed large cap stocks in this market environment. The Portfolio posted a modest negative return as well, marginally underperforming the benchmark Russell 2000 Growth Index. Stock selection in the Consumer Discretionary, Information Technology (“IT”), Materials, and Consumer Staples sectors contributed positively to relative performance. However, these sectors were offset by underperformance in the Financials, Health Care, and Utilities sectors and by a modest overweight exposure to the battered Energy sector as oil prices plummeted.

In particular, stocks in the Financials’ sector were the most challenging for the Portfolio. Affiliated Managers Group was a large detractor for the Portfolio. During the year, the asset management company was able to manage inconsistent flows early in the year, but suffered setbacks when equity markets pulled back later in the year and when one of their affiliate managers closed a strategy due to liquidity issues in the distressed credit market. Cullen/Frost Bankers detracted from performance during the year on concerns of a worsening energy economy, despite the bank having only a modest percentage of loans directly to energy businesses.

Concerns with the Energy economy permeated throughout the year. Despite a reduction in the North American oil supply and expectations of a more balanced supply demand dynamic, the Middle East unexpectedly brought new oil supply to the market. As the commodity prices tumbled, energy stocks plunged and were the worst performing sector of the Index by a wide margin. The Portfolio underperformed in the sector primarily due to a modest overweight. Midstream energy company, Semgroup, was one of the leading detractors as the company faced falling volumes through their pipelines due to decreased production and increased competition in their operating regions.

The Portfolio outperformed by the widest margin in the Consumer Discretionary sector due primarily to stock selection. Top contributors include in the sector included Pool Corp., which benefitted from a rebound in home remodeling and new pool construction; brand name retailer Ann, Inc., which was acquired for a significant premium; and Domino’s Pizza, which continued to benefit from its investments in on-line and mobile technology to increase market share.

Relative to most other Index sectors, IT stocks outperformed. Stock selection within the Portfolio’s IT holdings drove positive relative results. Manhattan Associates, which provides supply-chain management solutions, was the Portfolio’s best performing stock for the year. The company consistently beat earnings expectations through the year and built an impressive pipeline of future business. EPAM Systems, an IT outsourcing company focusing on high-end and complex software development, reported strong financial results during the year and contributed positively to Portfolio results.

Portfolio positioning did not change dramatically during the year, and is based on a disciplined investment process, which keeps the

 

MIST-1

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Managed by Invesco Advisers, Inc.

Portfolio Manager Commentary*—(Continued)

 

Portfolio diversified by matching exposure to index industry groups within a moderate range. Rigorous fundamental research is then used to identify attractive individual stocks.

Juliet Ellis

Juan Hartsfield

Clay Manley

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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year  
Invesco Small Cap Growth Portfolio                 

Class A

        -1.42           11.98           8.82   

Class B

        -1.71           11.70           8.60   

Class E

        -1.60           11.82           8.70   
Russell 2000 Growth Index        -1.38           10.67           7.95   

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
Manhattan Associates, Inc.      2.1   
EPAM Systems, Inc.      1.6   
Acuity Brands, Inc.      1.5   
CoStar Group, Inc.      1.4   
DexCom, Inc.      1.4   
Chemed Corp.      1.4   
VCA, Inc.      1.4   
SBA Communications Corp. - Class A      1.3   
Neurocrine Biosciences, Inc.      1.1   
Ultimate Software Group, Inc. (The)      1.1   

Top Sectors

 

     % of
Net Assets		  
Information Technology      26.9   
Health Care      25.1   
Consumer Discretionary      15.2   
Industrials      13.4   
Financials      7.5   
Materials      2.7   
Energy      1.8   
Consumer Staples      1.7   
Telecommunication Services      1.3   

 

MIST-3

Met Investors Series Trust

Invesco Small Cap 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual      0.85 %     $ 1,000.00         $ 903.90         $ 4.08   
   Hypothetical*      0.85 %     $ 1,000.00         $ 1,020.92         $ 4.33   

Class B(a)

    Actual      1.10 %     $ 1,000.00         $ 902.30         $ 5.27   
   Hypothetical*      1.10 %     $ 1,000.00         $ 1,019.66         $ 5.60   

Class E(a)

    Actual      1.00 %     $ 1,000.00         $ 903.00         $ 4.80   
   Hypothetical*      1.00 %     $ 1,000.00         $ 1,020.16         $ 5.09   

* 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 (184 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

Invesco Small Cap Growth Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—95.6% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—1.6%

  

Hexcel Corp. (a)

     207,217      $ 9,625,230   

TransDigm Group, Inc. (b)

     43,187        9,866,070   
   

 

 

  
      19,491,300   
   

 

 

  

Air Freight & Logistics—0.7%

  

Forward Air Corp.

     210,852        9,068,744   
   

 

 

  

Auto Components—0.9%

  

Visteon Corp. (b)

     96,433        11,041,578   
   

 

 

  

Banks—4.6%

  

BankUnited, Inc.

     256,091        9,234,641   

Cathay General Bancorp

     328,666        10,297,106   

Cullen/Frost Bankers, Inc. (a)

     136,351        8,181,060   

Hancock Holding Co. (a)

     235,334        5,923,357   

Home BancShares, Inc.

     298,303        12,087,237   

SVB Financial Group (b)

     97,532        11,596,555   
   

 

 

  
      57,319,956   
   

 

 

  

Biotechnology—7.5%

  

ACADIA Pharmaceuticals, Inc. (a) (b)

     178,078        6,348,481   

Alnylam Pharmaceuticals, Inc. (a) (b)

     59,928        5,641,622   

Anacor Pharmaceuticals, Inc. (b)

     92,295        10,426,566   

Cepheid, Inc. (a) (b)

     194,992        7,123,058   

Enanta Pharmaceuticals, Inc. (a) (b)

     123,584        4,080,743   

Exelixis, Inc. (a) (b)

     1,101,373        6,211,744   

Halozyme Therapeutics, Inc. (a) (b)

     365,276        6,330,233   

Incyte Corp. (a) (b)

     87,246        9,461,829   

Momenta Pharmaceuticals, Inc. (b)

     606,096        8,994,464   

Neurocrine Biosciences, Inc. (b)

     236,989        13,406,468   

Repligen Corp. (b)

     254,807        7,208,490   

Seattle Genetics, Inc. (a) (b)

     205,755        9,234,284   
   

 

 

  
      94,467,982   
   

 

 

  

Building Products—1.5%

  

A.O. Smith Corp.

     120,912        9,263,068   

Masonite International Corp. (b)

     159,498        9,766,063   
   

 

 

  
      19,029,131   
   

 

 

  

Capital Markets—1.0%

  

Janus Capital Group, Inc. (a)

     549,846        7,747,330   

WisdomTree Investments, Inc. (a)

     325,566        5,104,875   
   

 

 

  
      12,852,205   
   

 

 

  

Chemicals—0.8%

  

PolyOne Corp.

     300,604        9,547,183   
   

 

 

  

Commercial Services & Supplies—1.5%

  

Pitney Bowes, Inc. (a)

     474,073        9,789,608   

Steelcase, Inc. - Class A

     575,568        8,575,963   
   

 

 

  
      18,365,571   
   

 

 

  

Communications Equipment—1.7%

  

ARRIS Group, Inc. (b)

     420,655        12,859,423   

Communications Equipment—(Continued)

  

Infinera Corp. (a) (b)

     473,521      8,580,201   
   

 

 

  
      21,439,624   
   

 

 

  

Construction Materials—0.8%

  

Martin Marietta Materials, Inc. (a)

     73,216        9,999,841   
   

 

 

  

Containers & Packaging—0.8%

  

Berry Plastics Group, Inc. (b)

     272,744        9,867,878   
   

 

 

  

Distributors—1.0%

  

Pool Corp.

     159,447        12,880,129   
   

 

 

  

Diversified Financial Services—0.6%

  

MarketAxess Holdings, Inc.

     66,262        7,394,177   
   

 

 

  

Electrical Equipment—1.5%

  

Acuity Brands, Inc.

     80,573        18,837,967   
   

 

 

  

Electronic Equipment, Instruments & Components—1.5%

  

Cognex Corp.

     228,011        7,699,932   

SYNNEX Corp.

     129,840        11,676,511   
   

 

 

  
      19,376,443   
   

 

 

  

Energy Equipment & Services—0.9%

  

Dril-Quip, Inc. (b)

     100,506        5,952,970   

Patterson-UTI Energy, Inc. (a)

     393,888        5,939,831   
   

 

 

  
      11,892,801   
   

 

 

  

Food Products—1.7%

  

B&G Foods, Inc. (a)

     242,170        8,480,793   

Lancaster Colony Corp.

     109,982        12,698,522   
   

 

 

  
      21,179,315   
   

 

 

  

Health Care Equipment & Supplies—5.1%

  

Alere, Inc. (b)

     120,384        4,705,811   

DexCom, Inc. (b)

     214,517        17,568,942   

Hill-Rom Holdings, Inc.

     209,881        10,086,881   

NuVasive, Inc. (b)

     192,304        10,405,569   

NxStage Medical, Inc. (a) (b)

     454,724        9,963,003   

Sirona Dental Systems, Inc. (b)

     106,626        11,683,011   
   

 

 

  
      64,413,217   
   

 

 

  

Health Care Providers & Services—5.7%

  

Chemed Corp. (a)

     116,472        17,447,506   

Community Health Systems, Inc. (a) (b)

     226,255        6,002,545   

Envision Healthcare Holdings, Inc. (b)

     256,673        6,665,798   

HealthEquity, Inc. (b)

     295,236        7,401,566   

HealthSouth Corp.

     260,865        9,080,711   

Select Medical Holdings Corp. (a)

     637,719        7,595,233   

VCA, Inc. (b)

     308,732        16,980,260   
   

 

 

  
      71,173,619   
   

 

 

  

Health Care Technology—0.2%

  

HMS Holdings Corp. (b)

     181,244        2,236,551   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Hotels, Restaurants & Leisure—7.2%

  

BJ’s Restaurants, Inc. (a) (b)

     194,727      $ 8,464,783   

Brinker International, Inc. (a)

     162,504        7,792,067   

Cheesecake Factory, Inc. (The) (a)

     179,699        8,285,921   

Choice Hotels International, Inc. (a)

     51,674        2,604,886   

Domino’s Pizza, Inc. (a)

     96,946        10,785,242   

Dunkin’ Brands Group, Inc. (a)

     200,284        8,530,095   

Jack in the Box, Inc.

     142,180        10,906,628   

Penn National Gaming, Inc. (a) (b)

     594,929        9,530,763   

Texas Roadhouse, Inc.

     290,906        10,405,708   

Vail Resorts, Inc.

     100,858        12,908,815   
   

 

 

  
      90,214,908   
   

 

 

  

Household Durables—0.7%

  

CalAtlantic Group, Inc.

     218,314        8,278,467   
   

 

 

  

Insurance—0.7%

  

American Equity Investment Life Holding Co. (a)

     391,724        9,413,128   
   

 

 

  

Internet & Catalog Retail—0.5%

  

Expedia, Inc.

     53,135        6,604,680   
   

 

 

  

Internet Software & Services—1.9%

  

CoStar Group, Inc. (b)

     85,341        17,639,131   

Pandora Media, Inc. (a) (b)

     454,110        6,089,615   
   

 

 

  
      23,728,746   
   

 

 

  

IT Services—2.6%

  

Booz Allen Hamilton Holding Corp.

     404,003        12,463,493   

EPAM Systems, Inc. (b)

     255,394        20,079,076   
   

 

 

  
      32,542,569   
   

 

 

  

Leisure Products—0.8%

  

Brunswick Corp.

     191,929        9,694,334   
   

 

 

  

Life Sciences Tools & Services—3.9%

  

Affymetrix, Inc. (a) (b)

     724,394        7,309,135   

Bio-Techne Corp.

     101,052        9,094,680   

PAREXEL International Corp. (b)

     144,305        9,830,057   

PerkinElmer, Inc.

     196,939        10,550,022   

VWR Corp. (b)

     433,464        12,271,366   
   

 

 

  
      49,055,260   
   

 

 

  

Machinery—2.4%

  

ITT Corp.

     265,262        9,634,316   

WABCO Holdings, Inc. (b)

     108,968        11,143,068   

Wabtec Corp. (a)

     132,709        9,438,264   
   

 

 

  
      30,215,648   
   

 

 

  

Marine—0.6%

  

Kirby Corp. (b)

     146,077        7,686,572   
   

 

 

  

Media—0.8%

  

IMAX Corp. (a) (b)

     276,293        9,819,453   
   

 

 

  

Metals & Mining—0.3%

  

Carpenter Technology Corp. (a)

     128,361      3,885,487   
   

 

 

  

Oil, Gas & Consumable Fuels—0.8%

  

Energen Corp.

     131,226        5,378,954   

Laredo Petroleum, Inc. (a) (b)

     648,789        5,183,824   
   

 

 

  
      10,562,778   
   

 

 

  

Pharmaceuticals—2.7%

  

Catalent, Inc. (b)

     346,540        8,673,896   

Impax Laboratories, Inc. (b)

     153,406        6,559,640   

Nektar Therapeutics (a) (b)

     717,269        12,085,983   

Prestige Brands Holdings, Inc. (b)

     122,456        6,304,035   
   

 

 

  
      33,623,554   
   

 

 

  

Professional Services—0.7%

  

CEB, Inc.

     141,020        8,657,218   
   

 

 

  

Real Estate Investment Trusts—0.6%

  

Corrections Corp. of America (a)

     291,393        7,719,001   
   

 

 

  

Road & Rail—2.0%

  

Knight Transportation, Inc.

     415,531        10,068,316   

Old Dominion Freight Line, Inc. (b)

     152,553        9,011,306   

Swift Transportation Co. (a) (b)

     447,273        6,181,313   
   

 

 

  
      25,260,935   
   

 

 

  

Semiconductors & Semiconductor Equipment—5.0%

  

Atmel Corp.

     1,253,342        10,791,275   

Cavium, Inc. (a) (b)

     162,693        10,690,557   

MKS Instruments, Inc.

     269,544        9,703,584   

Monolithic Power Systems, Inc.

     199,060        12,682,112   

Power Integrations, Inc.

     187,905        9,137,820   

Silicon Laboratories, Inc. (b)

     187,420        9,097,367   
   

 

 

  
      62,102,715   
   

 

 

  

Software—13.4%

  

Aspen Technology, Inc. (a) (b)

     255,219        9,637,069   

CommVault Systems, Inc. (b)

     233,572        9,191,058   

Fair Isaac Corp.

     118,612        11,170,878   

Guidewire Software, Inc. (b)

     205,102        12,338,936   

Interactive Intelligence Group, Inc. (a) (b)

     170,309        5,351,109   

Manhattan Associates, Inc. (b)

     402,475        26,631,771   

Mentor Graphics Corp.

     450,679        8,301,507   

MicroStrategy, Inc. - Class A (b)

     65,878        11,811,267   

Proofpoint, Inc. (a) (b)

     174,069        11,316,226   

Qlik Technologies, Inc. (a) (b)

     330,021        10,448,465   

Qualys, Inc. (a) (b)

     276,632        9,153,753   

SolarWinds, Inc. (b)

     210,221        12,382,017   

Take-Two Interactive Software, Inc. (a) (b)

     280,557        9,774,606   

Ultimate Software Group, Inc. (The) (a) (b)

     68,329        13,359,003   

Verint Systems, Inc. (b)

     161,727        6,559,647   
   

 

 

  
      167,427,312   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares/
Principal
Amount*		     Value  

Specialty Retail—1.0%

  

DSW, Inc. - Class A (a)

     251,057      $ 5,990,220   

Five Below, Inc. (a) (b)

     205,520        6,597,192   
   

 

 

  
      12,587,412   
   

 

 

  

Technology Hardware, Storage & Peripherals—0.9%

  

Cray, Inc. (a) (b)

     345,460        11,210,177   
   

 

 

  

Textiles, Apparel & Luxury Goods—2.3%

  

Carter’s, Inc.

     102,811        9,153,263   

G-III Apparel Group, Ltd. (b)

     255,538        11,310,112   

Steven Madden, Ltd. (b)

     281,193        8,497,653   
   

 

 

  
      28,961,028   
   

 

 

  

Trading Companies & Distributors—0.9%

  

Watsco, Inc.

     97,282        11,394,641   
   

 

 

  

Wireless Telecommunication Services—1.3%

  

SBA Communications Corp. - Class A (b)

     159,323        16,740,068   
   

 

 

  

Total Common Stocks
(Cost $938,378,664)

       1,199,261,303   
   

 

 

  
Short-Term Investments—23.2%   

Mutual Fund—18.8%

  

State Street Navigator Securities Lending MET Portfolio (c)

     235,529,400        235,529,400   
   

 

 

  

Repurchase Agreement—4.4%

  

Fixed Income Clearing Corp.
Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $54,926,971 on 01/04/16, collateralized by $56,095,000 U.S. Government Agency Obligations with rates ranging from 1.670% - 3.125%, maturity dates ranging from 10/31/16 - 02/10/20, with a value of $56,031,706.

     54,926,788        54,926,788   
   

 

 

  

Total Short-Term Investments
(Cost $290,456,188)

       290,456,188   
   

 

 

  

Total Investments—118.8%
(Cost $1,228,834,852) (d)

       1,489,717,491   

Other assets and liabilities (net)—(18.8)%

       (235,727,814 ) 
   

 

 

  
Net Assets—100.0%     $ 1,253,989,677   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of December 31, 2015, the market value of securities loaned was $264,795,462 and the collateral received consisted of cash in the amount of $235,529,400 and non-cash collateral with a value of $38,970,660. 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) Represents investment of cash collateral received from securities on loan as of December 31, 2015.
(d) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $1,228,203,587. The aggregate unrealized appreciation and depreciation of investments were $336,594,725 and $(75,080,821), respectively, resulting in net unrealized appreciation of $261,513,904 for federal income tax purposes.

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2     Level 3      Total  

Total Common Stocks*

    $ 1,199,261,303       $ —        $ —         $ 1,199,261,303   
Short-Term Investments           

Mutual Fund

      235,529,400         —          —           235,529,400   

Repurchase Agreement

      —           54,926,788        —           54,926,788   

Total Short-Term Investments

      235,529,400         54,926,788        —           290,456,188   

Total Investments

    $ 1,434,790,703       $ 54,926,788      $ —         $ 1,489,717,491   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (235,529,400 )    $ —         $ (235,529,400 ) 

 

* 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

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 1,489,717,491   

Receivable for:

   

Investments sold

      722,868   

Fund shares sold

      166,384   

Dividends and interest

      476,208   

Prepaid expenses

      3,715   
  

 

 

  

Total Assets

      1,491,086,666   

Liabilities

   

Collateral for securities loaned

      235,529,400   

Payables for:

   

Fund shares redeemed

      363,912   

Accrued Expenses:

   

Management fees

      894,247   

Distribution and service fees

      85,879   

Deferred trustees’ fees

      81,937   

Other expenses

      141,614   
  

 

 

  

Total Liabilities

      237,096,989   
  

 

 

  

Net Assets

    $ 1,253,989,677   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 783,603,301   

Accumulated net investment loss

      (81,937 ) 

Accumulated net realized gain

      209,585,674   

Unrealized appreciation on investments

      260,882,639   
  

 

 

  

Net Assets

    $ 1,253,989,677   
  

 

 

  

Net Assets

   

Class A

    $ 848,078,637   

Class B

      391,106,907   

Class E

      14,804,133   

Capital Shares Outstanding*

   

Class A

      56,726,162   

Class B

      27,496,536   

Class E

      1,012,435   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 14.95   

Class B

      14.22   

Class E

      14.62   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Includes securities loaned at value of $264,795,462.
(b) Identified cost of investments was $1,228,834,852.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends

    $ 9,675,437   

Interest

      640   

Securities lending income

      1,612,095   
  

 

 

  

Total investment income

      11,288,172   

Expenses

   

Management fees

      11,862,213   

Administration fees

      33,753   

Custodian and accounting fees

      120,244   

Distribution and service fees—Class B

      1,051,040   

Distribution and service fees—Class E

      25,449   

Audit and tax services

      40,454   

Legal

      26,460   

Trustees’ fees and expenses

      35,174   

Shareholder reporting

      61,005   

Insurance

      9,056   

Miscellaneous

      19,181   
  

 

 

  

Total expenses

      13,284,029   

Less management fee waiver

      (250,000 ) 

Less broker commission recapture

      (64,186 ) 
  

 

 

  

Net expenses

      12,969,843   
  

 

 

  

Net Investment Loss

      (1,681,671 ) 
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   

Net realized gain on investments

      210,571,782   
  

 

 

  

Net change in unrealized depreciation on investments

      (215,642,056 ) 
  

 

 

  

Net realized and unrealized loss

      (5,070,274 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (6,751,945 ) 
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income (loss)

    $ (1,681,671 )    $ 2,994,927   

Net realized gain

      210,571,782        327,443,786   

Net change in unrealized depreciation

      (215,642,056 )      (215,367,995 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (6,751,945 )      115,070,718   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (1,341,279 )      0   

Class E

      (1,745 )      0   

Net realized capital gains

     

Class A

      (218,494,338 )      (144,739,748 ) 

Class B

      (105,069,371 )      (49,457,582 ) 

Class E

      (4,264,333 )      (1,902,860 ) 
  

 

 

    

 

 

  

Total distributions

      (329,171,066 )      (196,100,190 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      80,747,835        (195,278,985 ) 
  

 

 

    

 

 

  

Total decrease in net assets

      (255,175,176 )      (276,308,457 ) 

Net Assets

     

Beginning of period

      1,509,164,853        1,785,473,310   
  

 

 

    

 

 

  

End of period

    $ 1,253,989,677      $ 1,509,164,853   
  

 

 

    

 

 

  

Undistributed net investment income (loss)

     

End of period

    $ (81,937 )    $ 1,712,103   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      1,083,208      $ 19,636,199        4,779,639      $ 86,096,925   

Reinvestments

      13,132,354        219,835,617        8,154,353        144,739,748   

Redemptions

      (12,302,710 )      (246,000,576 )      (23,151,946 )      (427,830,332 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      1,912,852      $ (6,528,760 )      (10,217,954 )    $ (196,993,659 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      2,849,581      $ 48,115,222        2,121,054      $ 39,434,589   

Reinvestments

      6,587,422        105,069,371        2,887,193        49,457,582   

Redemptions

      (4,004,149 )      (68,593,491 )      (4,729,443 )      (87,749,918 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      5,432,854      $ 84,591,102        278,804      $ 1,142,253   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      216,250      $ 4,021,053        178,849      $ 3,403,487   

Reinvestments

      260,286        4,266,078        108,922        1,902,860   

Redemptions

      (319,701 )      (5,601,638 )      (250,196 )      (4,733,926 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      156,835      $ 2,685,493        37,575      $ 572,421   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ 80,747,835        $ (195,278,985 ) 
    

 

 

      

 

 

  

 

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  
     Year Ended December 31,  
     2015      2014     2013     2012      2011  

Net Asset Value, Beginning of Period

    $ 19.62       $ 20.53      $ 15.67      $ 14.07       $ 14.19   
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Income (Loss) from Investment Operations

             

Net investment income (loss) (a)

      (0.01 )       0.05        (0.00 )(b)      0.07         (0.03 ) 

Net realized and unrealized gain (loss) on investments

      0.26         1.38        6.00        2.48         (0.09 ) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total from investment operations

      0.25         1.43        6.00        2.55         (0.12 ) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Less Distributions

             

Distributions from net investment income

      (0.03 )       0.00        (0.08 )      0.00         0.00   

Distributions from net realized capital gains

      (4.89 )       (2.34 )      (1.06 )      (0.95 )       0.00   
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total distributions

      (4.92 )       (2.34 )      (1.14 )      (0.95 )       0.00   
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 14.95       $ 19.62      $ 20.53      $ 15.67       $ 14.07   
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total Return (%) (c)

      (1.42 )       8.18        40.54        18.51         (0.85 ) 

Ratios/Supplemental Data

             

Gross ratio of expenses to average net assets (%)

      0.87         0.87        0.87        0.87         0.88   

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

      0.85         0.86        0.85        0.86         0.87   

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

      (0.05 )       0.26        (0.02 )      0.48         (0.21 ) 

Portfolio turnover rate (%)

      29         28        18        28         40   

Net assets, end of period (in millions)

    $ 848.1       $ 1,075.7      $ 1,335.2      $ 1,263.5       $ 1,111.8   
     Class B  
     Year Ended December 31,  
     2015      2014     2013     2012      2011  

Net Asset Value, Beginning of Period

    $ 18.90       $ 19.91      $ 15.23      $ 13.73       $ 13.88   
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Income (Loss) from Investment Operations

             

Net investment income (loss) (a)

      (0.05 )       (0.00 )(b)      (0.05 )      0.03         (0.07 ) 

Net realized and unrealized gain (loss) on investments

      0.26         1.33        5.83        2.42         (0.08 ) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total from investment operations

      0.21         1.33        5.78        2.45         (0.15 ) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Less Distributions

             

Distributions from net investment income

      0.00         0.00        (0.04 )      0.00         0.00   

Distributions from net realized capital gains

      (4.89 )       (2.34 )      (1.06 )      (0.95 )       0.00   
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total distributions

      (4.89 )       (2.34 )      (1.10 )      (0.95 )       0.00   
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 14.22       $ 18.90      $ 19.91      $ 15.23       $ 13.73   
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total Return (%) (c)

      (1.71 )       7.91        40.17        18.23         (1.08 ) 

Ratios/Supplemental Data

             

Gross ratio of expenses to average net assets (%)

      1.12         1.12        1.12        1.12         1.13   

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

      1.10         1.11        1.10        1.11         1.12   

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

      (0.29 )       (0.00 )(e)      (0.27 )      0.22         (0.46 ) 

Portfolio turnover rate (%)

      29         28        18        28         40   

Net assets, end of period (in millions)

    $ 391.1       $ 417.0      $ 433.7      $ 330.0       $ 299.4   

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  
     Year Ended December 31,  
     2015     2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 19.29      $ 20.25       $ 15.47       $ 13.92       $ 14.06   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (loss) (a)

      (0.03 )      0.02         (0.03 )       0.04         (0.05 ) 

Net realized and unrealized gain (loss) on investments

      0.25        1.36         5.93         2.46         (0.09 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.22        1.38         5.90         2.50         (0.14 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.00 ) (f)      0.00         (0.06 )       0.00         0.00   

Distributions from net realized capital gains

      (4.89 )      (2.34 )       (1.06 )       (0.95 )       0.00   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (4.89 )      (2.34 )       (1.12 )       (0.95 )       0.00   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 14.62      $ 19.29       $ 20.25       $ 15.47       $ 13.92   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      (1.60 )      8.04         40.34         18.34         (1.00 ) 

Ratios/Supplemental Data

              

Gross ratio of expenses to average net assets (%)

      1.02        1.02         1.02         1.02         1.03   

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

      1.00        1.01         1.00         1.01         1.02   

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

      (0.19 )      0.10         (0.16 )       0.30         (0.36 ) 

Portfolio turnover rate (%)

      29        28         18         28         40   

Net assets, end of period (in millions)

    $ 14.8      $ 16.5       $ 16.6       $ 11.1       $ 11.2   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Net investment 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) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).
(e) Ratio of net investment loss to average net assets was less than 0.01%.
(f) Distributions from net investment income were less than $0.01.

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of

 

MIST-13

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 broker commission recapture, ordinary loss netting and distribution redesignations. These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

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

 

MIST-14

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $54,926,788, 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 December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2015, with a contractual maturity of overnight and continuous.

3. Certain Risks

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”).

Market 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, 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-15

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Notes to Financial Statements—December 31, 2015—(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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 393,784,084       $ 0       $ 674,672,275   

The Portfolio engaged in security transactions with other accounts managed by Invesco Advisers, Inc. that amounted to $6,179,371 in purchases and $167,621,440 in sales of investments, which are included above.

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management

Fees earned by

MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$11,862,213      0.880 %     First $500 million
     0.830 %     Over $500 million

MetLife Advisers has entered into an investment subadvisory agreement with respect to manging the Portfolio. Invesco Advisers, Inc. is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, for the period May 1, 2015 to April 30, 2016, 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 28, 2014 to April 30, 2015. Amounts waived for the year ended December 31, 2015 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.

 

MIST-16

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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, LLC, 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 year ended December 31, 2015 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.

Affiliated Broker - During the year ended December 31, 2015 the Portfolio paid brokerage commissions to affiliated brokers/dealers:

 

Affiliate

    Commission  
Invesco Capital Markets, Inc.    $ 2,558   

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$41,524,934    $ 24,439,290       $ 287,646,132       $ 171,660,900       $ 329,171,066       $ 196,100,190   

As of December 31, 2015, 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		      Other
Accumulated
Capital Losses		      Total  
$6,056,614    $ 202,897,791       $ 261,513,908       $ —       $ 470,468,313   

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, 2015, the Portfolio had no post-enactment accumulated capital losses and no pre-enactment accumulated capital loss carryforwards.

 

MIST-17

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

8. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-18

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Invesco Small Cap 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 Invesco Small Cap Growth Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 Invesco Small Cap Growth Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-19

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-20

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-21

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment

 

MIST-22

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Board Approval of Advisory and Subadvisory Agreements—(Continued)

 

performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of

 

MIST-23

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Board Approval of Advisory and Subadvisory Agreements—(Continued)

 

the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

Invesco Small Cap Growth Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Invesco Advisers, Inc. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the one-, three-, and five-year periods ended June 30, 2015. The Board also considered that the Portfolio outperformed its benchmark, the Russell 2000 Growth Index, for the three- and five-year periods ended October 31, 2015, and underperformed its benchmark for the one-year period ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees were equal to the Expense Group median and above the Expense Universe median and the Sub-advised Expense Universe median. The Board also considered that the Portfolio’s total expenses (exclusive of 12b-1 fees) were equal to the Expense Group median and below the Expense Universe median and the Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were above the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also noted that the Portfolio’s contractual sub-advisory fees were above the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-24

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Managed by J.P. Morgan Asset Management

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A and B shares of the JPMorgan Core Bond Portfolio returned 0.71% and 0.48%, respectively. The Portfolio’s benchmark, the Barclays U.S. Aggregate Bond Index1, returned 0.55%.

MARKET ENVIRONMENT / CONDITIONS

In 2015, market sentiment was dominated by global central bank policy, volatility in China, and global growth concerns. At the end of the year, the U.S. Federal Open Market Committee began to tighten monetary policy. The widely anticipated 25 basis point (“bps”) hike, which pushed the Federal Funds target rate range to 0.25%-0.50%, represented the first increase in more than nine years and underscored divergence between the U.S. and other major central banks. U.S. Treasury yields rose across the curve and flattened as shorter term yields rose more than intermediate and longer maturity yields. The spread between the two- and 10-year Treasuries finished the year at 1.22%, down 33 bps from the end of 2014. In contrast, the People’s Bank of China began a year-long easing trend, engineered to slow the pace of growth deceleration that troubled the world’s second-largest economy for much of the 2015. Similarly, the European Central Bank implemented historic quantitative easing measures at the beginning of the year and bolstered its asset purchase program in December.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio’s duration positioning contributed to performance, as the strategy maintained an underweight position relative to the benchmark (roughly 90% of the benchmark’s duration throughout the year). Rates reversed course from 2014 (when the 10-year Treasury decreased from 3.03% to finish at 2.17%) with the 10-year bellwether finishing at 2.27%, up roughly 10 bps during the year. This slight change in the 10-year maturity during 2015 masks the volatility experienced in rates over the course of the year; the 10-year Treasury rebounded from a low at the end of January of 1.64% to a high of 2.48% mid-year before settling below 2.20% at year-end. Yield curve positioning was a contributor to relative performance over the 12-month period, with an underweight position at the 30-year part of the curve contributing to performance as the long end of the U.S. Treasury yield curve backed up from 2.75% to 3.02% at year-end.

During 2015, spreads on corporate bonds widened 34 bps with the market Option Adjusted Spread (OAS) moving from 131 to 165 bps. The Barclays Corporate Bond Index trailed comparable-duration Treasuries by 161 bps on the year, with the lowest-rated segment of the corporate index performing the worst, trailing comparable-duration Treasuries by 363 bps. The Portfolio’s underweight to credit contributed to performance for the year as credit trailed other sectors in the Index. The Portfolio’s underweight to U.S. dollar-denominated sovereign debt and supra-nationals also helped returns as these segments of the market underperformed during the year. The Portfolio’s Mortgage-Backed Securities (“MBS”) allocation outperformed the MBS segment held in the Index as Collateralized Mortgage Obligations, which provide better protection from interest rate volatility, performed better than the pass-though mortgage structures held in the Index.

The Portfolio’s underweight in U.S Treasury debt contributed to performance, as the 10-year Treasury’s yield moved 10 bps higher during the year. Within Treasuries, the 30-year issue backed up from 2.75% to 3.02% at year-end, resulting in performance of -3.17% for the 12-month period. The Portfolio maintained a shorter-duration posture throughout the year, which contributed to excess returns as rates moved higher across the Treasury curve, with the more pronounced moves at the very short and very long ends. Within structured credit, the Portfolio’s overweight to non-Agency MBS and Asset-Backed Securities (“ABS”) added to performance, as these sectors generated positive excess returns for the year.

The Portfolio’s allocations at year end were: Treasury 25.9%, Agency 3.0%, MBS 35.9%, ABS 6.5%, Collateralized Mortgage-Backed Securities 5.4%, Credit 22.1%, and cash 1.2%.

Barb Miller

Christopher Nauseda

Peter Simons

Henry Song

Portfolio Managers

J.P. Morgan Asset 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, 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 subject to change at any time based upon economic, market, or other conditions and the advisory 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        Since Inception2  
JPMorgan Core Bond Portfolio                 

Class A

        0.71           —           1.13   

Class B

        0.48           2.59           2.64   
Barclays U.S. Aggregate Bond Index        0.55           3.25           4.26   

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 Inception dates of the Class A and Class B shares are 2/28/2013 and 4/28/2008, respectively. Class C shares were converted to Class B shares effective 1/7/2013. Index since inception return is based on the Class B inception date.

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 DECEMBER 31, 2015

Top Sectors

 

     % of
Net Assets		  

U.S. Treasury & Government Agencies

      61.7   

Corporate Bonds & Notes

      21.5   

Asset-Backed Securities

      8.0   

Mortgage-Backed Securities

      5.9   

Foreign Government

      1.3   

 

MIST-2

Met Investors Series Trust

JPMorgan Core 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

   Actual      0.44 %     $ 1,000.00         $ 1,003.90         $ 2.22   
   Hypothetical*      0.44 %     $ 1,000.00         $ 1,022.99         $ 2.24   

Class B(a)

   Actual      0.69 %     $ 1,000.00         $ 1,002.00         $ 3.48   
   Hypothetical*      0.69 %     $ 1,000.00         $ 1,021.73         $ 3.52   

* 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 (184 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

JPMorgan Core Bond Portfolio

Schedule of Investments as of December 31, 2015

U.S. Treasury & Government Agencies—61.7% of Net Assets

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage - Backed—34.0%

  

Fannie Mae 10 Yr. Pool
4.500%, 07/01/21

     868,961      $ 903,403   

Fannie Mae 15 Yr. Pool
3.500%, 08/01/26

     675,747        694,414   

Fannie Mae 20 Yr. Pool
4.000%, 02/01/31

     2,449,784        2,620,940   

6.000%, 07/01/28

     486,188        548,648   

Fannie Mae 30 Yr. Pool
3.500%, 07/01/42

     2,487,369        2,568,817   

3.500%, 08/01/42

     1,600,561        1,654,479   

3.500%, 03/01/43

     8,619,203        8,906,685   

4.500%, 02/01/40

     750,067        819,356   

5.000%, 09/01/35

     1,804,933        1,992,887   

6.000%, 12/01/39

     639,110        724,227   

Fannie Mae ARM Pool
0.622%, 07/01/24 (a)

     5,000,000        5,002,024   

0.632%, 09/01/24 (a)

     3,000,000        3,005,526   

0.652%, 11/01/23 (a)

     4,807,891        4,841,086   

0.672%, 09/01/24 (a)

     3,901,458        3,911,191   

0.892%, 01/01/21 (a)

     946,371        955,307   

Fannie Mae Benchmark REMIC (CMO)
5.500%, 06/25/37

     1,784,340        1,998,985   

Fannie Mae Interest Strip (CMO)
4.500%, 11/25/20 (b)

     610,909        32,451   

Fannie Mae Pool
2.330%, 11/01/22

     17,810,000        17,572,171   

2.360%, 05/01/23

     9,244,085        9,136,709   

2.420%, 05/01/23

     5,754,028        5,697,701   

2.450%, 11/01/22

     3,000,000        2,976,729   

2.460%, 02/01/23

     1,406,774        1,399,887   

2.510%, 06/01/23

     3,815,069        3,798,855   

2.520%, 05/01/23

     25,000,000        24,655,729   

2.530%, 05/01/23

     4,172,810        4,160,524   

2.540%, 05/01/23

     5,000,000        4,977,888   

2.640%, 04/01/23

     1,923,046        1,927,176   

2.640%, 05/01/23

     2,304,896        2,309,204   

2.690%, 10/01/23

     2,000,000        1,985,728   

2.700%, 05/01/23

     5,000,000        4,980,942   

2.704%, 04/01/23

     2,393,376        2,407,625   

2.720%, 03/01/23

     3,156,006        3,180,023   

2.740%, 06/01/23

     2,928,693        2,951,031   

2.890%, 05/01/27

     2,000,000        1,969,523   

2.920%, 12/01/24

     1,000,000        1,000,142   

2.980%, 07/01/22

     2,000,000        2,049,783   

2.990%, 01/01/25

     1,250,000        1,258,827   

3.000%, 01/01/43

     5,361,727        5,355,897   

3.050%, 04/01/22

     3,389,804        3,488,566   

3.110%, 12/01/24

     1,500,000        1,522,017   

3.200%, 11/01/20

     10,502,658        10,925,868   

3.235%, 10/01/26

     1,471,604        1,495,426   

3.240%, 12/01/26

     1,500,000        1,511,540   

3.260%, 12/01/26

     1,000,000        1,016,647   

3.290%, 08/01/26

     2,000,000        2,035,068   

3.340%, 02/01/27

     1,500,000        1,541,305   

3.380%, 12/01/23

     2,000,000        2,080,521   

3.430%, 10/01/23

     11,938,317        12,444,493   

Agency Sponsored Mortgage - Backed—(Continued)

  

Fannie Mae Pool
3.440%, 11/01/21

     3,992,893      4,182,399   

3.450%, 01/01/24

     1,000,000        1,043,610   

3.490%, 09/01/23

     3,986,327        4,181,528   

3.500%, 02/01/33

     5,679,015        5,950,818   

3.500%, 05/01/33

     6,468,388        6,777,240   

3.500%, 12/01/42

     7,208,271        7,448,575   

3.500%, 05/01/43

     28,582,543        29,536,479   

3.500%, 06/01/43

     7,040,083        7,274,781   

3.500%, 07/01/43

     4,131,708        4,269,650   

3.500%, 08/01/43

     9,337,311        9,648,923   

3.550%, 02/01/30

     1,500,000        1,537,649   

3.560%, 01/01/21

     12,309,759        12,990,002   

3.560%, 03/01/24

     7,324,632        7,698,171   

3.630%, 10/01/29

     1,481,100        1,524,038   

3.670%, 07/01/23

     2,500,000        2,641,425   

3.730%, 07/01/22

     5,830,760        6,199,726   

3.743%, 06/01/18

     1,870,426        1,939,607   

3.760%, 10/01/23

     1,477,492        1,568,967   

3.760%, 11/01/23

     1,100,000        1,168,885   

3.770%, 12/01/20

     2,304,253        2,450,009   

3.805%, 05/01/22

     9,205,851        9,761,080   

3.970%, 07/01/21

     4,710,288        5,066,756   

4.000%, 10/01/32

     1,947,923        2,098,731   

4.000%, 12/01/40

     777,138        826,796   

4.000%, 07/01/42

     3,912,520        4,165,109   

4.260%, 12/01/19

     2,735,819        2,937,589   

4.330%, 04/01/20

     3,846,458        4,154,985   

4.380%, 04/01/21

     3,157,714        3,445,687   

4.770%, 06/01/19

     3,471,675        3,771,470   

5.894%, 10/01/17

     2,838,347        3,029,561   

Fannie Mae REMICS (CMO)
Zero Coupon, 09/25/43 (c)

     2,602,765        2,037,370   

Zero Coupon, 10/25/43 (c)

     1,313,826        1,015,348   

Zero Coupon, 12/25/43 (c)

     3,006,384        2,307,691   

0.752%, 03/25/27 (a)

     588,058        588,800   

0.922%, 05/25/35 (a)

     3,536,421        3,532,110   

0.922%, 10/25/42 (a)

     1,517,416        1,532,298   

1.022%, 10/25/43 (a)

     2,947,555        2,974,861   

1.022%, 12/25/43 (a)

     3,585,824        3,620,660   

1.322%, 03/25/38 (a)

     575,845        585,439   

1.422%, 08/25/32 (a)

     1,235,500        1,276,234   

3.500%, 02/25/43

     8,008,468        8,263,093   

4.500%, 07/25/38

     112,064        112,807   

5.000%, 03/25/40

     11,309,976        12,382,006   

5.500%, 12/25/35

     1,533,915        1,582,763   

6.000%, 01/25/36

     1,072,186        1,084,284   

6.108%, 01/25/41 (a) (b)

     7,005,151        1,559,707   

6.500%, 07/18/28

     251,205        280,191   

Fannie Mae-ACES
2.207%, 01/25/22

     10,000,000        10,003,172   

2.280%, 12/27/22

     9,391,000        9,238,453   

2.614%, 10/25/21 (a)

     2,000,000        2,020,931   

2.723%, 10/25/24

     2,000,000        1,962,966   

3.103%, 07/25/24 (a)

     1,394,000        1,416,340   

3.346%, 03/25/24 (a)

     2,500,000        2,583,737   

 

See accompanying notes to financial statements.

 

MIST-4

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of December 31, 2015

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

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage - Backed—(Continued)

  

Fannie Mae-ACES
3.475%, 01/25/24 (a)

     2,500,000      $ 2,603,195   

Freddie Mac 20 Yr. Gold Pool
3.500%, 03/01/32

     1,963,871        2,053,707   

Freddie Mac 30 Yr. Gold Pool
4.000%, 08/01/42

     8,158,524        8,640,995   

4.000%, 05/01/43

     1,114,646        1,186,118   

4.000%, 06/01/43

     911,686        970,141   

4.000%, 08/01/43

     7,461,362        7,939,741   

5.000%, 08/01/39

     1,690,797        1,845,978   

Freddie Mac ARM Non-Gold Pool
3.979%, 07/01/40 (a)

     3,678,343        3,850,142   

Freddie Mac Gold Pool
3.500%, 12/01/32

     6,357,461        6,625,788   

3.500%, 01/01/33

     9,420,017        9,819,379   

3.500%, 02/01/33

     12,874,509        13,420,508   

3.500%, 03/01/33

     8,444,215        8,801,282   

3.500%, 04/01/33

     11,425,639        11,909,307   

3.500%, 05/01/33

     4,571,939        4,765,891   

3.500%, 06/01/43

     4,356,687        4,501,549   

4.000%, 09/01/32

     1,985,345        2,146,972   

4.000%, 11/01/32

     4,977,381        5,387,869   

4.000%, 12/01/32

     2,201,016        2,381,282   

4.000%, 01/01/33

     1,261,722        1,366,429   

4.000%, 02/01/33

     962,114        1,041,913   

5.000%, 02/01/34

     561,371        604,623   

Freddie Mac Multifamily Structured Pass-Through Certificates
2.522%, 01/25/23

     2,085,000        2,073,866   

2.615%, 01/25/23

     7,275,000        7,272,382   

3.389%, 03/25/24

     5,714,000        5,919,331   

3.490%, 01/25/24

     4,000,000        4,176,400   

Freddie Mac REMICS (CMO)
0.781%, 08/15/42 (a)

     7,181,413        7,280,631   

1.011%, 11/15/37 (a)

     1,634,517        1,662,625   

1.031%, 03/15/24 (a)

     828,103        836,397   

1.681%, 03/15/38 (a)

     600,000        647,774   

3.000%, 02/15/26

     1,915,000        1,969,191   

3.500%, 08/15/39

     3,986,360        4,171,633   

3.500%, 06/15/48

     8,229,879        8,645,765   

4.500%, 03/15/40

     1,000,000        1,019,071   

5.000%, 05/15/22

     3,289,721        3,302,681   

5.000%, 08/15/35

     1,650,000        1,841,306   

5.750%, 06/15/35

     8,983,146        10,181,790   

6.000%, 07/15/35

     7,739,571        8,539,559   

6.000%, 03/15/36

     2,688,565        3,254,072   

6.040%, 10/15/37 (a) (b)

     6,193,744        1,067,455   

6.070%, 11/15/36 (a) (b)

     3,617,578        486,989   

6.500%, 05/15/28

     632,269        722,367   

6.500%, 03/15/37

     1,177,026        1,340,739   

Freddie Mac Strips (CMO)
Zero Coupon, 09/15/43 (c)

     1,334,067        1,025,179   

3.000%, 01/15/43

     8,150,889        8,089,883   

3.000%, 01/15/44

     9,879,242        9,681,764   

Ginnie Mae II ARM Pool
3.500%, 04/20/41 (a)

     973,710        1,012,510   

Agency Sponsored Mortgage - Backed—(Continued)

  

Ginnie Mae II Pool
4.375%, 06/20/63

     9,202,606      9,848,387   

4.433%, 05/20/63

     14,603,894        15,644,119   

4.462%, 05/20/63

     10,158,042        10,878,656   

4.479%, 04/20/63

     5,161,799        5,528,459   

Government National Mortgage Association (CMO)
0.492%, 08/20/60 (a)

     639,029        638,205   

0.492%, 11/20/62 (a)

     344,309        343,590   

0.532%, 12/20/62 (a)

     2,606,590        2,582,300   

0.592%, 02/20/62 (a)

     8,389,832        8,372,561   

0.602%, 03/20/63 (a)

     872,354        863,972   

0.612%, 02/20/63 (a)

     1,970,648        1,953,768   

0.642%, 02/20/63 (a)

     7,843,516        7,800,023   

0.662%, 03/20/63 (a)

     4,036,388        4,042,011   

0.662%, 07/20/64 (a)

     4,561,422        4,528,118   

0.662%, 09/20/64 (a)

     1,864,828        1,837,365   

0.672%, 04/20/63 (a)

     8,984,044        8,923,548   

0.692%, 01/20/63 (a)

     3,792,636        3,788,216   

0.692%, 04/20/63 (a)

     7,446,726        7,399,017   

0.692%, 06/20/64 (a)

     6,146,878        6,079,377   

0.692%, 07/20/64 (a)

     2,827,222        2,796,353   

0.742%, 04/20/62 (a)

     875,610        875,238   

0.792%, 04/20/64 (a)

     15,320,187        15,258,365   

0.792%, 05/20/64 (a)

     11,044,817        10,986,005   

0.842%, 07/20/63 (a)

     6,776,251        6,777,732   

0.842%, 01/20/64 (a)

     1,598,520        1,599,255   

0.842%, 02/20/64 (a)

     5,423,977        5,426,433   

0.842%, 03/20/64 (a)

     2,045,229        2,045,921   

0.882%, 02/20/64 (a)

     2,454,647        2,453,823   

0.892%, 09/20/63 (a)

     4,518,439        4,529,795   

0.902%, 09/20/37 (a)

     410,203        414,108   

0.942%, 09/20/63 (a)

     4,500,317        4,520,653   

1.650%, 02/20/63

     16,468,253        16,283,804   

1.650%, 04/20/63

     9,324,189        9,207,597   

1.750%, 03/20/63

     2,371,207        2,365,451   

2.000%, 06/20/62

     3,365,565        3,368,924   

3.500%, 05/20/35

     58,437        58,659   

4.000%, 02/20/37

     103,363        104,241   

4.500%, 01/16/25

     1,068,733        1,190,643   

4.500%, 06/20/36

     79,488        79,818   

4.506%, 04/20/43 (a)

     2,664,760        2,834,638   

4.705%, 11/20/42 (a)

     10,847,042        11,767,728   

5.000%, 12/20/33

     2,000,000        2,236,601   

5.000%, 09/20/38

     5,741,715        6,131,201   

5.000%, 06/16/39

     1,055,180        1,121,603   

5.000%, 07/20/39

     5,149,654        5,671,607   

5.000%, 10/20/39

     3,723,350        4,324,960   

5.222%, 06/20/40 (a)

     5,306,017        5,885,361   

5.500%, 02/20/33

     219,717        230,532   

5.500%, 07/16/33 (b)

     1,523,386        323,329   

5.500%, 06/20/36

     63,906        64,140   
   

 

 

  
      846,315,857   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of December 31, 2015

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

 

Security Description   Principal
Amount*		     Value  

Federal Agencies—1.9%

  

Residual Funding Corp. Principal Strip
Zero Coupon, 07/15/20 (c)

     43,119,000      $ 39,386,016   

Tennessee Valley Authority
1.750%, 10/15/18

     850,000        858,588   

5.250%, 09/15/39

     600,000        721,137   

5.880%, 04/01/36

     1,000,000        1,284,845   

6.235%, 07/15/45

     4,250,000        4,856,853   

Tennessee Valley Authority Principal Strip
Zero Coupon, 11/01/25 (c)

     1,000,000        734,759   

Zero Coupon, 06/15/35 (c)

     750,000        346,980   
   

 

 

  
      48,189,178   
   

 

 

  

U.S. Treasury—25.8%

  

U.S. Treasury Bonds
4.250%, 05/15/39

     200,000        247,055   

4.375%, 02/15/38 (d)

     18,100,000        22,841,349   

4.375%, 11/15/39

     20,250,000        25,462,006   

4.500%, 05/15/38

     1,000,000        1,283,984   

4.750%, 02/15/37

     1,000,000        1,325,469   

5.250%, 11/15/28

     8,000,000        10,452,184   

5.250%, 02/15/29

     500,000        655,039   

5.375%, 02/15/31

     13,000,000        17,628,715   

5.500%, 08/15/28

     2,000,000        2,661,328   

6.125%, 08/15/29

     5,000,000        7,096,095   

U.S. Treasury Coupon Strips
Zero Coupon, 02/15/18 (d)

     5,000,000        4,881,730   

Zero Coupon, 05/15/18

     3,200,000        3,112,419   

Zero Coupon, 08/15/19

     16,000,000        15,096,928   

Zero Coupon, 11/15/19

     1,500,000        1,406,295   

Zero Coupon, 02/15/20 (d)

     2,815,000        2,621,396   

Zero Coupon, 05/15/20 (d)

     2,475,000        2,284,781   

Zero Coupon, 02/15/21 (d)

     25,050,000        22,642,620   

Zero Coupon, 05/15/21

     16,285,000        14,620,282   

Zero Coupon, 08/15/21

     3,095,000        2,759,688   

Zero Coupon, 11/15/21

     14,940,000        13,220,152   

Zero Coupon, 02/15/22

     3,975,000        3,489,704   

Zero Coupon, 05/15/22

     14,560,000        12,684,162   

Zero Coupon, 08/15/22

     6,000,000        5,187,024   

Zero Coupon, 11/15/22

     6,250,000        5,364,925   

Zero Coupon, 02/15/23 (d)

     18,035,000        15,396,804   

Zero Coupon, 05/15/23

     57,400,000        48,581,122   

Zero Coupon, 08/15/23

     2,765,000        2,326,717   

Zero Coupon, 11/15/23

     2,300,000        1,917,386   

Zero Coupon, 02/15/24

     4,900,000        4,061,816   

Zero Coupon, 11/15/24

     1,500,000        1,212,111   

Zero Coupon, 05/15/25

     1,500,000        1,191,825   

Zero Coupon, 08/15/27

     400,000        294,965   

Zero Coupon, 11/15/27

     570,000        417,277   

Zero Coupon, 05/15/28

     30,000        21,558   

Zero Coupon, 08/15/28

     1,750,000        1,247,946   

Zero Coupon, 05/15/29

     1,000,000        694,722   

Zero Coupon, 08/15/29

     800,000        551,387   

Zero Coupon, 11/15/29

     1,000,000        681,439   

Zero Coupon, 02/15/30

     8,300,000        5,605,405   

Zero Coupon, 05/15/30

     700,000        469,389   

U.S. Treasury—(Continued)

  

U.S. Treasury Coupon Strips
Zero Coupon, 08/15/30

     3,925,000      2,605,870   

Zero Coupon, 11/15/30

     4,400,000        2,893,735   

Zero Coupon, 02/15/31

     2,800,000        1,832,821   

Zero Coupon, 05/15/31

     10,500,000        6,798,015   

Zero Coupon, 08/15/31

     2,800,000        1,795,382   

Zero Coupon, 11/15/31 (d)

     3,000,000        1,909,020   

Zero Coupon, 02/15/32

     9,900,000        6,237,911   

Zero Coupon, 05/15/32

     12,800,000        7,986,650   

Zero Coupon, 08/15/32

     1,900,000        1,176,955   

Zero Coupon, 08/15/33

     400,000        238,618   

Zero Coupon, 11/15/33 (d)

     9,000,000        5,314,446   

Zero Coupon, 05/15/35 (d)

     4,000,000        2,238,740   

U.S. Treasury Inflation Indexed Bonds
1.750%, 01/15/28 (e)

     567,650        620,246   

U.S. Treasury Inflation Indexed Notes
0.125%, 01/15/22 (e)

     1,576,260        1,527,473   

U.S. Treasury Notes
0.750%, 12/31/17

     1,000,000        993,242   

0.750%, 02/28/18

     13,000,000        12,889,292   

0.875%, 01/31/18

     10,200,000        10,149,000   

0.875%, 07/31/19

     340,000        332,324   

1.000%, 06/30/19

     660,000        649,095   

1.000%, 08/31/19

     22,000,000        21,566,006   

1.250%, 10/31/18

     3,000,000        2,995,782   

1.250%, 11/30/18

     8,000,000        7,986,560   

1.250%, 02/29/20

     11,000,000        10,819,963   

1.375%, 01/31/20

     3,000,000        2,968,710   

1.500%, 08/31/18

     24,000,000        24,159,384   

1.500%, 05/31/19

     2,690,000        2,692,523   

1.750%, 05/15/23

     4,000,000        3,897,032   

2.000%, 11/30/20

     18,000,000        18,182,106   

2.000%, 10/31/21

     3,000,000        3,008,319   

2.125%, 08/31/20

     10,000,000        10,161,330   

2.125%, 01/31/21

     2,000,000        2,029,532   

2.125%, 08/15/21

     41,000,000        41,485,276   

2.625%, 01/31/18

     4,500,000        4,639,221   

2.625%, 08/15/20 (d)

     13,000,000        13,504,257   

2.625%, 11/15/20

     19,500,000        20,260,188   

2.750%, 02/15/19

     1,500,000        1,562,988   

3.125%, 05/15/21

     27,000,000        28,714,932   

3.500%, 02/15/18

     20,000,000        20,998,440   

3.625%, 02/15/21

     44,000,000        47,827,648   
   

 

 

  
      641,346,231   
   

 

 

  

Total U.S. Treasury & Government Agencies
(Cost $1,532,319,758)

       1,535,851,266   
   

 

 

  
Corporate Bonds & Notes—21.5%   

Aerospace/Defense—0.2%

  

Airbus Group Finance B.V.
2.700%, 04/17/23 (144A)

     249,000        239,911   

BAE Systems Holdings, Inc.
4.750%, 10/07/44 (144A)

     338,000        328,938   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Aerospace/Defense—(Continued)

  

BAE Systems plc
4.750%, 10/11/21 (144A)

     1,000,000      $ 1,064,346   

Lockheed Martin Corp.
3.100%, 01/15/23

     193,000        192,872   

4.500%, 05/15/36

     236,000        238,925   

Northrop Grumman Corp.
1.750%, 06/01/18

     418,000        414,273   

3.850%, 04/15/45

     182,000        163,543   

Northrop Grumman Systems Corp.
7.750%, 02/15/31

     350,000        461,950   

United Technologies Corp.
7.500%, 09/15/29

     1,568,000        2,120,413   
   

 

 

  
      5,225,171   
   

 

 

  

Agriculture—0.1%

  

Bunge N.A. Finance L.P.
5.900%, 04/01/17

     247,000        257,514   

Bunge, Ltd. Finance Corp.
8.500%, 06/15/19

     1,084,000        1,254,600   

Cargill, Inc.
7.350%, 03/06/19 (144A)

     1,055,000        1,213,446   
   

 

 

  
      2,725,560   
   

 

 

  

Airlines—0.1%

  

Air Canada Pass-Through Trust
4.125%, 05/15/25 (144A)

     350,989        350,550   

American Airlines Pass-Through Trust
4.950%, 01/15/23

     1,120,368        1,181,988   

United Airlines Pass-Through Trust
4.300%, 08/15/25

     508,361        526,154   
   

 

 

  
      2,058,692   
   

 

 

  

Auto Manufacturers—0.5%

  

American Honda Finance Corp.
1.600%, 02/16/18 (144A)

     700,000        694,686   

Daimler Finance North America LLC
1.875%, 01/11/18 (144A)

     328,000        326,705   

2.000%, 08/03/18 (144A)

     300,000        297,999   

2.250%, 07/31/19 (144A)

     1,600,000        1,579,005   

2.375%, 08/01/18 (144A)

     378,000        378,570   

2.875%, 03/10/21 (144A)

     500,000        493,114   

Ford Motor Credit Co. LLC
1.500%, 01/17/17

     678,000        673,247   

1.594%, 05/09/16 (a)

     840,000        841,144   

1.684%, 09/08/17

     630,000        622,373   

2.145%, 01/09/18

     309,000        307,857   

2.375%, 03/12/19

     969,000        955,245   

2.597%, 11/04/19

     950,000        932,746   

3.000%, 06/12/17

     400,000        403,889   

4.134%, 08/04/25

     200,000        199,283   

4.250%, 02/03/17

     1,200,000        1,226,051   

4.375%, 08/06/23

     900,000        924,825   

Auto Manufacturers—(Continued)

  

General Motors Financial Co., Inc.
3.200%, 07/13/20

     682,000      671,499   

Hyundai Capital America
2.400%, 10/30/18 (144A)

     239,000        238,259   

Nissan Motor Acceptance Corp.
1.800%, 03/15/18 (144A)

     789,000        785,303   

2.650%, 09/26/18 (144A)

     300,000        303,771   

PACCAR Financial Corp.
0.800%, 02/08/16

     117,000        117,050   

Toyota Motor Credit Corp.
1.375%, 01/10/18 (d)

     700,000        701,422   

1.450%, 01/12/18

     206,000        205,608   
   

 

 

  
      13,879,651   
   

 

 

  

Auto Parts & Equipment—0.1%

  

Johnson Controls, Inc.
3.625%, 07/02/24

     277,000        267,408   

4.950%, 07/02/64

     737,000        598,625   

5.000%, 03/30/20

     635,000        679,335   
   

 

 

  
      1,545,368   
   

 

 

  

Banks—5.5%

  

ABN AMRO Bank NV
2.500%, 10/30/18 (144A)

     1,160,000        1,167,386   

American Express Bank FSB
6.000%, 09/13/17

     1,800,000        1,928,054   

American Express Centurion Bank
5.950%, 06/12/17

     250,000        264,424   

ANZ New Zealand International, Ltd.
2.600%, 09/23/19 (144A)

     1,300,000        1,303,684   

2.850%, 08/06/20 (144A)

     250,000        252,100   

Bank of America Corp.
2.000%, 01/11/18

     2,450,000        2,446,876   

2.600%, 01/15/19

     1,710,000        1,715,573   

2.650%, 04/01/19

     1,300,000        1,303,171   

3.300%, 01/11/23

     1,921,000        1,890,888   

3.875%, 03/22/17

     290,000        296,341   

4.000%, 01/22/25

     654,000        640,219   

4.125%, 01/22/24

     1,780,000        1,838,473   

4.250%, 10/22/26

     520,000        514,714   

5.625%, 07/01/20

     1,000,000        1,110,769   

5.875%, 01/05/21

     2,500,000        2,829,357   

6.000%, 09/01/17

     360,000        383,116   

6.050%, 05/16/16

     2,494,000        2,535,129   

6.400%, 08/28/17

     1,276,000        1,366,849   

6.500%, 07/15/18

     997,000        1,101,929   

Bank of Montreal
1.800%, 07/31/18

     178,000        177,607   

2.375%, 01/25/19

     397,000        400,341   

2.550%, 11/06/22 (d)

     500,000        493,760   

Bank of New York Mellon Corp. (The)
2.200%, 05/15/19

     354,000        354,526   

3.250%, 09/11/24

     1,200,000        1,207,883   

4.150%, 02/01/21

     670,000        720,596   

5.450%, 05/15/19

     278,000        306,856   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Banks—(Continued)

  

Bank of Nova Scotia (The)
1.450%, 04/25/18

     300,000      $ 297,657   

1.850%, 04/14/20

     700,000        685,773   

2.800%, 07/21/21

     500,000        502,748   

Bank of Tokyo-Mitsubishi UFJ, Ltd. (The)
2.700%, 09/09/18 (144A)

     1,000,000        1,010,765   

4.100%, 09/09/23 (144A)

     1,114,000        1,171,406   

Banque Federative du Credit Mutuel S.A.
1.700%, 01/20/17 (144A)

     1,600,000        1,603,230   

Barclays Bank plc
3.750%, 05/15/24

     324,000        330,244   

5.125%, 01/08/20

     700,000        769,467   

Barclays plc
3.650%, 03/16/25

     254,000        244,100   

BB&T Corp.
2.050%, 06/19/18 (d)

     833,000        837,736   

2.150%, 03/22/17

     485,000        488,740   

2.450%, 01/15/20

     400,000        402,680   

6.850%, 04/30/19

     525,000        598,412   

BNZ International Funding, Ltd.
2.350%, 03/04/19 (144A)

     842,000        837,058   

BPCE S.A.
1.625%, 01/26/18

     1,200,000        1,192,248   

Capital One Financial Corp.
2.450%, 04/24/19

     176,000        176,322   

4.200%, 10/29/25

     250,000        246,838   

4.750%, 07/15/21

     907,000        982,423   

5.250%, 02/21/17

     170,000        175,756   

Capital One N.A.
1.500%, 03/22/18

     500,000        491,707   

Citigroup, Inc.
1.850%, 11/24/17

     776,000        774,855   

2.400%, 02/18/20

     450,000        444,735   

2.500%, 09/26/18

     441,000        444,830   

2.550%, 04/08/19

     550,000        552,233   

3.750%, 06/16/24

     629,000        640,293   

3.875%, 03/26/25

     1,100,000        1,070,617   

4.300%, 11/20/26

     1,500,000        1,492,596   

4.400%, 06/10/25

     196,000        197,962   

5.500%, 09/13/25

     692,000        751,162   

Citizens Financial Group, Inc.
4.300%, 12/03/25

     193,000        194,015   

Comerica, Inc.
3.800%, 07/22/26

     1,116,000        1,098,969   

Commonwealth Bank of Australia
4.500%, 12/09/25 (144A)

     352,000        349,049   

Cooperatieve Centrale Raiffeisen-Boerenleenbank BA
3.875%, 02/08/22

     700,000        738,769   

3.950%, 11/09/22

     872,000        882,659   

4.375%, 08/04/25

     250,000        254,263   

Credit Suisse AG
1.750%, 01/29/18

     279,000        278,216   

2.300%, 05/28/19

     250,000        250,215   

3.000%, 10/29/21

     1,379,000        1,373,513   

3.625%, 09/09/24

     250,000        251,966   

Banks—(Continued)

  

Credit Suisse AG
5.300%, 08/13/19

     300,000      331,284   

Credit Suisse Group Funding Guernsey, Ltd.

    

3.750%, 03/26/25 (144A)

     250,000        241,821   

Deutsche Bank AG
2.950%, 08/20/20

     200,000        200,296   

3.700%, 05/30/24

     667,000        664,319   

6.000%, 09/01/17

     200,000        211,836   

Discover Bank
3.200%, 08/09/21

     1,650,000        1,638,714   

4.200%, 08/08/23

     493,000        503,631   

Fifth Third Bancorp
8.250%, 03/01/38

     500,000        696,215   

Fifth Third Bank
2.375%, 04/25/19

     650,000        652,150   

Goldman Sachs Group, Inc. (The)
2.600%, 04/23/20

     714,000        708,578   

3.500%, 01/23/25

     392,000        385,263   

3.625%, 01/22/23

     1,300,000        1,314,761   

3.850%, 07/08/24

     1,447,000        1,476,606   

4.000%, 03/03/24

     412,000        422,869   

5.375%, 03/15/20

     1,650,000        1,812,596   

5.750%, 01/24/22

     1,000,000        1,137,221   

5.950%, 01/15/27

     1,000,000        1,112,350   

6.150%, 04/01/18

     1,475,000        1,601,726   

7.500%, 02/15/19

     3,000,000        3,432,783   

HSBC Bank plc
1.500%, 05/15/18 (144A)

     1,821,000        1,800,989   

4.125%, 08/12/20 (144A)

     2,002,000        2,131,882   

4.750%, 01/19/21 (144A)

     1,600,000        1,762,418   

HSBC USA, Inc.
1.625%, 01/16/18

     500,000        497,523   

2.350%, 03/05/20

     538,000        531,746   

Industrial & Commercial Bank of China, Ltd.
2.351%, 11/13/17

     626,000        627,601   

ING Bank NV
3.750%, 03/07/17 (144A)

     1,000,000        1,024,494   

KeyCorp
5.100%, 03/24/21

     896,000        979,280   

Macquarie Bank, Ltd.
2.600%, 06/24/19 (144A)

     699,000        698,303   

2.850%, 07/29/20 (144A)

     250,000        251,080   

4.000%, 07/29/25 (144A)

     250,000        253,290   

5.000%, 02/22/17 (144A)

     1,500,000        1,551,382   

Manufacturers & Traders Trust Co.
6.625%, 12/04/17

     970,000        1,054,135   

Mizuho Bank, Ltd.
1.800%, 03/26/18 (144A) (d)

     484,000        480,763   

3.600%, 09/25/24 (144A)

     950,000        961,272   

Morgan Stanley
1.875%, 01/05/18

     517,000        516,492   

2.375%, 07/23/19

     807,000        804,296   

3.700%, 10/23/24

     500,000        502,404   

5.000%, 11/24/25

     1,269,000        1,347,104   

5.500%, 01/26/20

     1,430,000        1,574,304   

5.625%, 09/23/19

     3,030,000        3,343,905   

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Banks—(Continued)

  

Morgan Stanley
5.750%, 01/25/21

     2,500,000      $ 2,806,877   

5.950%, 12/28/17

     1,757,000        1,889,350   

National Australia Bank, Ltd.
2.400%, 12/09/19 (144A)

     400,000        399,895   

Nordea Bank AB
1.625%, 05/15/18 (144A)

     1,400,000        1,391,839   

4.875%, 01/27/20 (144A)

     500,000        544,824   

Northern Trust Corp.
3.375%, 08/23/21

     300,000        311,449   

PNC Funding Corp.
5.125%, 02/08/20

     800,000        879,766   

6.700%, 06/10/19

     1,300,000        1,485,882   

Royal Bank of Canada
1.200%, 01/23/17

     140,000        139,957   

1.200%, 09/19/17 (d)

     1,000,000        995,273   

1.875%, 02/05/20

     2,000,000        1,963,532   

2.000%, 10/01/18

     2,092,000        2,096,464   

2.200%, 07/27/18

     305,000        307,463   

2.300%, 07/20/16

     135,000        135,868   

Santander Issuances S.A.U.
5.179%, 11/19/25

     600,000        590,909   

Skandinaviska Enskilda Banken AB
1.750%, 03/19/18 (144A)

     402,000        399,874   

Stadshypotek AB
1.875%, 10/02/19 (144A)

     1,500,000        1,479,033   

Standard Chartered Bank
6.400%, 09/26/17 (144A)

     1,100,000        1,169,364   

Standard Chartered plc
5.200%, 01/26/24 (144A) (d)

     1,000,000        1,028,136   

State Street Corp.
3.100%, 05/15/23

     407,000        402,198   

3.700%, 11/20/23

     1,608,000        1,673,161   

SunTrust Banks, Inc.
2.750%, 05/01/23

     2,000,000        1,912,458   

3.500%, 01/20/17

     310,000        315,351   

Toronto-Dominion Bank (The)
1.750%, 07/23/18

     300,000        299,557   

2.250%, 11/05/19

     255,000        254,848   

2.500%, 12/14/20

     500,000        499,797   

U.S. Bank N.A.
2.125%, 10/28/19

     350,000        349,735   

Wachovia Corp.
5.750%, 02/01/18

     1,500,000        1,620,135   

Wells Fargo & Co.
2.150%, 01/15/19

     179,000        180,000   

3.300%, 09/09/24

     770,000        766,011   

3.500%, 03/08/22

     1,900,000        1,957,665   

4.100%, 06/03/26

     1,291,000        1,303,128   

4.600%, 04/01/21

     3,470,000        3,782,758   

4.650%, 11/04/44

     595,000        578,862   

5.375%, 11/02/43

     1,005,000        1,075,600   

Wells Fargo Bank N.A.
6.000%, 11/15/17

     2,491,000        2,686,608   

Banks—(Continued)

  

Westpac Banking Corp.
1.375%, 05/30/18 (144A) (d)

     2,000,000      1,976,328   
   

 

 

  
      136,526,485   
   

 

 

  

Beverages—0.3%

    

Anheuser-Busch InBev Finance, Inc.
2.625%, 01/17/23

     950,000        911,693   

3.700%, 02/01/24 (d)

     1,000,000        1,020,211   

Anheuser-Busch InBev Worldwide, Inc.
7.750%, 01/15/19

     310,000        358,340   

Beam Suntory, Inc.
3.250%, 05/15/22

     760,000        747,205   

Coca-Cola Co. (The)
1.150%, 04/01/18

     182,000        181,489   

Heineken NV
3.400%, 04/01/22 (144A)

     1,339,000        1,358,031   

PepsiCo, Inc.
0.617%, 02/26/16 (a)

     182,000        181,949   

SABMiller Holdings, Inc.
3.750%, 01/15/22 (144A)

     1,700,000        1,748,423   
   

 

 

  
      6,507,341   
   

 

 

  

Biotechnology—0.3%

    

Amgen, Inc.
2.125%, 05/01/20

     100,000        98,636   

3.625%, 05/22/24

     873,000        872,675   

5.700%, 02/01/19

     100,000        110,248   

6.375%, 06/01/37

     2,116,000        2,464,186   

Biogen, Inc.
5.200%, 09/15/45

     133,000        133,050   

Celgene Corp.
3.250%, 08/15/22

     490,000        486,115   

3.625%, 05/15/24

     591,000        581,249   

3.950%, 10/15/20

     500,000        524,721   

5.000%, 08/15/45

     165,000        165,642   

Gilead Sciences, Inc.
3.500%, 02/01/25

     115,000        115,959   

3.700%, 04/01/24

     600,000        614,592   

4.400%, 12/01/21

     630,000        680,474   
   

 

 

  
      6,847,547   
   

 

 

  

Chemicals—0.4%

    

Agrium, Inc.
3.375%, 03/15/25

     87,000        79,375   

4.125%, 03/15/35

     620,000        527,402   

5.250%, 01/15/45

     712,000        663,694   

CF Industries, Inc.
7.125%, 05/01/20

     1,000,000        1,128,415   

Dow Chemical Co. (The)
4.125%, 11/15/21

     212,000        222,259   

7.375%, 11/01/29

     1,000,000        1,235,049   

8.850%, 09/15/21

     640,000        812,212   

Ecolab, Inc.
2.250%, 01/12/20

     297,000        295,290   

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Chemicals—(Continued)

  

Ecolab, Inc.
4.350%, 12/08/21

     700,000      $ 747,438   

EI du Pont de Nemours & Co.
4.150%, 02/15/43

     107,000        93,411   

Monsanto Co.
4.700%, 07/15/64

     100,000        75,932   

Mosaic Co. (The)
3.750%, 11/15/21

     1,520,000        1,524,075   

4.250%, 11/15/23

     460,000        455,595   

5.450%, 11/15/33

     1,163,000        1,175,420   

Potash Corp. of Saskatchewan, Inc.
3.000%, 04/01/25

     440,000        413,351   

3.250%, 12/01/17

     100,000        102,172   

Praxair, Inc.
1.250%, 11/07/18 (d)

     900,000        887,959   

2.650%, 02/05/25

     261,000        249,983   

Rohm & Haas Co.
6.000%, 09/15/17

     68,000        72,377   

7.850%, 07/15/29

     418,000        531,906   
   

 

 

  
      11,293,315   
   

 

 

  

Commercial Services—0.1%

  

ADT Corp. (The)
4.875%, 07/15/42

     420,000        300,300   

ERAC USA Finance LLC
3.850%, 11/15/24 (144A)

     925,000        925,348   

4.500%, 08/16/21 (144A)

     1,740,000        1,841,073   

7.000%, 10/15/37 (144A)

     500,000        609,345   
   

 

 

  
      3,676,066   
   

 

 

  

Computers—0.2%

  

Apple, Inc.
2.150%, 02/09/22

     540,000        524,138   

2.400%, 05/03/23

     1,679,000        1,635,962   

3.450%, 02/09/45

     625,000        538,099   

HP Enterprise Services LLC
7.450%, 10/15/29

     700,000        811,860   

International Business Machines Corp.
3.375%, 08/01/23

     650,000        660,031   

6.500%, 01/15/28

     300,000        374,762   
   

 

 

  
      4,544,852   
   

 

 

  

Diversified Financial Services—1.4%

  

AIG Global Funding
1.650%, 12/15/17 (144A)

     314,000        312,422   

American Express Credit Corp.
2.125%, 03/18/19

     231,000        230,978   

2.250%, 08/15/19

     1,000,000        1,000,175   

Ameriprise Financial, Inc.
4.000%, 10/15/23

     1,380,000        1,433,559   

Blackstone Holdings Finance Co. LLC
6.625%, 08/15/19 (144A)

     1,200,000        1,363,242   

Capital One Bank USA N.A.
3.375%, 02/15/23

     600,000        587,146   

8.800%, 07/15/19

     300,000        357,387   

Diversified Financial Services—(Continued)

  

CDP Financial, Inc.
4.400%, 11/25/19 (144A)

     600,000      648,384   

CME Group, Inc.
3.000%, 03/15/25

     440,000        431,664   

GE Capital International Funding Co.
0.964%, 04/15/16 (144A)

     1,094,000        1,094,493   

2.342%, 11/15/20 (144A)

     6,696,000        6,640,155   

3.373%, 11/15/25 (144A)

     744,000        757,455   

4.418%, 11/15/35 (144A)

     1,777,000        1,813,396   

General Electric Capital Corp.
3.100%, 01/09/23

     287,000        291,308   

4.375%, 09/16/20

     1,060,000        1,150,711   

5.500%, 01/08/20

     616,000        690,888   

6.000%, 08/07/19

     673,000        762,401   

6.750%, 03/15/32

     516,000        674,209   

Invesco Finance plc
4.000%, 01/30/24

     500,000        516,913   

Jefferies Group LLC
5.125%, 01/20/23

     300,000        297,637   

6.875%, 04/15/21

     475,000        531,373   

Legg Mason, Inc.
3.950%, 07/15/24

     700,000        688,542   

Macquarie Group, Ltd.
6.000%, 01/14/20 (144A)

     1,572,000        1,734,998   

Murray Street Investment Trust I
4.647%, 03/09/17

     1,600,000        1,648,475   

Private Export Funding Corp.
2.800%, 05/15/22

     1,000,000        1,010,711   

3.550%, 01/15/24

     7,383,000        7,786,577   

TD Ameritrade Holding Corp.
2.950%, 04/01/22

     295,000        292,210   
   

 

 

  
      34,747,409   
   

 

 

  

Electric—1.5%

  

Alabama Power Co.
3.550%, 12/01/23

     461,000        474,241   

4.150%, 08/15/44

     218,000        207,377   

Arizona Public Service Co.
2.200%, 01/15/20

     142,000        140,665   

3.350%, 06/15/24 (d)

     696,000        706,677   

4.500%, 04/01/42

     200,000        205,114   

Baltimore Gas & Electric Co.
5.200%, 06/15/33

     1,510,000        1,650,296   

Berkshire Hathaway Energy Co.
1.100%, 05/15/17

     460,000        455,797   

2.400%, 02/01/20

     364,000        360,605   

3.750%, 11/15/23

     1,736,000        1,781,449   

4.500%, 02/01/45

     333,000        319,944   

CenterPoint Energy Houston Electric LLC
2.250%, 08/01/22

     950,000        912,596   

Cleveland Electric Illuminating Co. (The)
7.880%, 11/01/17

     1,118,000        1,230,164   

CMS Energy Corp.
8.750%, 06/15/19

     885,000        1,058,049   

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Electric—(Continued)

  

Commonwealth Edison Co.
5.950%, 08/15/16

     200,000      $ 205,488   

Consumers Energy Co.
4.350%, 08/31/64

     191,000        180,969   

5.650%, 04/15/20

     200,000        225,507   

DTE Electric Co.
3.900%, 06/01/21

     1,000,000        1,064,483   

5.700%, 10/01/37

     300,000        359,364   

DTE Energy Co.
3.500%, 06/01/24

     449,000        449,498   

3.850%, 12/01/23

     225,000        231,200   

Duke Energy Carolinas LLC
4.300%, 06/15/20

     619,000        669,972   

6.000%, 01/15/38

     600,000        740,215   

Duke Energy Ohio, Inc.
3.800%, 09/01/23

     815,000        850,933   

Duke Energy Progress LLC
4.100%, 03/15/43

     200,000        194,116   

4.375%, 03/30/44

     247,000        250,892   

5.300%, 01/15/19

     200,000        219,699   

5.700%, 04/01/35

     360,000        419,878   

Entergy Arkansas, Inc.
3.050%, 06/01/23 (d)

     765,000        751,867   

Exelon Generation Co. LLC
2.950%, 01/15/20

     300,000        298,921   

Florida Power & Light Co.
5.625%, 04/01/34

     1,250,000        1,487,829   

Indiana Michigan Power Co.
3.200%, 03/15/23

     330,000        325,342   

Kansas City Power & Light Co.
3.150%, 03/15/23

     604,000        591,928   

5.300%, 10/01/41

     315,000        342,238   

MidAmerican Energy Co.
3.700%, 09/15/23 (d)

     1,100,000        1,143,635   

Nevada Power Co.
6.650%, 04/01/36

     360,000        454,663   

7.125%, 03/15/19

     200,000        228,741   

NextEra Energy Capital Holdings, Inc.
3.625%, 06/15/23

     410,000        408,474   

Niagara Mohawk Power Corp.
3.508%, 10/01/24 (144A)

     305,000        306,167   

Nisource Finance Corp.
4.800%, 02/15/44

     162,000        164,655   

6.125%, 03/01/22

     1,875,000        2,146,179   

Northern States Power Co.
6.500%, 03/01/28

     628,000        769,011   

Ohio Power Co.
5.375%, 10/01/21

     305,000        339,494   

6.600%, 02/15/33

     258,000        311,685   

Pacific Gas & Electric Co.
3.500%, 10/01/20

     782,000        812,886   

6.050%, 03/01/34

     1,200,000        1,413,888   

PacifiCorp
3.600%, 04/01/24

     315,000        325,516   

5.500%, 01/15/19

     500,000        548,740   

Electric—(Continued)

  

PPL Electric Utilities Corp.
2.500%, 09/01/22

     300,000      293,337   

4.125%, 06/15/44

     208,000        204,988   

PSEG Power LLC
4.300%, 11/15/23

     201,000        197,281   

5.320%, 09/15/16

     568,000        583,592   

Public Service Co. of Colorado
2.500%, 03/15/23

     400,000        389,709   

Public Service Co. of New Hampshire
3.500%, 11/01/23

     272,000        278,680   

Public Service Co. of Oklahoma
5.150%, 12/01/19

     1,010,000        1,104,467   

6.625%, 11/15/37

     600,000        722,425   

Public Service Electric & Gas Co.
3.800%, 01/01/43

     700,000        659,176   

Sierra Pacific Power Co.
3.375%, 08/15/23

     556,000        562,242   

South Carolina Electric & Gas Co.
4.500%, 06/01/64

     173,000        161,059   

Southern Co. (The)
2.150%, 09/01/19

     855,000        838,702   

State Grid Overseas Investment, Ltd.
1.750%, 05/22/18 (144A)

     499,000        494,637   

Virginia Electric & Power Co.
2.750%, 03/15/23

     400,000        394,106   

2.950%, 01/15/22

     489,000        491,863   

3.450%, 02/15/24

     102,000        104,132   

4.450%, 02/15/44

     126,000        129,595   

6.000%, 05/15/37

     685,000        839,511   

Xcel Energy, Inc.
0.750%, 05/09/16

     290,000        289,742   
   

 

 

  
      37,476,291   
   

 

 

  

Electronics—0.2%

  

Arrow Electronics, Inc.
3.000%, 03/01/18

     49,000        48,961   

6.000%, 04/01/20

     536,000        582,533   

6.875%, 06/01/18

     300,000        326,633   

7.500%, 01/15/27

     1,100,000        1,296,321   

Koninklijke Philips NV
3.750%, 03/15/22

     1,680,000        1,724,591   
   

 

 

  
      3,979,039   
   

 

 

  

Engineering & Construction—0.0%

  

Fluor Corp.
3.375%, 09/15/21

     550,000        561,939   
   

 

 

  

Environmental Control—0.1%

  

Republic Services, Inc.
5.500%, 09/15/19

     650,000        715,133   

6.086%, 03/15/35

     500,000        585,063   

Waste Management, Inc.
3.125%, 03/01/25

     257,000        250,118   

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Environmental Control—(Continued)

  

Waste Management, Inc.
3.900%, 03/01/35

     88,000      $ 81,944   
   

 

 

  
      1,632,258   
   

 

 

  

Food—0.3%

  

ConAgra Foods, Inc.
1.300%, 01/25/16

     104,000        104,015   

Kraft Foods Group, Inc.
6.125%, 08/23/18

     700,000        768,558   

6.875%, 01/26/39

     731,000        866,381   

Kraft Heinz Foods Co.
3.950%, 07/15/25 (144A)

     260,000        262,421   

Kroger Co. (The)
4.000%, 02/01/24

     229,000        237,336   

7.500%, 04/01/31

     1,140,000        1,452,036   

8.000%, 09/15/29

     610,000        823,466   

Mondelez International, Inc.
4.000%, 02/01/24

     1,800,000        1,855,431   

Tyson Foods, Inc.
3.950%, 08/15/24

     1,456,000        1,494,888   
   

 

 

  
      7,864,532   
   

 

 

  

Gas—0.3%

  

AGL Capital Corp.
3.500%, 09/15/21

     1,000,000        1,002,536   

4.400%, 06/01/43

     375,000        337,198   

6.000%, 10/01/34

     1,000,000        1,103,180   

Atmos Energy Corp.
4.125%, 10/15/44

     450,000        431,242   

4.150%, 01/15/43

     460,000        445,361   

8.500%, 03/15/19

     200,000        234,396   

CenterPoint Energy Resources Corp.
4.500%, 01/15/21

     429,000        450,289   

CenterPoint Energy, Inc.
6.500%, 05/01/18

     706,000        770,254   

Sempra Energy
2.875%, 10/01/22

     1,625,000        1,572,473   

3.550%, 06/15/24

     709,000        705,088   

4.050%, 12/01/23

     1,054,000        1,085,703   
   

 

 

  
      8,137,720   
   

 

 

  

Healthcare-Products—0.2%

  

Baxter International, Inc.
1.850%, 06/15/18

     431,000        428,425   

Becton Dickinson & Co.
2.675%, 12/15/19

     145,000        145,789   

3.734%, 12/15/24

     184,000        185,569   

Medtronic, Inc.
3.150%, 03/15/22

     775,000        783,461   

4.375%, 03/15/35

     956,000        966,365   

Thermo Fisher Scientific, Inc.
1.300%, 02/01/17

     551,000        549,052   

4.150%, 02/01/24

     1,030,000        1,069,841   
   

 

 

  
      4,128,502   
   

 

 

  

Healthcare-Services—0.2%

  

Aetna, Inc.
6.625%, 06/15/36

     297,000      356,420   

Anthem, Inc.
2.300%, 07/15/18

     751,000        749,584   

3.500%, 08/15/24

     1,035,000        1,010,556   

4.650%, 08/15/44

     324,000        308,802   

5.950%, 12/15/34

     272,000        302,632   

Laboratory Corp. of America Holdings
3.200%, 02/01/22

     682,000        669,333   

Quest Diagnostics, Inc.
4.750%, 01/30/20

     400,000        423,995   

Roche Holdings, Inc.
3.350%, 09/30/24 (144A)

     660,000        675,489   

Texas Health Resources
4.330%, 11/15/55

     250,000        239,347   

UnitedHealth Group, Inc.
2.875%, 03/15/23

     250,000        247,343   

5.800%, 03/15/36

     375,000        442,497   
   

 

 

  
      5,425,998   
   

 

 

  

Holding Companies-Diversified—0.0%

  

Hutchison Whampoa International, Ltd.
4.625%, 01/13/22 (144A)

     1,100,000        1,179,592   
   

 

 

  

Household Products/Wares—0.0%

  

Kimberly-Clark Corp.
2.400%, 06/01/23

     600,000        577,699   
   

 

 

  

Insurance—0.9%

  

ACE INA Holdings, Inc.
2.700%, 03/13/23

     400,000        390,734   

2.875%, 11/03/22

     260,000        258,027   

3.150%, 03/15/25

     131,000        129,469   

3.350%, 05/15/24

     435,000        439,115   

AIG SunAmerica Global Financing X
6.900%, 03/15/32 (144A)

     1,000,000        1,283,543   

Allstate Corp. (The)
3.150%, 06/15/23

     407,000        406,685   

American International Group, Inc.
3.875%, 01/15/35

     259,000        228,446   

4.125%, 02/15/24

     868,000        891,359   

Aon plc
3.500%, 06/14/24

     935,000        912,581   

Berkshire Hathaway Finance Corp.
3.000%, 05/15/22 (d)

     1,000,000        1,016,991   

4.300%, 05/15/43

     831,000        814,940   

Berkshire Hathaway, Inc.
3.400%, 01/31/22

     627,000        660,800   

CNA Financial Corp.
6.950%, 01/15/18

     550,000        598,592   

7.350%, 11/15/19

     500,000        575,664   

Liberty Mutual Group, Inc.
5.000%, 06/01/21 (144A)

     700,000        748,667   

Liberty Mutual Insurance Co.
7.875%, 10/15/26 (144A)

     500,000        602,437   

8.500%, 05/15/25 (144A)

     300,000        372,655   

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Insurance—(Continued)

  

Lincoln National Corp.
6.250%, 02/15/20

     800,000      $ 898,934   

8.750%, 07/01/19

     350,000        420,355   

Marsh & McLennan Cos., Inc.
2.350%, 03/06/20

     453,000        449,044   

3.500%, 03/10/25

     621,000        611,359   

Massachusetts Mutual Life Insurance Co.
5.625%, 05/15/33 (144A)

     720,000        799,921   

7.625%, 11/15/23 (144A)

     550,000        675,324   

MassMutual Global Funding II
5.250%, 07/31/18 (144A)

     880,000        945,186   

Nationwide Mutual Insurance Co.
8.250%, 12/01/31 (144A)

     1,000,000        1,298,223   

New York Life Global Funding
0.800%, 02/12/16 (144A)

     600,000        600,004   

1.125%, 03/01/17 (144A)

     317,000        316,863   

Pacific Life Insurance Co.
9.250%, 06/15/39 (144A)

     650,000        944,228   

Pricoa Global Funding I
1.600%, 05/29/18 (144A)

     1,678,000        1,659,495   

Prudential Insurance Co. of America (The)
8.300%, 07/01/25 (144A)

     2,150,000        2,742,566   

XLIT, Ltd.
6.375%, 11/15/24

     921,000        1,073,607   
   

 

 

  
      23,765,814   
   

 

 

  

Internet—0.2%

  

Amazon.com, Inc.
3.800%, 12/05/24

     1,020,000        1,061,065   

4.800%, 12/05/34

     815,000        858,093   

eBay, Inc.
2.600%, 07/15/22

     1,990,000        1,852,354   

4.000%, 07/15/42

     700,000        553,172   
   

 

 

  
      4,324,684   
   

 

 

  

Iron/Steel—0.0%

  

Nucor Corp.
4.000%, 08/01/23

     1,049,000        1,017,099   
   

 

 

  

Machinery-Construction & Mining—0.1%

  

Caterpillar Financial Services Corp.
1.300%, 03/01/18

     500,000        496,798   

2.750%, 08/20/21

     360,000        357,994   

3.250%, 12/01/24

     393,000        389,669   

3.750%, 11/24/23

     769,000        799,995   

7.150%, 02/15/19

     1,000,000        1,145,921   
   

 

 

  
      3,190,377   
   

 

 

  

Machinery-Diversified—0.1%

  

Deere & Co.
8.100%, 05/15/30

     600,000        844,793   

John Deere Capital Corp.
1.125%, 06/12/17

     700,000        698,610   

Machinery-Diversified—(Continued)

  

Roper Technologies, Inc.
3.000%, 12/15/20

     125,000      124,481   
   

 

 

  
      1,667,884   
   

 

 

  

Media—1.1%

    

21st Century Fox America, Inc.
3.000%, 09/15/22

     700,000        689,795   

6.550%, 03/15/33

     370,000        421,679   

6.900%, 03/01/19

     900,000        1,022,252   

CBS Corp.
3.700%, 08/15/24

     874,000        849,970   

4.900%, 08/15/44

     135,000        122,839   

5.500%, 05/15/33

     255,000        251,898   

5.900%, 10/15/40

     125,000        129,364   

CCO Safari LLC
4.464%, 07/23/22 (144A)

     674,000        671,648   

6.384%, 10/23/35 (144A)

     275,000        277,841   

6.834%, 10/23/55 (144A)

     400,000        394,094   

Comcast Corp.
3.125%, 07/15/22

     1,000,000        1,016,267   

4.200%, 08/15/34

     556,000        550,769   

4.250%, 01/15/33

     1,880,000        1,847,335   

COX Communications, Inc.
2.950%, 06/30/23 (144A)

     690,000        607,831   

3.250%, 12/15/22 (144A)

     1,010,000        917,800   

4.800%, 02/01/35 (144A)

     1,100,000        909,986   

DIRECTV Holdings LLC / DIRECTV Financing Co., Inc.
3.800%, 03/15/22

     2,632,000        2,648,642   

3.950%, 01/15/25

     213,000        209,978   

6.350%, 03/15/40

     530,000        569,110   

6.375%, 03/01/41

     300,000        321,997   

Discovery Communications LLC
3.300%, 05/15/22

     625,000        589,229   

4.375%, 06/15/21

     1,240,000        1,270,743   

Grupo Televisa S.A.B.
6.125%, 01/31/46

     200,000        198,820   

Historic TW, Inc.
6.625%, 05/15/29

     300,000        351,206   

NBCUniversal Enterprise, Inc.
1.974%, 04/15/19 (144A)

     1,000,000        999,376   

Sky plc
3.750%, 09/16/24 (144A)

     431,000        420,947   

TCI Communications, Inc.
7.125%, 02/15/28

     801,000        1,035,825   

Thomson Reuters Corp.
3.950%, 09/30/21

     2,252,000        2,325,323   

5.850%, 04/15/40

     100,000        105,279   

Time Warner Cable, Inc.
8.250%, 04/01/19

     1,300,000        1,492,790   

Time Warner, Inc.
3.550%, 06/01/24

     1,050,000        1,030,306   

4.000%, 01/15/22

     1,570,000        1,626,558   

4.050%, 12/15/23

     450,000        459,143   

7.625%, 04/15/31

     826,000        1,022,052   

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Media—(Continued)

  

Viacom, Inc.
3.250%, 03/15/23

     222,000      $ 202,699   

3.875%, 12/15/21

     380,000        373,582   

4.850%, 12/15/34

     420,000        343,010   

6.875%, 04/30/36

     348,000        344,729   
   

 

 

  
      28,622,712   
   

 

 

  

Mining—0.3%

    

BHP Billiton Finance USA, Ltd.
2.050%, 09/30/18

     437,000        429,268   

2.875%, 02/24/22

     200,000        184,378   

3.850%, 09/30/23

     1,000,000        946,817   

5.000%, 09/30/43

     414,000        372,105   

Freeport-McMoRan, Inc.
3.550%, 03/01/22

     650,000        377,000   

3.875%, 03/15/23

     1,043,000        594,510   

5.400%, 11/14/34

     390,000        206,700   

5.450%, 03/15/43

     582,000        302,640   

Placer Dome, Inc.
6.450%, 10/15/35

     700,000        542,774   

Rio Tinto Finance USA plc
3.500%, 03/22/22

     1,800,000        1,696,622   

Teck Resources, Ltd.
3.750%, 02/01/23 (d)

     257,000        118,862   

4.750%, 01/15/22

     2,063,000        1,000,555   
   

 

 

  
      6,772,231   
   

 

 

  

Miscellaneous Manufacturing—0.2%

    

Eaton Corp.
6.950%, 03/20/19

     282,000        321,344   

General Electric Co.
3.375%, 03/11/24

     393,000        406,719   

Illinois Tool Works, Inc.
1.950%, 03/01/19

     252,000        252,265   

Ingersoll-Rand Global Holding Co., Ltd.
2.875%, 01/15/19

     400,000        404,010   

Ingersoll-Rand Luxembourg Finance S.A.
2.625%, 05/01/20

     320,000        315,303   

Parker-Hannifin Corp.
3.300%, 11/21/24

     143,000        144,230   

4.450%, 11/21/44

     333,000        346,086   

Siemens Financieringsmaatschappij NV
5.750%, 10/17/16 (144A)

     820,000        849,220   

6.125%, 08/17/26 (144A)

     800,000        980,931   
   

 

 

  
      4,020,108   
   

 

 

  

Multi-National—0.1%

    

African Development Bank
8.800%, 09/01/19

     1,275,000        1,554,256   
   

 

 

  

Office/Business Equipment—0.0%

    

Xerox Corp.
6.750%, 02/01/17

     800,000        838,339   
   

 

 

  

Oil & Gas—1.8%

    

Anadarko Finance Co.
7.500%, 05/01/31

     805,000      855,425   

Anadarko Holding Co.
7.150%, 05/15/28

     949,000        970,218   

Anadarko Petroleum Corp.
8.700%, 03/15/19

     1,600,000        1,817,843   

Apache Corp.
3.250%, 04/15/22

     870,000        828,622   

5.100%, 09/01/40

     650,000        555,629   

BP Capital Markets plc
1.375%, 11/06/17

     500,000        497,065   

1.375%, 05/10/18

     518,000        510,575   

3.245%, 05/06/22

     1,475,000        1,456,617   

3.535%, 11/04/24

     300,000        291,789   

3.814%, 02/10/24 (d)

     650,000        649,661   

Canadian Natural Resources, Ltd.
1.750%, 01/15/18

     500,000        486,313   

3.900%, 02/01/25 (d)

     512,000        446,722   

6.250%, 03/15/38

     200,000        182,036   

Cenovus Energy, Inc.
3.000%, 08/15/22

     660,000        585,345   

6.750%, 11/15/39

     600,000        570,532   

Chevron Corp.
2.355%, 12/05/22

     690,000        658,875   

3.191%, 06/24/23 (d)

     425,000        427,260   

CNOOC Finance 2013, Ltd.
1.125%, 05/09/16

     400,000        399,327   

3.000%, 05/09/23

     848,000        793,700   

CNOOC Finance 2015 Australia Pty, Ltd.
2.625%, 05/05/20

     393,000        384,179   

ConocoPhillips Holding Co.
6.950%, 04/15/29

     700,000        801,774   

Devon Energy Corp.
4.000%, 07/15/21

     300,000        274,699   

Devon Financing Corp. LLC
7.875%, 09/30/31

     886,000        908,736   

Diamond Offshore Drilling, Inc.
4.875%, 11/01/43

     779,000        472,922   

Ecopetrol S.A.
4.125%, 01/16/25

     433,000        346,400   

Ensco plc
4.700%, 03/15/21

     450,000        362,331   

5.200%, 03/15/25

     228,000        162,261   

5.750%, 10/01/44

     185,000        121,950   

EOG Resources, Inc.
4.100%, 02/01/21

     880,000        928,341   

Exxon Mobil Corp.
2.397%, 03/06/22

     945,000        930,466   

Korea National Oil Corp.
3.125%, 04/03/17 (144A) (d)

     426,000        432,539   

Marathon Oil Corp.
3.850%, 06/01/25 (d)

     900,000        724,363   

6.600%, 10/01/37

     200,000        171,592   

Marathon Petroleum Corp.
3.625%, 09/15/24

     371,000        345,711   

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Oil & Gas—(Continued)

  

Nabors Industries, Inc.
4.625%, 09/15/21

     1,975,000      $ 1,622,976   

5.000%, 09/15/20 (d)

     300,000        263,212   

Noble Energy, Inc.
4.150%, 12/15/21

     500,000        484,570   

5.050%, 11/15/44

     360,000        290,664   

5.625%, 05/01/21

     420,000        410,839   

5.875%, 06/01/22

     320,000        304,416   

Noble Holding International, Ltd.
4.000%, 03/16/18

     48,000        43,465   

5.250%, 03/15/42

     600,000        332,675   

6.050%, 03/01/41

     200,000        119,585   

Petro-Canada
5.950%, 05/15/35

     210,000        210,548   

9.250%, 10/15/21

     243,000        309,667   

Petrobras Global Finance B.V.
3.250%, 03/17/17

     1,000,000        925,000   

4.375%, 05/20/23 (d)

     873,000        576,180   

5.375%, 01/27/21 (d)

     1,000,000        745,000   

6.250%, 03/17/24

     1,532,000        1,099,210   

6.750%, 01/27/41

     150,000        96,000   

6.850%, 06/05/15

     65,000        42,087   

7.875%, 03/15/19 (d)

     500,000        442,500   

Petroleos Mexicanos
4.250%, 01/15/25 (144A) (d)

     326,000        285,250   

4.500%, 01/23/26 (144A) (d)

     1,169,000        1,026,966   

4.875%, 01/18/24

     317,000        295,602   

5.625%, 01/23/46 (144A)

     738,000        564,718   

6.375%, 01/23/45

     918,000        776,978   

Shell International Finance B.V.
3.400%, 08/12/23

     420,000        417,579   

4.300%, 09/22/19

     800,000        852,640   

6.375%, 12/15/38

     600,000        709,321   

Sinopec Group Overseas Development 2013, Ltd.
4.375%, 10/17/23 (144A)

     1,246,000        1,288,430   

Statoil ASA
1.150%, 05/15/18 (d)

     389,000        382,602   

2.650%, 01/15/24

     393,000        367,605   

3.250%, 11/10/24 (d)

     399,000        391,335   

6.700%, 01/15/18

     180,000        197,292   

7.250%, 09/23/27

     1,040,000        1,333,444   

Suncor Energy, Inc.
3.600%, 12/01/24

     678,000        638,593   

5.950%, 12/01/34

     268,000        268,521   

6.100%, 06/01/18

     1,070,000        1,150,847   

Talisman Energy, Inc.
7.750%, 06/01/19

     800,000        862,082   

Tosco Corp.
7.800%, 01/01/27

     700,000        855,047   

Total Capital Canada, Ltd.
0.701%, 01/15/16 (a)

     154,000        153,998   

Total Capital International S.A.
2.700%, 01/25/23

     815,000        781,301   

3.700%, 01/15/24

     654,000        662,855   

Oil & Gas—(Continued)

  

Transocean, Inc.
3.000%, 10/15/17 (d)

     700,000      620,812   

6.500%, 11/15/20

     272,000        187,680   

7.125%, 12/15/21 (d)

     708,000        457,545   
   

 

 

  
      44,199,455   
   

 

 

  

Oil & Gas Services—0.2%

  

Cameron International Corp.
4.000%, 12/15/23

     203,000        203,902   

Halliburton Co.
4.850%, 11/15/35

     170,000        167,001   

6.750%, 02/01/27

     650,000        764,375   

7.450%, 09/15/39

     200,000        255,761   

8.750%, 02/15/21

     350,000        433,010   

Schlumberger Investment S.A.
2.400%, 08/01/22 (144A)

     600,000        564,695   

3.300%, 09/14/21 (144A)

     650,000        649,893   

3.650%, 12/01/23

     614,000        622,920   

Weatherford International, Ltd.
9.625%, 03/01/19

     1,298,000        1,263,927   
   

 

 

  
      4,925,484   
   

 

 

  

Pharmaceuticals—0.4%

  

AbbVie, Inc.
3.200%, 11/06/22

     156,000        153,556   

4.500%, 05/14/35

     290,000        284,083   

Actavis Funding SCS
3.000%, 03/12/20

     474,000        473,623   

3.450%, 03/15/22

     1,038,000        1,039,133   

4.550%, 03/15/35

     67,000        65,114   

Actavis, Inc.
3.250%, 10/01/22

     172,000        169,102   

Baxalta, Inc.
5.250%, 06/23/45 (144A)

     89,000        89,300   

Bayer U.S. Finance LLC
2.375%, 10/08/19 (144A)

     423,000        423,266   

3.375%, 10/08/24 (144A)

     472,000        475,359   

Cardinal Health, Inc.
3.750%, 09/15/25

     150,000        152,281   

Express Scripts Holding Co.
3.500%, 06/15/24

     300,000        295,557   

3.900%, 02/15/22

     900,000        924,464   

Forest Laboratories LLC
5.000%, 12/15/21 (144A)

     1,504,000        1,634,253   

Mead Johnson Nutrition Co.
4.125%, 11/15/25

     89,000        89,669   

Medco Health Solutions, Inc.
4.125%, 09/15/20

     800,000        839,279   

Merck & Co., Inc.
2.350%, 02/10/22

     343,000        336,777   

2.800%, 05/18/23

     625,000        621,906   

3.700%, 02/10/45

     60,000        55,407   

Novartis Capital Corp.
3.400%, 05/06/24

     863,000        890,951   

 

See accompanying notes to financial statements.

 

MIST-15

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Pharmaceuticals—(Continued)

  

Pfizer, Inc.
3.000%, 06/15/23

     1,100,000      $ 1,108,100   

Sanofi
1.250%, 04/10/18

     157,000        156,314   

Zoetis, Inc.
1.875%, 02/01/18

     93,000        91,757   

4.700%, 02/01/43

     26,000        22,698   
   

 

 

  
      10,391,949   
   

 

 

  

Pipelines—0.8%

  

ANR Pipeline Co.
7.375%, 02/15/24

     226,000        265,355   

Boardwalk Pipelines L.P.
4.950%, 12/15/24

     233,000        202,600   

Buckeye Partners L.P.
2.650%, 11/15/18

     400,000        384,817   

4.875%, 02/01/21

     600,000        583,600   

5.850%, 11/15/43

     75,000        57,932   

Energy Transfer Partners L.P.
3.600%, 02/01/23

     358,000        294,692   

4.750%, 01/15/26

     273,000        229,616   

5.150%, 03/15/45

     134,000        94,714   

EnLink Midstream Partners L.P.
4.150%, 06/01/25

     261,000        200,739   

Enterprise Products Operating LLC
3.750%, 02/15/25

     515,000        471,074   

3.900%, 02/15/24

     662,000        617,651   

4.950%, 10/15/54

     179,000        140,029   

5.100%, 02/15/45

     379,000        317,465   

5.250%, 01/31/20

     417,000        439,154   

Gulf South Pipeline Co. L.P.
4.000%, 06/15/22

     900,000        803,765   

Magellan Midstream Partners L.P.
4.250%, 02/01/21

     659,000        658,806   

5.150%, 10/15/43

     401,000        343,850   

6.400%, 07/15/18

     1,420,000        1,529,515   

ONEOK Partners L.P.
3.375%, 10/01/22

     140,000        113,557   

3.800%, 03/15/20 (d)

     145,000        137,826   

4.900%, 03/15/25

     1,000,000        842,238   

6.650%, 10/01/36

     950,000        785,306   

Plains All American Pipeline L.P. / PAA Finance Corp.
2.600%, 12/15/19

     176,000        156,075   

2.850%, 01/31/23

     975,000        804,240   

3.600%, 11/01/24

     900,000        722,011   

4.900%, 02/15/45

     814,000        585,412   

Spectra Energy Capital LLC
3.300%, 03/15/23

     308,000        263,507   

5.650%, 03/01/20

     2,200,000        2,311,459   

6.750%, 07/15/18

     218,000        234,414   

8.000%, 10/01/19

     1,000,000        1,137,301   

Sunoco Logistics Partners Operations L.P.
4.250%, 04/01/24

     233,000        201,517   

4.400%, 04/01/21

     270,000        261,649   

Pipelines—(Continued)

  

Sunoco Logistics Partners Operations L.P.
4.950%, 01/15/43

     394,000      281,769   

5.300%, 04/01/44

     200,000        148,846   

5.350%, 05/15/45

     633,000        470,058   

TransCanada PipeLines, Ltd.
0.750%, 01/15/16

     350,000        349,993   

2.500%, 08/01/22

     350,000        321,321   

3.750%, 10/16/23

     910,000        895,553   

7.125%, 01/15/19

     490,000        545,832   

7.250%, 08/15/38

     200,000        237,508   
   

 

 

  
      19,442,766   
   

 

 

  

Real Estate—0.0%

  

ProLogis L.P.
3.750%, 11/01/25

     89,000        88,286   

4.250%, 08/15/23

     114,000        119,950   
   

 

 

  
      208,236   
   

 

 

  

Real Estate Investment Trusts—0.5%

  

American Tower Corp.
3.500%, 01/31/23

     790,000        772,157   

Boston Properties L.P.
3.850%, 02/01/23

     800,000        816,378   

4.125%, 05/15/21

     500,000        523,700   

Duke Realty L.P.
4.375%, 06/15/22

     1,128,000        1,162,392   

Equity Commonwealth
5.875%, 09/15/20

     800,000        859,755   

6.250%, 06/15/17

     840,000        867,543   

ERP Operating L.P.
2.375%, 07/01/19

     538,000        539,422   

4.625%, 12/15/21

     250,000        271,320   

4.750%, 07/15/20

     578,000        624,345   

HCP, Inc.
2.625%, 02/01/20

     400,000        393,834   

3.400%, 02/01/25

     303,000        282,239   

3.875%, 08/15/24

     1,240,000        1,201,843   

4.250%, 11/15/23

     346,000        346,486   

Simon Property Group L.P.
2.750%, 02/01/23

     200,000        195,436   

4.375%, 03/01/21

     1,185,000        1,284,808   

Ventas Realty L.P.
3.500%, 02/01/25

     197,000        188,634   

3.750%, 05/01/24

     147,000        144,049   

Ventas Realty L.P. / Ventas Capital Corp.
4.750%, 06/01/21

     500,000        532,505   

Welltower, Inc.
4.500%, 01/15/24

     1,024,000        1,047,578   

5.250%, 01/15/22

     600,000        648,967   
   

 

 

  
      12,703,391   
   

 

 

  

Retail—0.4%

  

Advance Auto Parts, Inc.
4.500%, 01/15/22

     1,001,000        1,030,305   

 

See accompanying notes to financial statements.

 

MIST-16

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Retail—(Continued)

  

Bed Bath & Beyond, Inc.
4.915%, 08/01/34

     1,479,000      $ 1,319,503   

Costco Wholesale Corp.
2.250%, 02/15/22

     687,000        674,212   

CVS Health Corp.
5.300%, 12/05/43

     303,000        325,447   

CVS Pass-Through Trust
6.204%, 10/10/25 (144A)

     773,348        832,390   

Home Depot, Inc. (The)
2.625%, 06/01/22

     700,000        699,269   

3.750%, 02/15/24

     586,000        623,840   

4.250%, 04/01/46

     207,000        211,614   

4.400%, 03/15/45

     143,000        147,799   

Lowe’s Cos., Inc.
3.120%, 04/15/22

     900,000        920,386   

3.125%, 09/15/24

     276,000        275,729   

Macy’s Retail Holdings, Inc.
3.625%, 06/01/24

     700,000        642,153   

3.875%, 01/15/22

     450,000        443,111   

4.375%, 09/01/23

     154,000        153,395   

4.500%, 12/15/34

     279,000        233,189   

6.375%, 03/15/37

     300,000        303,588   

McDonald’s Corp.
4.700%, 12/09/35

     84,000        83,689   

6.300%, 10/15/37

     152,000        178,304   

Target Corp.
3.500%, 07/01/24

     484,000        502,234   

Wal-Mart Stores, Inc.
3.300%, 04/22/24 (d)

     575,000        593,356   

Walgreens Boots Alliance, Inc.
3.300%, 11/18/21

     599,000        587,454   

4.500%, 11/18/34

     349,000        318,707   
   

 

 

  
      11,099,674   
   

 

 

  

Semiconductors—0.1%

  

Intel Corp.
3.700%, 07/29/25

     260,000        268,932   

4.000%, 12/15/32

     1,000,000        995,276   
   

 

 

  
      1,264,208   
   

 

 

  

Software—0.3%

    

Intuit, Inc.
5.750%, 03/15/17

     967,000        1,013,155   

Microsoft Corp.
2.375%, 05/01/23

     540,000        524,207   

3.500%, 02/12/35

     296,000        273,577   

3.625%, 12/15/23

     711,000        747,166   

4.000%, 02/12/55

     310,000        278,464   

Oracle Corp.
2.500%, 10/15/22

     3,410,000        3,330,093   

4.300%, 07/08/34

     857,000        852,551   

5.750%, 04/15/18

     400,000        436,452   

6.500%, 04/15/38

     300,000        376,228   
   

 

 

  
      7,831,893   
   

 

 

  

Telecommunications—1.4%

    

America Movil S.A.B. de C.V.
1.502%, 09/12/16 (a)

     1,700,000      1,699,978   

3.125%, 07/16/22

     600,000        589,571   

5.000%, 03/30/20

     1,000,000        1,085,131   

AT&T, Inc.
3.000%, 02/15/22

     3,440,000        3,372,156   

3.000%, 06/30/22

     991,000        967,235   

3.875%, 08/15/21

     350,000        361,085   

4.450%, 05/15/21

     350,000        372,524   

4.500%, 05/15/35

     726,000        671,449   

4.750%, 05/15/46

     296,000        271,016   

6.300%, 01/15/38

     200,000        218,863   

BellSouth LLC
6.875%, 10/15/31

     114,000        124,678   

Cisco Systems, Inc.
3.000%, 06/15/22

     278,000        282,738   

3.625%, 03/04/24

     700,000        730,291   

5.900%, 02/15/39

     900,000        1,097,795   

Crown Castle Towers LLC
6.113%, 01/15/20 (144A)

     1,000,000        1,090,655   

Deutsche Telekom International Finance B.V.
2.250%, 03/06/17 (144A)

     400,000        402,491   

8.750%, 06/15/30

     500,000        693,220   

Embarq Corp.
7.082%, 06/01/16

     747,000        758,653   

Orange S.A.
9.000%, 03/01/31

     400,000        564,572   

Qwest Corp.
6.875%, 09/15/33

     587,000        563,283   

Rogers Communications, Inc.
4.100%, 10/01/23

     736,000        758,357   

8.750%, 05/01/32

     940,000        1,270,767   

Telefonica Emisiones S.A.U.
3.192%, 04/27/18

     210,000        214,074   

5.134%, 04/27/20

     551,000        601,612   

6.421%, 06/20/16

     500,000        511,491   

Verizon Communications, Inc.
1.350%, 06/09/17

     889,000        886,434   

2.625%, 02/21/20

     263,000        263,914   

3.000%, 11/01/21

     1,564,000        1,559,604   

4.400%, 11/01/34

     963,000        888,492   

4.500%, 09/15/20

     1,068,000        1,147,467   

4.522%, 09/15/48

     369,000        329,996   

4.600%, 04/01/21

     1,500,000        1,612,253   

4.672%, 03/15/55

     339,000        294,320   

4.862%, 08/21/46

     1,719,000        1,627,422   

5.050%, 03/15/34

     1,124,000        1,119,861   

5.150%, 09/15/23

     2,177,000        2,393,233   

6.400%, 09/15/33

     44,000        50,128   

Verizon New England, Inc.
7.875%, 11/15/29

     1,000,000        1,234,845   

Verizon Pennsylvania LLC
6.000%, 12/01/28

     260,000        273,945   

8.750%, 08/15/31

     1,300,000        1,567,436   

Vodafone Group plc
1.500%, 02/19/18

     300,000        296,667   

 

See accompanying notes to financial statements.

 

MIST-17

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Telecommunications—(Continued)

  

Vodafone Group plc
6.150%, 02/27/37

     500,000      $ 493,402   
   

 

 

  
      35,313,104   
   

 

 

  

Transportation—0.4%

    

Burlington Northern Santa Fe LLC
3.050%, 09/01/22

     300,000        299,736   

7.950%, 08/15/30

     1,185,000        1,645,382   

Burlington Northern, Inc.
8.750%, 02/25/22

     812,000        1,036,147   

Canadian Pacific Railway Co.
4.500%, 01/15/22

     300,000        319,067   

6.500%, 05/15/18

     680,000        743,901   

7.125%, 10/15/31

     872,000        1,079,800   

CSX Corp.
6.000%, 10/01/36

     300,000        339,792   

7.900%, 05/01/17

     1,000,000        1,082,030   

FedEx Corp.
3.900%, 02/01/35

     382,000        347,731   

Norfolk Southern Corp.
3.850%, 01/15/24

     679,000        691,446   

Ryder System, Inc.
2.450%, 09/03/19

     555,000        546,752   

3.500%, 06/01/17

     485,000        495,490   

Union Pacific Corp.
3.750%, 03/15/24

     650,000        681,925   
   

 

 

  
      9,309,199   
   

 

 

  

Trucking & Leasing—0.1%

    

Penske Truck Leasing Co. L.P. / PTL Finance Corp.
2.500%, 06/15/19 (144A)

     175,000        172,142   

2.875%, 07/17/18 (144A)

     80,000        80,503   

3.375%, 02/01/22 (144A)

     848,000        823,397   

4.250%, 01/17/23 (144A)

     948,000        953,871   
   

 

 

  
      2,029,913   
   

 

 

  

Water—0.1%

    

American Water Capital Corp.
3.400%, 03/01/25

     319,000        324,090   

3.850%, 03/01/24

     1,130,000        1,186,132   
   

 

 

  
      1,510,222   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $563,760,875)

       536,544,025   
   

 

 

  
Asset-Backed Securities—8.0%   

Asset-Backed - Automobile—2.5%

  

Ally Auto Receivables Trust
0.630%, 05/15/17

     99,187        99,157   

0.790%, 01/15/18

     742,996        742,293   

0.930%, 06/20/17

     844,614        843,152   

1.030%, 09/20/17

     660,000        658,264   

Asset-Backed - Automobile—(Continued)

  

Ally Auto Receivables Trust
1.210%, 12/20/17

     396,000      394,290   

1.240%, 11/15/18

     405,000        403,868   

American Credit Acceptance Receivables Trust
1.430%, 08/12/19 (144A)

     466,485        464,708   

1.450%, 04/16/18 (144A)

     7,145        7,144   

2.260%, 03/10/20 (144A)

     1,134,623        1,134,870   

AmeriCredit Automobile Receivables Trust
0.900%, 09/10/18

     241,072        240,721   

BMW Vehicle Owner Trust
0.670%, 11/27/17

     284,593        284,106   

Carfinance Capital Auto Trust
1.440%, 11/16/20 (144A)

     1,981,034        1,959,292   

1.460%, 12/17/18 (144A)

     324,245        323,747   

1.750%, 11/15/17 (144A)

     14,043        14,037   

1.750%, 06/15/21 (144A)

     844,080        838,812   

2.720%, 04/15/20 (144A)

     375,000        374,215   

2.750%, 11/15/18 (144A)

     434,449        436,080   

CarMax Auto Owner Trust
0.600%, 10/16/17

     108,433        108,315   

0.800%, 07/16/18

     416,876        415,845   

0.980%, 01/15/19

     5,472,000        5,453,544   

1.280%, 05/15/19

     275,000        273,383   

CarNow Auto Receivables Trust
1.890%, 11/15/18 (144A)

     981,806        979,950   

CPS Auto Receivables Trust
1.110%, 11/15/18 (144A)

     2,261,464        2,244,931   

1.210%, 08/15/18 (144A)

     308,809        307,860   

1.310%, 02/15/19 (144A)

     2,052,274        2,037,117   

1.310%, 06/15/20 (144A)

     516,028        510,813   

1.490%, 04/15/19 (144A)

     1,012,670        1,005,100   

1.530%, 07/15/19 (144A)

     783,349        777,659   

1.540%, 07/16/18 (144A)

     825,675        823,512   

1.640%, 04/16/18 (144A)

     570,095        568,852   

1.820%, 09/15/20 (144A)

     780,904        779,573   

3.770%, 08/17/20 (144A)

     558,000        548,666   

4.000%, 02/16/21 (144A)

     223,000        219,183   

4.350%, 11/16/20 (144A)

     450,000        447,750   

Credit Acceptance Auto Loan Trust
1.550%, 10/15/21 (144A)

     1,400,000        1,394,106   

Drive Auto Receivables Trust
4.120%, 07/15/22 (144A)

     1,177,000        1,165,189   

DT Auto Owner Trust
0.980%, 04/16/18 (144A)

     520,058        519,046   

Exeter Automobile Receivables Trust
1.060%, 08/15/18 (144A)

     438,271        437,066   

1.290%, 05/15/18 (144A)

     217,359        217,191   

1.320%, 01/15/19 (144A)

     1,321,456        1,316,260   

2.770%, 11/15/19 (144A)

     556,000        555,966   

3.260%, 12/16/19 (144A)

     335,000        329,877   

Fifth Third Auto Trust
0.570%, 05/15/17

     127,701        127,600   

0.880%, 10/16/17

     557,867        557,746   

First Investors Auto Owner Trust
0.900%, 10/15/18 (144A)

     28,488        28,463   

1.060%, 11/15/18 (144A)

     338,649        338,269   

 

See accompanying notes to financial statements.

 

MIST-18

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of December 31, 2015

Asset-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Asset-Backed - Automobile—(Continued)

  

First Investors Auto Owner Trust
1.670%, 11/16/20 (144A)

     276,000      $ 274,284   

Flagship Credit Auto Trust
1.210%, 04/15/19 (144A)

     524,545        522,053   

1.320%, 04/16/18 (144A)

     290,616        290,296   

1.430%, 12/16/19 (144A)

     1,080,306        1,073,412   

1.630%, 06/15/20 (144A)

     975,736        965,381   

1.940%, 01/15/19 (144A)

     570,996        570,392   

2.550%, 02/18/20 (144A)

     245,000        243,528   

2.840%, 11/16/20 (144A)

     892,000        888,452   

3.950%, 12/15/20 (144A)

     440,000        434,457   

Ford Credit Auto Lease Trust
0.890%, 09/15/17

     1,391,000        1,388,846   

0.960%, 10/15/16

     302,675        302,633   

1.100%, 11/15/17

     484,000        482,515   

Ford Credit Auto Owner Trust
0.900%, 10/15/18

     890,000        888,479   

GM Financial Automobile Leasing Trust
1.100%, 12/20/17

     1,158,647        1,156,451   

1.530%, 09/20/18

     599,000        596,089   

1.730%, 06/20/19

     503,000        500,011   

Harley Davidson Motorcycle Trust
0.650%, 07/16/18

     392,280        391,910   

Honda Auto Receivables Owner Trust
0.530%, 02/16/17

     293,708        293,514   

0.690%, 09/18/17

     863,602        862,705   

0.770%, 03/19/18

     2,124,784        2,118,856   

1.040%, 02/18/20

     700,000        698,015   

Hyundai Auto Receivables Trust
0.560%, 07/17/17

     34,963        34,950   

0.750%, 09/17/18

     600,000        598,907   

0.900%, 12/17/18

     5,449,556        5,437,914   

Nissan Auto Lease Trust
0.800%, 02/15/17

     582,000        581,476   

Nissan Auto Receivables Owner Trust
1.110%, 05/15/19

     400,000        398,779   

Santander Drive Auto Receivables Trust
3.010%, 04/16/18

     696,772        698,887   

Skopos Auto Receivables Trust
3.550%, 02/15/20 (144A)

     484,772        484,028   

SNAAC Auto Receivables Trust
1.030%, 09/17/18 (144A)

     109,470        109,422   

Tidewater Auto Receivables Trust
1.400%, 07/15/18 (144A)

     1,417,681        1,416,049   

1.850%, 12/15/18 (144A)

     2,406,000        2,402,321   

Toyota Auto Receivables Owner Trust
0.550%, 01/17/17

     104,025        103,981   

Volkswagen Auto Lease Trust
0.870%, 06/20/17

     409,401        408,613   

World Omni Auto Receivables Trust
0.830%, 08/15/18

     544,479        543,391   

1.320%, 01/15/20

     476,000        474,089   
   

 

 

  
      62,342,674   
   

 

 

  

Asset-Backed - Credit Card—0.1%

  

Discover Card Execution Note Trust
1.040%, 04/15/19

     1,080,000      1,079,457   
   

 

 

  

Asset-Backed - Home Equity—0.0%

  

Asset-Backed Securities Corp. Home Equity Loan Trust
1.172%, 02/25/35 (a)

     520,049        509,904   
   

 

 

  

Asset-Backed - Other—5.3%

  

American Homes 4 Rent Trust
3.467%, 04/17/52 (144A)

     1,235,042        1,212,079   

4.290%, 10/17/36 (144A)

     300,000        298,853   

4.596%, 12/17/36 (144A)

     250,000        242,782   

5.639%, 04/17/52 (144A)

     500,000        482,266   

6.231%, 10/17/36 (144A)

     650,000        655,367   

6.418%, 12/17/36 (144A)

     300,000        306,089   

American Tower Trust I
1.551%, 03/15/43 (144A)

     1,145,000        1,118,124   

3.070%, 03/15/48 (144A)

     1,920,000        1,880,044   

Axis Equipment Finance Receivables II LLC
1.750%, 03/20/17 (144A)

     254,288        253,959   

B2R Mortgage Trust
2.524%, 05/15/48 (144A)

     1,050,551        1,027,508   

Carlyle Global Market Strategies Commodities Funding, Ltd.
2.221%, 10/15/21 (144A) (a) (f)

     2,686,667        2,657,114   

Conix Mortgage Asset Trust
4.704%, 12/25/47 (144A) (a) (f) (g)

     1,078,519        312,770   

Consumer Credit Origination Loan Trust
2.820%, 03/15/21 (144A)

     644,654        644,556   

FirstKey Lending Trust
2.553%, 03/09/47 (144A)

     2,103,537        2,060,229   

3.417%, 03/09/47 (144A)

     1,442,000        1,419,033   

Ford Credit Floorplan Master Owner Trust
0.711%, 01/15/18 (a)

     725,000        725,000   

GLC II Trust
4.000%, 12/18/20 (144A)

     2,297,409        2,298,098   

GLC Trust
3.000%, 07/15/21 (144A)

     1,897,406        1,892,283   

GMAT Trust
3.967%, 11/25/43 (144A)

     818,883        827,314   

Gold Key Resorts LLC
3.220%, 03/17/31 (144A)

     1,079,216        1,069,667   

John Deere Owner Trust
0.600%, 03/15/17

     377,008        376,785   

KGS-Alpha SBA COOF Trust
1.514%, 03/25/39 (144A) (a) (b)

     8,022,870        423,708   

3.101%, 04/25/40 (144A) (a) (b)

     2,354,257        322,239   

LV Tower 52 Issuer LLC
5.500%, 07/15/19 (144A) (f)

     1,618,281        1,583,164   

7.500%, 07/15/19 (144A) (f)

     1,123,125        1,080,109   

Nationstar Agency Advance Funding Trust
1.892%, 02/18/48 (144A)

     115,000        112,746   

Nationstar HECM Loan Trust
3.000%, 11/25/25 (144A)

     1,343,757        1,342,414   

4.000%, 11/25/25 (144A)

     786,000        785,214   

 

See accompanying notes to financial statements.

 

MIST-19

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of December 31, 2015

Asset-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Asset-Backed - Other—(Continued)

  

Navitas Equipment Receivables LLC
1.950%, 11/15/16 (144A)

     126,156      $ 126,071   

Normandy Mortgage Loan Co. LLC
4.949%, 09/16/43 (144A)

     605,531        604,623   

NRPL Trust
3.875%, 11/01/54 (144A)

     1,334,311        1,327,191   

NRZ Advance Receivables Trust Advance Receivables Backed
3.196%, 11/15/47 (144A)

     4,000,000        3,987,455   

4.266%, 11/15/46 (144A)

     2,000,000        1,997,170   

NYMT Residential LLC
4.850%, 09/25/18 (144A) (f)

     815,296        815,296   

Oak Hill Advisors Residential Loan Trust
3.352%, 04/25/54 (144A)

     2,384,404        2,370,482   

3.475%, 01/25/55 (144A)

     1,492,756        1,485,486   

4.000%, 04/25/54 (144A)

     857,000        844,658   

4.000%, 01/25/55 (144A)

     1,169,000        1,137,846   

Ocwen Master Advance Receivables Trust
3.211%, 11/15/47 (144A)

     2,934,000        2,925,159   

4.196%, 11/15/47 (144A)

     487,000        486,951   

4.258%, 11/15/46 (144A)

     563,000        562,944   

4.687%, 11/15/47 (144A)

     1,000,000        998,451   

OnDeck Asset Securitization Trust
3.150%, 05/17/18 (144A)

     2,602,000        2,599,508   

OneMain Financial Issuance Trust
2.430%, 06/18/24 (144A)

     2,744,000        2,734,532   

2.470%, 09/18/24 (144A)

     5,049,000        5,039,053   

3.020%, 09/18/24 (144A)

     1,864,000        1,855,127   

3.190%, 03/18/26 (144A)

     2,877,000        2,859,163   

3.240%, 06/18/24 (144A)

     321,000        319,426   

3.850%, 03/18/26 (144A)

     450,000        455,103   

PFS Tax Lien Trust
1.440%, 04/15/16 (144A)

     451,757        450,116   

Progreso Receivables Funding II LLC
3.500%, 07/08/19 (144A)

     3,500,000        3,503,318   

Progreso Receivables Funding III LLC
3.625%, 02/08/20 (144A)

     2,648,000        2,642,659   

5.500%, 02/08/20 (144A)

     680,000        678,767   

Purchasing Power Funding LLC
4.750%, 12/15/19 (144A)

     2,000,000        1,991,746   

RBSHD Trust
4.685%, 10/25/47 (144A) (f)

     1,199,549        1,199,654   

Selene Non-Performing Loans LLC
2.981%, 05/25/54 (144A)

     955,808        944,900   

SpringCastle America Funding LLC
2.700%, 05/25/23 (144A)

     5,988,599        5,975,370   

4.610%, 10/25/27 (144A)

     1,750,000        1,753,323   

Springleaf Funding Trust
2.410%, 12/15/22 (144A)

     5,066,000        5,051,610   

3.160%, 11/15/24 (144A)

     2,305,000        2,288,552   

3.450%, 12/15/22 (144A)

     496,000        494,821   

3.620%, 11/15/24 (144A)

     725,000        717,181   

3.920%, 01/16/23 (144A)

     2,500,000        2,501,425   

4.820%, 01/16/23 (144A)

     2,000,000        2,000,155   

Stanwich Mortgage Loan Co. LLC
3.228%, 04/16/59 (144A)

     476,429        473,304   

Asset-Backed - Other—(Continued)

  

Sunset Mortgage Loan Co. LLC
3.721%, 11/16/44 (144A)

     2,687,006      2,673,571   

Trafigura Securitisation Finance plc
1.281%, 10/15/21 (144A) (a) (f)

     3,188,000        3,174,903   

Truman Capital Mortgage Loan Trust
3.125%, 04/25/53 (144A)

     673,471        670,866   

3.125%, 06/25/54 (144A)

     89,640        89,442   

3.228%, 07/25/53 (144A)

     1,021,582        1,018,047   

4.000%, 06/25/54 (144A)

     877,000        859,109   

U.S. Residential Opportunity Fund II Trust
3.721%, 02/27/35 (144A)

     1,287,134        1,280,800   

U.S. Residential Opportunity Fund Trust
3.721%, 01/27/35 (144A)

     1,635,459        1,624,834   

Vericrest Opportunity Loan Trust
3.375%, 10/25/58 (144A)

     2,293,405        2,253,520   

Vericrest Opportunity Loan Trust X LLC
3.375%, 10/26/54 (144A)

     749,827        742,678   

Vericrest Opportunity Loan Trust XIX LLC
3.875%, 04/25/55 (144A)

     1,465,228        1,458,521   

Vericrest Opportunity Loan Trust XXII LLC
3.500%, 02/25/55 (144A)

     1,651,193        1,628,849   

4.250%, 02/25/55 (144A)

     499,121        480,883   

Vericrest Opportunity Loan Trust XXIV LLC

    

3.500%, 02/25/55 (144A)

     2,741,037        2,709,985   

Vericrest Opportunity Loan Trust XXVI LLC
3.125%, 09/25/43 (144A)

     3,299,141        3,289,018   

4.250%, 09/25/43 (144A)

     1,380,166        1,370,473   

Vericrest Opportunity Loan Trust XXVII LLC
3.375%, 08/27/57 (144A)

     3,424,344        3,397,777   

Vericrest Opportunity Loan Trust XXX LLC
3.625%, 10/25/57 (144A)

     2,398,369        2,390,539   

Vericrest Opportunity Loan Trust XXXI LLC
3.375%, 02/25/55 (144A)

     1,941,213        1,914,064   

Vericrest Opportunity Loan Trust XXXIII LLC
3.500%, 03/25/55 (144A)

     2,312,033        2,271,627   

VML LLC
3.875%, 04/27/54 (144A) (a)

     721,620        717,749   

Westgate Resorts LLC
2.250%, 08/20/25 (144A)

     638,876        638,454   
   

 

 

  
      132,263,819   
   

 

 

  

Asset-Backed - Student Loan—0.1%

  

Academic Loan Funding Trust
1.222%, 12/27/22 (144A) (a)

     882,405        878,479   

1.222%, 12/26/44 (144A) (a)

     1,410,744        1,388,728   
   

 

 

  
      2,267,207   
   

 

 

  

Total Asset-Backed Securities (Cost $200,399,769)

       198,463,061   
   

 

 

  
Mortgage-Backed Securities—5.9%   

Collateralized Mortgage Obligations—2.8%

  

AJAX Mortgage Loan Trust
3.500%, 02/25/51 (144A) (a) (f)

     316,196        313,332   

 

See accompanying notes to financial statements.

 

MIST-20

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of December 31, 2015

Mortgage-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Collateralized Mortgage Obligations—(Continued)

  

AJAX Mortgage Loan Trust
3.750%, 03/25/52 (144A) (a) (f)

     1,458,853      $ 1,449,377   

3.750%, 10/25/57 (144A)

     1,215,444        1,219,652   

4.500%, 03/25/35 (144A) (f)

     1,228,861        1,247,956   

Banc of America Funding Trust
2.649%, 05/20/34 (a)

     1,616,126        1,637,689   

BCAP LLC
1.197%, 09/11/38 (144A) (a)

     1,233,648        1,160,432   

Bear Stearns ALT-A Trust
1.062%, 07/25/34 (a)

     2,808,224        2,688,559   

CAM Mortgage Trust
3.500%, 11/25/57 (144A) (a) (f)

     244,469        244,568   

Countrywide Alternative Loan Trust
1.102%, 08/25/34 (a)

     1,291,334        1,279,808   

FDIC Trust
4.500%, 10/25/18 (144A)

     62,492        62,531   

Global Mortgage Securitization, Ltd.
0.742%, 11/25/32 (144A) (a)

     1,134,412        1,099,227   

HarborView Mortgage Loan Trust
2.757%, 05/19/34 (a)

     1,741,591        1,731,891   

Homeowner Assistance Program Reverse Mortgage Loan Trust
4.000%, 05/26/53 (144A) (f)

     2,642,896        2,600,610   

Impac CMB Trust
1.162%, 11/25/34 (a)

     4,136,567        3,899,168   

JPMorgan Mortgage Trust
2.717%, 08/25/34 (a)

     368,035        369,235   

MASTR Asset Securitization Trust
5.500%, 12/25/33

     1,136,556        1,203,519   

Merrill Lynch Mortgage Investors Trust

    

0.882%, 04/25/29 (a)

     909,050        872,653   

0.922%, 05/25/29 (a)

     1,886,517        1,833,836   

1.042%, 10/25/28 (a)

     1,011,236        966,417   

1.062%, 10/25/28 (a)

     1,686,742        1,645,253   

1.313%, 01/25/29 (a)

     1,180,241        1,107,985   

Sequoia Mortgage Trust
1.002%, 12/20/34 (a)

     2,351,653        2,281,378   

1.042%, 01/20/34 (a)

     1,169,629        1,116,562   

1.062%, 07/20/33 (a)

     1,432,114        1,345,614   

1.082%, 10/20/34 (a)

     2,444,476        2,332,750   

1.162%, 04/20/33 (a)

     1,265,391        1,211,508   

Springleaf Mortgage Loan Trust
1.780%, 12/25/65 (144A) (a)

     3,207,923        3,205,222   

1.870%, 09/25/57 (144A) (a)

     1,161,253        1,157,804   

2.310%, 06/25/58 (144A) (a)

     1,240,000        1,241,699   

3.140%, 06/25/58 (144A) (a)

     792,000        792,966   

3.520%, 12/25/65 (144A) (a)

     2,177,000        2,190,596   

3.790%, 09/25/57 (144A) (a)

     1,274,000        1,286,586   

3.790%, 06/25/58 (144A) (a)

     603,000        604,519   

4.480%, 12/25/65 (144A) (a)

     3,000,000        3,021,194   

Structured Adjustable Rate Mortgage Loan Trust
2.546%, 06/25/34 (a)

     1,077,462        1,074,863   

Structured Asset Mortgage Investments II Trust
1.102%, 01/19/34 (a)

     1,946,131        1,880,328   

1.102%, 03/19/34 (a)

     2,128,579        2,063,599   

Collateralized Mortgage Obligations—(Continued)

  

Structured Asset Mortgage Investments Trust
1.302%, 05/19/33 (a)

     2,244,198      2,162,719   

Structured Asset Securities Corp. Mortgage Loan Trust
1.022%, 10/25/27 (a)

     498,392        487,029   

Structured Asset Securities Corp. Mortgage Pass-Through Certificates

    

2.613%, 11/25/33 (a)

     1,281,710        1,263,089   

Thornburg Mortgage Securities Trust
1.062%, 09/25/43 (a)

     1,130,194        1,091,300   

2.209%, 12/25/44 (a)

     1,605,605        1,587,291   

2.269%, 04/25/45 (a)

     3,557,328        3,553,842   

Wells Fargo Mortgage Loan Trust
2.847%, 08/27/37 (144A) (a)

     472,593        465,504   

Wells Fargo Mortgage-Backed Securities Trust
2.746%, 03/25/35 (a)

     2,389,502        2,404,309   
   

 

 

  
      68,455,969   
   

 

 

  

Commercial Mortgage-Backed Securities—3.1%

  

A10 Securitization LLC
2.400%, 11/15/25 (144A)

     277,225        277,284   

A10 Term Asset Financing LLC
1.720%, 04/15/33 (144A)

     1,493,310        1,483,404   

2.620%, 11/15/27 (144A)

     1,815,358        1,819,064   

3.020%, 04/15/33 (144A)

     1,807,000        1,802,251   

4.380%, 11/15/27 (144A)

     425,000        425,365   

ACRE Commercial Mortgage Trust
2.401%, 08/15/31 (144A) (a)

     447,500        443,207   

2.851%, 08/15/31 (144A) (a)

     597,500        592,578   

3.751%, 08/15/31 (144A) (a)

     350,000        347,107   

BAMLL Commercial Mortgage Securities Trust
4.214%, 08/15/46 (144A) (a)

     1,200,000        1,127,183   

Banc of America Commercial Mortgage Trust
5.492%, 02/10/51

     1,907,376        1,975,558   

5.629%, 04/10/49 (a)

     1,000,000        1,032,195   

5.889%, 07/10/44 (a)

     1,483,996        1,491,831   

BB-UBS Trust
2.892%, 06/05/30 (144A)

     1,250,000        1,236,002   

3.430%, 11/05/36 (144A)

     2,950,000        2,934,698   

Bear Stearns Commercial Mortgage Securities Trust
0.991%, 06/11/50 (144A) (a)

     1,500,000        1,480,320   

CGBAM Commercial Mortgage Trust
1.131%, 02/15/31 (144A) (a)

     1,300,000        1,295,420   

Citigroup Commercial Mortgage Trust
2.110%, 01/12/30 (144A)

     541,372        542,100   

Commercial Mortgage Pass-Through Certificates Zero Coupon, 07/10/45 (144A) (a) (b)

     120,000,000        1,752,708   

1.046%, 02/13/32 (144A) (a)

     2,605,000        2,575,335   

1.117%, 08/13/27 (144A) (a)

     990,000        975,116   

2.022%, 02/13/32 (144A) (a)

     1,000,000        992,408   

4.353%, 08/10/30 (144A)

     3,000,000        3,194,086   

Commercial Mortgage Trust
1.201%, 06/11/27 (144A) (a)

     4,937,000        4,879,713   

 

See accompanying notes to financial statements.

 

MIST-21

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of December 31, 2015

Mortgage-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Commercial Mortgage-Backed Securities—(Continued)

  

Commercial Mortgage Trust
2.365%, 02/10/29 (144A)

     2,789,132      $ 2,807,331   

2.987%, 04/12/35 (144A)

     1,871,000        1,859,873   

COOF Securitization Trust, Ltd.
2.973%, 06/25/40 (144A) (a) (b)

     3,053,955        377,469   

Credit Suisse Mortgage Capital Certificates

    

1.131%, 04/15/27 (144A) (a)

     3,363,000        3,341,112   

DBRR Trust
1.636%, 12/18/49 (144A) (a)

     1,408,771        1,408,771   

GS Mortgage Securities Corp. II
2.706%, 12/10/27 (144A)

     276,414        278,701   

GS Mortgage Securities Corp. Trust
2.318%, 01/10/30 (144A)

     733,000        737,878   

3.551%, 04/10/34 (144A)

     3,500,000        3,597,041   

GS Mortgage Securities Trust
5.308%, 08/10/44 (144A) (a)

     500,000        500,764   

Hilton Mortgage Trust
1.231%, 07/15/29 (144A) (a)

     570,000        565,679   

JPMorgan Chase Commercial Mortgage Securities Trust
5.716%, 02/15/51

     2,951,190        3,082,368   

KGS-Alpha SBA COOF Trust Zero Coupon, 08/25/38 (144A) (a) (b)

     10,462,875        300,808   

0.576%, 05/25/39 (144A) (a) (b)

     9,129,398        184,015   

Ladder Capital Commercial Mortgage Trust
3.985%, 02/15/36 (144A)

     768,000        785,987   

LB-UBS Commercial Mortgage Trust
5.430%, 02/15/40

     1,218,358        1,250,387   

Morgan Stanley Bank of America Merrill Lynch Trust
3.669%, 02/15/47

     3,000,000        3,104,668   

Morgan Stanley Re-REMIC Trust
0.250%, 07/27/49 (144A)

     1,500,000        1,360,650   

2.000%, 07/27/49 (144A)

     733,448        729,414   

National Credit Union Administration Guaranteed Notes Trust
2.900%, 10/29/20

     2,817,969        2,811,094   

NCUA Guaranteed Notes Trust
2.650%, 10/29/20

     1,631,784        1,634,778   

NorthStar
2.272%, 08/25/29 (144A) (a)

     914,430        913,058   

5.422%, 08/25/29 (144A) (a)

     880,000        879,472   

ORES NPL LLC
3.081%, 09/25/25 (144A)

     372,331        371,958   

RAIT Trust
1.581%, 12/15/31 (144A) (a)

     1,216,463        1,213,400   

2.131%, 12/15/31 (144A) (a)

     1,489,836        1,484,705   

RBS Commercial Funding, Inc. Trust
3.260%, 03/11/31 (144A)

     531,000        533,198   

UBS-Barclays Commercial Mortgage Trust
3.244%, 04/10/46

     2,228,000        2,233,137   

VNDO Mortgage Trust
2.996%, 11/15/30 (144A)

     1,400,000        1,379,232   

3.808%, 12/13/29 (144A)

     2,500,000        2,594,757   

Wells Fargo Commercial Mortgage Trust
2.710%, 03/18/28 (144A) (a)

     1,000,000        1,003,371   

Commercial Mortgage-Backed Securities—(Continued)

  

WF-RBS Commercial Mortgage Trust
4.179%, 03/15/45 (144A) (a)

     300,000      277,086   
   

 

 

  
      78,277,095   
   

 

 

  

Total Mortgage-Backed Securities (Cost $147,506,513)

       146,733,064   
   

 

 

  
Foreign Government—1.3%   

Electric—0.1%

  

Hydro-Quebec
8.050%, 07/07/24

     1,100,000        1,480,402   

9.400%, 02/01/21

     845,000        1,105,705   
   

 

 

  
      2,586,107   
   

 

 

  

Provincial—0.0%

  

Province of Quebec Canada
7.125%, 02/09/24

     200,000        256,775   
   

 

 

  

Sovereign—1.2%

  

Brazilian Government International Bonds
4.250%, 01/07/25

     601,000        483,805   

5.000%, 01/27/45

     408,000        272,340   

Colombia Government International Bonds
4.000%, 02/26/24

     423,000        402,908   

5.000%, 06/15/45

     749,000        625,415   

5.625%, 02/26/44

     200,000        182,500   

Israel Government AID Bonds
Zero Coupon, 02/15/22

     3,000,000        2,578,008   

Zero Coupon, 11/01/22

     8,000,000        6,689,848   

Zero Coupon, 02/15/24

     5,000,000        3,975,474   

Zero Coupon, 02/15/25

     2,000,000        1,527,320   

Zero Coupon, 08/15/25

     2,500,000        1,867,422   

Mexico Government International Bonds
3.500%, 01/21/21 (d)

     2,948,000        2,992,220   

3.600%, 01/30/25

     537,000        523,306   

4.000%, 10/02/23

     1,374,000        1,391,862   

4.600%, 01/23/46

     222,000        196,470   

5.550%, 01/21/45

     737,000        755,425   

5.750%, 10/12/10

     500,000        466,250   

Panama Government International Bonds
4.000%, 09/22/24

     323,000        323,000   

Peruvian Government International Bonds
5.625%, 11/18/50

     73,000        74,460   

Poland Government International Bonds
4.000%, 01/22/24

     930,000        978,360   

South Africa Government International Bonds
5.375%, 07/24/44

     1,077,000        969,300   

5.875%, 09/16/25 (d)

     384,000        392,529   

Turkey Government International Bonds
4.250%, 04/14/26 (d)

     455,000        426,586   

5.750%, 03/22/24

     500,000        528,260   
   

 

 

  
      28,623,068   
   

 

 

  

Total Foreign Government
(Cost $32,528,182)

       31,465,950   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-22

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of December 31, 2015

Short-Term Investments—3.8%

 

Security Description   Shares/
Principal
Amount*		     Value  

Mutual Fund—2.6%

    

State Street Navigator Securities Lending MET Portfolio (h)

     64,801,806      $ 64,801,806   
   

 

 

  

Repurchase Agreement—1.2%

    

Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $29,777,297 on 01/04/16, collateralized by $30,300,000 U.S. Treasury Note at 1.625% due 06/30/20 with a value of $30,375,750.

     29,777,198        29,777,198   
   

 

 

  

Total Short-Term Investments
(Cost $94,579,004)

       94,579,004   
   

 

 

  

Total Investments—102.2%
(Cost $2,571,094,101) (i)

       2,543,636,370   

Other assets and liabilities (net)—(2.2)%

       (53,951,367 ) 
   

 

 

  
Net Assets—100.0%     $ 2,489,685,003   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Variable or floating rate security. The stated rate represents the rate at December 31, 2015. Maturity date shown for callable securities reflects the earliest possible call date.
(b) Interest only security.
(c) Principal only security.
(d) All or a portion of the security was held on loan. As of December 31, 2015, the market value of securities loaned was $67,453,157 and the collateral received consisted of cash in the amount of $64,801,806 and non-cash collateral with a value of $4,193,719. 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.
(e) Principal amount of security is adjusted for inflation.
(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 December 31, 2015, the market value of restricted securities was $16,678,853, which is 0.7% of net assets. See details shown in the Restricted Securities table that follows.
(g) Security was valued in good faith under procedures approved by the Board of Trustees. As of December 31, 2015, these securities represent less than 0.05% of net assets.
(h) Represents investment of cash collateral received from securities on loan as of December 31, 2015.
(i) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $2,590,560,644. The aggregate unrealized appreciation and depreciation of investments were $16,488,612 and $(63,412,886), respectively, resulting in net unrealized depreciation of $(46,924,274) for federal income tax purposes.
(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 December 31, 2015, the market value of 144A securities was $340,343,717, which is 13.7% of net assets.
(ACES)— Alternative Credit Enhancement Securities
(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 3.750%, 03/25/52

      01/28/13       $ 1,458,853       $ 1,454,179       $ 1,449,377   

AJAX Mortgage Loan Trust 4.500%, 03/25/35

      03/20/13         1,228,861         1,223,884         1,247,956   

AJAX Mortgage Loan Trust 3.500%, 02/25/51

      11/15/13         316,196         314,088         313,332   

CAM Mortgage Trust 3.500%, 11/25/57

      10/02/14         244,469         244,469         244,568   

Carlyle Global Market Strategies Commodities Funding, Ltd. 2.221%, 10/15/21

      05/22/14         2,686,667         2,686,667         2,657,114   

Conix Mortgage Asset Trust 4.704%, 12/25/47

      05/16/13         1,078,519         1,078,519         312,770   

Homeowner Assistance Program Reverse Mortgage Loan Trust 4.000%, 05/26/53

      05/03/13         2,642,896         2,605,352         2,600,610   

LV Tower 52 Issuer LLC 5.500%, 07/15/19

      08/04/15         1,618,281         1,614,235         1,583,164   

LV Tower 52 Issuer LLC 7.500%, 07/15/19

      08/04/15         1,123,125         1,120,317         1,080,109   

NYMT Residential LLC 4.850%, 09/25/18

      09/18/13         815,296         815,296         815,296   

RBSHD Trust 4.685%, 10/25/47

      09/27/13         1,199,549         1,199,549         1,199,654   

Trafigura Securitisation Finance plc 1.281%, 10/15/21

      01/30/14         3,188,000         3,188,000         3,174,903   
           

 

 

  
            $ 16,678,853   
           

 

 

  

 

See accompanying notes to financial statements.

 

MIST-23

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2     Level 3      Total  

Total U.S. Treasury & Government Agencies*

    $ —         $ 1,535,851,266      $ —         $ 1,535,851,266   

Total Corporate Bonds & Notes*

      —           536,544,025        —           536,544,025   
Asset-Backed Securities           

Asset-Backed - Automobile

      —           62,342,674        —           62,342,674   

Asset-Backed - Credit Card

      —           1,079,457        —           1,079,457   

Asset-Backed - Home Equity

      —           509,904        —           509,904   

Asset-Backed - Other

      —           131,951,049        312,770         132,263,819   

Asset-Backed - Student Loan

      —           2,267,207        —           2,267,207   

Total Asset-Backed Securities

      —           198,150,291        312,770         198,463,061   

Total Mortgage-Backed Securities*

      —           146,733,064        —           146,733,064   

Total Foreign Government*

      —           31,465,950        —           31,465,950   
Short-Term Investments           

Mutual Fund

      64,801,806         —          —           64,801,806   

Repurchase Agreement

      —           29,777,198        —           29,777,198   

Total Short-Term Investments

      64,801,806         29,777,198        —           94,579,004   

Total Investments

    $ 64,801,806       $ 2,478,521,794      $ 312,770       $ 2,543,636,370   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (64,801,806 )    $ —         $ (64,801,806 ) 

 

* 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,
2014		      Change in
Unrealized
Depreciation		     Transfers
out of
Level 3		     Balance
as of
December 31,
2015		      Change in
Unrealized
Depreciation
from Investments
Still Held at
December 31,
2015		  
U.S. Treasury & Government Agencies             

Agency Sponsored Mortgage - Backed

    $ 3,003,984       $ —      $ (3,003,984 )    $ —       $ —   
Asset-Backed Securities             

Asset-Backed - Other

      571,615         (258,845 )      —        312,770         (258,845 ) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total

    $ 3,575,599       $ (258,845 )    $ (3,003,984 )    $ 312,770       $ (258,845 ) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

U.S. Treasury & Government Agencies securities in the amount of $3,003,984 were transferred out of Level 3 due to the initiation of a vendor or broker providing prices that are based on market activity which has been determined to be significant observable inputs.

 

See accompanying notes to financial statements.

 

MIST-24

Met Investors Series Trust

JPMorgan Core Bond Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 2,543,636,370   

Receivable for:

   

Fund shares sold

      218,641   

Principal paydowns

      79,548   

Interest

      12,286,850   

Prepaid expenses

      7,701   
  

 

 

  

Total Assets

      2,556,229,110   

Liabilities

   

Collateral for securities loaned

      64,801,806   

Payables for:

   

Fund shares redeemed

      395,834   

Accrued Expenses:

   

Management fees

      894,724   

Distribution and service fees

      102,631   

Deferred trustees’ fees

      81,937   

Other expenses

      267,175   
  

 

 

  

Total Liabilities

      66,544,107   
  

 

 

  

Net Assets

    $ 2,489,685,003   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 2,488,062,282   

Undistributed net investment income

      71,822,638   

Accumulated net realized loss

      (42,742,186 ) 

Unrealized depreciation on investments

      (27,457,731 ) 
  

 

 

  

Net Assets

    $ 2,489,685,003   
  

 

 

  

Net Assets

   

Class A

    $ 2,008,897,309   

Class B

      480,787,694   

Capital Shares Outstanding*

   

Class A

      195,395,102   

Class B

      46,862,984   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 10.28   

Class B

      10.26   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $2,571,094,101.
(b) Includes securities loaned at value of $67,453,157.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Interest

    $ 68,343,294   

Securities lending income

      118,061   
  

 

 

  

Total investment income

      68,461,355   

Expenses

   

Management fees

      15,850,919   

Administration fees

      68,687   

Custodian and accounting fees

      322,617   

Distribution and service fees—Class B

      1,249,396   

Audit and tax services

      69,677   

Legal

      42,618   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      77,187   

Insurance

      18,923   

Miscellaneous

      23,114   
  

 

 

  

Total expenses

      17,758,311   

Less management fee waiver

      (3,746,581 ) 
  

 

 

  

Net expenses

      14,011,730   
  

 

 

  

Net Investment Income

      54,449,625   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   

Net realized gain on investments

      3,061,745   
  

 

 

  

Net change in unrealized depreciation on investments

      (31,929,505 ) 
  

 

 

  

Net realized and unrealized loss

      (28,867,760 ) 
  

 

 

  

Net Increase in Net Assets From Operations

    $ 25,581,865   
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-25

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 54,449,625      $ 52,514,319   

Net realized gain

      3,061,745        161,158   

Net change in unrealized appreciation (depreciation)

      (31,929,505 )     95,676,838  
  

 

 

    

 

 

  

Increase in net assets from operations

      25,581,865       148,352,315  
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (59,272,338 )      (34,600,639 ) 

Class B

      (11,593,407 )      (6,562,590 ) 

Net realized capital gains

     

Class A

      0        (11,149,095 ) 

Class B

      0       (2,487,779 )
  

 

 

    

 

 

  

Total distributions

      (70,865,745 )     (54,800,103 )
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      (724,498,492 )     783,721,196  
  

 

 

    

 

 

  

Total increase (decrease) in net assets

      (769,782,372 )      877,273,408   

Net Assets

     

Beginning of period

      3,259,467,375       2,382,193,967  
  

 

 

    

 

 

  

End of period

    $ 2,489,685,003      $ 3,259,467,375   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 71,822,638      $ 70,454,937   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      1,792,221      $ 18,999,971        77,503,411      $ 788,741,187   

Reinvestments

      5,782,667        59,272,338        4,494,080        45,749,734   

Redemptions

      (76,552,119 )      (799,765,188 )      (8,713,611 )      (90,368,321 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (68,977,231 )    $ (721,492,879 )      73,283,880      $ 744,122,600   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      5,422,555      $ 56,695,162        8,635,708      $ 89,182,373   

Reinvestments

      1,132,169        11,593,407        889,908        9,050,369   

Redemptions

      (6,862,862 )      (71,294,182 )      (5,683,580 )      (58,634,146 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (308,138 )    $ (3,005,613 )      3,842,036      $ 39,598,596   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ (724,498,492 )      $ 783,721,196   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-26

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Financial Highlights

 

Selected per share data  
     Class A  
     Year Ended December 31,  
     2015      2014      2013(a)  

Net Asset Value, Beginning of Period

    $ 10.47       $ 10.17       $ 10.56   
  

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

         

Net investment income (b)

      0.20         0.19         0.12   

Net realized and unrealized gain (loss) on investments

      (0.13 )       0.35         (0.41 ) 
  

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.07         0.54         (0.29 ) 
  

 

 

     

 

 

     

 

 

  

Less Distributions

         

Distributions from net investment income

      (0.26 )       (0.18 )       (0.06 ) 

Distributions from net realized capital gains

      0.00         (0.06 )       (0.04 ) 
  

 

 

     

 

 

     

 

 

  

Total distributions

      (0.26 )       (0.24 )       (0.10 ) 
  

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.28       $ 10.47       $ 10.17   
  

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      0.71         5.36         (2.70 )(d) 

Ratios/Supplemental Data

         

Gross ratio of expenses to average net assets (%)

      0.57         0.57         0.57 (e) 

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

      0.44         0.44         0.44 (e) 

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

      1.93         1.82         1.62 (e) 

Portfolio turnover rate (%)

      9         10         68   

Net assets, end of period (in millions)

    $ 2,008.9       $ 2,766.8       $ 1,942.6   

 

     Class B  
     Year Ended December 31,  
     2015      2014      2013(g)      2012      2011  

Net Asset Value, Beginning of Period

    $ 10.45       $ 10.15       $ 10.54       $ 10.36       $ 10.01   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (b)

      0.18         0.16         0.12         0.22         0.29   

Net realized and unrealized gain (loss) on investments

      (0.13 )       0.35         (0.44 )       0.28         0.28   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.05         0.51         (0.32 )       0.50         0.57   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.24 )       (0.15 )       (0.03 )       (0.27 )       (0.22 ) 

Distributions from net realized capital gains

      0.00         (0.06 )       (0.04 )       (0.05 )       (0.00 )(h) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.24 )       (0.21 )       (0.07 )       (0.32 )       (0.22 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.26       $ 10.45       $ 10.15       $ 10.54       $ 10.36   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      0.48         5.09         (3.04 )       4.92         5.79   

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      0.82         0.82         0.82         0.59         0.59   

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

      0.69         0.69         0.69         0.59         0.59   

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

      1.69         1.58         1.21         2.09         2.81   

Portfolio turnover rate (%)

      9         10         68         11         8   

Net assets, end of period (in millions)

    $ 480.8       $ 492.7       $ 439.6       $ 480.9       $ 472.1   

 

(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 (see Note 5 of the Notes to Financial Statements).
(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) Distributions from net realized capital gains were less than $0.01.

 

See accompanying notes to financial statements.

 

MIST-27

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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. 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 and subject to general oversight by the Board. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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-28

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Notes to Financial Statements—December 31, 2015—(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.

Futures contracts that 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.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 paydown transactions and premium amortization adjustments. These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

 

MIST-29

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Mortgage Dollar Rolls - The Portfolio may enter into mortgage “dollar rolls” in which a Portfolio sells to-be-announced (“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.

Treasury and mortgage dollar roll transactions involve the risk that the market value of the securities that the Portfolio is required to repurchase or 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.

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.

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 sale commitments are valued at the current market value of the underlying securities, according to the procedures described under “Investment Valuation and Fair Value Measurements”.

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.

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.

 

MIST-30

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $29,777,198, 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 December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

The following table provides a breakdown of the collateral received and the remaining contractual maturities for securities lending transactions, which are accounted for as secured borrowings.

 

     Remaining Contractual Maturity of the Agreements
As of December 31, 2015		  
      Overnight and
Continuous		     Up to
30 Days		      31 - 90
Days		      Greater than
90 days		     Total  
Securities Lending Transactions             

Corporate Bonds & Notes

    $ (10,352,824 )    $ —       $ —       $ —      $ (10,352,824 ) 

Foreign Government

      (3,237,230 )      —         —         —        (3,237,230 ) 

U.S. Treasury & Government Agencies

      (51,211,752 )      —         —         —        (51,211,752 ) 

Total

    $ (64,801,806 )    $ —       $ —       $ —      $ (64,801,806 ) 

Total Borrowings

    $ (64,801,806 )    $ —       $ —       $ —      $ (64,801,806 ) 

Gross amount of recognized liabilities for securities lending transactions

  

   $ (64,801,806 ) 

 

MIST-31

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

3. Certain Risks

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”).

Market 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, 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

Master Securities Forward Transaction Agreements (“MSFTA”) govern the considerations and factors surrounding the settlement of certain forward settling transactions, such as To-Be-Announced securities and delayed-delivery or secured borrowings transactions by and between the Portfolio and select counterparties. The MSFTA maintain provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral.

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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$72,871,356    $ 169,876,744       $ 560,649,958       $ 358,378,485   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the annual rate of 0.550% of average daily net assets. Fees earned by MetLife Advisers with respect to the Portfolio for the year ended December 31, 2015 were $15,850,919.

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. J.P. Morgan Investment Management, Inc. is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, for the period May 1, 2015 to April 30, 2016, 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

 

MIST-32

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

An identical agreement was in place for the period April 28, 2014 to April 30, 2015. Amounts waived for the year ended December 31, 2015 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, LLC, 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 year ended December 31, 2015 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 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$70,865,745    $ 41,432,122       $ —       $ 13,367,981       $ 70,865,745       $ 54,800,103   

As of December 31, 2015, 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		     Other
Accumulated
Capital Losses		     Total  
$71,943,471    $ —       $ (46,924,272 )    $ (23,314,541 )    $ 1,704,658   

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, 2015, the Portfolio had no pre-enactment accumulated capital loss carryforwards and the post-enactment accumulated short-term capital losses were $2,477,616 and the post-enactment accumulated long-term capital losses were $20,836,925.

 

MIST-33

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

8. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-34

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of JPMorgan Core 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 JPMorgan Core Bond Portfolio, one of the portfolios constituting the Met Investors Series Trust as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 JPMorgan Core Bond Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-35

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-36

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-37

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

 

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-38

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those

 

MIST-39

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

JPMorgan Core Bond Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and J.P. Morgan Investment Management Inc. regarding the Portfolio:

The Board took into account that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the one-year period ended June 30, 2015. The Board considered that the Portfolio underperformed the median of its Performance Universe and its Lipper Index for the three- and five-year periods ended June 30, 2015. The Board also considered that the Portfolio underperformed its benchmark, the Barclays U.S. Aggregate Bond Index, for the one-, three-, and five-year periods ended October 31, 2015. The Board took into account management’s discussion of the Portfolio’s performance, including prevailing market conditions.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, Expense Universe median, and Sub-advised Expense Universe median. The Board noted that the Portfolio’s contractual management fees were above the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also noted that the Portfolio’s contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-40

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Managed by J.P. Morgan Asset Management

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class B shares of the JPMorgan Global Active Allocation Portfolio returned 0.89%. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned -1.21%.

MARKET ENVIRONMENT / CONDITIONS

The year 2015 was certainly eventful as Greece, weakness in crude oil prices, Chinese growth, emerging markets, and the endless speculation on when the Federal Reserve (the “Fed”) would finally raise interest rates dominated the headlines. There was a defensive tone in the markets as U.S. stocks represented by the S&P 500 Index finished the year with a slight gain of 1.4%, outperforming bonds which generated a modest return of 0.6% as represented by the Barclays U.S. Aggregate Bond Index.

Early in the year, the focus of market fears turned to Greece and a very close call, under the new Syriza government, on whether Greece would leave the European Union (the “EU”). Bond yields on other European sovereign debt remained low as Greek yields soared in the weeks leading up to an agreement, indicating that a mixture of European Central Bank assurances and economic progress in other peripheral countries meant that the EU and other European economies could survive a Greek exit if necessary.

Concerns over the scare in emerging markets and specifically Chinese growth intensified in the summer. While slower growth in China has been a theme for many years, the pace of the slowdown has been the subject of intense debate, with concerns surrounding a general weakness in homebuilding and exports. Many observers have become increasingly concerned about the growth in overall debt in China. These fears came to a head over the summer with a slide in the stock market and a surprise devaluation of the renminbi. However, Chinese government intervention succeeded in stabilizing the stock market and, after a small devaluation, the People’s Bank of China halted further renminbi declines. Despite the renewed volatility seen in the markets at year end, recent economic data on vehicle sales, home prices, retail sales, and industrial production continues to suggest some stabilization and the Chinese government is adapting its strategy to evolving markets.

The commodity price decline over the year is a clear indicator of the current dominance of developed market growth over emerging market growth. This price decline is most notable in energy related commodities as crude oil declined (-45.3%) during the year. Sharp price declines for bulk commodities such as iron ore (-22.6% in the fourth quarter) and metals like copper (-8.8% in the fourth quarter), together with the ongoing malaise in global manufacturing, reaffirm the bifurcation between goods-producing emerging economies and services-consuming developed economies.

The long-awaited Federal Reserve decision to raise U.S. interest rates came on December 16 when the Federal Open Market Committee decided to raise the target range for short-term interest rates by 0.25%, ending seven years of a near zero interest rate policy. This was a unanimous decision, based not only on the economic progress that has been made over the past few years, but also on the recognition that it takes time for changes in monetary policy to affect the underlying economy.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The foundation of the JPMorgan Global Active Allocation Portfolio is a diversified, growth-oriented asset allocation that reduces exposure to extreme market events, specifically those associated with significant sustained drawdowns. The Portfolio’s long-term Strategic Asset Allocation has exposure of 50% to global equities, 25% to investment-grade fixed income, 20% to convertible debt securities, and 5% to commodities. The strategy seeks to generate consistent capital appreciation over time with better protection against volatility through asset allocation, both strategic and tactical, as well as through employing a de-risking framework, Systematic Exposure Management (“SEM”). SEM is a proprietary quantitative de-risking framework that aims to reduce the Portfolio’s exposure to asset classes exhibiting negative returns or elevated volatility. By systematically reducing exposure to assets that are likely to experience sub-par returns, J.P. Morgan aims to deliver higher risk-adjusted returns and lower volatility relative to the Dow Jones Global Moderate Index and a traditional portfolio invested 60% in equity and 40% in fixed income markets.

Portfolio allocations are not only adjusted based on SEM but also on our tactical asset allocation views. These views are informed by quantitative and qualitative inputs and seek to improve upon the Strategic Asset Allocation. These tactical asset allocation views aim to add additional returns within the Portfolio. As a final element to the Portfolio’s construction, an extended duration exposure is achieved through a 10-year interest rate swap. This extended duration profile provides further balancing of Portfolio risk and additional diversification benefits.

The Portfolio began the year with SEM, the primary risk management model, suggesting de-risking in commodities, developed international equities, and emerging markets equities. In addition, portfolio managers were expressing various tactical overweights and underweights. Through most of the year, allocations to cash and U.S. equities were above their respective Strategic Asset Allocation. The overweight equity positions were driven by numerous positive economic data points towards the end of 2014, particularly those from the U.S indicating a persistent economic recovery. The Portfolio also held a tactical underweight to commodities and emerging market equities in addition to the SEM de-risking of the asset class.

In the first quarter, negative momentum in commodities strengthened as prices continued to decline, and SEM fully de-risked the asset class in early January. The EAFE (Europe, Asia and the Far East) equities signal strengthened as European economic data improved and re-risked in February. The emerging markets equity signal was volatile over the quarter; SEM re-risked early in the quarter but de-risked after momentum dissipated later in the quarter. Overall, SEM activity had a muted impact on performance during the quarter; the de-risking in commodities was additive to performance, but the EAFE

 

MIST-1

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Managed by J.P. Morgan Asset Management

Portfolio Manager Commentary*—(Continued)

 

and emerging markets equity moves offset this contribution. In addition to the SEM activity, portfolio managers maintained tactical overweights to U.S. and relative-value positioning within EAFE equities through an overweight to Japanese and European ex-U.K. equities.

Over the second quarter, SEM fully re-risked emerging markets equities, leaving only commodities in de-risking mode. Commodities continued to gradually re-risk over the quarter due to strong performance although still ending the period at the third level of de-risking. SEM detracted from overall performance as emerging markets equities and commodities generated positive performance during the quarter. Tactically, the Portfolio expressed an overweight to long-dated U.S. fixed income and Australian fixed income while maintaining relative value positions in EAFE equities.

Markets exhibited elevated volatility throughout the third quarter amid concerns around weaker global growth, while timing of the anticipated U.S. Federal Reserve interest rate hike remained in focus. This heightened volatility and broad decline in risk asset performance was apparent as SEM ended the quarter at some level of de-risking in U.S. equities, EAFE equities, emerging markets equities, and commodities. This was beneficial to performance as commodities performed negatively during the period. From a contribution perspective, SEM experienced the largest quarterly impact to positive portfolio performance and held the largest combined de-risking position since the Portfolio’s inception.

U.S. equities re-risked in early October while EAFE equities, emerging markets equity, commodities, and fixed income continued to oscillate between various levels of de-risking during the fourth quarter as negative momentum and volatility remained heightened. As of the end of the quarter, four asset classes were exhibiting negative price momentum: EAFE equities, emerging market equities, fixed income, and commodities. Commodities ended the year fully de-risked while the other asset classes experienced much less pronounced negative momentum. SEM detracted from performance during the quarter due to the de-risking position in EAFE equities as the asset class generated positive performance over the three month period. In addition to the impact of SEM, the Portfolio maintained its tactical overweight to U.S. equities and moved more in line with the strategic asset allocation to duration.

For the one year period, the main drivers of outperformance versus the Dow Jones Moderate Index included security selection, tactical asset allocation, as well as extended duration exposure. Overall security selection contributed positively to performance; this was mostly due to the EAFE equity active allocations. The tactical overweight to U.S. equities throughout the majority of the year aided Portfolio performance. Additionally, the tactical underweight to commodities and emerging market equities through most of the year also contributed to performance as both asset classes experienced significant negative returns over the year. SEM contributed positively to performance for the period, primarily due to the lowered allocation to risk assets during the third quarter when markets broadly declined.

Derivatives may be used in the Portfolio to implement tactical decisions. Derivative usage is also permissible for purposes, such as hedging, cash management, as a substitute for purchasing or selling securities, and to manage Portfolio characteristics. During 2015, the Portfolio utilized equity futures, Treasury futures and commodity futures for hedging and investment purposes. The Portfolio also utilized interest rate swaps and currency forwards solely for hedging purposes. All derivatives acted as the portfolio managers expected over the period.

At the end of December, the Portfolio held a neutral equity allocation with a tilt to domestic equities and an underweight to emerging markets equities. The Portfolio also maintained an underweight to commodities given negative momentum and a less constructive view of the asset class. Other allocations were generally in line with the Portfolio’s Strategic Asset Allocation with the exception of cash, which remained well above historical averages. The Portfolio maintained the strategic weight to fixed income as a hedge to risk asset exposure and a more agnostic approach to duration in order to balance risks in bond markets.

Michael Feser

Anne Lester

Jeffrey Geller

Nicole Goldberger

Grace Koo

Jonathan Cummings

Portfolio Managers

J.P. Morgan Asset 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, 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 subject to change at any time based upon economic, market, or other conditions and the advisory 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        Since Inception2  
JPMorgan Global Active Allocation Portfolio            

Class B

        0.89           6.69   
Dow Jones Moderate Index        -1.21           6.15   

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 date of the Class B shares is 4/23/2012. Index since inception return is based on the Portfolio’s inception date.

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 DECEMBER 31, 2015

Top Equity Sectors

 

     % of
Net Assets		  
Financials      8.7   
Health Care      4.2   
Information Technology      3.9   
Consumer Staples      3.8   
Consumer Discretionary      3.8   

 

Top Fixed Income Sectors

 

     % of
Net Assets		  
Corporate Bonds & Notes      23.7   
Cash & Cash Equivalents      23.3   
Convertible Bonds      17.1   
U.S. Treasury & Government Agencies      0.4   
Municipals      0.1   

Top Equity Holdings

 

     % of
Net Assets		  
Wells Fargo & Co., Series L      0.7   
Roche Holding AG      0.5   
British American Tobacco plc      0.4   
AXA S.A.      0.4   
Nippon Telegraph & Telephone Corp.      0.4   

 

Top Fixed Income Issuers

 

     % of
Net Assets		  
Siemens Financieringsmaatschappij NV      0.9   
America Movil S.A.B. de C.V.      0.9   
Intel Corp.      0.9   
Priceline Group, Inc. (The)      0.9   
Gilead Sciences, Inc.      0.8   

 

MIST-3

Met Investors Series Trust

JPMorgan Global Active Allocation 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, July 1, 2015 through December 31, 2015.

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.

 

JPMorgan Global Active Allocation Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class B(a)

    Actual      0.99 %     $ 1,000.00         $ 992.80         $ 4.97   
   Hypothetical*      0.99 %     $ 1,000.00         $ 1,020.22         $ 5.04   

* 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 (184 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

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—31.1% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—0.9%

    

Airbus Group SE

     53,848      $ 3,615,542   

BAE Systems plc

     361,742        2,662,341   

Honeywell International, Inc.

     19,685        2,038,775   

L-3 Communications Holdings, Inc.

     6,727        803,944   

Northrop Grumman Corp.

     3,256        614,765   

Thales S.A.

     56,040        4,199,171   

United Technologies Corp.

     24,628        2,366,012   
   

 

 

  
      16,300,550   
   

 

 

  

Air Freight & Logistics—0.1%

  

FedEx Corp.

     622        92,672   

Yamato Holdings Co., Ltd. (a)

     108,400        2,297,484   
   

 

 

  
      2,390,156   
   

 

 

  

Airlines—0.2%

    

Copa Holdings S.A. - Class A (a)

     3,990        192,557   

Delta Air Lines, Inc.

     10,531        533,816   

Japan Airlines Co., Ltd.

     49,500        1,772,668   

United Continental Holdings, Inc. (b)

     16,368        937,887   
   

 

 

  
      3,436,928   
   

 

 

  

Auto Components—0.3%

  

Bridgestone Corp.

     59,200        2,027,119   

Continental AG

     9,152        2,221,333   

Magna International, Inc.

     2,022        82,012   

Sumitomo Electric Industries, Ltd.

     50,900        717,201   
   

 

 

  
      5,047,665   
   

 

 

  

Automobiles—0.8%

  

Astra International Tbk PT

     2,015,500        866,149   

Bayerische Motoren Werke AG

     18,359        1,933,542   

Daimler AG

     20,489        1,710,222   

Ford Motor Co.

     46,765        658,919   

Geely Automobile Holdings, Ltd.

     770,000        407,522   

General Motors Co.

     7,304        248,409   

Hyundai Motor Co.

     13,860        1,746,435   

Mahindra & Mahindra, Ltd. (GDR)

     97,070        1,863,744   

Renault S.A.

     19,876        1,992,471   

Toyota Motor Corp.

     66,000        4,051,083   
   

 

 

  
      15,478,496   
   

 

 

  

Banks—3.3%

    

Australia & New Zealand Banking Group, Ltd.

     120,507        2,431,951   

Banco Santander Chile (ADR)

     32,060        565,538   

Bank Central Asia Tbk PT

     653,000        624,269   

Bank of America Corp.

     173,383        2,918,036   

Bank Rakyat Indonesia Persero Tbk PT

     1,227,600        1,003,412   

Barclays plc

     123,707        400,400   

BB&T Corp.

     2,545        96,226   

BNP Paribas S.A.

     76,230        4,314,923   

Capitec Bank Holdings, Ltd.

     13,750        478,251   

Citigroup, Inc.

     57,835        2,992,961   

Credicorp, Ltd.

     6,700        652,044   

Fifth Third Bancorp

     13,690        275,169   

Banks—(Continued)

    

Grupo Financiero Banorte S.A.B. de C.V. - Class O

     117,300      645,220   

HDFC Bank, Ltd. (ADR)

     94,280        5,807,648   

HSBC Holdings plc

     716,415        5,653,543   

ING Groep NV

     343,614        4,625,404   

Intesa Sanpaolo S.p.A.

     727,139        2,423,261   

Itau Unibanco Holding S.A. (ADR)

     120,154        782,203   

KeyCorp

     25,649        338,310   

Lloyds Banking Group plc

     2,353,658        2,533,288   

Mitsubishi UFJ Financial Group, Inc.

     918,100        5,682,024   

Mizuho Financial Group, Inc.

     950,800        1,898,019   

Public Bank Bhd

     107,000        461,066   

Sberbank of Russia PJSC (ADR)

     155,990        903,182   

Siam Commercial Bank PCL (The)

     275,600        915,220   

Societe Generale S.A.

     38,467        1,774,386   

Sumitomo Mitsui Financial Group, Inc.

     97,600        3,681,696   

Sumitomo Mitsui Trust Holdings, Inc.

     436,000        1,646,048   

SVB Financial Group (b)

     1,641        195,115   

Turkiye Garanti Bankasi A/S

     216,435        528,306   

Wells Fargo & Co.

     72,535        3,943,003   
   

 

 

  
      61,190,122   
   

 

 

  

Beverages—1.0%

    

Ambev S.A. (ADR)

     252,650        1,126,819   

Anheuser-Busch InBev S.A.

     15,463        1,910,067   

Boston Beer Co., Inc. (The) - Class A (a) (b)

     915        184,748   

Britvic plc

     314,928        3,371,522   

Coca-Cola Co. (The)

     25,386        1,090,583   

Coca-Cola Enterprises, Inc.

     2,245        110,544   

Constellation Brands, Inc. - Class A

     6,393        910,619   

Dr Pepper Snapple Group, Inc.

     3,282        305,882   

Molson Coors Brewing Co. - Class B

     11,325        1,063,644   

PepsiCo, Inc.

     24,453        2,443,344   

SABMiller plc

     75,701        4,534,463   

Suntory Beverage & Food, Ltd.

     27,300        1,196,968   

Tsingtao Brewery Co., Ltd. - Class H (a)

     166,000        747,398   
   

 

 

  
      18,996,601   
   

 

 

  

Biotechnology—0.4%

  

Alexion Pharmaceuticals, Inc. (b)

     4,255        811,641   

Biogen, Inc. (b)

     5,126        1,570,350   

BioMarin Pharmaceutical, Inc. (b)

     2,593        271,643   

Celgene Corp. (b)

     16,427        1,967,298   

Gilead Sciences, Inc.

     15,690        1,587,671   

Vertex Pharmaceuticals, Inc. (b)

     5,163        649,660   
   

 

 

  
      6,858,263   
   

 

 

  

Building Products—0.2%

  

Allegion plc

     6,640        437,709   

Daikin Industries, Ltd. (a)

     29,700        2,161,497   

Fortune Brands Home & Security, Inc. (a)

     2,252        124,986   

Masco Corp.

     16,045        454,073   
   

 

 

  
      3,178,265   
   

 

 

  

 

§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 December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Capital Markets—0.8%

  

3i Group plc

     368,249      $ 2,595,556   

Ameriprise Financial, Inc.

     1,592        169,421   

Bank of New York Mellon Corp. (The)

     4,501        185,531   

BlackRock, Inc.

     2,043        695,682   

Charles Schwab Corp. (The)

     29,126        959,119   

Goldman Sachs Group, Inc. (The)

     4,752        856,453   

Henderson Group plc

     211,308        955,203   

Invesco, Ltd.

     28,307        947,719   

Morgan Stanley

     46,311        1,473,153   

Schroders plc

     46,341        2,018,215   

State Street Corp.

     9,055        600,890   

TD Ameritrade Holding Corp.

     2,091        72,579   

UBS Group AG

     154,580        2,974,722   
   

 

 

  
      14,504,243   
   

 

 

  

Chemicals—0.3%

  

Axiall Corp. (a)

     5,760        88,704   

Chr Hansen Holding A/S

     25,745        1,610,297   

Dow Chemical Co. (The)

     19,647        1,011,428   

E.I. du Pont de Nemours & Co.

     18,726        1,247,152   

Eastman Chemical Co.

     6,134        414,106   

Linde AG

     8,701        1,262,979   

Mosaic Co. (The)

     24,020        662,712   

Sherwin-Williams Co. (The)

     223        57,891   
   

 

 

  
      6,355,269   
   

 

 

  

Commercial Services & Supplies—0.1%

  

Rentokil Initial plc

     689,399        1,616,335   
   

 

 

  

Communications Equipment—0.2%

  

Cisco Systems, Inc.

     44,683        1,213,367   

Nokia Oyj

     295,401        2,102,969   

QUALCOMM, Inc.

     3,052        152,554   
   

 

 

  
      3,468,890   
   

 

 

  

Construction & Engineering—0.1%

  

Fluor Corp.

     15,692        740,976   

Kajima Corp.

     365,000        2,171,927   
   

 

 

  
      2,912,903   
   

 

 

  

Construction Materials—0.1%

  

Martin Marietta Materials, Inc. (a)

     2,253        307,715   

Siam Cement PCL (The)

     4,100        51,803   

Siam Cement PCL (The) (NVDR)

     57,200        727,111   
   

 

 

  
      1,086,629   
   

 

 

  

Consumer Finance—0.1%

  

Capital One Financial Corp.

     4,899        353,610   

Discover Financial Services

     4,694        251,692   

Synchrony Financial (b)

     16,156        491,304   
   

 

 

  
      1,096,606   
   

 

 

  

Containers & Packaging—0.1%

  

Crown Holdings, Inc. (b)

     12,561        636,843   

WestRock Co.

     9,013        411,173   
   

 

 

  
      1,048,016   
   

 

 

  

Distributors—0.0%

  

Imperial Holdings, Ltd.

     18,920      144,719   
   

 

 

  

Diversified Financial Services—0.4%

  

Berkshire Hathaway, Inc. - Class B (b)

     17,964        2,371,967   

FirstRand, Ltd.

     401,560        1,095,489   

Intercontinental Exchange, Inc.

     3,747        960,206   

ORIX Corp.

     163,500        2,293,602   

Remgro, Ltd.

     67,330        1,066,639   
   

 

 

  
      7,787,903   
   

 

 

  

Diversified Telecommunication Services—1.2%

  

AT&T, Inc.

     56,641        1,949,017   

BT Group plc

     578,610        3,998,895   

Nippon Telegraph & Telephone Corp.

     174,300        6,920,029   

Orange S.A.

     246,124        4,129,059   

PCCW, Ltd.

     3,946,000        2,311,611   

Singapore Telecommunications, Ltd.

     447,100        1,173,643   

Telecom Italia S.p.A. (a) (b)

     1,024,429        1,291,208   

Telenor ASA

     34,338        571,255   

Verizon Communications, Inc.

     16,825        777,652   
   

 

 

  
      23,122,369   
   

 

 

  

Electric Utilities—0.4%

  

American Electric Power Co., Inc.

     4,439        258,661   

Edison International

     17,826        1,055,477   

Enel S.p.A.

     516,278        2,159,476   

Exelon Corp.

     1,089        30,242   

NextEra Energy, Inc.

     10,624        1,103,727   

PPL Corp.

     29,886        1,020,009   

Xcel Energy, Inc.

     28,905        1,037,979   
   

 

 

  
      6,665,571   
   

 

 

  

Electrical Equipment—0.1%

  

Eaton Corp. plc

     21,861        1,137,646   
   

 

 

  

Electronic Equipment, Instruments & Components—0.4%

  

Amphenol Corp. - Class A

     1,766        92,238   

Corning, Inc.

     8,157        149,110   

Delta Electronics, Inc.

     237,867        1,116,372   

Keyence Corp.

     4,700        2,579,574   

Murata Manufacturing Co., Ltd.

     14,100        2,023,726   

TE Connectivity, Ltd.

     16,829        1,087,322   
   

 

 

  
      7,048,342   
   

 

 

  

Energy Equipment & Services—0.1%

  

Baker Hughes, Inc.

     5,548        256,040   

Halliburton Co.

     16,713        568,911   

National Oilwell Varco, Inc. (a)

     4,086        136,840   

Schlumberger, Ltd.

     6,504        453,654   
   

 

 

  
      1,415,445   
   

 

 

  

Food & Staples Retailing—0.7%

  

Costco Wholesale Corp.

     8,746        1,412,479   

CVS Health Corp.

     293        28,646   

Delhaize Group S.A.

     37,878        3,689,613   

 

§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 December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Food & Staples Retailing—(Continued)

  

Distribuidora Internacional de Alimentacion S.A. (a) (b)

     134,571      $ 790,612   

Kroger Co. (The)

     7,331        306,656   

Magnit PJSC (GDR)

     26,840        1,079,505   

President Chain Store Corp.

     154,000        960,314   

Seven & I Holdings Co., Ltd.

     48,700        2,220,497   

Shoprite Holdings, Ltd.

     62,850        580,926   

Sun Art Retail Group, Ltd. (a)

     807,000        609,005   

Wal-Mart de Mexico S.A.B. de C.V. (a)

     291,030        734,562   

Wal-Mart Stores, Inc.

     309        18,942   
   

 

 

  
      12,431,757   
   

 

 

  

Food Products—0.6%

    

Archer-Daniels-Midland Co.

     8,331        305,581   

Associated British Foods plc

     33,395        1,643,808   

Hershey Co. (The) (a)

     7,285        650,332   

Mead Johnson Nutrition Co.

     808        63,791   

Mondelez International, Inc. - Class A

     40,545        1,818,038   

Nestle S.A.

     60,794        4,506,274   

NH Foods, Ltd.

     50,000        980,626   

Tiger Brands, Ltd. (a)

     20,350        415,634   

Tingyi Cayman Islands Holding Corp. (a)

     328,000        468,103   
   

 

 

  
      10,852,187   
   

 

 

  

Gas Utilities—0.2%

  

Questar Corp. (a)

     4,176        81,348   

Snam S.p.A.

     845,519        4,421,740   
   

 

 

  
      4,503,088   
   

 

 

  

Health Care Equipment & Supplies—0.4%

  

Abbott Laboratories

     32,356        1,453,108   

Boston Scientific Corp. (b)

     66,856        1,232,824   

Hoya Corp.

     50,000        2,038,435   

Smith & Nephew plc

     116,560        2,063,084   

Stryker Corp.

     4,712        437,933   
   

 

 

  
      7,225,384   
   

 

 

  

Health Care Providers & Services—0.5%

  

Aetna, Inc.

     9,600        1,037,952   

Cigna Corp.

     2,718        397,725   

Express Scripts Holding Co. (b)

     8,037        702,514   

HCA Holdings, Inc. (b)

     1,362        92,112   

Humana, Inc.

     5,484        978,949   

Korian S.A.

     13,089        478,986   

McKesson Corp.

     9,806        1,934,037   

Spire Healthcare Group plc

     215,829        994,527   

UnitedHealth Group, Inc.

     16,320        1,919,885   
   

 

 

  
      8,536,687   
   

 

 

  

Hotels, Restaurants & Leisure—0.2%

  

Chipotle Mexican Grill, Inc. (a) (b)

     160        76,776   

Dunkin’ Brands Group, Inc. (a)

     1,914        81,517   

InterContinental Hotels Group plc

     34,219        1,327,822   

Royal Caribbean Cruises, Ltd.

     8,685        879,009   

Sands China, Ltd.

     259,600        874,724   

Hotels, Restaurants & Leisure—(Continued)

  

Starbucks Corp.

     17,247      1,035,337   
   

 

 

  
      4,275,185   
   

 

 

  

Household Durables—0.2%

  

Berkeley Group Holdings plc

     7,268        394,935   

D.R. Horton, Inc.

     13,398        429,138   

Electrolux AB - Series B

     66,562        1,597,675   

Harman International Industries, Inc.

     6,442        606,901   

PulteGroup, Inc.

     22,274        396,923   

Toll Brothers, Inc. (a) (b)

     2,540        84,582   
   

 

 

  
      3,510,154   
   

 

 

  

Household Products—0.3%

  

Kimberly-Clark Corp.

     10,030        1,276,819   

Procter & Gamble Co. (The)

     27,008        2,144,705   

Reckitt Benckiser Group plc

     29,141        2,682,398   

Unilever Indonesia Tbk PT

     152,200        406,006   
   

 

 

  
      6,509,928   
   

 

 

  

Industrial Conglomerates—0.4%

  

Bidvest Group, Ltd. (The)

     61,769        1,309,802   

CK Hutchison Holdings, Ltd.

     107,652        1,442,141   

Danaher Corp.

     2,182        202,664   

General Electric Co.

     51,543        1,605,565   

Jardine Matheson Holdings, Ltd. (a)

     28,300        1,374,054   

KOC Holding AS

     185,250        694,182   
   

 

 

  
      6,628,408   
   

 

 

  

Insurance—2.0%

  

ACE, Ltd. (a)

     15,524        1,813,979   

AIA Group, Ltd.

     521,600        3,107,462   

Allianz SE

     15,634        2,769,652   

American International Group, Inc.

     19,115        1,184,557   

Aviva plc

     163,047        1,231,991   

AXA S.A.

     254,485        6,957,272   

Axis Capital Holdings, Ltd.

     1,621        91,133   

Legal & General Group plc

     964,884        3,805,322   

Lincoln National Corp.

     2,513        126,303   

Muenchener Rueckversicherungs-Gesellschaft AG

     13,681        2,739,953   

Prudential Financial, Inc.

     13,552        1,103,268   

Prudential plc

     280,414        6,277,882   

Sanlam, Ltd.

     131,470        510,055   

Sompo Japan Nipponkoa Holdings, Inc.

     51,600        1,687,800   

Swiss Re AG

     23,113        2,248,390   

XL Group plc (a)

     19,996        783,443   

Zurich Insurance Group AG (b)

     3,195        815,234   
   

 

 

  
      37,253,696   
   

 

 

  

Internet & Catalog Retail—0.1%

  

Amazon.com, Inc. (b)

     4,308        2,911,734   
   

 

 

  

Internet Software & Services—0.7%

  

Alphabet, Inc. - Class A (b)

     3,402        2,646,790   

Alphabet, Inc. - Class C (b)

     3,693        2,802,544   

 

§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 December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Internet Software & Services—(Continued)

  

Baidu, Inc. (ADR) (b)

     8,470      $ 1,601,169   

Facebook, Inc. - Class A (b)

     33,844        3,542,113   

Mail.ru Group, Ltd. (GDR) (b)

     18,889        425,947   

Tencent Holdings, Ltd.

     101,600        1,984,617   
   

 

 

  
      13,003,180   
   

 

 

  

IT Services—0.7%

  

Accenture plc - Class A

     23,368        2,441,956   

Automatic Data Processing, Inc.

     1,249        105,815   

Cap Gemini S.A.

     36,989        3,422,522   

Cielo S.A.

     91,880        777,652   

Cognizant Technology Solutions Corp. - Class A (b)

     21,987        1,319,660   

Fidelity National Information Services, Inc.

     11,634        705,020   

Infosys, Ltd. (ADR) (a)

     163,680        2,741,640   

PayPal Holdings, Inc. (b)

     2,783        100,745   

Tata Consultancy Services, Ltd.

     5,780        211,531   

Visa, Inc. - Class A (a)

     26,443        2,050,655   
   

 

 

  
      13,877,196   
   

 

 

  

Life Sciences Tools & Services—0.1%

  

Illumina, Inc. (a) (b)

     2,013        386,385   

Thermo Fisher Scientific, Inc.

     4,599        652,368   
   

 

 

  
      1,038,753   
   

 

 

  

Machinery—0.3%

  

Caterpillar, Inc. (a)

     1,254        85,222   

Cummins, Inc.

     7,346        646,521   

Deere & Co. (a)

     2,553        194,717   

DMG Mori Co., Ltd. (a)

     105,400        1,224,050   

Ingersoll-Rand plc

     4,250        234,983   

PACCAR, Inc.

     19,015        901,311   

Parker-Hannifin Corp.

     5,828        565,199   

Snap-on, Inc.

     663        113,658   

Stanley Black & Decker, Inc.

     6,205        662,260   

WEG S.A.

     133,692        503,566   
   

 

 

  
      5,131,487   
   

 

 

  

Media—1.1%

  

CBS Corp. - Class B

     14,261        672,121   

Charter Communications, Inc. - Class A (a) (b)

     4,236        775,612   

Comcast Corp. - Class A

     37,657        2,124,985   

Dentsu, Inc. (a)

     51,700        2,829,919   

DISH Network Corp. - Class A (b)

     9,626        550,415   

Lagardere SCA

     29,164        867,720   

Naspers, Ltd. - N Shares

     5,040        689,095   

RTL Group S.A. (Brussels Exchange)

     15,356        1,283,472   

Time Warner Cable, Inc.

     2,397        444,859   

Time Warner, Inc.

     31,834        2,058,705   

Twenty-First Century Fox, Inc. - Class A

     57,887        1,572,211   

UBM plc

     158,492        1,229,032   

Wolters Kluwer NV

     73,166        2,451,480   

WPP plc

     121,635        2,799,759   
   

 

 

  
      20,349,385   
   

 

 

  

Metals & Mining—0.3%

  

Nippon Steel & Sumitomo Metal Corp. (a)

     83,800      1,659,316   

Norsk Hydro ASA

     551,224        2,050,126   

Rio Tinto plc

     56,597        1,649,387   

United States Steel Corp. (a)

     6,332        50,529   

Vale S.A. (ADR)

     96,410        245,846   
   

 

 

  
      5,655,204   
   

 

 

  

Multi-Utilities—0.2%

  

CenterPoint Energy, Inc.

     3,522        64,664   

CMS Energy Corp.

     8,400        303,072   

Engie S.A.

     59,952        1,061,013   

National Grid plc

     134,681        1,852,432   

Public Service Enterprise Group, Inc.

     15,066        582,903   
   

 

 

  
      3,864,084   
   

 

 

  

Multiline Retail—0.3%

  

Dollar General Corp.

     11,668        838,579   

Lojas Renner S.A.

     117,700        506,470   

Next plc

     30,987        3,321,779   

Target Corp.

     10,519        763,785   
   

 

 

  
      5,430,613   
   

 

 

  

Oil, Gas & Consumable Fuels—1.2%

  

BG Group plc

     96,302        1,396,505   

Cabot Oil & Gas Corp.

     22,211        392,913   

Chevron Corp.

     26,122        2,349,935   

CNOOC, Ltd.

     702,000        721,561   

Columbia Pipeline Group, Inc.

     23,844        476,880   

Energen Corp. (a)

     227        9,305   

Eni S.p.A.

     27,630        409,315   

EOG Resources, Inc.

     10,511        744,074   

EQT Corp.

     5,495        286,454   

Exxon Mobil Corp.

     36,274        2,827,558   

Kinder Morgan, Inc.

     9,844        146,872   

Lukoil PJSC (ADR)

     30,110        978,123   

Marathon Petroleum Corp.

     5,540        287,194   

Occidental Petroleum Corp.

     21,548        1,456,860   

Oil Search, Ltd.

     286,348        1,401,923   

Phillips 66

     525        42,945   

Pioneer Natural Resources Co.

     5,873        736,357   

Royal Dutch Shell plc - A Shares

     138,590        3,174,928   

Royal Dutch Shell plc - A Shares

     37,066        832,743   

Royal Dutch Shell plc - B Shares

     31,777        725,605   

Total S.A.

     15,694        698,945   

Ultrapar Participacoes S.A.

     55,450        846,671   

Valero Energy Corp.

     12,536        886,421   
   

 

 

  
      21,830,087   
   

 

 

  

Paper & Forest Products—0.1%

  

UPM-Kymmene Oyj

     64,086        1,186,923   
   

 

 

  

Personal Products—0.1%

  

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

     2,285        201,217   

Unilever NV

     52,490        2,274,161   
   

 

 

  
      2,475,378   
   

 

 

  

 

§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 December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Pharmaceuticals—2.9%

  

Allergan plc (b)

     6,260      $ 1,956,250   

Aspen Pharmacare Holdings, Ltd. (b)

     28,880        576,608   

AstraZeneca plc

     52,265        3,533,583   

Bayer AG

     35,070        4,399,928   

Bristol-Myers Squibb Co.

     34,801        2,393,961   

Eli Lilly & Co.

     23,882        2,012,297   

GlaxoSmithKline plc

     303,965        6,139,484   

Johnson & Johnson

     16,624        1,707,617   

Merck & Co., Inc.

     11,866        626,762   

Merck KGaA

     27,244        2,646,279   

Mylan NV (a) (b)

     4,045        218,713   

Novartis AG

     58,849        5,030,212   

Novo Nordisk A/S - Class B

     55,344        3,181,195   

Perrigo Co. plc

     1,071        154,974   

Pfizer, Inc.

     80,293        2,591,858   

Roche Holding AG

     33,607        9,261,690   

Sanofi

     51,865        4,425,421   

Shire plc

     29,697        2,035,249   

Valeant Pharmaceuticals International, Inc. (b)

     2,486        252,702   
   

 

 

  
      53,144,783   
   

 

 

  

Professional Services—0.0%

  

Equifax, Inc.

     3,078        342,797   
   

 

 

  

Real Estate Investment Trusts—0.7%

  

American Tower Corp.

     5,675        550,191   

AvalonBay Communities, Inc.

     4,392        808,699   

Boston Properties, Inc.

     4,049        516,410   

DiamondRock Hospitality Co. (a)

     14,188        136,914   

Equinix, Inc.

     956        289,094   

Essex Property Trust, Inc.

     415        99,355   

Fibra Uno Administracion S.A. de C.V. (a)

     250,900        553,059   

First Real Estate Investment Trust (a)

     890,000        753,394   

General Growth Properties, Inc.

     11,242        305,895   

Goodman Group (a)

     346,455        1,568,552   

Klepierre

     48,332        2,143,341   

LaSalle Hotel Properties (a)

     7,086        178,284   

Liberty Property Trust

     7,491        232,596   

Lippo Malls Indonesia Retail Trust (a)

     2,784,900        627,552   

Mapletree Logistics Trust

     1,162,700        809,402   

Prologis, Inc.

     14,864        637,963   

Public Storage

     619        153,326   

Simon Property Group, Inc.

     3,871        752,677   

SL Green Realty Corp.

     1,616        182,576   

Westfield Corp.

     206,480        1,420,479   
   

 

 

  
      12,719,759   
   

 

 

  

Real Estate Management & Development—0.6%

  

Daiwa House Industry Co., Ltd.

     95,700        2,743,776   

Deutsche Wohnen AG

     75,963        2,114,477   

Mitsui Fudosan Co., Ltd.

     99,000        2,480,690   

Savills plc

     31,369        407,520   

TAG Immobilien AG (a)

     125,263        1,563,682   

Vonovia SE

     45,808        1,418,889   
   

 

 

  
      10,729,034   
   

 

 

  

Road & Rail—0.4%

  

Canadian Pacific Railway, Ltd.

     4,720      602,272   

CSX Corp.

     23,720        615,534   

Union Pacific Corp.

     21,719        1,698,426   

West Japan Railway Co.

     62,300        4,297,352   
   

 

 

  
      7,213,584   
   

 

 

  

Semiconductors & Semiconductor Equipment—0.7%

  

Applied Materials, Inc.

     9,830        183,526   

ASML Holding NV

     13,398        1,193,982   

Avago Technologies, Ltd. (a)

     13,104        1,902,046   

Broadcom Corp. - Class A

     5,752        332,581   

Infineon Technologies AG

     162,417        2,376,781   

KLA-Tencor Corp.

     1,886        130,794   

Lam Research Corp.

     19,152        1,521,052   

Marvell Technology Group, Ltd.

     8,804        77,651   

NXP Semiconductors NV (b)

     3,081        259,574   

Taiwan Semiconductor Manufacturing Co., Ltd. (ADR)

     162,360        3,693,690   

Texas Instruments, Inc.

     26,403        1,447,148   
   

 

 

  
      13,118,825   
   

 

 

  

Software—0.6%

  

Adobe Systems, Inc. (b)

     19,348        1,817,551   

Intuit, Inc.

     1,654        159,611   

Microsoft Corp.

     104,111        5,776,079   

Oracle Corp.

     12,615        460,826   

SAP SE

     44,988        3,583,348   
   

 

 

  
      11,797,415   
   

 

 

  

Specialty Retail—0.6%

  

AutoNation, Inc. (b)

     3,001        179,040   

AutoZone, Inc. (a) (b)

     187        138,737   

Best Buy Co., Inc.

     11,347        345,516   

Dixons Carphone plc

     255,069        1,874,580   

Home Depot, Inc. (The)

     20,154        2,665,367   

Kingfisher plc

     356,089        1,724,231   

Lowe’s Cos., Inc.

     26,486        2,013,995   

Mr. Price Group, Ltd.

     26,480        341,432   

Ross Stores, Inc.

     1,815        97,665   

Tiffany & Co.

     3,543        270,296   

TJX Cos., Inc. (The)

     17,885        1,268,225   
   

 

 

  
      10,919,084   
   

 

 

  

Technology Hardware, Storage & Peripherals—0.5%

  

Apple, Inc.

     60,539        6,372,335   

Hewlett Packard Enterprise Co.

     30,687        466,442   

HP, Inc.

     38,428        454,988   

Samsung Electronics Co., Ltd. (GDR) (b)

     4,610        2,450,215   
   

 

 

  
      9,743,980   
   

 

 

  

Textiles, Apparel & Luxury Goods—0.1%

  

lululemon athletica, Inc. (a) (b)

     2,518        132,120   

PVH Corp.

     865        63,707   

Ralph Lauren Corp. (a)

     3,135        349,490   

VF Corp.

     13,936        867,516   
   

 

 

  
      1,412,833   
   

 

 

  

 

§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 December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares/
Principal
Amount*		     Value  

Thrifts & Mortgage Finance—0.1%

  

Housing Development Finance Corp., Ltd.

     103,380      $ 1,963,685   
   

 

 

  

Tobacco—0.9%

    

British American Tobacco plc

     139,106        7,725,815   

Imperial Tobacco Group plc

     78,392        4,123,071   

Japan Tobacco, Inc.

     70,700        2,595,902   

Philip Morris International, Inc.

     23,330        2,050,940   
   

 

 

  
      16,495,728   
   

 

 

  

Trading Companies & Distributors—0.1%

  

Wolseley plc

     42,852        2,329,386   
   

 

 

  

Transportation Infrastructure—0.0%

  

CCR S.A.

     140,060        441,257   
   

 

 

  

Water Utilities—0.1%

  

American Water Works Co., Inc.

     2,990        178,653   

Pennon Group plc

     109,374        1,387,379   
   

 

 

  
      1,566,032   
   

 

 

  

Wireless Telecommunication Services—0.5%

  

KDDI Corp.

     146,100        3,782,086   

Mobile TeleSystems PJSC (b)

     42,700        123,245   

Mobile TeleSystems PJSC (ADR)

     29,850        184,473   

MTN Group, Ltd.

     104,690        897,487   

T-Mobile U.S., Inc. (b)

     2,497        97,683   

Vodafone Group plc

     1,110,471        3,591,846   
   

 

 

  
      8,676,820   
   

 

 

  

Total Common Stocks
(Cost $570,702,775)

       573,383,432   
   

 

 

  
Corporate Bonds & Notes—23.7%   

Aerospace/Defense—0.4%

    

Airbus Group Finance B.V.
2.700%, 04/17/23 (144A)

     279,000        268,816   

BAE Systems Finance, Inc.
7.500%, 07/01/27 (144A)

     300,000        392,828   

BAE Systems Holdings, Inc.
3.800%, 10/07/24 (144A)

     159,000        158,103   

BAE Systems plc
4.750%, 10/11/21 (144A)

     225,000        239,478   

Boeing Capital Corp.
4.700%, 10/27/19

     255,000        279,771   

Boeing Co. (The)
1.650%, 10/30/20

     205,000        200,616   

7.250%, 06/15/25

     11,000        14,352   

8.625%, 11/15/31

     200,000        291,453   

General Dynamics Corp.
1.000%, 11/15/17

     117,000        116,644   

2.250%, 11/15/22

     250,000        240,354   

Aerospace/Defense—(Continued)

  

Harris Corp.
2.700%, 04/27/20

     70,000      68,675   

3.832%, 04/27/25

     80,000        78,794   

5.054%, 04/27/45

     285,000        279,063   

Lockheed Martin Corp.
1.850%, 11/23/18

     235,000        234,584   

2.500%, 11/23/20

     215,000        213,725   

3.100%, 01/15/23

     96,000        95,937   

3.550%, 01/15/26

     370,000        371,302   

3.800%, 03/01/45

     240,000        212,729   

4.070%, 12/15/42

     187,000        173,054   

4.500%, 05/15/36

     73,000        73,905   

4.700%, 05/15/46

     180,000        184,387   

Northrop Grumman Corp.
3.250%, 08/01/23

     400,000        399,870   

3.850%, 04/15/45

     320,000        287,548   

Northrop Grumman Systems Corp.
7.750%, 02/15/31

     200,000        263,971   

Raytheon Co.
3.150%, 12/15/24

     91,000        91,180   

United Technologies Corp.
4.150%, 05/15/45

     445,000        425,185   

4.500%, 06/01/42

     150,000        151,056   

5.375%, 12/15/17

     173,000        185,973   

5.400%, 05/01/35

     525,000        583,586   

5.700%, 04/15/40

     250,000        293,042   

6.700%, 08/01/28

     233,000        295,134   

8.875%, 11/15/19

     41,000        50,367   
   

 

 

  
      7,215,482   
   

 

 

  

Agriculture—0.4%

    

Altria Group, Inc.
2.625%, 01/14/20

     975,000        976,811   

2.850%, 08/09/22

     777,000        757,483   

4.000%, 01/31/24

     305,000        315,976   

4.250%, 08/09/42

     30,000        27,526   

4.500%, 05/02/43

     215,000        204,088   

Archer-Daniels-Midland Co.
4.016%, 04/16/43

     150,000        144,032   

BAT International Finance plc
2.750%, 06/15/20 (144A)

     255,000        254,926   

3.250%, 06/07/22 (144A)

     104,000        104,170   

3.500%, 06/15/22 (144A)

     215,000        220,392   

Bunge N.A. Finance L.P.
5.900%, 04/01/17

     90,000        93,831   

Bunge, Ltd. Finance Corp.
3.200%, 06/15/17

     131,000        132,284   

3.500%, 11/24/20

     26,000        25,855   

8.500%, 06/15/19

     250,000        289,345   

Cargill, Inc.
4.760%, 11/23/45 (144A)

     399,000        404,864   

7.350%, 03/06/19 (144A)

     260,000        299,048   

Imperial Tobacco Finance plc
3.750%, 07/21/22 (144A)

     375,000        376,501   

4.250%, 07/21/25 (144A)

     305,000        309,503   

 

§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 December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description  

Principal
Amount*

     Value  

Agriculture—(Continued)

  

Philip Morris International, Inc.
3.375%, 08/11/25 (a)

     490,000      $ 495,859   

4.125%, 03/04/43

     140,000        132,336   

Reynolds American, Inc.
2.300%, 06/12/18

     145,000        145,911   

4.000%, 06/12/22

     145,000        150,739   

4.450%, 06/12/25

     170,000        177,791   

5.700%, 08/15/35

     105,000        115,061   

5.850%, 08/15/45

     495,000        550,311   
   

 

 

  
      6,704,643   
   

 

 

  

Airlines—0.1%

    

Air Canada Pass-Through Trust
3.600%, 03/15/27 (144A)

     305,000        295,087   

American Airlines Pass-Through Trust
4.950%, 01/15/23

     498,134        525,532   

Continental Airlines Pass-Through Trust
4.000%, 10/29/24

     37,673        38,615   

Delta Air Lines Pass-Through Trust
4.750%, 05/07/20

     55,539        58,593   

6.821%, 08/10/22

     191,770        220,880   

U.S. Airways Pass-Through Trust
3.950%, 11/15/25

     226,155        227,851   
   

 

 

  
      1,366,558   
   

 

 

  

Auto Manufacturers—0.7%

    

American Honda Finance Corp.
1.500%, 09/11/17 (144A) (a)

     425,000        425,496   

Daimler Finance North America LLC
1.450%, 08/01/16 (144A)

     175,000        175,242   

1.875%, 01/11/18 (144A)

     205,000        204,191   

2.250%, 09/03/19 (144A) (a)

     160,000        157,586   

2.375%, 08/01/18 (144A)

     665,000        666,002   

2.450%, 05/18/20 (144A)

     630,000        617,904   

8.500%, 01/18/31

     330,000        478,664   

Ford Motor Co.
4.750%, 01/15/43

     75,000        70,697   

6.375%, 02/01/29

     500,000        563,203   

6.625%, 02/15/28

     250,000        281,481   

9.980%, 02/15/47

     400,000        555,145   

Ford Motor Credit Co. LLC
1.684%, 09/08/17

     217,000        214,373   

1.700%, 05/09/16

     333,000        333,326   

2.145%, 01/09/18

     795,000        792,059   

3.200%, 01/15/21

     655,000        650,570   

3.664%, 09/08/24

     515,000        500,792   

4.134%, 08/04/25

     440,000        438,423   

4.250%, 02/03/17

     240,000        245,210   

4.250%, 09/20/22

     415,000        424,560   

4.375%, 08/06/23

     635,000        652,515   

5.750%, 02/01/21

     300,000        331,433   

General Motors Co.
5.200%, 04/01/45

     100,000        93,773   

Auto Manufacturers—(Continued)

  

General Motors Financial Co., Inc.
3.100%, 01/15/19

     949,000      947,621   

3.450%, 04/10/22

     525,000        503,611   

4.000%, 01/15/25

     560,000        531,304   

4.250%, 05/15/23

     320,000        316,525   

4.300%, 07/13/25

     380,000        368,482   

Nissan Motor Acceptance Corp.
0.972%, 03/03/17 (144A) (c)

     176,000        175,551   

1.800%, 03/15/18 (144A)

     146,000        145,316   

1.950%, 09/12/17 (144A)

     200,000        200,328   

PACCAR Financial Corp.
0.800%, 02/08/16

     217,000        217,092   

1.600%, 03/15/17

     150,000        150,296   

Toyota Motor Credit Corp.
1.375%, 01/10/18 (a)

     200,000        200,406   

2.625%, 01/10/23 (a)

     400,000        392,443   

4.250%, 01/11/21

     150,000        161,887   
   

 

 

  
      13,183,507   
   

 

 

  

Auto Parts & Equipment—0.0%

  

Johnson Controls, Inc.
2.600%, 12/01/16

     75,000        75,736   

3.625%, 07/02/24

     98,000        94,607   

4.950%, 07/02/64

     50,000        40,612   

5.500%, 01/15/16

     135,000        135,146   
   

 

 

  
      346,101   
   

 

 

  

Banks—5.4%

  

ABN AMRO Bank NV
2.450%, 06/04/20 (144A)

     730,000        723,731   

2.500%, 10/30/18 (144A)

     350,000        352,228   

4.750%, 07/28/25 (144A)

     200,000        199,340   

American Express Bank FSB
0.617%, 06/12/17 (c)

     500,000        496,926   

American Express Centurion Bank
6.000%, 09/13/17

     250,000        267,785   

Bank of America Corp.
2.625%, 10/19/20

     1,775,000        1,752,672   

3.300%, 01/11/23

     205,000        201,787   

3.875%, 03/22/17

     485,000        495,604   

3.875%, 08/01/25

     675,000        685,211   

3.950%, 04/21/25

     1,260,000        1,226,949   

4.000%, 04/01/24

     486,000        497,039   

4.100%, 07/24/23

     326,000        337,072   

4.125%, 01/22/24

     500,000        516,425   

4.250%, 10/22/26

     527,000        521,643   

5.000%, 01/21/44

     550,000        574,030   

5.625%, 10/14/16

     800,000        825,326   

6.400%, 08/28/17

     275,000        294,579   

7.625%, 06/01/19

     250,000        289,580   

Bank of America N.A.
0.792%, 06/15/16 (c)

     250,000        249,884   

1.650%, 03/26/18

     255,000        253,082   

1.750%, 06/05/18

     1,090,000        1,082,992   

 

§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 December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Banks—(Continued)

  

Bank of America N.A.
2.050%, 12/07/18

     430,000      $ 428,762   

5.300%, 03/15/17

     1,400,000        1,456,385   

Bank of Montreal
1.400%, 09/11/17

     94,000        93,962   

2.375%, 01/25/19

     210,000        211,767   

2.550%, 11/06/22

     213,000        210,342   

Bank of New York Mellon Corp. (The)
1.969%, 06/20/17 (d)

     500,000        502,721   

2.600%, 08/17/20

     570,000        572,252   

3.550%, 09/23/21

     352,000        369,247   

4.600%, 01/15/20

     200,000        216,647   

4.950%, 06/20/20 (c)

     630,000        617,400   

Bank of Nova Scotia (The)
1.250%, 04/11/17

     650,000        648,854   

Bank of Tokyo-Mitsubishi UFJ, Ltd. (The) 1.700%, 03/05/18 (144A)

     535,000        530,547   

Banque Federative du Credit Mutuel S.A.
1.700%, 01/20/17 (144A)

     234,000        234,472   

2.750%, 10/15/20 (144A) (a)

     615,000        617,444   

Barclays Bank plc
2.500%, 02/20/19

     270,000        270,611   

3.750%, 05/15/24

     211,000        215,067   

6.050%, 12/04/17 (144A)

     460,000        490,666   

Barclays plc
2.000%, 03/16/18

     575,000        571,568   

5.250%, 08/17/45

     326,000        328,375   

BB&T Corp.
2.050%, 06/19/18

     139,000        139,790   

2.150%, 03/22/17

     350,000        352,699   

3.950%, 03/22/22

     175,000        182,816   

BNP Paribas S.A.
2.700%, 08/20/18

     262,000        265,757   

BPCE S.A.
4.000%, 04/15/24

     500,000        513,702   

4.500%, 03/15/25 (144A)

     200,000        191,859   

5.700%, 10/22/23 (144A)

     200,000        209,989   

Branch Banking & Trust Co.
0.822%, 09/13/16 (c)

     250,000        249,450   

2.850%, 04/01/21

     610,000        616,413   

3.625%, 09/16/25

     680,000        686,395   

Canadian Imperial Bank of Commerce
1.550%, 01/23/18

     400,000        398,253   

Capital One Financial Corp.
4.200%, 10/29/25

     100,000        98,735   

Capital One N.A.
1.500%, 03/22/18

     500,000        491,707   

Citigroup, Inc.
2.150%, 07/30/18

     181,000        180,866   

2.500%, 09/26/18

     825,000        832,165   

2.500%, 07/29/19

     215,000        214,676   

3.300%, 04/27/25

     605,000        594,166   

3.750%, 06/16/24

     165,000        167,962   

4.300%, 11/20/26

     435,000        432,853   

4.400%, 06/10/25

     695,000        701,956   

4.450%, 09/29/27

     935,000        928,809   

Banks—(Continued)

  

Citigroup, Inc.
4.500%, 01/14/22

     1,000,000      1,071,065   

4.950%, 11/07/43

     285,000        299,470   

5.500%, 09/13/25

     101,000        109,635   

6.625%, 01/15/28

     2,400,000        2,918,837   

Comerica Bank
5.200%, 08/22/17

     250,000        262,270   

5.750%, 11/21/16

     376,000        389,465   

Comerica, Inc.
3.800%, 07/22/26

     172,000        169,375   

Cooperatieve Centrale Raiffeisen-Boerenleenbank BA
3.875%, 02/08/22

     350,000        369,384   

3.950%, 11/09/22

     500,000        506,112   

4.375%, 08/04/25

     477,000        485,134   

5.250%, 08/04/45

     255,000        267,212   

Credit Agricole S.A.
2.750%, 06/10/20 (144A)

     640,000        643,433   

8.125%, 09/19/33 (144A) (c)

     400,000        440,851   

Credit Suisse AG
1.750%, 01/29/18

     975,000        972,261   

3.625%, 09/09/24

     1,780,000        1,793,998   

6.500%, 08/08/23 (144A)

     200,000        215,500   

Credit Suisse Group Funding Guernsey, Ltd.
3.125%, 12/10/20 (144A)

     630,000        627,139   

4.875%, 05/15/45 (144A)

     250,000        246,522   

Danske Bank A/S
2.750%, 09/17/20 (144A)

     360,000        361,954   

Deutsche Bank AG
1.875%, 02/13/18

     285,000        282,577   

2.950%, 08/20/20

     610,000        610,902   

3.700%, 05/30/24

     133,000        132,465   

Discover Bank
2.000%, 02/21/18

     700,000        695,267   

3.100%, 06/04/20

     895,000        897,031   

3.200%, 08/09/21

     295,000        292,982   

4.250%, 03/13/26

     340,000        342,287   

Fifth Third Bancorp
3.625%, 01/25/16

     155,000        155,274   

8.250%, 03/01/38

     50,000        69,622   

Fifth Third Bank
0.900%, 02/26/16

     750,000        749,999   

1.350%, 06/01/17

     540,000        538,488   

Goldman Sachs Group, Inc. (The)
2.375%, 01/22/18

     1,230,000        1,240,627   

2.550%, 10/23/19

     935,000        934,634   

2.600%, 04/23/20

     131,000        130,005   

2.625%, 01/31/19

     95,000        95,679   

2.750%, 09/15/20 (a)

     625,000        624,589   

2.900%, 07/19/18

     509,000        518,949   

3.500%, 01/23/25

     366,000        359,710   

3.625%, 01/22/23

     630,000        637,154   

3.750%, 05/22/25

     530,000        533,534   

3.850%, 07/08/24

     362,000        369,407   

4.000%, 03/03/24

     530,000        543,981   

4.250%, 10/21/25

     27,000        26,794   

 

§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 December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Banks—(Continued)

  

Goldman Sachs Group, Inc. (The)
4.750%, 10/21/45

     190,000      $ 188,742   

5.150%, 05/22/45

     865,000        840,249   

5.250%, 07/27/21

     800,000        884,496   

5.950%, 01/18/18

     490,000        527,719   

6.125%, 02/15/33

     1,000,000        1,171,435   

6.150%, 04/01/18

     510,000        553,817   

HSBC Bank plc
1.500%, 05/15/18 (144A)

     564,000        557,802   

4.125%, 08/12/20 (144A)

     160,000        170,380   

HSBC Bank USA N.A.
4.875%, 08/24/20

     500,000        545,874   

5.875%, 11/01/34

     1,500,000        1,738,132   

HSBC USA, Inc.
1.625%, 01/16/18

     300,000        298,514   

2.350%, 03/05/20

     545,000        538,664   

2.375%, 11/13/19

     795,000        791,667   

2.750%, 08/07/20

     1,360,000        1,360,136   

Huntington National Bank (The)
2.200%, 11/06/18

     520,000        518,563   

Intesa Sanpaolo S.p.A.
5.250%, 01/12/24

     455,000        486,980   

KeyBank N.A.
1.650%, 02/01/18

     500,000        498,294   

KeyCorp
5.100%, 03/24/21

     200,000        218,589   

Lloyds Bank plc
2.700%, 08/17/20

     635,000        639,487   

Lloyds Banking Group plc
4.500%, 11/04/24 (a)

     500,000        507,564   

Macquarie Bank, Ltd.
4.000%, 07/29/25 (144A)

     400,000        405,264   

5.000%, 02/22/17 (144A)

     622,000        643,307   

Mizuho Bank, Ltd.
1.300%, 04/16/17 (144A)

     200,000        199,017   

2.450%, 04/16/19 (144A)

     200,000        200,089   

2.700%, 10/20/20 (144A)

     580,000        579,475   

Morgan Stanley
2.375%, 07/23/19

     375,000        373,743   

2.500%, 01/24/19

     641,000        644,499   

2.650%, 01/27/20

     15,000        14,959   

2.800%, 06/16/20

     370,000        371,177   

3.700%, 10/23/24

     315,000        316,515   

3.750%, 02/25/23

     367,000        375,906   

3.875%, 04/29/24

     725,000        739,050   

3.950%, 04/23/27

     635,000        616,318   

4.000%, 07/23/25

     465,000        478,845   

4.300%, 01/27/45

     400,000        381,643   

4.350%, 09/08/26

     1,235,000        1,239,037   

5.500%, 01/26/20

     100,000        110,091   

5.550%, 04/27/17

     650,000        682,007   

5.625%, 09/23/19

     1,100,000        1,213,959   

6.250%, 08/09/26

     875,000        1,024,413   

MUFG Union Bank N.A.
2.250%, 05/06/19

     415,000        414,246   

2.625%, 09/26/18

     400,000        403,840   

Banks—(Continued)

  

National City Bank
5.800%, 06/07/17

     500,000      527,139   

National City Bank of Indiana
4.250%, 07/01/18

     250,000        261,981   

Northern Trust Corp.
3.375%, 08/23/21

     500,000        519,082   

PNC Bank N.A.
4.200%, 11/01/25

     250,000        265,101   

6.875%, 04/01/18

     350,000        383,552   

PNC Financial Services Group, Inc. (The)
4.850%, 06/01/23 (c)

     320,000        300,042   

Royal Bank of Canada
1.500%, 01/16/18

     460,000        457,514   

2.000%, 12/10/18

     665,000        664,433   

2.200%, 07/27/18

     750,000        756,056   

Santander UK Group Holdings plc
5.625%, 09/15/45 (144A)

     260,000        259,740   

Santander UK plc
5.000%, 11/07/23 (144A)

     475,000        494,452   

Skandinaviska Enskilda Banken AB
1.750%, 03/19/18 (144A)

     445,000        442,646   

2.375%, 11/20/18 (144A)

     400,000        402,285   

2.450%, 05/27/20 (144A)

     535,000        531,436   

2.625%, 11/17/20 (144A)

     320,000        318,989   

Societe Generale S.A.
5.625%, 11/24/45 (144A)

     200,000        191,620   

Standard Chartered plc
5.200%, 01/26/24 (144A) (a)

     350,000        359,848   

State Street Bank and Trust Co.
5.250%, 10/15/18

     215,000        233,295   

State Street Corp.
2.550%, 08/18/20

     71,000        71,884   

3.100%, 05/15/23

     90,000        88,938   

3.300%, 12/16/24

     136,000        137,284   

3.550%, 08/18/25

     115,000        118,614   

3.700%, 11/20/23

     369,000        383,953   

5.250%, 09/15/20 (c)

     405,000        405,506   

SunTrust Banks, Inc.
2.350%, 11/01/18

     113,000        113,591   

2.750%, 05/01/23

     300,000        286,869   

6.000%, 09/11/17

     150,000        159,337   

Svenska Handelsbanken AB
2.400%, 10/01/20

     950,000        942,943   

Swedbank AB
1.750%, 03/12/18 (144A)

     875,000        870,022   

Toronto-Dominion Bank (The)
1.400%, 04/30/18 (a)

     348,000        345,094   

2.500%, 12/14/20

     870,000        869,647   

U.S. Bancorp
2.200%, 11/15/16

     175,000        176,687   

5.125%, 01/15/21 (c)

     575,000        577,703   

UBS AG
1.800%, 03/26/18

     940,000        938,426   

2.375%, 08/14/19

     1,150,000        1,148,655   

Wachovia Corp.
6.605%, 10/01/25

     222,000        263,449   

 

§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 December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Banks—(Continued)

  

Wells Fargo & Co.
2.150%, 01/30/20

     415,000      $ 411,364   

2.550%, 12/07/20

     320,000        318,427   

3.450%, 02/13/23

     900,000        902,120   

3.550%, 09/29/25

     805,000        812,241   

4.100%, 06/03/26

     161,000        162,512   

4.300%, 07/22/27

     542,000        553,671   

4.480%, 01/16/24

     55,000        57,847   

4.650%, 11/04/44

     2,015,000        1,960,349   

4.900%, 11/17/45

     424,000        427,781   

5.375%, 11/02/43

     350,000        374,587   

5.625%, 12/11/17

     700,000        750,988   

Westpac Banking Corp.
2.600%, 11/23/20

     815,000        818,182   

4.875%, 11/19/19

     400,000        435,708   
   

 

 

  
      99,531,660   
   

 

 

  

Beverages—0.5%

    

Anheuser-Busch Cos. LLC
5.750%, 04/01/36

     60,000        65,118   

5.950%, 01/15/33

     100,000        111,450   

6.750%, 12/15/27

     65,000        82,337   

6.800%, 08/20/32

     420,000        508,468   

Anheuser-Busch InBev Finance, Inc.
2.625%, 01/17/23

     237,000        227,443   

3.700%, 02/01/24

     65,000        66,314   

Anheuser-Busch InBev Worldwide, Inc.
2.500%, 07/15/22

     395,000        380,023   

5.375%, 01/15/20

     830,000        918,442   

6.375%, 01/15/40

     300,000        358,449   

8.000%, 11/15/39

     50,000        69,640   

Bottling Group LLC
5.125%, 01/15/19

     250,000        273,816   

Brown-Forman Corp.
1.000%, 01/15/18

     122,000        120,363   

4.500%, 07/15/45

     113,000        116,862   

Coca-Cola Co. (The)
1.875%, 10/27/20

     800,000        791,806   

7.375%, 07/29/93

     100,000        139,011   

Coca-Cola Refreshments USA, Inc.
7.000%, 05/15/98

     100,000        128,428   

8.000%, 09/15/22

     324,000        412,810   

Diageo Capital plc
4.828%, 07/15/20

     250,000        272,998   

4.850%, 05/15/18

     46,000        48,874   

Diageo Investment Corp.
2.875%, 05/11/22

     200,000        198,237   

7.450%, 04/15/35

     70,000        93,976   

Dr Pepper Snapple Group, Inc.
2.000%, 01/15/20

     92,000        89,899   

Heineken NV
4.000%, 10/01/42 (144A)

     575,000        511,804   

PepsiCo, Inc.
2.250%, 01/07/19

     319,000        323,285   

3.100%, 07/17/22

     741,000        760,571   

Beverages—(Continued)

    

PepsiCo, Inc.
4.450%, 04/14/46

     94,000      97,098   

4.500%, 01/15/20

     276,000        299,759   

4.600%, 07/17/45

     275,000        290,989   

5.500%, 01/15/40

     150,000        175,857   

SABMiller plc
6.500%, 07/15/18 (144A)

     250,000        275,827   

6.625%, 08/15/33 (144A)

     150,000        178,218   
   

 

 

  
      8,388,172   
   

 

 

  

Biotechnology—0.5%

    

Amgen, Inc.
3.125%, 05/01/25

     675,000        641,229   

3.625%, 05/22/24

     315,000        314,882   

3.875%, 11/15/21

     575,000        599,078   

4.400%, 05/01/45

     230,000        213,100   

5.150%, 11/15/41

     75,000        76,143   

5.375%, 05/15/43

     158,000        167,861   

6.375%, 06/01/37

     500,000        582,274   

6.400%, 02/01/39

     100,000        118,619   

6.900%, 06/01/38

     100,000        124,269   

Biogen, Inc.
2.900%, 09/15/20

     207,000        206,456   

3.625%, 09/15/22

     340,000        343,766   

5.200%, 09/15/45

     265,000        265,100   

Celgene Corp.
2.300%, 08/15/18

     315,000        317,194   

2.875%, 08/15/20

     120,000        119,095   

3.250%, 08/15/22

     174,000        172,621   

3.550%, 08/15/22

     145,000        146,410   

3.875%, 08/15/25

     315,000        313,724   

4.000%, 08/15/23

     800,000        820,839   

5.000%, 08/15/45

     206,000        206,801   

Gilead Sciences, Inc.
3.250%, 09/01/22

     498,000        501,451   

3.500%, 02/01/25

     230,000        231,918   

3.650%, 03/01/26

     310,000        312,628   

3.700%, 04/01/24

     1,200,000        1,229,183   

4.400%, 12/01/21

     125,000        135,015   

4.500%, 04/01/21

     100,000        108,194   

4.500%, 02/01/45

     175,000        171,179   

4.600%, 09/01/35

     268,000        272,511   

4.750%, 03/01/46

     160,000        161,924   

4.800%, 04/01/44

     60,000        60,236   
   

 

 

  
      8,933,700   
   

 

 

  

Building Materials—0.0%

  

CRH America, Inc.
3.875%, 05/18/25 (144A)

     334,000        331,670   
   

 

 

  

Chemicals—0.3%

    

Agrium, Inc.
3.375%, 03/15/25

     390,000        355,819   

CF Industries, Inc.
4.950%, 06/01/43

     65,000        55,268   

 

§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 December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Chemicals—(Continued)

    

Dow Chemical Co. (The)
3.000%, 11/15/22

     54,000      $ 51,695   

4.125%, 11/15/21 (a)

     55,000        57,662   

8.550%, 05/15/19

     45,000        53,039   

E.I. du Pont de Nemours & Co.
6.500%, 01/15/28

     40,000        44,605   

Ecolab, Inc.
1.450%, 12/08/17

     70,000        69,337   

4.350%, 12/08/21

     290,000        309,653   

LYB International Finance B.V.
4.875%, 03/15/44

     435,000        397,239   

Monsanto Co.
1.150%, 06/30/17

     325,000        322,641   

Mosaic Co. (The)
4.250%, 11/15/23

     177,000        175,305   

4.875%, 11/15/41

     100,000        87,043   

Mosaic Global Holdings, Inc.
7.300%, 01/15/28

     23,000        27,626   

7.375%, 08/01/18

     800,000        866,920   

Potash Corp. of Saskatchewan, Inc.
5.875%, 12/01/36

     400,000        435,756   

PPG Industries, Inc.
3.600%, 11/15/20

     155,000        159,181   

Praxair, Inc.
2.200%, 08/15/22

     30,000        28,673   

2.450%, 02/15/22

     300,000        293,077   

Union Carbide Corp.
7.500%, 06/01/25

     701,000        833,712   

7.750%, 10/01/96

     100,000        119,528   

7.875%, 04/01/23

     30,000        36,477   
   

 

 

  
      4,780,256   
   

 

 

  

Commercial Services—0.1%

  

ADT Corp. (The)
3.500%, 07/15/22 (a)

     423,000        378,585   

4.875%, 07/15/42

     200,000        143,000   

California Institute of Technology
4.700%, 11/01/2111

     165,000        158,714   

ERAC USA Finance LLC
1.400%, 04/15/16 (144A)

     11,000        10,995   

3.300%, 10/15/22 (144A)

     100,000        98,379   

6.700%, 06/01/34 (144A)

     500,000        589,733   

University of Pennsylvania
4.674%, 09/01/2112

     254,000        255,037   
   

 

 

  
      1,634,443   
   

 

 

  

Computers—0.3%

    

Apple, Inc.
0.584%, 05/03/18 (c)

     305,000        304,361   

2.150%, 02/09/22

     695,000        674,585   

2.700%, 05/13/22

     230,000        230,615   

2.850%, 05/06/21

     1,362,000        1,394,824   

3.450%, 02/09/45

     545,000        469,222   

3.850%, 05/04/43

     543,000        500,273   

4.375%, 05/13/45

     320,000        323,108   

Computers—(Continued)

    

HP Enterprise Services LLC
7.450%, 10/15/29

     138,000      160,053   

International Business Machines Corp.
1.625%, 05/15/20

     105,000        102,391   

1.875%, 05/15/19 (a)

     1,020,000        1,018,729   

3.625%, 02/12/24

     105,000        108,089   

7.625%, 10/15/18

     300,000        345,810   
   

 

 

  
      5,632,060   
   

 

 

  

Cosmetics/Personal Care—0.1%

  

Procter & Gamble Co. (The)
1.900%, 11/01/19

     288,000        289,845   

5.500%, 02/01/34

     117,000        139,789   

5.800%, 08/15/34

     300,000        362,847   

8.000%, 10/26/29

     160,000        227,685   
   

 

 

  
      1,020,166   
   

 

 

  

Distribution/Wholesale—0.0%

    

WW Grainger, Inc.
4.600%, 06/15/45

     157,000        164,381   
   

 

 

  

Diversified Financial Services—0.8%

    

AIG Global Funding
1.650%, 12/15/17 (144A)

     310,000        308,442   

Air Lease Corp.
2.625%, 09/04/18

     495,000        489,288   

American Express Co.
1.550%, 05/22/18

     158,000        156,766   

3.625%, 12/05/24

     475,000        464,873   

7.000%, 03/19/18

     250,000        277,248   

BlackRock, Inc.
3.375%, 06/01/22

     55,000        56,897   

3.500%, 03/18/24 (a)

     45,000        46,206   

6.250%, 09/15/17

     250,000        270,165   

Blackstone Holdings Finance Co. LLC
4.450%, 07/15/45 (144A)

     66,000        61,946   

5.875%, 03/15/21 (144A) (a)

     250,000        285,931   

Capital One Bank USA N.A.
2.250%, 02/13/19

     435,000        433,088   

3.375%, 02/15/23

     1,485,000        1,453,187   

Charles Schwab Corp. (The)
4.450%, 07/22/20

     400,000        435,350   

CME Group, Inc.
3.000%, 09/15/22

     300,000        301,936   

GE Capital International Funding Co.
0.964%, 04/15/16 (144A)

     1,305,000        1,305,589   

2.342%, 11/15/20 (144A)

     1,656,000        1,642,189   

4.418%, 11/15/35 (144A)

     987,000        1,007,216   

General Electric Capital Corp.
1.600%, 11/20/17

     350,000        352,274   

2.100%, 12/11/19

     35,000        34,996   

4.375%, 09/16/20

     149,000        161,751   

5.500%, 01/08/20

     430,000        482,276   

6.750%, 03/15/32

     287,000        374,996   

 

§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 December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Diversified Financial Services—(Continued)

  

HSBC Finance Corp.
0.844%, 06/01/16 (c)

     100,000      $ 99,821   

Intercontinental Exchange, Inc.
4.000%, 10/15/23

     118,000        121,531   

Invesco Finance plc
3.750%, 01/15/26

     97,000        97,688   

5.375%, 11/30/43

     75,000        82,160   

Jefferies Group LLC
5.125%, 04/13/18

     75,000        78,005   

6.875%, 04/15/21

     375,000        419,505   

National Rural Utilities Cooperative Finance Corp.
2.300%, 11/01/20

     185,000        183,208   

2.850%, 01/27/25

     340,000        331,019   

8.000%, 03/01/32

     400,000        550,826   

10.375%, 11/01/18

     40,000        48,800   

Synchrony Financial
2.700%, 02/03/20

     125,000        122,603   

3.750%, 08/15/21

     1,067,000        1,065,833   

4.250%, 08/15/24

     155,000        152,902   

Visa, Inc.
2.800%, 12/14/22

     265,000        266,095   

3.150%, 12/14/25

     235,000        235,290   

4.150%, 12/14/35

     300,000        302,873   

4.300%, 12/14/45

     465,000        471,770   
   

 

 

  
      15,032,539   
   

 

 

  

Electric—1.9%

    

Alabama Power Co.
3.750%, 03/01/45

     235,000        211,134   

4.150%, 08/15/44

     35,000        33,294   

5.500%, 10/15/17

     147,000        155,833   

5.700%, 02/15/33

     150,000        172,960   

American Electric Power Co., Inc.
1.650%, 12/15/17

     119,000        118,119   

Appalachian Power Co.
5.800%, 10/01/35

     150,000        165,997   

Arizona Public Service Co.
8.750%, 03/01/19

     165,000        195,939   

Atlantic City Electric Co.
7.750%, 11/15/18

     135,000        155,835   

Baltimore Gas & Electric Co.
2.800%, 08/15/22

     143,000        141,618   

3.350%, 07/01/23

     460,000        465,608   

Berkshire Hathaway Energy Co.
3.500%, 02/01/25

     670,000        664,394   

4.500%, 02/01/45

     195,000        187,354   

CenterPoint Energy Houston Electric LLC
5.600%, 07/01/23

     381,000        438,430   

6.950%, 03/15/33

     100,000        131,706   

Cleveland Electric Illuminating Co. (The)
5.500%, 08/15/24

     187,000        210,570   

7.880%, 11/01/17

     315,000        346,603   

CMS Energy Corp.
3.875%, 03/01/24

     138,000        140,088   

Electric—(Continued)

    

Commonwealth Edison Co.
4.350%, 11/15/45

     380,000      382,498   

4.600%, 08/15/43

     250,000        258,971   

5.875%, 02/01/33

     150,000        178,719   

6.450%, 01/15/38

     175,000        223,398   

Consolidated Edison Co. of New York, Inc.
3.950%, 03/01/43

     300,000        277,090   

4.500%, 12/01/45

     560,000        566,876   

4.625%, 12/01/54

     175,000        172,191   

5.700%, 12/01/36

     300,000        345,428   

5.850%, 04/01/18

     180,000        194,632   

Consumers Energy Co.
3.125%, 08/31/24

     300,000        299,449   

3.950%, 05/15/43

     200,000        193,570   

5.650%, 04/15/20

     350,000        394,638   

Dominion Resources, Inc.
3.625%, 12/01/24

     260,000        257,504   

3.900%, 10/01/25

     375,000        375,390   

4.450%, 03/15/21

     411,000        434,917   

4.700%, 12/01/44

     365,000        355,601   

5.250%, 08/01/33

     400,000        415,547   

DTE Electric Co.
3.375%, 03/01/25

     250,000        255,320   

5.450%, 02/15/35

     30,000        33,726   

5.700%, 10/01/37

     250,000        299,470   

DTE Energy Co.
3.850%, 12/01/23

     137,000        140,775   

Duke Energy Carolinas LLC
4.300%, 06/15/20

     538,000        582,302   

6.000%, 12/01/28

     200,000        239,856   

6.000%, 01/15/38

     60,000        74,022   

Duke Energy Corp.
0.992%, 04/03/17 (c)

     108,000        107,641   

3.050%, 08/15/22

     415,000        409,185   

3.750%, 04/15/24

     1,055,000        1,068,924   

6.250%, 06/15/18 (a)

     375,000        411,520   

Duke Energy Progress LLC
4.150%, 12/01/44

     305,000        297,970   

6.125%, 09/15/33

     500,000        601,041   

Electricite de France S.A.
2.150%, 01/22/19 (144A)

     240,000        238,862   

4.875%, 01/22/44 (144A)

     165,000        157,766   

Entergy Arkansas, Inc.
3.050%, 06/01/23 (a)

     311,000        305,661   

Entergy Corp.
4.000%, 07/15/22

     270,000        275,448   

Exelon Corp.
1.550%, 06/09/17

     305,000        303,714   

Exelon Generation Co. LLC
2.950%, 01/15/20

     260,000        259,065   

FirstEnergy Solutions Corp.
6.800%, 08/15/39

     180,000        169,835   

Florida Power & Light Co.
3.125%, 12/01/25

     695,000        696,266   

4.050%, 10/01/44

     190,000        188,011   

4.950%, 06/01/35

     300,000        329,395   

5.625%, 04/01/34

     110,000        130,929   

 

§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 December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Electric—(Continued)

    

Georgia Power Co.
5.400%, 06/01/40

     120,000      $ 126,455   

Indiana Michigan Power Co.
3.200%, 03/15/23

     250,000        246,471   

ITC Holdings Corp.
3.650%, 06/15/24

     285,000        280,734   

Jersey Central Power & Light Co.
4.300%, 01/15/26 (144A)

     505,000        508,090   

6.150%, 06/01/37 (a)

     100,000        106,570   

Kansas City Power & Light Co.
3.150%, 03/15/23

     100,000        98,001   

6.375%, 03/01/18

     150,000        163,916   

7.150%, 04/01/19

     250,000        288,127   

Kentucky Utilities Co.
3.300%, 10/01/25 (a)

     340,000        342,605   

4.375%, 10/01/45

     135,000        138,749   

Louisville Gas & Electric Co.
4.375%, 10/01/45

     65,000        66,409   

5.125%, 11/15/40

     125,000        139,670   

Metropolitan Edison Co.
3.500%, 03/15/23 (144A)

     220,000        216,047   

4.000%, 04/15/25 (144A)

     230,000        227,702   

MidAmerican Energy Co.
3.700%, 09/15/23

     300,000        311,900   

Mississippi Power Co.
4.250%, 03/15/42

     101,000        77,208   

Nevada Power Co.
6.500%, 08/01/18

     425,000        471,659   

6.650%, 04/01/36

     150,000        189,443   

NextEra Energy Capital Holdings, Inc.
2.400%, 09/15/19

     159,000        156,654   

Niagara Mohawk Power Corp.
4.278%, 10/01/34 (144A)

     264,000        259,208   

Nisource Finance Corp.
4.800%, 02/15/44

     455,000        462,456   

5.450%, 09/15/20

     1,075,000        1,178,447   

6.250%, 12/15/40

     75,000        88,767   

6.800%, 01/15/19

     227,000        254,658   

Northern States Power Co.
2.150%, 08/15/22

     500,000        482,230   

Oglethorpe Power Corp.
4.550%, 06/01/44

     60,000        56,857   

5.375%, 11/01/40

     115,000        123,368   

Oklahoma Gas & Electric Co.
4.550%, 03/15/44

     170,000        173,309   

Oncor Electric Delivery Co. LLC
2.150%, 06/01/19

     240,000        236,138   

2.950%, 04/01/25

     30,000        28,186   

Pacific Gas & Electric Co.
2.450%, 08/15/22

     91,000        87,962   

3.250%, 06/15/23

     300,000        300,711   

3.400%, 08/15/24

     595,000        597,167   

3.500%, 06/15/25

     305,000        308,385   

4.250%, 03/15/46

     205,000        198,643   

4.300%, 03/15/45

     195,000        192,366   

4.750%, 02/15/44

     140,000        145,480   

5.800%, 03/01/37

     255,000        296,485   

6.050%, 03/01/34

     250,000        294,560   

Electric—(Continued)

    

PacifiCorp
2.950%, 02/01/22

     570,000      574,232   

5.500%, 01/15/19

     65,000        71,336   

5.900%, 08/15/34

     15,000        17,211   

6.100%, 08/01/36

     116,000        141,049   

6.250%, 10/15/37

     260,000        321,611   

7.700%, 11/15/31

     40,000        54,726   

Peco Energy Co.
2.375%, 09/15/22

     250,000        242,194   

5.350%, 03/01/18

     530,000        569,476   

PPL Capital Funding, Inc.
6.700%, 03/30/67 (c)

     305,000        235,613   

PPL Electric Utilities Corp.
2.500%, 09/01/22

     86,000        84,090   

4.750%, 07/15/43

     42,000        45,309   

Progress Energy, Inc.
7.000%, 10/30/31

     325,000        400,167   

PSEG Power LLC
4.150%, 09/15/21

     110,000        111,903   

4.300%, 11/15/23 (a)

     74,000        72,631   

5.320%, 09/15/16

     45,000        46,235   

Public Service Co. of Colorado
2.250%, 09/15/22

     47,000        45,304   

3.950%, 03/15/43

     200,000        194,757   

5.125%, 06/01/19

     150,000        164,704   

5.800%, 08/01/18

     130,000        142,099   

Public Service Co. of New Hampshire
3.500%, 11/01/23

     55,000        56,351   

6.000%, 05/01/18

     410,000        444,132   

Public Service Co. of Oklahoma
5.150%, 12/01/19

     50,000        54,677   

6.625%, 11/15/37

     100,000        120,404   

Public Service Electric & Gas Co.
3.650%, 09/01/42

     56,000        51,690   

Puget Sound Energy, Inc.
4.300%, 05/20/45

     175,000        177,251   

6.974%, 06/01/67 (c)

     450,000        365,625   

San Diego Gas & Electric Co.
5.350%, 05/15/35

     100,000        114,831   

6.000%, 06/01/26

     100,000        122,942   

Sierra Pacific Power Co.
6.750%, 07/01/37

     150,000        184,850   

South Carolina Electric & Gas Co.
4.500%, 06/01/64

     19,000        17,689   

Southern California Edison Co.
2.400%, 02/01/22

     715,000        701,140   

3.500%, 10/01/23

     239,000        246,579   

3.600%, 02/01/45

     180,000        163,018   

4.650%, 10/01/43

     200,000        211,127   

Southern Power Co.
1.850%, 12/01/17

     173,000        172,925   

5.150%, 09/15/41

     235,000        217,429   

5.250%, 07/15/43

     140,000        133,587   

Southwestern Electric Power Co.
3.900%, 04/01/45

     340,000        297,713   

 

§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 December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Electric—(Continued)

    

TECO Finance, Inc.
6.572%, 11/01/17

     150,000      $ 161,627   

Toledo Edison Co. (The)
6.150%, 05/15/37

     250,000        281,410   

7.250%, 05/01/20

     15,000        17,214   

Trans-Allegheny Interstate Line Co.
3.850%, 06/01/25 (144A)

     300,000        300,022   

Tri-State Generation & Transmission Association, Inc.
4.700%, 11/01/44

     150,000        150,108   

Virginia Electric & Power Co.
1.200%, 01/15/18

     33,000        32,672   

3.450%, 02/15/24

     122,000        124,551   

Xcel Energy, Inc.
0.750%, 05/09/16

     95,000        94,916   

3.300%, 06/01/25

     215,000        210,178   

4.700%, 05/15/20

     245,000        263,314   
   

 

 

  
      35,785,017   
   

 

 

  

Electrical Components & Equipment—0.0%

  

Emerson Electric Co.
5.250%, 10/15/18

     375,000        408,437   

6.000%, 08/15/32

     70,000        83,228   
   

 

 

  
      491,665   
   

 

 

  

Electronics—0.1%

  

Arrow Electronics, Inc.
3.000%, 03/01/18

     26,000        25,979   

7.500%, 01/15/27

     661,000        778,971   

Honeywell International, Inc.
5.300%, 03/15/17

     105,000        110,078   

Koninklijke Philips NV
3.750%, 03/15/22

     100,000        102,654   

6.875%, 03/11/38

     100,000        115,939   
   

 

 

  
      1,133,621   
   

 

 

  

Engineering & Construction—0.0%

  

ABB Finance USA, Inc.
2.875%, 05/08/22

     100,000        98,558   
   

 

 

  

Environmental Control—0.1%

  

Republic Services, Inc.
5.500%, 09/15/19

     600,000        660,123   

6.086%, 03/15/35

     230,000        269,129   

Waste Management, Inc.
2.900%, 09/15/22

     354,000        347,436   

3.900%, 03/01/35

     42,000        39,110   
   

 

 

  
      1,315,798   
   

 

 

  

Food—0.3%

  

ConAgra Foods, Inc.
2.100%, 03/15/18

     21,000        20,936   

3.250%, 09/15/22

     200,000        193,033   

6.625%, 08/15/39

     125,000        134,689   

7.125%, 10/01/26

     40,000        47,531   

Food—(Continued)

  

General Mills, Inc.
3.150%, 12/15/21

     244,000      244,182   

5.650%, 02/15/19

     500,000        548,754   

Kellogg Co.
4.000%, 12/15/20

     64,000        67,288   

7.450%, 04/01/31

     500,000        635,735   

Kraft Foods Group, Inc.
5.000%, 06/04/42

     130,000        130,896   

6.125%, 08/23/18

     590,000        647,785   

6.875%, 01/26/39

     300,000        355,560   

Kraft Heinz Foods Co.
3.950%, 07/15/25 (144A)

     523,000        527,869   

5.200%, 07/15/45 (144A)

     624,000        652,023   

Kroger Co. (The)
2.300%, 01/15/19

     70,000        70,183   

3.850%, 08/01/23

     235,000        242,285   

6.400%, 08/15/17

     100,000        107,382   

7.700%, 06/01/29

     110,000        144,256   

8.000%, 09/15/29

     400,000        539,978   

Mondelez International, Inc.
4.000%, 02/01/24

     220,000        226,775   

Sysco Corp.
3.750%, 10/01/25

     83,000        84,138   

4.850%, 10/01/45 (a)

     73,000        75,948   

Tyson Foods, Inc.
2.650%, 08/15/19

     96,000        96,053   

4.875%, 08/15/34

     250,000        255,155   
   

 

 

  
      6,048,434   
   

 

 

  

Forest Products & Paper—0.0%

  

International Paper Co.
3.800%, 01/15/26

     565,000        556,663   
   

 

 

  

Gas—0.3%

  

AGL Capital Corp.
5.875%, 03/15/41

     147,000        161,182   

6.000%, 10/01/34

     250,000        275,795   

6.375%, 07/15/16

     450,000        461,709   

Atmos Energy Corp.
6.350%, 06/15/17 (a)

     355,000        378,197   

8.500%, 03/15/19

     350,000        410,193   

CenterPoint Energy Resources Corp.
5.850%, 01/15/41

     246,000        271,724   

Dominion Gas Holdings LLC
2.500%, 12/15/19

     160,000        159,827   

2.800%, 11/15/20

     433,000        434,416   

4.800%, 11/01/43

     765,000        731,631   

Sempra Energy
2.400%, 03/15/20

     120,000        117,611   

2.875%, 10/01/22

     580,000        561,252   

6.500%, 06/01/16

     350,000        356,357   

9.800%, 02/15/19

     200,000        242,017   
   

 

 

  
      4,561,911   
   

 

 

  

 

§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 December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Healthcare-Products—0.4%

  

Baxter International, Inc.
1.850%, 06/15/18

     57,000      $ 56,659   

4.500%, 08/15/19

     125,000        132,472   

Becton Dickinson & Co.
2.675%, 12/15/19

     386,000        388,101   

3.734%, 12/15/24

     165,000        166,407   

4.685%, 12/15/44

     300,000        302,673   

C.R. Bard, Inc.
1.375%, 01/15/18

     250,000        246,841   

Covidien International Finance S.A.
6.000%, 10/15/17

     200,000        215,437   

Medtronic, Inc.
3.150%, 03/15/22

     2,225,000        2,249,290   

3.500%, 03/15/25

     335,000        337,737   

4.375%, 03/15/35

     375,000        379,066   

4.625%, 03/15/45

     400,000        412,582   

Thermo Fisher Scientific, Inc.
1.300%, 02/01/17

     176,000        175,378   

1.850%, 01/15/18

     780,000        777,498   

4.150%, 02/01/24

     703,000        730,193   

Zimmer Biomet Holdings, Inc.
2.000%, 04/01/18

     525,000        521,765   
   

 

 

  
      7,092,099   
   

 

 

  

Healthcare-Services—0.4%

  

Aetna, Inc.
3.500%, 11/15/24

     250,000        249,550   

4.125%, 06/01/21

     916,000        958,560   

Anthem, Inc.
2.300%, 07/15/18

     510,000        509,038   

3.125%, 05/15/22

     100,000        98,143   

3.300%, 01/15/23

     35,000        34,014   

3.500%, 08/15/24

     165,000        161,103   

5.100%, 01/15/44

     460,000        461,813   

5.950%, 12/15/34

     700,000        778,833   

Cigna Corp.
4.000%, 02/15/22

     240,000        248,061   

5.125%, 06/15/20

     330,000        360,220   

Howard Hughes Medical Institute
3.500%, 09/01/23

     200,000        207,706   

Laboratory Corp. of America Holdings
3.200%, 02/01/22

     215,000        211,007   

Roche Holdings, Inc.
2.250%, 09/30/19 (144A)

     300,000        301,566   

UnitedHealth Group, Inc.
2.700%, 07/15/20

     130,000        131,362   

2.750%, 02/15/23

     46,000        45,090   

2.875%, 12/15/21

     400,000        405,548   

2.875%, 03/15/23

     300,000        296,812   

3.750%, 07/15/25

     205,000        211,330   

3.950%, 10/15/42

     250,000        232,690   

4.625%, 07/15/35

     155,000        160,908   

4.700%, 02/15/21

     64,000        70,038   

4.750%, 07/15/45

     35,000        36,865   

5.375%, 03/15/16

     77,000        77,665   

Healthcare-Services—(Continued)

  

UnitedHealth Group, Inc.
5.800%, 03/15/36

     225,000      265,498   

6.625%, 11/15/37

     175,000        223,084   
   

 

 

  
      6,736,504   
   

 

 

  

Holding Companies-Diversified—0.0%

  

Hutchison Whampoa International, Ltd.
2.000%, 11/08/17 (144A)

     200,000        199,914   

MUFG Americas Holdings Corp.
3.000%, 02/10/25

     145,000        138,820   
   

 

 

  
      338,734   
   

 

 

  

Home Furnishings—0.0%

  

Samsung Electronics America, Inc.
1.750%, 04/10/17 (144A)

     245,000        244,444   
   

 

 

  

Household Products/Wares—0.0%

  

Kimberly-Clark Corp.
5.300%, 03/01/41

     225,000        252,833   

6.125%, 08/01/17

     98,000        105,290   
   

 

 

  
      358,123   
   

 

 

  

Insurance—0.8%

  

ACE INA Holdings, Inc.
2.300%, 11/03/20

     200,000        198,562   

2.700%, 03/13/23

     200,000        195,367   

2.875%, 11/03/22

     110,000        109,165   

4.350%, 11/03/45

     190,000        193,065   

5.800%, 03/15/18

     401,000        435,253   

AIG SunAmerica Global Financing X
6.900%, 03/15/32 (144A)

     335,000        429,987   

Allstate Corp. (The)
3.150%, 06/15/23

     173,000        172,866   

American International Group, Inc.
3.875%, 01/15/35

     75,000        66,152   

4.500%, 07/16/44

     335,000        309,794   

4.700%, 07/10/35

     150,000        149,090   

4.800%, 07/10/45

     510,000        493,096   

Aon Corp.
3.125%, 05/27/16

     100,000        100,774   

5.000%, 09/30/20

     200,000        218,588   

Berkshire Hathaway Finance Corp.
1.300%, 05/15/18

     129,000        127,924   

3.000%, 05/15/22

     400,000        406,796   

4.300%, 05/15/43

     285,000        279,492   

Berkshire Hathaway, Inc.
4.500%, 02/11/43

     210,000        211,455   

CNA Financial Corp.
7.250%, 11/15/23

     153,000        180,835   

7.350%, 11/15/19

     245,000        282,075   

Liberty Mutual Group, Inc.
5.000%, 06/01/21 (144A)

     220,000        235,295   

Liberty Mutual Insurance Co.
8.500%, 05/15/25 (144A)

     500,000        621,091   

 

§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 December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Insurance—(Continued)

  

Lincoln National Corp.
6.250%, 02/15/20

     375,000      $ 421,375   

Massachusetts Mutual Life Insurance Co.
8.875%, 06/01/39 (144A)

     401,000        582,292   

MassMutual Global Funding II
2.000%, 04/05/17 (144A)

     250,000        251,733   

Nationwide Mutual Insurance Co.
7.875%, 04/01/33 (144A)

     200,000        257,059   

8.250%, 12/01/31 (144A)

     135,000        175,260   

9.375%, 08/15/39 (144A)

     138,000        200,298   

New York Life Global Funding
1.550%, 11/02/18 (144A)

     485,000        481,050   

2.150%, 06/18/19 (144A)

     365,000        364,708   

2.450%, 07/14/16 (144A)

     150,000        151,122   

New York Life Insurance Co.
5.875%, 05/15/33 (144A)

     400,000        467,869   

Pacific Life Insurance Co.
9.250%, 06/15/39 (144A)

     200,000        290,532   

Pricoa Global Funding I
1.600%, 05/29/18 (144A)

     617,000        610,196   

2.200%, 05/16/19 (144A)

     280,000        279,513   

2.550%, 11/24/20 (144A)

     280,000        278,668   

Principal Financial Group, Inc.
6.050%, 10/15/36

     100,000        115,639   

Principal Life Global Funding II
0.777%, 05/27/16 (144A) (c)

     500,000        500,203   

2.625%, 11/19/20 (144A)

     440,000        438,966   

Prudential Financial, Inc.
3.500%, 05/15/24

     550,000        552,285   

5.100%, 08/15/43

     200,000        208,420   

5.200%, 03/15/44 (c)

     445,000        429,647   

Prudential Insurance Co. of America (The)
8.300%, 07/01/25 (144A)

     800,000        1,020,490   

Reliance Standard Life Global Funding II
2.375%, 05/04/20 (144A)

     475,000        464,708   

Swiss Re Treasury U.S. Corp.
4.250%, 12/06/42 (144A)

     120,000        113,349   

Teachers Insurance & Annuity Association of America
4.900%, 09/15/44 (144A)

     136,000        137,372   

Travelers Cos., Inc. (The)
3.900%, 11/01/20 (a)

     25,000        26,559   

6.750%, 06/20/36

     175,000        228,614   

Travelers Property Casualty Corp.
6.375%, 03/15/33

     100,000        122,665   

Voya Financial, Inc.
2.900%, 02/15/18

     565,000        571,108   
   

 

 

  
      15,158,422   
   

 

 

  

Internet—0.1%

  

Amazon.com, Inc.
2.600%, 12/05/19

     267,000        271,187   

3.800%, 12/05/24

     790,000        821,806   

4.800%, 12/05/34

     189,000        198,993   

Internet—(Continued)

  

eBay, Inc.
2.600%, 07/15/22

     645,000      600,386   
   

 

 

  
      1,892,372   
   

 

 

  

Iron/Steel—0.1%

  

Nucor Corp.
4.000%, 08/01/23

     90,000        87,263   

5.200%, 08/01/43

     403,000        365,730   

5.850%, 06/01/18

     550,000        588,737   
   

 

 

  
      1,041,730   
   

 

 

  

Machinery—0.0%

  

Pentair Finance S.A.
4.650%, 09/15/25

     137,000        140,339   
   

 

 

  

Machinery-Construction & Mining—0.2%

  

Caterpillar Financial Services Corp.
1.700%, 06/16/18

     760,000        759,642   

2.500%, 11/13/20

     315,000        314,978   

7.050%, 10/01/18

     155,000        175,782   

Caterpillar, Inc.
4.300%, 05/15/44 (a)

     350,000        337,999   

5.300%, 09/15/35

     400,000        441,354   

7.300%, 05/01/31

     584,000        749,821   
   

 

 

  
      2,779,576   
   

 

 

  

Machinery-Diversified—0.1%

  

Deere & Co.
5.375%, 10/16/29

     1,175,000        1,363,311   

8.100%, 05/15/30

     61,000        85,887   

John Deere Capital Corp.
1.200%, 10/10/17

     59,000        58,785   

1.700%, 01/15/20

     43,000        41,896   

2.375%, 07/14/20

     180,000        179,563   

2.450%, 09/11/20

     205,000        204,561   

2.800%, 03/04/21

     210,000        210,485   

2.800%, 01/27/23

     122,000        119,755   

Roper Technologies, Inc.
3.000%, 12/15/20

     83,000        82,656   
   

 

 

  
      2,346,899   
   

 

 

  

Media—1.0%

  

21st Century Fox America, Inc.
4.750%, 09/15/44

     265,000        254,892   

4.950%, 10/15/45 (144A)

     45,000        44,317   

5.400%, 10/01/43

     340,000        353,902   

7.125%, 04/08/28

     220,000        260,947   

7.250%, 05/18/18

     265,000        295,629   

7.280%, 06/30/28

     400,000        479,871   

7.300%, 04/30/28

     218,000        261,099   

7.625%, 11/30/28

     100,000        126,013   

CBS Corp.
2.300%, 08/15/19

     500,000        494,450   

3.700%, 08/15/24

     265,000        257,714   

4.000%, 01/15/26

     167,000        162,848   

 

§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 December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Media—(Continued)

  

CCO Safari LLC
3.579%, 07/23/20 (144A)

     170,000      $ 168,981   

4.464%, 07/23/22 (144A)

     757,000        754,358   

4.908%, 07/23/25 (144A)

     215,000        214,791   

6.384%, 10/23/35 (144A)

     165,000        166,705   

6.484%, 10/23/45 (144A)

     505,000        505,828   

Comcast Corp.
4.250%, 01/15/33

     303,000        297,735   

4.500%, 01/15/43

     135,000        134,444   

4.600%, 08/15/45

     445,000        450,573   

4.750%, 03/01/44

     450,000        467,419   

5.875%, 02/15/18

     100,000        108,917   

6.500%, 11/15/35

     185,000        231,863   

7.050%, 03/15/33

     187,000        241,268   

COX Communications, Inc.
6.450%, 12/01/36 (144A)

     500,000        481,490   

DIRECTV Holdings LLC / DIRECTV Financing Co., Inc.
2.400%, 03/15/17

     120,000        120,966   

3.800%, 03/15/22

     1,166,000        1,173,373   

3.950%, 01/15/25

     51,000        50,276   

4.450%, 04/01/24

     285,000        292,721   

4.600%, 02/15/21

     100,000        105,917   

5.150%, 03/15/42

     255,000        237,746   

Discovery Communications LLC
4.375%, 06/15/21

     525,000        538,016   

Grupo Televisa S.A.B.
8.500%, 03/11/32

     100,000        120,726   

Historic TW, Inc.
6.875%, 06/15/18

     100,000        111,071   

NBCUniversal Media LLC
4.375%, 04/01/21

     320,000        347,594   

4.450%, 01/15/43

     145,000        142,065   

5.950%, 04/01/41

     300,000        358,774   

TCI Communications, Inc.
7.875%, 02/15/26

     996,000        1,346,092   

Thomson Reuters Corp.
3.950%, 09/30/21

     500,000        516,279   

Time Warner Cable, Inc.
4.125%, 02/15/21

     180,000        183,794   

5.000%, 02/01/20

     585,000        619,259   

5.500%, 09/01/41

     570,000        515,078   

Time Warner Cos., Inc.
7.570%, 02/01/24

     50,000        61,140   

Time Warner Entertainment Co. L.P.
8.375%, 07/15/33

     715,000        843,492   

Time Warner, Inc.
3.600%, 07/15/25

     617,000        600,637   

4.050%, 12/15/23

     286,000        291,811   

4.650%, 06/01/44

     130,000        119,256   

4.750%, 03/29/21

     500,000        537,445   

4.850%, 07/15/45

     440,000        418,990   

5.350%, 12/15/43

     90,000        89,870   

6.500%, 11/15/36

     250,000        282,338   

7.625%, 04/15/31

     350,000        433,073   

Media—(Continued)

  

Viacom, Inc.
3.250%, 03/15/23

     44,000      40,175   

4.375%, 03/15/43

     569,000        416,804   

6.125%, 10/05/17

     400,000        425,854   

6.875%, 04/30/36

     375,000        371,475   

Walt Disney Co. (The)
7.000%, 03/01/32

     55,000        75,398   
   

 

 

  
      19,003,559   
   

 

 

  

Metal Fabricate/Hardware—0.0%

  

Precision Castparts Corp.
2.500%, 01/15/23

     300,000        290,022   

4.200%, 06/15/35

     60,000        59,676   
   

 

 

  
      349,698   
   

 

 

  

Mining—0.3%

  

Barrick Gold Corp.
5.250%, 04/01/42

     140,000        94,290   

BHP Billiton Finance USA, Ltd.
2.050%, 09/30/18

     137,000        134,576   

2.875%, 02/24/22

     400,000        368,756   

3.250%, 11/21/21

     500,000        469,651   

3.850%, 09/30/23

     245,000        231,970   

4.125%, 02/24/42

     185,000        146,030   

5.400%, 03/29/17

     450,000        468,780   

Freeport Minerals Corp.
9.500%, 06/01/31 (a)

     500,000        396,126   

Freeport-McMoRan, Inc.
3.875%, 03/15/23

     1,222,000        696,540   

4.550%, 11/14/24 (a)

     695,000        397,887   

5.450%, 03/15/43

     24,000        12,480   

Glencore Finance Canada, Ltd.
5.550%, 10/25/42 (144A)

     135,000        95,580   

Glencore Funding LLC
4.000%, 04/16/25 (144A)

     305,000        211,975   

Rio Tinto Finance USA plc
2.000%, 03/22/17

     500,000        499,563   

2.875%, 08/21/22

     200,000        181,394   

Rio Tinto Finance USA, Ltd.
3.750%, 06/15/25

     350,000        317,713   

7.125%, 07/15/28

     280,000        330,145   

Teck Resources, Ltd.
3.750%, 02/01/23 (a)

     128,000        59,200   

6.250%, 07/15/41

     290,000        127,600   
   

 

 

  
      5,240,256   
   

 

 

  

Miscellaneous Manufacturing—0.3%

  

Eaton Corp.
5.800%, 03/15/37

     375,000        425,291   

7.650%, 11/15/29

     100,000        133,654   

General Electric Co.
2.700%, 10/09/22

     148,000        147,379   

3.375%, 03/11/24 (a)

     218,000        225,610   

4.100%, 12/15/22 (c)

     236,860        236,268   

4.125%, 10/09/42

     380,000        371,179   

4.500%, 03/11/44

     1,095,000        1,126,900   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-21

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Miscellaneous Manufacturing—(Continued)

  

Honeywell, Inc.
6.625%, 06/15/28

     250,000      $ 322,715   

Illinois Tool Works, Inc.
3.900%, 09/01/42

     200,000        189,615   

6.250%, 04/01/19

     172,000        193,749   

Ingersoll-Rand Co.
6.443%, 11/15/27

     300,000        358,087   

Ingersoll-Rand Global Holding Co., Ltd.
4.250%, 06/15/23

     135,000        139,030   

6.875%, 08/15/18

     272,000        300,234   

Parker-Hannifin Corp.
3.300%, 11/21/24

     114,000        114,981   

6.550%, 07/15/18

     500,000        554,641   

Siemens Financieringsmaatschappij NV
2.900%, 05/27/22 (144A)

     400,000        399,841   

5.750%, 10/17/16 (144A)

     230,000        238,196   

Textron, Inc.
3.875%, 03/01/25

     105,000        102,950   

Tyco International Finance S.A.
3.900%, 02/14/26

     128,000        128,285   
   

 

 

  
      5,708,605   
   

 

 

  

Oil & Gas—1.5%

  

Alberta Energy Co., Ltd.
7.375%, 11/01/31

     500,000        456,218   

Anadarko Petroleum Corp.
4.500%, 07/15/44

     185,000        141,633   

5.950%, 09/15/16

     280,000        287,716   

6.375%, 09/15/17

     240,000        251,669   

Apache Corp.
3.250%, 04/15/22

     300,000        285,732   

5.100%, 09/01/40

     300,000        256,444   

6.000%, 01/15/37

     150,000        144,875   

BP Capital Markets plc
1.375%, 11/06/17

     40,000        39,765   

2.241%, 09/26/18

     650,000        651,977   

2.750%, 05/10/23

     335,000        314,561   

3.062%, 03/17/22

     285,000        279,267   

3.245%, 05/06/22

     940,000        928,285   

3.814%, 02/10/24

     500,000        499,739   

Burlington Resources Finance Co.
7.400%, 12/01/31

     300,000        357,308   

Canadian Natural Resources, Ltd.
1.750%, 01/15/18

     188,000        182,854   

3.800%, 04/15/24

     111,000        97,994   

5.850%, 02/01/35

     405,000        359,176   

7.200%, 01/15/32

     200,000        199,390   

Canadian Oil Sands, Ltd.
6.000%, 04/01/42 (144A)

     55,000        44,004   

Cenovus Energy, Inc.
3.000%, 08/15/22

     50,000        44,344   

3.800%, 09/15/23

     500,000        452,719   

5.700%, 10/15/19

     325,000        340,607   

Chevron Corp.
1.344%, 11/09/17

     995,000        992,773   

1.365%, 03/02/18

     250,000        248,000   

Oil & Gas—(Continued)

  

Chevron Corp.
2.355%, 12/05/22

     330,000      315,114   

2.419%, 11/17/20

     400,000        397,750   

3.326%, 11/17/25 (a)

     375,000        377,578   

ConocoPhillips
6.000%, 01/15/20

     325,000        362,084   

ConocoPhillips Holding Co.
6.950%, 04/15/29

     225,000        257,713   

Devon Energy Corp.
3.250%, 05/15/22 (a)

     425,000        361,266   

5.000%, 06/15/45

     435,000        329,688   

7.950%, 04/15/32

     235,000        242,838   

Devon Financing Corp. LLC
7.875%, 09/30/31

     250,000        256,416   

Diamond Offshore Drilling, Inc.
4.875%, 11/01/43

     228,000        138,416   

Encana Corp.
5.150%, 11/15/41

     485,000        324,381   

Ensco plc
4.700%, 03/15/21 (a)

     603,000        485,523   

5.200%, 03/15/25

     105,000        74,725   

EOG Resources, Inc.
2.625%, 03/15/23

     73,000        69,157   

5.875%, 09/15/17

     50,000        53,267   

6.875%, 10/01/18

     120,000        133,541   

Exxon Mobil Corp.
3.567%, 03/06/45

     149,000        140,037   

Hess Corp.
7.875%, 10/01/29

     175,000        191,160   

Kerr-McGee Corp.
7.875%, 09/15/31

     1,000,000        1,078,872   

Marathon Oil Corp.
6.000%, 10/01/17

     400,000        407,730   

6.800%, 03/15/32

     727,000        655,636   

Marathon Petroleum Corp.
3.625%, 09/15/24

     241,000        224,572   

Nabors Industries, Inc.
2.350%, 09/15/16

     200,000        199,006   

4.625%, 09/15/21

     115,000        94,502   

5.000%, 09/15/20 (a)

     110,000        96,511   

Noble Energy, Inc.
3.900%, 11/15/24

     122,000        108,583   

5.050%, 11/15/44

     107,000        86,392   

5.250%, 11/15/43

     550,000        443,694   

6.000%, 03/01/41

     215,000        185,369   

Noble Holding International, Ltd.
4.000%, 03/16/18

     73,000        66,103   

5.250%, 03/15/42

     250,000        138,615   

6.050%, 03/01/41

     500,000        298,961   

6.950%, 04/01/45

     218,000        139,495   

Occidental Petroleum Corp.
1.750%, 02/15/17

     500,000        501,000   

3.500%, 06/15/25

     193,000        188,503   

4.625%, 06/15/45

     79,000        76,629   

8.450%, 02/15/29

     135,000        181,815   

 

§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 December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Oil & Gas—(Continued)

  

Petro-Canada
5.350%, 07/15/33

     165,000      $ 162,648   

Phillips 66
4.875%, 11/15/44

     520,000        463,925   

Shell International Finance B.V.
1.625%, 11/10/18

     1,410,000        1,402,224   

2.125%, 05/11/20

     210,000        206,590   

2.250%, 11/10/20

     111,000        109,367   

2.375%, 08/21/22

     440,000        421,401   

3.400%, 08/12/23

     350,000        347,983   

3.625%, 08/21/42

     25,000        20,860   

4.550%, 08/12/43

     350,000        340,209   

5.200%, 03/22/17

     500,000        523,703   

5.500%, 03/25/40

     86,000        92,933   

Sinopec Group Overseas Development 2013, Ltd.
4.375%, 10/17/23 (144A)

     582,000        601,819   

Statoil ASA
1.200%, 01/17/18

     25,000        24,757   

5.100%, 08/17/40

     100,000        105,531   

7.250%, 09/23/27

     205,000        262,842   

Suncor Energy, Inc.
5.950%, 12/01/34

     100,000        100,195   

6.100%, 06/01/18

     805,000        865,824   

7.150%, 02/01/32

     100,000        113,534   

Talisman Energy, Inc.
7.750%, 06/01/19

     350,000        377,161   

Tosco Corp.
8.125%, 02/15/30

     526,000        657,612   

Total Capital Canada, Ltd.
2.750%, 07/15/23 (a)

     1,229,000        1,179,292   

Total Capital International S.A.
2.700%, 01/25/23

     555,000        532,051   

2.875%, 02/17/22

     70,000        69,571   

Transocean, Inc.
6.500%, 11/15/20 (a)

     365,000        251,850   

7.125%, 12/15/21 (a)

     280,000        180,950   

7.500%, 04/15/31

     55,000        31,350   
   

 

 

  
      26,985,874   
   

 

 

  

Oil & Gas Services—0.2%

  

Baker Hughes, Inc.

    

5.125%, 09/15/40

     265,000        262,126   

6.875%, 01/15/29

     458,000        544,539   

Cameron International Corp.
6.375%, 07/15/18

     80,000        86,762   

Halliburton Co.
2.700%, 11/15/20

     210,000        207,574   

3.375%, 11/15/22

     104,000        102,350   

3.500%, 08/01/23

     214,000        210,024   

4.850%, 11/15/35

     85,000        83,501   

5.000%, 11/15/45

     311,000        307,437   

6.700%, 09/15/38

     350,000        410,495   

National Oilwell Varco, Inc.
1.350%, 12/01/17

     29,000        28,376   

2.600%, 12/01/22

     200,000        174,831   

Oil & Gas Services—(Continued)

  

Schlumberger Holdings Corp.
2.350%, 12/21/18

     400,000      397,403   

Schlumberger Investment S.A.
3.650%, 12/01/23

     358,000        363,201   

Weatherford International LLC
6.800%, 06/15/37

     100,000        70,000   

Weatherford International, Ltd.
5.125%, 09/15/20

     100,000        81,000   

6.000%, 03/15/18

     200,000        184,420   
   

 

 

  
      3,514,039   
   

 

 

  

Pharmaceuticals—1.3%

  

Abbott Laboratories
5.125%, 04/01/19

     158,000        173,008   

AbbVie, Inc.
1.750%, 11/06/17

     874,000        872,304   

2.900%, 11/06/22

     500,000        483,719   

3.200%, 11/06/22

     359,000        353,376   

3.600%, 05/14/25

     410,000        404,643   

4.500%, 05/14/35

     925,000        906,127   

4.700%, 05/14/45

     325,000        317,676   

Actavis Funding SCS
2.350%, 03/12/18

     750,000        750,781   

3.000%, 03/12/20

     345,000        344,726   

3.450%, 03/15/22

     915,000        915,998   

3.800%, 03/15/25

     188,000        187,040   

3.850%, 06/15/24

     315,000        315,561   

4.550%, 03/15/35

     760,000        738,611   

4.750%, 03/15/45

     225,000        219,385   

4.850%, 06/15/44

     100,000        98,942   

Actavis, Inc.
1.875%, 10/01/17

     545,000        544,351   

Allergan, Inc.
5.750%, 04/01/16

     80,000        80,649   

AstraZeneca plc
2.375%, 11/16/20

     425,000        421,966   

3.375%, 11/16/25

     1,087,000        1,079,128   

5.900%, 09/15/17

     200,000        214,208   

6.450%, 09/15/37

     360,000        455,256   

Baxalta, Inc.
3.600%, 06/23/22 (144A)

     329,000        328,912   

4.000%, 06/23/25 (144A)

     450,000        445,323   

5.250%, 06/23/45 (144A)

     125,000        125,422   

Bayer U.S. Finance LLC
1.500%, 10/06/17 (144A)

     285,000        284,883   

Bristol-Myers Squibb Co.
6.875%, 08/01/97

     100,000        139,260   

Cardinal Health, Inc.
2.400%, 11/15/19

     128,000        127,951   

3.200%, 06/15/22

     155,000        153,104   

3.750%, 09/15/25

     169,000        171,570   

Eli Lilly & Co.
2.750%, 06/01/25

     540,000        533,121   

Express Scripts Holding Co.
2.650%, 02/15/17

     229,000        231,249   

3.125%, 05/15/16

     95,000        95,634   

 

§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 December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Pharmaceuticals—(Continued)

  

Express Scripts Holding Co.
3.500%, 06/15/24

     559,000      $ 550,722   

3.900%, 02/15/22

     145,000        148,941   

6.125%, 11/15/41

     350,000        397,743   

7.250%, 06/15/19

     135,000        155,305   

Forest Laboratories LLC
4.875%, 02/15/21 (144A)

     220,000        238,216   

5.000%, 12/15/21 (144A)

     225,000        244,486   

GlaxoSmithKline Capital plc
2.850%, 05/08/22

     1,120,000        1,128,700   

GlaxoSmithKline Capital, Inc.
2.800%, 03/18/23

     143,000        142,584   

5.375%, 04/15/34

     300,000        339,149   

Johnson & Johnson
6.950%, 09/01/29

     700,000        993,114   

McKesson Corp.
2.850%, 03/15/23

     420,000        402,930   

3.796%, 03/15/24

     750,000        753,921   

Mead Johnson Nutrition Co.
3.000%, 11/15/20

     89,000        88,973   

4.900%, 11/01/19

     135,000        145,180   

5.900%, 11/01/39

     300,000        325,816   

Medco Health Solutions, Inc.
4.125%, 09/15/20

     450,000        472,095   

Merck & Co., Inc.
2.400%, 09/15/22

     62,000        60,752   

2.750%, 02/10/25

     629,000        612,337   

3.700%, 02/10/45

     175,000        161,604   

6.550%, 09/15/37

     150,000        195,268   

Mylan, Inc.
1.800%, 06/24/16

     230,000        229,852   

2.600%, 06/24/18

     50,000        49,616   

Novartis Capital Corp.
2.400%, 09/21/22

     300,000        295,363   

3.400%, 05/06/24

     527,000        544,068   

Perrigo Finance plc
3.500%, 12/15/21

     200,000        194,398   

3.900%, 12/15/24

     200,000        192,970   

Pfizer, Inc.
6.050%, 03/30/17

     150,000        159,012   

Sanofi
1.250%, 04/10/18

     419,000        417,169   

Teva Pharmaceutical Finance Co. B.V.
2.950%, 12/18/22

     77,000        73,716   

3.650%, 11/10/21

     254,000        257,587   

Teva Pharmaceutical Finance IV LLC
2.250%, 03/18/20

     240,000        232,240   

Wyeth LLC
5.500%, 02/15/16

     100,000        100,520   

6.500%, 02/01/34

     806,000        1,004,964   

Zoetis, Inc.
1.875%, 02/01/18

     52,000        51,305   

3.250%, 02/01/23

     460,000        439,229   

3.450%, 11/13/20

     39,000        39,045   

4.700%, 02/01/43

     43,000        37,539   
   

 

 

  
      24,390,313   
   

 

 

  

Pipelines—0.8%

  

Boardwalk Pipelines L.P.
5.750%, 09/15/19

     290,000      291,828   

Buckeye Partners L.P.
5.850%, 11/15/43

     255,000        196,968   

Enable Midstream Partners L.P.
3.900%, 05/15/24

     260,000        198,754   

Energy Transfer Partners L.P.
2.500%, 06/15/18

     576,000        551,719   

3.600%, 02/01/23

     718,000        591,031   

4.050%, 03/15/25

     270,000        221,740   

4.750%, 01/15/26

     754,000        634,177   

7.500%, 07/01/38

     275,000        253,998   

EnLink Midstream Partners L.P.
2.700%, 04/01/19

     281,000        256,387   

Enterprise Products Operating LLC
3.700%, 02/15/26

     53,000        47,541   

3.750%, 02/15/25

     567,000        518,639   

3.900%, 02/15/24

     252,000        235,118   

4.900%, 05/15/46

     185,000        151,180   

4.950%, 10/15/54

     33,000        25,815   

5.200%, 09/01/20

     150,000        157,321   

5.250%, 01/31/20

     500,000        526,563   

6.125%, 10/15/39

     400,000        365,406   

6.875%, 03/01/33

     162,000        169,107   

Kinder Morgan Energy Partners L.P.
3.500%, 09/01/23

     270,000        223,861   

4.250%, 09/01/24

     192,000        163,322   

5.000%, 08/15/42

     240,000        177,076   

5.400%, 09/01/44

     385,000        290,954   

Kinder Morgan, Inc.
5.550%, 06/01/45

     281,000        219,357   

Magellan Midstream Partners L.P.
6.550%, 07/15/19

     695,000        758,768   

MPLX L.P.
4.000%, 02/15/25

     95,000        79,844   

ONEOK Partners L.P.
3.250%, 02/01/16

     115,000        115,199   

3.375%, 10/01/22

     210,000        170,336   

3.800%, 03/15/20 (a)

     220,000        209,115   

4.900%, 03/15/25

     520,000        437,964   

6.125%, 02/01/41

     475,000        362,975   

6.650%, 10/01/36

     275,000        227,325   

Plains All American Pipeline L.P. / PAA Finance Corp.
3.650%, 06/01/22

     350,000        300,352   

4.650%, 10/15/25 (a)

     400,000        349,180   

4.700%, 06/15/44 (a)

     250,000        174,008   

5.750%, 01/15/20 (a)

     610,000        603,330   

6.650%, 01/15/37

     425,000        375,431   

Spectra Energy Capital LLC
3.300%, 03/15/23

     237,000        202,764   

6.750%, 07/15/18

     185,000        198,930   

6.750%, 02/15/32

     705,000        686,193   

7.500%, 09/15/38

     85,000        84,202   

Spectra Energy Partners L.P.
2.950%, 09/25/18

     140,000        137,558   

 

§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 December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Pipelines—(Continued)

  

Sunoco Logistics Partners Operations L.P.
4.250%, 04/01/24

     91,000      $ 78,704   

4.950%, 01/15/43

     295,000        210,969   

5.300%, 04/01/44

     170,000        126,519   

5.350%, 05/15/45

     1,040,000        772,292   

Texas Eastern Transmission L.P.
2.800%, 10/15/22 (144A)

     46,000        40,887   

6.000%, 09/15/17 (144A)

     150,000        158,185   

Texas Gas Transmission LLC
4.500%, 02/01/21 (144A)

     210,000        199,001   

TransCanada PipeLines, Ltd.
5.850%, 03/15/36

     176,000        181,034   

7.125%, 01/15/19

     142,000        158,180   

7.250%, 08/15/38

     300,000        356,262   

Transcanada Trust
5.625%, 05/20/75 (c)

     55,000        50,852   

Western Gas Partners L.P.
3.950%, 06/01/25

     157,000        131,759   

5.375%, 06/01/21

     149,000        150,815   

Williams Partners L.P.
3.600%, 03/15/22

     285,000        224,129   

4.000%, 09/15/25

     193,000        144,511   

4.900%, 01/15/45

     118,000        75,124   

5.100%, 09/15/45

     350,000        230,340   

5.400%, 03/04/44

     140,000        93,832   
   

 

 

  
      15,324,731   
   

 

 

  

Real Estate—0.0%

  

ProLogis L.P.
3.750%, 11/01/25

     338,000        335,286   

4.250%, 08/15/23

     333,000        350,381   
   

 

 

  
      685,667   
   

 

 

  

Real Estate Investment Trusts—0.6%

  

American Tower Corp.
3.450%, 09/15/21

     330,000        331,618   

4.000%, 06/01/25

     285,000        280,140   

4.500%, 01/15/18

     220,000        229,436   

5.000%, 02/15/24 (a)

     474,000        501,738   

AvalonBay Communities, Inc.
3.625%, 10/01/20

     135,000        140,136   

Boston Properties L.P.
3.800%, 02/01/24

     227,000        230,816   

3.850%, 02/01/23

     510,000        520,441   

4.125%, 05/15/21

     100,000        104,740   

Brixmor Operating Partnership L.P.
3.875%, 08/15/22

     330,000        328,484   

DDR Corp.
3.500%, 01/15/21

     320,000        317,389   

Duke Realty L.P.
3.875%, 02/15/21

     55,000        56,079   

4.375%, 06/15/22

     210,000        216,403   

ERP Operating L.P.
4.625%, 12/15/21

     100,000        108,528   

4.750%, 07/15/20

     190,000        205,235   

5.750%, 06/15/17

     300,000        317,005   

Real Estate Investment Trusts—(Continued)

  

HCP, Inc.
2.625%, 02/01/20

     100,000      98,459   

3.150%, 08/01/22

     120,000        114,611   

3.875%, 08/15/24

     257,000        249,092   

4.000%, 12/01/22

     600,000        597,226   

4.000%, 06/01/25

     200,000        195,283   

4.200%, 03/01/24

     125,000        124,173   

5.625%, 05/01/17

     345,000        360,870   

Kimco Realty Corp.
3.125%, 06/01/23

     175,000        169,431   

3.200%, 05/01/21

     310,000        310,332   

3.400%, 11/01/22

     55,000        54,482   

Liberty Property L.P.
3.375%, 06/15/23

     75,000        71,132   

4.400%, 02/15/24

     155,000        157,110   

National Retail Properties, Inc.
4.000%, 11/15/25

     193,000        189,551   

Realty Income Corp.
3.875%, 07/15/24

     200,000        196,197   

4.125%, 10/15/26

     250,000        250,802   

Simon Property Group L.P.
3.500%, 09/01/25 (a)

     275,000        278,419   

4.375%, 03/01/21

     420,000        455,375   

10.350%, 04/01/19

     340,000        417,233   

UDR, Inc.
3.700%, 10/01/20

     140,000        144,617   

4.000%, 10/01/25 (a)

     145,000        146,381   

Ventas Realty L.P.
4.125%, 01/15/26

     68,000        67,785   

4.375%, 02/01/45

     45,000        41,220   

Ventas Realty L.P. / Ventas Capital Corp.
3.250%, 08/15/22

     285,000        277,445   

4.250%, 03/01/22

     405,000        417,535   

4.750%, 06/01/21

     300,000        319,503   

Weingarten Realty Investors
4.450%, 01/15/24

     52,000        53,280   

Welltower, Inc.
3.750%, 03/15/23

     110,000        108,017   

4.000%, 06/01/25

     410,000        403,303   
   

 

 

  
      10,157,052   
   

 

 

  

Retail—0.9%

  

Advance Auto Parts, Inc.
4.500%, 12/01/23

     115,000        117,257   

AutoZone, Inc.
3.250%, 04/15/25

     290,000        280,396   

Bed Bath & Beyond, Inc.
4.915%, 08/01/34

     138,000        123,118   

CVS Health Corp.
2.250%, 12/05/18

     500,000        502,412   

2.750%, 12/01/22

     380,000        370,237   

2.800%, 07/20/20

     850,000        853,818   

3.875%, 07/20/25

     225,000        229,631   

4.000%, 12/05/23

     190,000        197,452   

4.875%, 07/20/35

     524,000        541,025   

5.125%, 07/20/45

     370,000        389,769   

5.750%, 06/01/17

     80,000        84,704   

 

§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 December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Retail—(Continued)

  

CVS Pass-Through Trust
4.704%, 01/10/36 (144A)

     90,056      $ 90,946   

5.880%, 01/10/28

     494,186        530,632   

Gap, Inc. (The)
5.950%, 04/12/21 (a)

     200,000        211,578   

Home Depot, Inc. (The)
2.000%, 06/15/19

     496,000        499,474   

2.625%, 06/01/22

     115,000        114,880   

3.350%, 09/15/25

     175,000        178,826   

3.750%, 02/15/24

     320,000        340,663   

4.250%, 04/01/46

     190,000        194,235   

5.400%, 09/15/40

     200,000        233,058   

5.875%, 12/16/36

     100,000        121,884   

Kohl’s Corp.
5.550%, 07/17/45 (a)

     330,000        307,130   

Lowe’s Cos., Inc.
4.375%, 09/15/45

     165,000        169,584   

5.500%, 10/15/35

     275,000        320,405   

5.800%, 10/15/36

     150,000        177,591   

6.500%, 03/15/29

     125,000        155,262   

6.875%, 02/15/28

     450,000        573,229   

Macy’s Retail Holdings, Inc.
4.300%, 02/15/43

     295,000        226,467   

6.700%, 09/15/28

     435,000        479,094   

6.900%, 04/01/29

     113,000        127,339   

6.900%, 01/15/32

     180,000        198,649   

7.000%, 02/15/28

     150,000        173,977   

McDonald’s Corp.
2.100%, 12/07/18

     440,000        440,283   

2.750%, 12/09/20

     70,000        69,952   

3.700%, 02/15/42

     225,000        188,210   

4.700%, 12/09/35

     70,000        69,741   

4.875%, 07/15/40

     340,000        340,746   

4.875%, 12/09/45

     190,000        191,157   

6.300%, 10/15/37

     325,000        381,242   

Nordstrom, Inc.
6.950%, 03/15/28

     170,000        207,862   

Starbucks Corp.
2.700%, 06/15/22

     124,000        124,038   

Target Corp.
3.500%, 07/01/24

     103,000        106,880   

6.350%, 11/01/32

     250,000        312,756   

6.650%, 08/01/28

     182,000        224,597   

6.750%, 01/01/28

     66,000        84,990   

Wal-Mart Stores, Inc.
2.550%, 04/11/23

     550,000        542,407   

3.300%, 04/22/24

     150,000        154,789   

4.000%, 04/11/43

     255,000        247,627   

4.125%, 02/01/19 (a)

     250,000        267,717   

4.300%, 04/22/44

     680,000        693,236   

5.250%, 09/01/35

     775,000        882,785   

5.875%, 04/05/27

     90,000        109,969   

6.750%, 10/15/23

     111,000        137,337   

Walgreen Co.
3.100%, 09/15/22

     94,000        91,033   

Retail—(Continued)

  

Walgreens Boots Alliance, Inc.
3.800%, 11/18/24

     1,178,000      1,142,858   

4.500%, 11/18/34

     292,000        266,654   

4.800%, 11/18/44

     175,000        158,302   
   

 

 

  
      16,551,890   
   

 

 

  

Savings & Loans—0.0%

  

Nationwide Building Society
3.900%, 07/21/25 (144A)

     460,000        474,487   
   

 

 

  

Semiconductors—0.1%

  

Intel Corp.
2.450%, 07/29/20

     344,000        347,935   

3.100%, 07/29/22

     230,000        234,534   

3.300%, 10/01/21

     245,000        253,776   

4.800%, 10/01/41

     182,000        189,731   

4.900%, 07/29/45

     430,000        454,493   

QUALCOMM, Inc.
4.800%, 05/20/45

     777,000        690,371   
   

 

 

  
      2,170,840   
   

 

 

  

Software—0.4%

  

Intuit, Inc.
5.750%, 03/15/17

     431,000        451,572   

Microsoft Corp.
2.000%, 11/03/20

     965,000        965,271   

2.375%, 02/12/22

     230,000        227,022   

2.700%, 02/12/25

     600,000        585,415   

3.500%, 02/12/35

     68,000        62,849   

3.500%, 11/15/42

     190,000        167,268   

3.750%, 02/12/45

     690,000        635,776   

4.450%, 11/03/45

     385,000        397,021   

4.500%, 10/01/40

     500,000        519,906   

5.200%, 06/01/39

     500,000        565,322   

Oracle Corp.
2.375%, 01/15/19

     165,000        167,548   

2.500%, 05/15/22

     305,000        299,361   

2.500%, 10/15/22

     709,000        692,386   

2.800%, 07/08/21

     225,000        227,904   

2.950%, 05/15/25

     450,000        438,386   

3.400%, 07/08/24

     115,000        116,777   

3.625%, 07/15/23

     161,000        166,535   

4.125%, 05/15/45

     245,000        232,305   

4.500%, 07/08/44

     430,000        432,635   

5.000%, 07/08/19

     200,000        219,957   

6.125%, 07/08/39

     70,000        84,644   
   

 

 

  
      7,655,860   
   

 

 

  

Telecommunications—1.5%

  

Alltel Corp.
6.800%, 05/01/29

     280,000        329,785   

America Movil S.A.B. de C.V.
1.502%, 09/12/16 (c)

     500,000        499,993   

5.000%, 03/30/20

     100,000        108,513   

5.625%, 11/15/17

     125,000        133,382   

6.375%, 03/01/35

     600,000        671,519   

 

§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 December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Telecommunications—(Continued)

  

AT&T, Inc.
0.741%, 02/12/16 (c)

     750,000      $ 749,668   

1.700%, 06/01/17

     915,000        917,524   

3.000%, 06/30/22

     1,567,000        1,529,422   

3.400%, 05/15/25

     1,192,000        1,145,619   

4.300%, 12/15/42

     1,013,000        865,604   

4.450%, 05/15/21

     450,000        478,959   

4.500%, 05/15/35

     90,000        83,237   

4.800%, 06/15/44

     765,000        700,844   

5.500%, 02/01/18

     300,000        320,696   

BellSouth Capital Funding Corp.
7.875%, 02/15/30

     550,000        653,265   

BellSouth LLC
6.550%, 06/15/34

     200,000        209,247   

BellSouth Telecommunications LLC
6.375%, 06/01/28 (a)

     350,000        381,306   

British Telecommunications plc
2.350%, 02/14/19

     285,000        285,763   

5.950%, 01/15/18

     100,000        107,823   

9.625%, 12/15/30

     75,000        109,437   

Cisco Systems, Inc.
1.650%, 06/15/18

     540,000        542,257   

2.900%, 03/04/21

     47,000        48,312   

3.625%, 03/04/24

     695,000        725,075   

5.500%, 01/15/40

     110,000        129,001   

5.900%, 02/15/39

     750,000        914,829   

Crown Castle Towers LLC
4.883%, 08/15/20 (144A)

     500,000        534,511   

Deutsche Telekom International Finance B.V.
5.750%, 03/23/16

     100,000        100,924   

8.750%, 06/15/30

     100,000        138,644   

GTP Acquisition Partners LLC
3.482%, 06/16/25 (144A)

     269,000        264,831   

Koninklijke KPN NV
8.375%, 10/01/30

     250,000        327,560   

Nippon Telegraph & Telephone Corp.
1.400%, 07/18/17

     500,000        498,106   

Orange S.A.
2.750%, 09/14/16

     500,000        505,617   

5.500%, 02/06/44

     348,000        369,469   

9.000%, 03/01/31

     165,000        232,886   

Qwest Corp.
6.750%, 12/01/21

     350,000        366,625   

6.875%, 09/15/33

     85,000        81,566   

7.250%, 09/15/25

     133,000        141,481   

Rogers Communications, Inc.
4.100%, 10/01/23

     213,000        219,470   

6.800%, 08/15/18

     100,000        111,611   

7.500%, 08/15/38

     100,000        129,448   

8.750%, 05/01/32

     400,000        540,752   

SES Global Americas Holdings GP
2.500%, 03/25/19 (144A)

     70,000        69,034   

Telefonica Emisiones S.A.U.
3.192%, 04/27/18

     150,000        152,910   

Verizon Communications, Inc.
2.450%, 11/01/22 (a)

     235,000        222,446   

Telecommunications—(Continued)

  

Verizon Communications, Inc.
2.500%, 09/15/16

     194,000      195,514   

2.625%, 02/21/20

     214,000        214,744   

3.500%, 11/01/24

     795,000        785,221   

3.850%, 11/01/42

     322,000        263,198   

4.272%, 01/15/36

     115,000        103,822   

4.400%, 11/01/34

     169,000        155,924   

4.500%, 09/15/20

     656,000        704,811   

4.522%, 09/15/48

     439,000        392,596   

4.672%, 03/15/55

     131,000        113,734   

4.862%, 08/21/46

     3,282,000        3,107,155   

5.150%, 09/15/23

     1,277,000        1,403,839   

5.850%, 09/15/35

     650,000        695,128   

6.000%, 04/01/41

     290,000        313,252   

6.400%, 09/15/33

     241,000        274,566   

6.900%, 04/15/38

     350,000        418,397   

Verizon Pennsylvania LLC
6.000%, 12/01/28

     125,000        131,705   

8.750%, 08/15/31

     200,000        241,144   

Vodafone Group plc
1.500%, 02/19/18

     30,000        29,667   

2.500%, 09/26/22

     110,000        101,895   

2.950%, 02/19/23

     115,000        107,765   

6.150%, 02/27/37

     350,000        345,381   

6.250%, 11/30/32

     750,000        777,028   
   

 

 

  
      28,525,457   
   

 

 

  

Transportation—0.4%

  

Burlington Northern Santa Fe LLC
3.050%, 09/01/22

     620,000        619,454   

3.450%, 09/15/21

     510,000        521,246   

3.850%, 09/01/23

     500,000        519,315   

4.150%, 04/01/45

     245,000        222,050   

4.450%, 03/15/43

     310,000        294,755   

4.550%, 09/01/44

     200,000        193,071   

4.700%, 09/01/45

     190,000        189,587   

4.900%, 04/01/44

     150,000        153,926   

5.750%, 03/15/18

     100,000        107,956   

7.950%, 08/15/30

     100,000        138,851   

Canadian National Railway Co.
5.850%, 11/15/17

     190,000        204,328   

6.250%, 08/01/34

     100,000        125,839   

6.800%, 07/15/18

     120,000        133,569   

Canadian Pacific Railway Co.
2.900%, 02/01/25

     260,000        244,736   

5.750%, 03/15/33

     120,000        130,255   

6.125%, 09/15/15

     102,000        103,323   

7.250%, 05/15/19

     290,000        330,541   

CSX Corp.
3.400%, 08/01/24

     300,000        298,263   

4.100%, 03/15/44

     41,000        37,144   

7.900%, 05/01/17

     62,000        67,086   

FedEx Corp.
3.900%, 02/01/35

     96,000        87,388   

4.100%, 02/01/45

     485,000        432,179   

 

§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 December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Transportation—(Continued)

  

JB Hunt Transport Services, Inc.
3.300%, 08/15/22

     490,000      $ 485,273   

Norfolk Southern Corp.
5.590%, 05/17/25

     100,000        114,339   

Ryder System, Inc.
2.500%, 03/01/17

     125,000        125,836   

2.875%, 09/01/20

     330,000        326,009   

3.600%, 03/01/16

     100,000        100,392   

Union Pacific Corp.
6.250%, 05/01/34

     378,000        463,560   

United Parcel Service of America, Inc.
8.375%, 04/01/20

     75,000        92,999   

8.375%, 04/01/30 (d)

     377,000        528,910   
   

 

 

  
      7,392,180   
   

 

 

  

Trucking & Leasing—0.0%

  

Penske Truck Leasing Co. L.P. / PTL Finance Corp.
2.500%, 03/15/16 (144A)

     380,000        380,658   

2.875%, 07/17/18 (144A)

     93,000        93,585   
   

 

 

  
      474,243   
   

 

 

  

Water—0.0%

  

American Water Capital Corp.
6.593%, 10/15/37

     100,000        129,671   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $452,667,775)

       437,120,669   
   

 

 

  
Convertible Bonds—17.1%   

Aerospace/Defense—0.3%

    

Airbus Group SE
Zero Coupon, 07/01/22 (EUR)

     4,400,000        5,162,800   
   

 

 

  

Auto Parts & Equipment—0.5%

  

Cie Generale des Etablissements Michelin
Zero Coupon, 01/01/17 (EUR)

     5,916,400        8,955,855   
   

 

 

  

Banks—0.8%

  

BNP Paribas S.A.
0.250%, 09/27/16 (EUR)

     3,600,000        4,081,310   

Credit Agricole S.A.
Zero Coupon, 12/06/16 (EUR)

     4,597,600        3,759,822   

Shizuoka Bank, Ltd. (The)
Zero Coupon, 04/25/18

     4,500,000        4,438,125   

Yamaguchi Financial Group, Inc.
0.103%, 03/26/20 (c)

     3,300,000        3,481,500   
   

 

 

  
      15,760,757   
   

 

 

  

Biotechnology—1.2%

  

Gilead Sciences, Inc.
1.625%, 05/01/16

     2,718,000        12,144,364   

Biotechnology—(Continued)

  

Illumina, Inc.
Zero Coupon, 06/15/19 (a)

     9,236,000      10,038,377   
   

 

 

  
      22,182,741   
   

 

 

  

Chemicals—0.1%

  

Toray Industries, Inc.
Zero Coupon, 08/30/19 (JPY)

     100,000,000        1,096,135   
   

 

 

  

Coal—0.2%

  

RAG-Stiftung
Zero Coupon, 12/31/18 (EUR)

     2,300,000        2,738,229   

Zero Coupon, 02/18/21 (EUR)

     600,000        734,534   
   

 

 

  
      3,472,763   
   

 

 

  

Commercial Services—0.3%

    

Macquarie Infrastructure Corp.
2.875%, 07/15/19 (a)

     3,297,000        3,686,458   

Toppan Printing Co., Ltd.
Zero Coupon, 12/19/19 (JPY)

     200,000,000        1,934,357   
   

 

 

  
      5,620,815   
   

 

 

  

Computers—0.3%

    

Cap Gemini S.A.
Zero Coupon, 01/01/19 (EUR)

     5,110,500        5,131,743   
   

 

 

  

Electric—0.4%

    

Chugoku Electric Power Co., Inc. (The)
Zero Coupon, 03/25/20 (JPY)

     870,000,000        7,699,675   
   

 

 

  

Engineering & Construction—0.1%

    

Japan Airport Terminal Co., Ltd.
Zero Coupon, 03/06/20 (JPY)

     200,000,000        1,776,280   
   

 

 

  

Food—0.1%

    

J Sainbury plc
1.250%, 11/21/19 (GBP)

     900,000        1,412,755   
   

 

 

  

Gas—0.3%

  

National Grid North America, Inc.
0.900%, 11/02/20 (GBP)

     3,700,000        5,537,995   
   

 

 

  

Healthcare-Products—0.1%

  

Terumo Corp.
Zero Coupon, 12/04/19 (JPY)

     150,000,000        1,461,687   

Zero Coupon, 12/06/21 (JPY)

     150,000,000        1,481,967   
   

 

 

  
      2,943,654   
   

 

 

  

Healthcare-Services—0.5%

  

Anthem, Inc.
2.750%, 10/15/42

     4,913,000        9,377,689   
   

 

 

  

Holding Companies-Diversified—0.9%

  

GBL Verwaltung S.A.
1.250%, 02/07/17 (EUR)

     2,600,000        2,971,630   

 

§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 December 31, 2015

Convertible Bonds—(Continued)

 

Security Description   Principal
Amount*		     Value  

Holding Companies-Diversified—(Continued)

  

Industrivarden AB
Zero Coupon, 05/15/19 (SEK)

     42,000,000      $ 5,680,470   

1.875%, 02/27/17 (EUR)

     4,700,000        5,531,665   

Sofina S.A.
1.000%, 09/19/16

     1,000,000        995,150   

Solidium Oy
Zero Coupon, 09/04/18 (EUR)

     1,800,000        2,240,183   
   

 

 

  
      17,419,098   
   

 

 

  

Insurance—0.2%

  

Swiss Life Holding AG
Zero Coupon, 12/02/20 (CHF)

     3,100,000        3,919,878   
   

 

 

  

Internet—0.9%

  

Priceline Group, Inc. (The)
0.350%, 06/15/20 (a)

     2,746,000        3,266,024   

0.900%, 09/15/21 (a)

     3,950,000        3,984,563   

1.000%, 03/15/18

     6,173,000        8,777,234   
   

 

 

  
      16,027,821   
   

 

 

  

Investment Company Security—0.3%

  

Ares Capital Corp.
4.375%, 01/15/19 (a)

     1,851,000        1,829,019   

4.750%, 01/15/18

     3,679,000        3,651,408   
   

 

 

  
      5,480,427   
   

 

 

  

Lodging—0.1%

  

Resorttrust, Inc.
Zero Coupon, 12/01/21 (JPY)

     240,000,000        2,368,651   
   

 

 

  

Miscellaneous Manufacturing—0.9%

  

Siemens Financieringsmaatschappij NV
1.050%, 08/16/17

     13,750,000        14,430,625   

1.650%, 08/16/19

     1,750,000        1,915,970   
   

 

 

  
      16,346,595   
   

 

 

  

Pharmaceuticals—0.4%

  

Teva Pharmaceutical Finance Co. LLC
0.250%, 02/01/26

     4,707,000        7,348,804   
   

 

 

  

Real Estate—1.1%

  

CapitaLand, Ltd.
1.850%, 06/19/20 (SGD)

     4,500,000        2,995,187   

1.950%, 10/17/23 (SGD)

     7,250,000        5,228,242   

Deutsche Wohnen AG
0.500%, 11/22/20 (EUR)

     4,800,000        8,549,678   

LEG Immobilien AG
0.500%, 07/01/21 (EUR)

     2,500,000        3,959,030   
   

 

 

  
      20,732,137   
   

 

 

  

Real Estate Investment Trusts—1.6%

  

British Land White 2015, Ltd.
Zero Coupon, 06/09/20 (GBP)

     2,400,000        3,465,196   

Real Estate Investment Trusts—(Continued)

  

Cofinimmo S.A.
2.000%, 06/20/18 (EUR)

     1,897,400      2,479,554   

Derwent London Capital No.2 Jersey, Ltd.
1.125%, 07/24/19 (GBP)

     1,000,000        1,757,983   

Extra Space Storage L.P.
3.125%, 10/01/35 (144A) (a)

     1,961,000        2,136,264   

Fonciere Des Regions
0.875%, 04/01/19 (EUR)

     7,448,000        8,144,446   

Ruby Assets Pte, Ltd.
1.600%, 02/01/17 (SGD)

     2,500,000        1,996,791   

Unibail-Rodamco SE
Zero Coupon, 07/01/21 (EUR)

     1,459,600        5,149,346   

Zero Coupon, 01/01/22 (EUR)

     1,121,300        4,322,886   
   

 

 

  
      29,452,466   
   

 

 

  

Retail—0.4%

  

Lotte Shopping Co., Ltd.
Zero Coupon, 01/24/18 (KRW)

     3,800,000,000        3,212,443   

Takashimaya Co., Ltd.
Zero Coupon, 12/11/18 (JPY)

     160,000,000        1,392,737   

Zero Coupon, 12/11/20 (JPY)

     80,000,000        738,799   

Yamada Denki Co., Ltd.
Zero Coupon, 06/28/19 (JPY)

     150,000,000        1,407,089   
   

 

 

  
      6,751,068   
   

 

 

  

Semiconductors—2.4%

  

Intel Corp.
2.950%, 12/15/35

     6,302,000        8,062,621   

3.250%, 08/01/39

     4,309,000        7,166,406   

Lam Research Corp.
0.500%, 05/15/16

     4,196,000        5,460,045   

Novellus Systems, Inc.
2.625%, 05/15/41

     3,600,000        8,471,250   

STMicroelectronics NV
Zero Coupon, 07/03/19

     4,800,000        4,574,400   

1.000%, 07/03/21

     3,400,000        3,268,760   

Xilinx, Inc.
2.625%, 06/15/17

     4,048,000        6,570,410   
   

 

 

  
      43,573,892   
   

 

 

  

Software—1.0%

  

Akamai Technologies, Inc.
Zero Coupon, 02/15/19

     2,101,000        2,014,334   

Citrix Systems, Inc.
0.500%, 04/15/19 (a)

     6,699,000        7,285,162   

Red Hat, Inc.
0.250%, 10/01/19 (a)

     6,603,000        8,596,281   
   

 

 

  
      17,895,777   
   

 

 

  

Telecommunications—0.8%

  

America Movil S.A.B. de C.V.
Zero Coupon, 05/28/20 (EUR)

     13,800,000        15,373,576   
   

 

 

  

Transportation—0.7%

  

Deutsche Post AG
0.600%, 12/06/19 (EUR)

     7,700,000        10,982,965   

 

§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§ Schedule of Investments as of December 31, 2015

Convertible Bonds—(Continued)

 

Security Description   Shares/
Principal
Amount*		     Value  

Transportation—(Continued)

  

Nagoya Railroad Co., Ltd.
Zero Coupon, 12/11/24 (JPY)

     210,000,000      $ 1,930,613   
   

 

 

  
      12,913,578   
   

 

 

  

Water—0.2%

    

Suez Environnement Co.
Zero Coupon, 02/27/20 (EUR)

     14,469,600        3,520,791   
   

 

 

  

Total Convertible Bonds
(Cost $310,631,373)

       315,256,216   
   

 

 

  
Convertible Preferred Stocks—1.1%   

Banks—0.7%

    

Wells Fargo & Co., Series L
7.500%, 12/31/49

     11,780        13,676,580   
   

 

 

  

Electric Utilities—0.2%

  

NextEra Energy, Inc.
5.799%, 09/01/16 (a)

     63,957        3,494,610   
   

 

 

  

Health Care Providers & Services—0.1%

  

Anthem, Inc.
5.250%, 05/01/18 (a)

     27,330        1,258,547   
   

 

 

  

Multi-Utilities—0.1%

  

Dominion Resources, Inc.
6.000%, 07/01/16

     14,400        772,848   

6.125%, 04/01/16

     27,901        1,480,985   
   

 

 

  
      2,253,833   
   

 

 

  

Total Convertible Preferred Stocks
(Cost $21,615,752)

       20,683,570   
   

 

 

  
U.S. Treasury & Government Agencies—0.4%   

Federal Agencies—0.1%

  

Federal Farm Credit Bank
3.040%, 03/06/28

     250,000        241,016   

5.250%, 12/28/27

     585,000        711,078   

Tennessee Valley Authority
5.375%, 04/01/56

     350,000        417,054   
   

 

 

  
      1,369,148   
   

 

 

  

U.S. Treasury—0.3%

  

U.S. Treasury Notes
1.250%, 11/15/18

     5,570,000        5,561,300   
   

 

 

  

Total U.S. Treasury & Government Agencies
(Cost $6,940,839)

       6,930,448   
   

 

 

  
Municipals—0.1%   

American Municipal Power, Inc.
5.939%, 02/15/47

     75,000        86,689   

7.499%, 02/15/50

     350,000        463,435   
Security Description   Shares/
Principal
Amount*		     Value  

Los Angeles, Department of Airports, Build America Bonds
6.582%, 05/15/39

     65,000      $ 83,611   

Los Angeles, Unified School District, Build America Bonds
5.750%, 07/01/34

     100,000        120,381   

6.758%, 07/01/34

     75,000        98,821   

Ohio University
5.590%, 12/01/2114

     300,000        315,060   

Port Authority of New York & New Jersey
4.458%, 10/01/62

     130,000        124,939   

5.647%, 11/01/40

     30,000        35,472   

State of California, Build America Bonds
7.300%, 10/01/39

     260,000        363,893   

State of Massachusetts
5.456%, 12/01/39

     150,000        181,221   

University of California, Build America Bonds
5.770%, 05/15/43

     140,000        171,548   

University of California, Revenue Bonds
0.744%, 07/01/41 (c)

     130,000        129,961   
   

 

 

  

Total Municipals
(Cost $2,122,384)

       2,175,031   
   

 

 

  
Preferred Stocks—0.1%   

Household Products—0.1%

  

Henkel AG & Co. KGaA

     16,209        1,806,850   
   

 

 

  

Machinery—0.0%

  

Marcopolo S.A.

     143,590        67,356   
   

 

 

  

Total Preferred Stocks
(Cost $2,085,414)

       1,874,206   
   

 

 

  
Foreign Government—0.1%   

Electric—0.0%

  

Hydro-Quebec
8.400%, 01/15/22

     165,000        213,125   
   

 

 

  

Provincial—0.1%

  

Province of Quebec Canada
6.350%, 01/30/26

     600,000        749,054   
   

 

 

  

Total Foreign Government
(Cost $1,025,699)

       962,179   
   

 

 

  
Short-Term Investments—27.6%   

Mutual Fund—4.3%

  

State Street Navigator Securities Lending MET Portfolio (e)

     79,822,218        79,822,218   
   

 

 

  

 

§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§ Schedule of Investments as of December 31, 2015

Short-Term Investments—(Continued)

 

Security Description   Principal
Amount*		     Value  

U.S. Treasury—1.3%

  

U.S. Treasury Bills
0.015%, 03/17/16 (a) (f) (g)

     405,000      $ 404,918   

0.096%, 04/28/16 (f) (g)

     55,000        54,954   

0.301%, 05/19/16 (f) (g) (h)

     23,000,000        22,970,951   
   

 

 

  
      23,430,823   
   

 

 

  

Repurchase Agreement—22.0%

  

Fixed Income Clearing Corp.
Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $407,043,538 on 01/04/16, collateralized by $411,495,000 U.S. Government Agency Obligations with rates ranging from 1.500% - 1.750%, maturity dates ranging from 01/31/19 - 08/31/19, with a value of $415,190,533.

     407,042,181        407,042,181   
   

 

 

  

Total Short-Term Investments
(Cost $510,297,687)

       510,295,222   
   

 

 

  

Total Investments—101.3%
(Cost $1,878,089,698) (i)

       1,868,680,973   

Other assets and liabilities (net)—(1.3)%

       (24,091,525 ) 
   

 

 

  
Net Assets—100.0%     $ 1,844,589,448   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of December 31, 2015, the market value of securities loaned was $80,220,464 and the collateral received consisted of cash in the amount of $79,822,218 and non-cash collateral with a value of $3,307,316. 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 Consolidated Statement of Assets and Liabilities.
(b) Non-income producing security.
(c) Variable or floating rate security. The stated rate represents the rate at December 31, 2015. Maturity date shown for callable securities reflects the earliest possible call date.
(d) Security is a “step-down” bond where the coupon decreases or steps down at a predetermined date. Rate shown is current coupon rate.
(e) Represents investment of cash collateral received from securities on loan as of December 31, 2015.
(f) The rate shown represents current yield to maturity.
(g) All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2015, the market value of securities pledged was $614,559.
(h) All or a portion of the security was pledged as collateral against open centrally cleared swap contracts. As of December 31, 2015, the market value of securities pledged was $19,400,466.
(i) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $1,893,588,415. The aggregate unrealized appreciation and depreciation of investments were $63,147,128 and $(88,054,570), respectively, resulting in net unrealized depreciation of $(24,907,442) for federal income tax purposes.
(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 December 31, 2015, the market value of 144A securities was $47,634,108, which is 2.6% 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.
(CHF)— Swiss Franc
(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.
(JPY)— Japanese Yen
(KRW)— South Korean Won
(NVDR)— Non-Voting Depository Receipts
(SEK)— Swedish Krona
(SGD)— Singapore Dollar

 

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy

     

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  
AUD     15,952,625      

Standard Chartered Bank

        01/27/16         $ 11,494,696         $ 117,474   
AUD     6,634,393      

Citibank N.A.

        03/29/16           4,762,386           52,165   
CHF     6,038,048      

Royal Bank of Canada

        01/27/16           6,121,404           (87,375 ) 
CHF     655,038      

Goldman Sachs & Co.

        03/29/16           657,470           (1,116 ) 
CHF     229,037      

State Street Bank and Trust

        03/29/16           233,090           (3,593 ) 
DKK     12,744,461      

HSBC Bank plc

        03/29/16           1,876,904           (16,246 ) 
EUR     2,348,872      

Citibank N.A.

        01/27/16           2,570,306           (16,276 ) 
EUR     1,575,213      

Goldman Sachs & Co.

        01/27/16           1,785,927           (73,130 ) 
EUR     2,558,537      

HSBC Bank plc

        01/27/16           2,799,712           (17,704 ) 
EUR     1,573,644      

Merrill Lynch International

        01/27/16           1,726,174           (15,083 ) 
EUR     534,745      

Standard Chartered Bank

        01/27/16           581,313           138   
EUR     798,459      

Standard Chartered Bank

        01/27/16           875,716           (7,517 ) 
EUR     1,593,860      

Standard Chartered Bank

        01/27/16           1,747,881           (14,809 ) 

 

§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§ Schedule of Investments as of December 31, 2015

Forward Foreign Currency Exchange Contracts—(Continued)

 

Contracts to Buy

     

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  
EUR     1,782,528      

Standard Chartered Bank

        01/27/16         $ 1,955,002         $ (16,782 ) 
EUR     1,526,532      

Standard Chartered Bank

        03/29/16           1,672,808           (10,258 ) 
EUR     3,661,756      

State Street Bank and Trust

        03/29/16           4,019,678           (31,651 ) 
GBP     506,310      

BNP Paribas S.A.

        01/27/16           749,921           (3,472 ) 
GBP     578,987      

Standard Chartered Bank

        01/27/16           861,485           (7,889 ) 
GBP     575,916      

Deutsche Bank AG

        03/29/16           870,905           (21,768 ) 
HKD     25,688,551      

Royal Bank of Canada

        01/27/16           3,315,100           149   
HKD     29,998,623      

Societe Generale

        03/29/16           3,872,367           893   
ILS     3,214,610      

Royal Bank of Canada

        01/27/16           833,652           (7,221 ) 
JPY     86,199,158      

Standard Chartered Bank

        01/27/16           710,456           7,045   
JPY     311,643,577      

Standard Chartered Bank

        01/27/16           2,568,814           25,231   
JPY     929,068,836      

Standard Chartered Bank

        01/27/16           7,647,468           85,873   
JPY     90,059,945      

HSBC Bank plc

        03/29/16           743,776           7,156   
NOK     4,365,153      

Standard Chartered Bank

        01/27/16           500,862           (7,824 ) 
SEK     45,783,207      

Standard Chartered Bank

        01/27/16           5,396,112           31,039   
SEK     24,686,599      

HSBC Bank plc

        03/29/16           2,921,211           10,390   
SGD     2,585,352      

Royal Bank of Canada

        03/29/16           1,830,819           (12,491 ) 

Contracts to Deliver

                                  
CHF     865,411      

Goldman Sachs & Co.

        01/27/16         $ 866,438         $ 1,603   
CHF     2,843,605      

Standard Chartered Bank

        01/27/16           2,912,071           70,359   
EUR     86,723,238      

Citibank N.A.

        01/27/16           95,854,892           1,556,945   
EUR     1,148,617      

Citibank N.A.

        01/27/16           1,223,527           (25,414 ) 
EUR     681,446      

HSBC Bank plc

        01/27/16           746,108           5,143   
EUR     2,309,207      

Morgan Stanley & Co. International plc

        01/27/16           2,476,311           (34,591 ) 
EUR     5,786,679      

Royal Bank of Canada

        01/27/16           6,338,561           46,453   
EUR     16,062,358      

Societe Generale

        01/27/16           17,642,301           177,001   
EUR     2,896,904      

Standard Chartered Bank

        01/27/16           3,105,288           (44,642 ) 
EUR     1,663,440      

Standard Chartered Bank

        01/27/16           1,843,389           34,659   
EUR     1,596,036      

Standard Chartered Bank

        01/27/16           1,787,078           51,639   
EUR     4,337,435      

State Street Bank and Trust

        01/27/16           4,633,990           (82,292 ) 
EUR     606,216      

BNP Paribas S.A.

        03/29/16           660,681           450   
EUR     404,528      

State Street Bank and Trust

        03/29/16           438,753           (1,819 ) 
GBP     3,467,240      

Citibank N.A.

        01/27/16           5,314,927           203,201   
GBP     534,112      

Credit Suisse International

        01/27/16           823,105           35,667   
GBP     3,848,740      

Goldman Sachs & Co.

        01/27/16           5,854,376           180,207   
GBP     11,065,668      

Royal Bank of Canada

        01/27/16           16,766,479           452,447   
GBP     323,826      

State Street Bank and Trust

        01/27/16           491,547           14,133   
GBP     11,547,868      

Standard Chartered Bank

        03/29/16           17,499,538           473,237   
JPY     93,450,000      

Barclays Bank plc

        01/27/16           772,335           (5,520 ) 
JPY     280,864,000      

Merrill Lynch International

        01/27/16           2,278,697           (59,146 ) 
JPY     213,349,594      

Royal Bank of Canada

        01/27/16           1,771,286           (4,584 ) 
JPY     2,203,377,594      

Standard Chartered Bank

        01/27/16           18,233,964           (106,410 ) 
JPY     216,053,376      

State Street Bank and Trust

        01/27/16           1,782,361           (16,014 ) 
JPY     150,633,966      

Standard Chartered Bank

        03/29/16           1,247,070           (8,936 ) 
JPY     128,434,646      

State Street Bank and Trust

        03/29/16           1,061,172           (9,733 ) 
NOK     3,633,406      

Deutsche Bank AG

        03/29/16           419,978           9,818   
SEK     24,188,000      

Citibank N.A.

        01/27/16           2,856,246           (11,004 ) 
SEK     4,620,000      

Credit Suisse International

        01/27/16           540,829           (6,827 ) 
SEK     9,424,800      

Merrill Lynch International

        01/27/16           1,082,663           (34,554 ) 
SGD     11,154,449      

Credit Suisse International

        01/27/16           7,984,808           124,040   
SGD     2,832,001      

Societe Generale

        01/27/16           2,021,053           25,284   
SGD     1,708,764      

Standard Chartered Bank

        01/27/16           1,211,258           7,057   
                   

 

 

  

Net Unrealized Appreciation

  

      $ 2,983,205   
                   

 

 

  

 

§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

Consolidated§ Schedule of Investments as of December 31, 2015

Futures Contracts

 

 

Futures Contracts—Long

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

Australian 10 Year Treasury Bond Futures

         03/15/16         375        AUD        47,410,255      $ 127,065   

Euro Stoxx 50 Index Futures

         03/18/16         957        EUR        31,023,457        418,706   

Nickel Futures

         03/14/16         4        USD        247,200        (35,664 ) 

Primary Aluminum Futures

         03/14/16         21        USD        799,363        (7,795 ) 

S&P 500 E-Mini Index Futures

         03/18/16         3,001        USD        301,591,057        3,820,713   

TOPIX Index Futures

         03/10/16         140        JPY        2,223,585,000        (474,937 ) 

U.S. Treasury Long Bond Futures

         03/21/16         159        USD        24,415,271        30,979   

U.S. Treasury Note 10 Year Futures

         03/21/16         155        USD        19,517,258        (1,789 ) 

U.S. Treasury Note 2 Year Futures

         03/31/16         60        USD        13,050,061        (15,998 ) 

Zinc Futures

         01/18/16         9        USD        389,333        (29,333 ) 

Zinc Futures

         03/14/16         9        USD        396,902        (34,877 ) 

Futures Contracts—Short

                               

Canada Government Bond 10 Year Futures

         03/21/16         (475 )      CAD        (65,653,479 )      (951,631 ) 

Hang Seng Index Futures

         01/28/16         (120 )      HKD        (131,514,160 )      6,988   

MSCI EAFE Mini Index Futures

         03/18/16         (820 )      USD        (68,413,555 )      (1,212,645 ) 

MSCI Emerging Markets Mini Index Futures

         03/18/16         (1,620 )      USD        (62,433,596 )      (1,353,904 ) 

Nickel Futures

         03/14/16         (4 )      USD        (212,556 )      1,020   

Primary Aluminum Futures

         03/14/16         (21 )      USD        (763,812 )      (27,757 ) 

S&P TSX 60 Index Futures

         03/17/16         (166 )      CAD        (24,726,323 )      (387,047 ) 

SPI 200 Index Futures

         03/17/16         (197 )      AUD        (24,012,880 )      (1,368,385 ) 

U.S. Treasury Note 10 Year Futures

         03/21/16         (500 )      USD        (63,139,733 )      186,608   

U.S. Treasury Note 5 Year Futures

         03/31/16         (18 )      USD        (2,134,698 )      4,933   

U.S. Treasury Ultra Long Bond Futures

         03/21/16         (110 )      USD        (17,411,333 )      (44,292 ) 

Zinc Futures

         01/18/16         (9 )      USD        (393,948 )      33,948   

Zinc Futures

         03/14/16         (9 )      USD        (354,348 )      (7,677 ) 
              

 

 

  

Net Unrealized Depreciation

  

   $ (1,322,771 ) 
              

 

 

  

Swap Agreements

Centrally Cleared Interest Rate Swaps

 

Pay/Receive Floating Rate

    Floating
Rate Index		      Fixed
Rate		     Maturity
Date		      Notional
Amount		      Unrealized
Depreciation		  

Pay

      3M LIBOR         2.115 %      11/06/25         USD        195,000,000       $ (1,070,406 ) 

Pay

      3M LIBOR         2.122 %      12/10/25         USD        150,200,000         (788,764 ) 

Pay

      3M LIBOR         2.170 %      12/30/25         USD        197,900,000         (787,352 ) 
               

 

 

  

Net Unrealized Depreciation

  

    $ (2,646,522 ) 
               

 

 

  

Cash in the amount of $190 has 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
(HKD)— Hong Kong Dollar
(ILS)— Israeli Shekel
(JPY)— Japanese Yen
(NOK)— Norwegian Krone
(SEK)— Swedish Krona
(SGD)— Singapore Dollar
(USD)— United States Dollar
(LIBOR)— London Interbank Offered Rate

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-33

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2      Level 3      Total  
Common Stocks            

Aerospace & Defense

    $ 5,823,496       $ 10,477,054       $ —         $ 16,300,550   

Air Freight & Logistics

      92,672         2,297,484         —           2,390,156   

Airlines

      1,664,260         1,772,668         —           3,436,928   

Auto Components

      82,012         4,965,653         —           5,047,665   

Automobiles

      2,771,072         12,707,424         —           15,478,496   

Banks

      21,029,875         40,160,247         —           61,190,122   

Beverages

      7,236,183         11,760,418         —           18,996,601   

Biotechnology

      6,858,263         —           —           6,858,263   

Building Products

      1,016,768         2,161,497         —           3,178,265   

Capital Markets

      5,960,547         8,543,696         —           14,504,243   

Chemicals

      3,481,993         2,873,276         —           6,355,269   

Commercial Services & Supplies

      —           1,616,335         —           1,616,335   

Communications Equipment

      1,365,921         2,102,969         —           3,468,890   

Construction & Engineering

      740,976         2,171,927         —           2,912,903   

Construction Materials

      307,715         778,914         —           1,086,629   

Consumer Finance

      1,096,606         —           —           1,096,606   

Containers & Packaging

      1,048,016         —           —           1,048,016   

Distributors

      —           144,719         —           144,719   

Diversified Financial Services

      3,332,173         4,455,730         —           7,787,903   

Diversified Telecommunication Services

      2,726,669         20,395,700         —           23,122,369   

Electric Utilities

      4,506,095         2,159,476         —           6,665,571   

Electrical Equipment

      1,137,646         —           —           1,137,646   

Electronic Equipment, Instruments & Components

      1,328,670         5,719,672         —           7,048,342   

Energy Equipment & Services

      1,415,445         —           —           1,415,445   

Food & Staples Retailing

      3,580,790         8,850,967         —           12,431,757   

Food Products

      2,837,742         8,014,445         —           10,852,187   

Gas Utilities

      81,348         4,421,740         —           4,503,088   

Health Care Equipment & Supplies

      3,123,865         4,101,519         —           7,225,384   

Health Care Providers & Services

      7,063,174         1,473,513         —           8,536,687   

Hotels, Restaurants & Leisure

      2,072,639         2,202,546         —           4,275,185   

Household Durables

      1,517,544         1,992,610         —           3,510,154   

Household Products

      3,421,524         3,088,404         —           6,509,928   

Industrial Conglomerates

      1,808,229         4,820,179         —           6,628,408   

Insurance

      5,102,683         32,151,013         —           37,253,696   

Internet & Catalog Retail

      2,911,734         —           —           2,911,734   

Internet Software & Services

      11,018,563         1,984,617         —           13,003,180   

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-34

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Fair Value Hierarchy—(Continued)

 

Description    Level 1     Level 2     Level 3      Total  

IT Services

    $ 9,465,491      $ 4,411,705      $ —         $ 13,877,196   

Life Sciences Tools & Services

      1,038,753        —          —           1,038,753   

Machinery

      3,403,871        1,727,616        —           5,131,487   

Media

      8,198,908        12,150,477        —           20,349,385   

Metals & Mining

      296,375        5,358,829        —           5,655,204   

Multi-Utilities

      950,639        2,913,445        —           3,864,084   

Multiline Retail

      1,602,364        3,828,249        —           5,430,613   

Oil, Gas & Consumable Fuels

      11,621,891        10,208,196        —           21,830,087   

Paper & Forest Products

      —          1,186,923        —           1,186,923   

Personal Products

      201,217        2,274,161        —           2,475,378   

Pharmaceuticals

      11,915,134        41,229,649        —           53,144,783   

Professional Services

      342,797        —          —           342,797   

Real Estate Investment Trusts

      5,397,039        7,322,720        —           12,719,759   

Real Estate Management & Development

      —          10,729,034        —           10,729,034   

Road & Rail

      2,916,232        4,297,352        —           7,213,584   

Semiconductors & Semiconductor Equipment

      9,548,062        3,570,763        —           13,118,825   

Software

      8,214,067        3,583,348        —           11,797,415   

Specialty Retail

      6,978,841        3,940,243        —           10,919,084   

Technology Hardware, Storage & Peripherals

      9,743,980        —          —           9,743,980   

Textiles, Apparel & Luxury Goods

      1,412,833        —          —           1,412,833   

Thrifts & Mortgage Finance

      —          1,963,685        —           1,963,685   

Tobacco

      2,050,940        14,444,788        —           16,495,728   

Trading Companies & Distributors

      —          2,329,386        —           2,329,386   

Transportation Infrastructure

      —          441,257        —           441,257   

Water Utilities

      178,653        1,387,379        —           1,566,032   

Wireless Telecommunication Services

      405,401        8,271,419        —           8,676,820   

Total Common Stocks

      215,446,396        357,937,036        —           573,383,432   

Total Corporate Bonds & Notes*

      —          437,120,669        —           437,120,669   

Total Convertible Bonds*

      —          315,256,216        —           315,256,216   

Total Convertible Preferred Stocks*

      20,683,570        —          —           20,683,570   

Total U.S. Treasury & Government Agencies*

      —          6,930,448        —           6,930,448   

Total Municipals

      —          2,175,031        —           2,175,031   

Total Preferred Stocks*

      —          1,874,206        —           1,874,206   

Total Foreign Government*

      —          962,179        —           962,179   
Short-Term Investments          

Mutual Fund

      79,822,218        —          —           79,822,218   

U.S. Treasury

      —          23,430,823        —           23,430,823   

Repurchase Agreement

      —          407,042,181        —           407,042,181   

Total Short-Term Investments

      79,822,218        430,473,004        —           510,295,222   

Total Investments

    $ 315,952,184      $ 1,552,728,789      $ —         $ 1,868,680,973   
                                   

Collateral for Securities Loaned (Liability)

    $ —        $ (79,822,218 )    $ —         $ (79,822,218 ) 
Forward Contracts          

Forward Foreign Currency Exchange Contracts (Unrealized Appreciation)

    $ —        $ 3,806,896      $ —         $ 3,806,896   

Forward Foreign Currency Exchange Contracts (Unrealized Depreciation)

      —          (823,691 )      —           (823,691 ) 

Total Forward Contracts

    $ —        $ 2,983,205      $ —         $ 2,983,205   
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 4,630,960      $ —        $ —         $ 4,630,960   

Futures Contracts (Unrealized Depreciation)

      (5,953,731 )      —          —           (5,953,731 ) 

Total Futures Contracts

    $ (1,322,771 )    $ —        $ —         $ (1,322,771 ) 
Centrally Cleared Swap Contracts          

Centrally Cleared Swap Contracts (Unrealized Depreciation)

    $ —        $ (2,646,522 )    $ —         $ (2,646,522 ) 

 

* See Consolidated Schedule of Investments for additional detailed categorizations.

Transfers from Level 2 to Level 1 in the amount of $119,314 were due to the discontinuation of a systematic fair valuation model factor. Transfers from Level 1 to Level 2 in the amount of $2,114,350 were due to the application of a systematic fair valuation model factor.

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-35

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 1,461,638,792   

Repurchase Agreement

      407,042,181   

Cash

      6,882   

Cash denominated in foreign currencies (c)

      8,752,885   

Cash collateral for futures contracts

      33,600,120   

Unrealized appreciation on forward foreign currency exchange contracts

      3,806,896   

Receivable for:

   

Investments sold

      4,295,588   

Fund shares sold

      959,651   

Dividends and interest

      6,861,721   

Variation margin on centrally cleared swap contracts

      2,975,671   

Prepaid expenses

      4,574  
  

 

 

  

Total Assets

      1,929,944,961  

Liabilities

   

Unrealized depreciation on forward foreign currency exchange contracts

      823,691   

Collateral for securities loaned

      79,822,218   

Payables for:

   

Investments purchased

      568,322   

Fund shares redeemed

      43,238   

Foreign taxes

      11,363   

Variation margin on futures contracts

      2,168,140   

Accrued Expenses:

   

Management fees

      1,054,647   

Distribution and service fees

      389,300   

Deferred trustees’ fees

      56,734   

Other expenses

      417,860  
  

 

 

  

Total Liabilities

      85,355,513  
  

 

 

  

Net Assets

    $ 1,844,589,448  
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 1,801,826,401   

Undistributed net investment income

      31,124,393   

Accumulated net realized gain

      22,169,882   

Unrealized depreciation on investments, futures contracts, swap contracts and foreign currency transactions

      (10,531,228 )
  

 

 

  

Net Assets

    $ 1,844,589,448  
  

 

 

  

Net Assets

   

Class B

    $ 1,844,589,448   

Capital Shares Outstanding*

   

Class B

      166,676,336   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 11.07   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding repurchase agreement, was $1,471,047,517.
(b) Includes securities loaned at value of $80,220,464.
(c) Identified cost of cash denominated in foreign currencies was $8,753,326.

 

Consolidated§ Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends (a)

    $ 15,554,107   

Interest

      19,325,485   

Securities lending income

      585,286  
  

 

 

  

Total investment income

      35,464,878  

Expenses

   

Management fees

      12,574,306   

Administration fees

      89,076   

Custodian and accounting fees

      621,673   

Distribution and service fees - Class B

      4,339,038   

Audit and tax services

      87,983   

Legal

      31,196   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      92,449   

Insurance

      10,510   

Miscellaneous

      29,491  
  

 

 

  

Total expenses

      17,910,895  

Less management fee waiver

      (792,808 )
  

 

 

  

Net expenses

      17,118,087  
  

 

 

  

Net Investment Income

      18,346,791  
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      10,865,729   

Net increase from payments by affiliates (b)

      225,508   

Futures contracts

      1,940,635   

Swap contracts

      27,707,136   

Foreign currency transactions

      10,515,181  
  

 

 

  

Net realized gain

      51,254,189  
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (41,565,429 ) 

Futures contracts

      (4,818,935 ) 

Swap contracts

      (10,163,813 ) 

Foreign currency transactions

      (2,265,026 )
  

 

 

  

Net change in unrealized depreciation

      (58,813,203 )
  

 

 

  

Net realized and unrealized loss

      (7,559,014 )
  

 

 

  

Net Increase in Net Assets From Operations

    $ 10,787,777  
  

 

 

  

 

(a) Net of foreign withholding taxes of $973,327.
(b) See Note 7 of the Notes to Consolidated Financial Statements.

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-36

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 18,346,791      $ 16,886,599   

Net realized gain

      51,254,189        103,013,956   

Net change in unrealized depreciation

      (58,813,203 )      (15,447,607 ) 
  

 

 

    

 

 

  

Increase in net assets from operations

      10,787,777        104,452,948   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (46,915,042 )      (17,423,474 ) 

Net realized capital gains

     

Class B

      (81,319,406 )      (47,564,812 ) 
  

 

 

    

 

 

  

Total distributions

      (128,234,448 )      (64,988,286 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      313,386,746        248,941,459   
  

 

 

    

 

 

  

Total increase in net assets

      195,940,075        288,406,121   

Net Assets

     

Beginning of period

      1,648,649,373        1,360,243,252   
  

 

 

    

 

 

  

End of period

    $ 1,844,589,448      $ 1,648,649,373   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 31,124,393      $ 39,819,241   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      24,116,354      $ 275,131,969        20,729,270      $ 241,602,231   

Reinvestments

      11,378,389        128,234,448        5,771,606        64,988,286   

Redemptions

      (7,882,474 )      (89,979,671 )      (4,930,110 )      (57,649,058 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      27,612,269      $ 313,386,746        21,570,766      $ 248,941,459   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 313,386,746        $ 248,941,459   
    

 

 

      

 

 

  

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-37

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Financial Highlights

 

Selected per share data                           
     Class B  
     Year Ended December 31,  
     2015      2014      2013     2012(a)  

Net Asset Value, Beginning of Period

    $ 11.86       $ 11.58       $ 10.50      $ 10.00   
  

 

 

     

 

 

     

 

 

    

 

 

  

Income (Loss) from Investment Operations

           

Net investment income (b)

      0.12         0.13         0.08        0.02   

Net realized and unrealized gain (loss) on investments

      (0.01 )       0.66         1.07  (c)      0.58   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total from investment operations

      0.11         0.79         1.15        0.60   
  

 

 

     

 

 

     

 

 

    

 

 

  

Less Distributions

           

Distributions from net investment income

      (0.33 )       (0.14 )       (0.01 )      (0.04 ) 

Distributions from net realized capital gains

      (0.57 )       (0.37 )       (0.06 )      (0.06 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

      (0.90 )       (0.51 )       (0.07 )      (0.10 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 11.07       $ 11.86       $ 11.58      $ 10.50   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total Return (%) (d)

      0.89         6.98         10.99        6.02  (e) 

Ratios/Supplemental Data

           

Gross ratio of expenses to average net assets (%)

      1.03         1.05         1.08        1.32  (f) 

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

      0.99         1.00         1.08        1.25  (f) 

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

      1.06         1.09         0.71        0.24  (f) 

Portfolio turnover rate (%)

      52         45         45        33  (e) 

Net assets, end of period (in millions)

    $ 1,844.6       $ 1,648.6       $ 1,360.2      $ 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 (see Note 7 of the Notes to Consolidated Financial Statements).

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-38

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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”), 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—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 include 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
December 31, 2015		      % of
Total Assets at
December 31, 2015		  

JPMorgan Global Active Allocation Portfolio, Ltd.

      4/23/2012       $ 1,656         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 December 31, 2015 through the date the consolidated financial statements were issued.

 

MIST-39

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 and subject to general oversight by the Board. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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 through an independent pricing service based on the mean between closing bid and ask prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or broker-dealer. These contracts are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

Options, including swaptions, and futures contracts that are traded OTC are generally valued on the basis of quotations provided by broker-dealers or prices provided by 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, yield curves, credit curves, measures of volatility and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts (other than centrally cleared swaps) are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and other pricing services. Such quotations and prices are derived utilizing observable data, including the underlying reference securities or indices, credit spread quotations and expected default recovery rates determined by the pricing service. These contracts are generally categorized as Level 2 within the fair value hierarchy.

 

MIST-40

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or an independent pricing service when the exchange price is not available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third party prices are used to produce daily settlement prices. These securities are categorized as Level 2 within the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates, including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 trust (REIT) adjustments, convertible preferred stock, convertible bond adjustments, return of capital adjustments, passive foreign investment companies (PFICs) transactions and controlled foreign corporation reversal. These adjustments have no impact on net assets or the results 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

 

MIST-41

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

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.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $407,042,181, which is reflected as repurchase agreement on the Consolidated Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Consolidated Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Consolidated Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

 

MIST-42

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

The following table provides a breakdown of the collateral received and the remaining contractual maturities for securities lending transactions, which are accounted for as secured borrowings.

 

     Remaining Contractual Maturity of the Agreements
As of December 31, 2015		  
      Overnight and
Continuous		     Up to
30 Days		      31 - 90
Days		      Greater than
90 days		     Total  
Securities Lending Transactions             

Common Stocks

    $ (27,420,769 )    $ —       $ —       $ —      $ (27,420,769 ) 

Convertible Bonds

      (39,717,787 )      —         —         —        (39,717,787 ) 

Convertible Preferred Stocks

      (2,718,386 )      —         —         —        (2,718,386 ) 

Corporate Bonds & Notes

      (9,965,276 )      —         —         —        (9,965,276 ) 

Total

    $ (79,822,218 )    $ —       $ —       $ —      $ (79,822,218 ) 

Total Borrowings

    $ (79,822,218 )    $ —       $ —       $ —      $ (79,822,218 ) 

Gross amount of recognized liabilities for securities lending transactions

  

   $ (79,822,218 ) 

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 valuation 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 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 cash 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. If futures contracts are exchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

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.

 

MIST-43

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(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 either privately negotiated in the OTC market (“OTC swaps”) or 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 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.

Centrally Cleared Swaps: Clearinghouses currently offer clearing derivative transactions which include interest rate and 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.

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 upon entering into the swap agreement 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.

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: (1) 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”; (2) 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 (3) 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 contract’s remaining life, to the extent that amount is positive.

 

MIST-44

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of 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 centrally cleared swap contracts (a) (b)    $ 2,646,522   
   Unrealized appreciation on futures contracts (a) (c)    $ 349,585       Unrealized depreciation on futures contracts (a) (c)      1,013,710   
Equity    Unrealized appreciation on futures contracts (a) (c)      4,246,407       Unrealized depreciation on futures contracts (a) (c)      4,796,918   
Commodity    Unrealized appreciation on futures contracts (a) (c)      34,968       Unrealized depreciation on futures contracts (a) (c)      143,103   
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts      3,806,896       Unrealized depreciation on forward foreign currency exchange contracts      823,691   
     

 

 

        

 

 

  
Total       $ 8,437,856          $ 9,423,944   
     

 

 

        

 

 

  

 

  (a) Financial instrument not subject to a master netting agreement.
  (b) 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.
  (c) 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 Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Consolidated Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized 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 (“MNA”) (see Note 5), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Assets
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Received†		      Net Amount*  

BNP Paribas S.A.

    $ 450       $ (450 )    $ —       $ —   

Citibank N.A.

      1,812,311         (52,694 )      —         1,759,617   

Credit Suisse International

      159,707         (6,827 )      —         152,880   

Deutsche Bank AG

      9,818         (9,818 )      —         —   

Goldman Sachs & Co.

      181,810         (74,246 )      —         107,564   

HSBC Bank plc

      22,689         (22,689 )      —         —   

Royal Bank of Canada

      499,049         (111,671 )      —         387,378   

Societe Generale

      203,178         —        —         203,178   

Standard Chartered Bank

      903,751         (225,067 )      —         678,684   

State Street Bank and Trust

      14,133         (14,133 )      —         —   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 3,806,896       $ (517,595 )    $ —       $ 3,289,301   
  

 

 

     

 

 

    

 

 

     

 

 

  

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under an MNA, or similar agreement, and net of the related collateral pledged by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Liabilities
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Pledged†		      Net Amount**  

Barclays Bank plc

    $ 5,520       $ —      $ —       $ 5,520   

BNP Paribas S.A.

      3,472         (450 )      —         3,022   

Citibank N.A.

      52,694         (52,694 )      —         —   

Credit Suisse International

      6,827         (6,827 )      —         —   

Deutsche Bank AG

      21,768         (9,818 )      —         11,950   

Goldman Sachs & Co.

      74,246         (74,246 )      —         —   

HSBC Bank plc

      33,950         (22,689 )      —         11,261   

Merrill Lynch International

      108,783         —        —         108,783   

Morgan Stanley & Co. International plc

      34,591         —        —         34,591   

 

MIST-45

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

Counterparty

    Derivative Liabilities
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Pledged†		      Net Amount**  

Royal Bank of Canada

    $ 111,671       $ (111,671 )    $ —       $ —   

Standard Chartered Bank

      225,067         (225,067 )      —         —   

State Street Bank and Trust

      145,102         (14,133 )      —         130,969   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 823,691       $ (517,595 )    $ —       $ 306,096   
  

 

 

     

 

 

    

 

 

     

 

 

  

 

  * Net amount represents the net amount receivable from the counterparty in the event of default.
  ** Net amount represents the net amount payable due to the counterparty in the event of default.
  † In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

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

    Interest Rate     Equity     Commodity     Foreign
Exchange		     Total  

Forward foreign currency transactions

    $ —      $ —      $ —      $ 11,400,153      $ 11,400,153   

Futures contracts

      (6,991,620 )      11,864,457        (2,932,202 )      —        1,940,635   

Swap contracts

      27,707,136        —        —        —        27,707,136   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   $ 20,715,516      $ 11,864,457      $ (2,932,202 )    $ 11,400,153      $ 41,047,924   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

    Interest Rate     Equity     Commodity     Foreign
Exchange		     Total  

Forward foreign currency transactions

    $ —      $ —      $ —      $ (2,252,773 )    $ (2,252,773 ) 

Futures contracts

      (699,304 )      (5,614,837 )      1,495,206        —        (4,818,935 ) 

Swap contracts

      (10,163,813 )      —        —        —        (10,163,813 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   $ (10,863,117 )    $ (5,614,837 )    $ 1,495,206      $ (2,252,773 )    $ (17,235,521 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Forward foreign currency transactions

    $ 276,443,473   

Futures contracts long

      83,030,398   

Futures contracts short

      (138,378,338 ) 

Swap contracts

      519,800,000   

 

  ‡ Averages are based on activity levels during 2015.

5. Certain Risks

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”).

Market 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, interest rate, and price fluctuations.

Commodities Risk: 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 factors affecting a particular industry or commodity.

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

 

MIST-46

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC 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 (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to Portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may 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 year ended December 31, 2015 were as follows:

 

Purchases

    Sales

U.S. Government

    Non U.S. Government    U.S. Government    Non U.S. Government
$50,275,902    $779,283,696    $85,317,429    $611,540,401

 

MIST-47

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

7. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31, 2015

    % per annum   Average Daily Net Assets
$12,574,306    0.800%   First $250 million
   0.750%   $250 million to $500 million
   0.720%   $500 million to $750 million
   0.700%   Over $750 million

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. J.P. Morgan Investment Management, Inc. is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, for the period May 1, 2015 to April 30, 2016, 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 $250 million
  0.050 %    $250 million to $500 million
  0.020 %    $500 million to $750 million
  0.050 %    $1 billion to $3 billion
  0.070 %    $3 billion to $5 billion
  0.080 %    Over $5 billion

An identical agreement was in place for the period April 28, 2014 to April 30, 2015. Amounts waived for the year ended December 31, 2015 are shown as a management fee waiver 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.

During the year ended December 31, 2015, the Subadvisor voluntarily reimbursed the Portfolio for underperformance that occurred as a result of an operational error. The error did not result in a breach of regulatory or investment guidelines for the Portfolio. This reimbursement is reflected as net increase from payments by affiliates in the Consolidated Statement of Operations. This reimbursement had no impact on total return.

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, LLC, 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 year ended December 31, 2015 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.

 

MIST-48

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

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 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$94,398,751    $ 37,008,985       $ 33,835,697       $ 27,979,301       $ 128,234,448       $ 64,988,286   

As of December 31, 2015, 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		     Other
Accumulated
Capital Losses		      Total  
$57,008,771    $ 16,528,786       $ (30,717,777 )    $ —       $ 42,819,780   

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.

As of December 31, 2015, the Portfolio had no accumulated capital losses.

10. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-49

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of JP Morgan Global Active Allocation 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 JPMorgan Global Active Allocation Portfolio and subsidiary, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, and the consolidated financial highlights for each of the three years in the period then ended and for the period from April 23, 2012 (commencement of operations) to December 31, 2012. These consolidated financial statements and consolidated financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these consolidated financial statements and consolidated 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 consolidated financial highlights referred to above present fairly, in all material respects, the financial position of JPMorgan Global Active Allocation Portfolio and subsidiary of the Met Investors Series Trust as of December 31, 2015, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the consolidated financial highlights for each of the three years in the period then ended and for the period from April 23, 2012 (commencement of operations) to December 31, 2012, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-50

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-51

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-52

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-53

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those

 

MIST-54

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

JPMorgan Global Active Allocation Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and J.P. Morgan Investment Management Inc. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio underperformed the median of its Performance Universe and its Lipper Index for the one- and three-year and since-inception (beginning April 23, 2012) periods ended June 30, 2015. The Board further considered that the Portfolio outperformed its benchmark, the Dow Jones Moderate Index, for the one-year, three-year, and since-inception periods ended October 31, 2015. In addition, the Board considered that the Portfolio outperformed its blended benchmark for the one-year period ended October 31, 2015, and underperformed its blended benchmark for the three-year and since-inception periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were above the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board took into account that the Portfolio’s contractual sub-advisory fees were above the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-55

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio

Managed by J.P. Morgan Asset Management Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A and B shares of the JPMorgan Small Cap Value Portfolio returned -7.25% and -7.43%, respectively. The Portfolio’s benchmark, the Russell 2000 Value Index1, returned -7.47%.

MARKET ENVIRONMENT / CONDITIONS

2015 was certainly eventful as Greece, weakness in crude oil prices, a strong U.S. dollar, China, emerging markets, and the endless banter on when the Federal Reserve (the “Fed”) would finally raise interest rates dominated the headlines. While the year was difficult, there were areas of the market that have done quite well, particularly in the Consumer Discretionary and Health Care sectors. Investors who have made contrarian calls on the Energy and Materials sectors have yet to be rewarded. There was a defensive tone in the markets as large-cap stocks represented by the S&P 500 Index finished 2015 with a slight gain of 1.4% due to dividends outperforming the Russell 2000 Index, which lost -4.4%.

U.S. equity markets were a virtual seesaw in the first half of the year. While the S&P 500 Index reached an all-time high of 2130.82 on May 21, it experienced several mini dips of over 3%. Investor concerns throughout the early part of 2015 were largely focused on reduced earnings estimates, resulting from the massive decline in oil prices and the strength of the U.S. dollar. The U.S. dollar is widely measured by the U.S. Dollar Index (the “DXY”) which is calculated by averaging the exchange rates between the U.S. dollar and six major world currencies. The DXY does not include China and the euro has the largest weighting. The DXY rose 9.3% for the year with the U.S. dollar being particularly strong against the euro as monetary policy in the U.S. and eurozone diverged during the year. The European Central Bank (the “ECB”) has been expanding its monetary stimulus while the Fed prepared markets for the eventual interest rate hike that occurred in December.

Ongoing concerns over global growth, the Organization of the Petroleum Exporting Countries (OPEC) reluctance to cut oil production, and the possibility of additional supply coming from Iran and Libya crushed the Energy sector in 2015. It appears now that the U.S. is the swing factor when it comes to bringing global demand and supply for crude oil into balance. U.S. producers have been aggressive in reducing the number of active drilling rigs with active rigs drilling for oil down by 64.2% in 2015. However, due to improved technology and better-than-expected drilling efficiency, U.S. oil production has only fallen 4.1% from peak levels reached in June. Crude oil futures ranged between $61.43 a barrel and $34.73 a barrel and the near-term futures contract closed out at $37.04 a barrel at year end, representing a 30.5% decline for the year.

The Greek saga once again took a dangerous turn in June as Greece Prime Minister Alex Tsipras cut off negotiations with European officials, announcing plans to hold a referendum on July 5, which placed the decision of accepting reform into the hands of the people. Athens subsequently missed its International Monetary Fund payment. After the “No” vote by the Greek people on the bailout referendum, market sentiment began to improve amidst signs that the Greek government was preparing to ignore the referendum result and submit new reform proposals to avoid bankruptcy and expulsion from the eurozone. The Greek parliament passed an agreement resulting in European officials granting Greece a three-year support program.

As Greece faded from the headlines, the volatility on the two main onshore Chinese stock exchanges became front and center. At its high on June 12, the Shanghai Stock Exchange Composite Index gained 59.7% in 2015. Over the summer months, it fell 45.1%, reaching its low on August 26. To stem the selling, the People’s Bank of China (the “PBOC”) provided liquidity support to Chinese security regulators to fund the China Securities Finance Corporation. Additionally, Chinese security firms collectively invested into a market stabilization fund, new Initial Public Offerings were temporarily suspended, and trading was halted on hundreds of issues. The Shanghai Index finished 2015 with a total return of 6.4%.

Investors finally experienced the “correction” bearish investors were waiting for in the third quarter. China first made headlines in early August with a surprise move by the PBOC to devalue the Chinese renminbi (“RMB”) relative to the U.S. dollar. The decision was initially well received by Chinese and U.S. equity markets. The vicious selling did not occur in the U.S. until the following week when the S&P 500 Index dropped 11.2% in just six trading days, reaching its 2015 low of 1867.91 on August 25. Just when it appeared the markets could recover some of August’s losses, markets sold off as investors were discouraged by the Fed’s inaction at its September meeting. Once again the Fed shifted the parameters by which they would consider raising interest rates, creating even more uncertainty on the interest rate outlook.

U.S. equity markets rebounded in October as investors were encouraged by Chinese foreign exchange reserves falling at a slower pace. Additionally, Chinese President Xi’s statements helped alleviate fears of the RMB’s further devaluation relative to the U.S. dollar. However, falling oil prices and a strengthening U.S. dollar, the major nemeses of equity markets for 2015 reappeared in December. Additionally, stresses in the high-yield credit markets fueled renewed volatility. The Santa Claus rally investors were hoping for appeared to be underway the week of the Christmas holiday as the S&P 500 Index gained 2.8%. However, in the final week of the year, investor enthusiasm faded as higher crude oil inventories and Saudi Arabia’s pledge to leave production unchanged stirred up volatility in crude oil prices.

Market rallies in 2015 have been mostly driven by stabilization in China, improving sentiment in Europe, actions taken or comments made by the ECB and the Fed, as well as brisk U.S. merger-and-acquisition (“M&A”) activity.

 

MIST-1

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio

Managed by J.P. Morgan Asset Management Inc.

Portfolio Manager Commentary*—(Continued)

 

PORTFOLIO REVIEW / PERIOD END POSITIONING

Stock selection in Health Care and Industrials aided relative returns, as Thoratec and CoreSite Realty were the top contributors. Within the Health Care sector, an overweight position in Thoratec contributed to performance. Shares of the stock rose after St. Jude Medical acquired the company for $63.50 per share. An overweight position in CoreSite Realty also contributed to performance. Shares outperformed after management released a series of positive quarterly earnings announcements and issued positive FFO (funds from operations) guidance for 2015. Strong momentum in leasing activity and M&A in the data center space also boosted investor sentiment toward the stock.

Alternatively, stock selection in the Energy and Information Technology (“IT”) sectors hurt returns, where Unisys and Iconix Brand Group were the top detractors. Within the IT sector, the overweight position in Unisys detracted from performance. A series of weaker earnings releases in which management made cautious remarks about growth in the company’s hardware segment, and declining margins due to restructuring charges, pension expenses, and lower services and technology margins caused shares to fall during the period. In addition, shares of Iconix Brand Group declined in the year. The COO, CFO and CEO all left the company, which raised fears of potential accounting issues. Shares declined further after management announced a restatement of financials from 2013 to 2015. Management also cut revenue and earnings per share guidance substantially on lower licensing revenue and performance of international joint ventures. Lastly, the SEC announced an investigation into the company’s accounting practices for some of its joint ventures.

From our proprietary attribution framework during the year, the Alpha Model, Sector Selection and Stock Specific made positive contributions to performance, while Risk Factors detracted. From a factor perspective, Valuation and Capital Deployment were additive to performance, while Earnings Quality detracted.

As of December 31, 2015, the Portfolio’s largest relative sector overweights were in the IT and Industrials sectors, and our largest relative underweights were in the Financials and Consumer Discretionary sectors.

Dennis Ruhl

Phil Hart

Portfolio Managers

J.P. Morgan Asset 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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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

 

A $10,000 INVESTMENT COMPARED TO THE RUSSELL 2000 VALUE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year        Since Inception2  
JPMorgan Small Cap Value Portfolio                      

Class A

        -7.25           6.10           6.68           —   

Class B

        -7.43           5.83           —           5.72   
Russell 2000 Value Index        -7.47           7.67           5.57           —   

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 dates of the Class A and Class B shares are 5/2/2005 and 4/28/2008, respectively.

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
CNO Financial Group, Inc.      1.2   
DCT Industrial Trust, Inc.      1.2   
Cooper Tire & Rubber Co.      1.2   
Take-Two Interactive Software, Inc.      1.1   
Westamerica Bancorp      1.1   
CubeSmart      1.0   
Children’s Place, Inc. (The)      1.0   
Universal Corp.      1.0   
EMCOR Group, Inc.      1.0   
REX American Resources Corp.      1.0   

Top Sectors

 

     % of
Net Assets		  
Financials      41.2   
Industrials      13.1   
Information Technology      12.4   
Consumer Discretionary      8.4   
Utilities      7.2   
Health Care      5.2   
Energy      3.9   
Materials      3.0   
Consumer Staples      2.4   
Telecommunication Services      0.7   

 

MIST-3

Met Investors Series Trust

JPMorgan Small Cap Value 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, July 1, 2015 through December 31, 2015.

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

         Annualized
Expense
Ratio		      Beginning
Account Value
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual      0.73 %     $ 1,000.00         $ 919.90         $ 3.53   
   Hypothetical*      0.73 %     $ 1,000.00         $ 1,021.53         $ 3.72   

Class B(a)

    Actual      0.98 %     $ 1,000.00         $ 918.70         $ 4.74   
   Hypothetical*      0.98 %     $ 1,000.00         $ 1,020.27         $ 4.99   

* 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 (184 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

Schedule of Investments as of December 31, 2015

Common Stocks—97.5% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—1.8%

    

AAR Corp.

     181,700      $ 4,776,893   

DigitalGlobe, Inc. (a)

     182,300        2,854,818   

Moog, Inc. - Class A (a)

     31,500        1,908,900   

National Presto Industries, Inc.

     5,700        472,302   
   

 

 

  
      10,012,913   
   

 

 

  

Air Freight & Logistics—0.6%

    

Atlas Air Worldwide Holdings, Inc. (a)

     76,300        3,154,242   
   

 

 

  

Airlines—0.4%

    

Alaska Air Group, Inc.

     30,500        2,455,555   
   

 

 

  

Auto Components—1.5%

    

Cooper Tire & Rubber Co.

     169,900        6,430,715   

Dana Holding Corp. (b)

     56,000        772,800   

Stoneridge, Inc. (a)

     59,200        876,160   
   

 

 

  
      8,079,675   
   

 

 

  

Banks—17.3%

    

1st Source Corp.

     39,491        1,219,087   

American National Bankshares, Inc.

     2,300        58,903   

Bancfirst Corp.

     23,400        1,371,708   

BancorpSouth, Inc. (b)

     136,600        3,277,034   

Bank of Hawaii Corp. (b)

     59,800        3,761,420   

Banner Corp.

     22,500        1,031,850   

BBCN Bancorp, Inc.

     129,200        2,224,824   

Capital Bank Financial Corp. - Class A (b)

     84,900        2,715,102   

Cascade Bancorp (a)

     30,471        184,959   

Cathay General Bancorp

     75,400        2,362,282   

Central Pacific Financial Corp.

     178,601        3,932,794   

Century Bancorp, Inc. - Class A (b)

     3,000        130,380   

Chemical Financial Corp.

     26,400        904,728   

Citizens & Northern Corp. (b)

     7,100        149,100   

City Holding Co.

     52,909        2,414,767   

CoBiz Financial, Inc. (b)

     35,740        479,631   

Columbia Banking System, Inc.

     19,900        646,949   

Community Bank System, Inc.

     49,600        1,981,024   

Community Trust Bancorp, Inc.

     44,716        1,563,271   

Customers Bancorp, Inc. (a)

     61,400        1,671,308   

East West Bancorp, Inc.

     4,628        192,340   

Financial Institutions, Inc.

     25,499        713,972   

First Bancorp

     11,100        208,014   

First BanCorp. (a)

     467,000        1,517,750   

First Busey Corp.

     50,566        1,043,177   

First Citizens BancShares, Inc. - Class A

     3,000        774,510   

First Commonwealth Financial Corp. (b)

     465,300        4,220,271   

First Community Bancshares, Inc.

     16,900        314,847   

First Financial Bancorp

     41,500        749,905   

First Financial Bankshares, Inc. (b)

     27,700        835,709   

First Interstate BancSystem, Inc. - Class A

     33,900        985,473   

Flushing Financial Corp.

     56,000        1,211,840   

FNB Corp. (b)

     170,100        2,269,134   

Fulton Financial Corp.

     107,900        1,403,779   

Glacier Bancorp, Inc.

     77,600        2,058,728   

Great Southern Bancorp, Inc.

     13,400        606,484   

Guaranty Bancorp

     9,600        158,784   

Banks—(Continued)

    

Hancock Holding Co. (b)

     121,600      3,060,672   

Heartland Financial USA, Inc. (b)

     19,783        620,395   

Heritage Financial Corp. (b)

     8,934        168,317   

Investors Bancorp, Inc.

     333,700        4,151,228   

Lakeland Bancorp, Inc.

     22,545        265,806   

Lakeland Financial Corp.

     10,200        475,524   

MainSource Financial Group, Inc.

     61,204        1,400,347   

Metro Bancorp, Inc.

     21,500        674,670   

National Penn Bancshares, Inc.

     17,200        212,076   

OFG Bancorp

     205,845        1,506,785   

Pacific Continental Corp.

     28,685        426,833   

PacWest Bancorp

     56,900        2,452,390   

Preferred Bank

     6,400        211,328   

Republic Bancorp, Inc. - Class A

     7,200        190,152   

S&T Bancorp, Inc. (b)

     8,000        246,560   

Sierra Bancorp

     6,200        109,430   

Simmons First National Corp. - Class A

     5,000        256,800   

Southside Bancshares, Inc.

     6,455        155,049   

Southwest Bancorp, Inc.

     46,600        814,568   

State Bank Financial Corp.

     21,100        443,733   

Stock Yards Bancorp, Inc. (b)

     4,600        173,834   

Suffolk Bancorp

     6,300        178,605   

TCF Financial Corp.

     161,200        2,276,144   

Tompkins Financial Corp. (b)

     14,459        812,017   

TriState Capital Holdings, Inc. (a) (b)

     9,400        131,506   

Trustmark Corp.

     52,600        1,211,904   

UMB Financial Corp. (b)

     68,400        3,184,020   

Umpqua Holdings Corp.

     215,761        3,430,600   

Union Bankshares Corp.

     153,974        3,886,304   

Valley National Bancorp (b)

     27,674        272,589   

Washington Trust Bancorp, Inc.

     13,900        549,328   

Webster Financial Corp.

     40,800        1,517,352   

WesBanco, Inc. (b)

     5,472        164,269   

West Bancorp, Inc. (b)

     15,120        298,620   

Westamerica Bancorp (b)

     134,100        6,269,175   

Western Alliance Bancorp (a)

     5,764        206,697   

Wilshire Bancorp, Inc.

     237,500        2,743,125   
   

 

 

  
      96,494,590   
   

 

 

  

Biotechnology—1.2%

    

Applied Genetic Technologies Corp. (a)

     2,600        53,040   

Ardelyx, Inc. (a)

     12,500        226,500   

Avalanche Biotechnologies, Inc. (a)

     2,800        26,656   

Cara Therapeutics, Inc. (a) (b)

     15,000        252,900   

Dicerna Pharmaceuticals, Inc. (a) (b)

     6,300        74,781   

Epizyme, Inc. (a) (b)

     4,600        73,692   

Idera Pharmaceuticals, Inc. (a) (b)

     644,800        1,992,432   

Immune Design Corp. (a) (b)

     5,300        106,424   

Insmed, Inc. (a) (b)

     16,100        292,215   

Karyopharm Therapeutics, Inc. (a) (b)

     2,200        29,150   

MacroGenics, Inc. (a) (b)

     5,300        164,141   

NantKwest, Inc. (a) (b)

     28,700        497,371   

Radius Health, Inc. (a) (b)

     16,200        996,948   

Sage Therapeutics, Inc. (a) (b)

     1,900        110,770   

Seres Therapeutics, Inc. (a) (b)

     29,100        1,021,119   

Ultragenyx Pharmaceutical, Inc. (a) (b)

     4,300        482,374   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Biotechnology—(Continued)

    

Verastem, Inc. (a)

     13,100      $ 24,366   

Zafgen, Inc. (a)

     5,200        32,708   
   

 

 

  
      6,457,587   
   

 

 

  

Building Products—0.6%

    

Gibraltar Industries, Inc. (a)

     123,300        3,136,752   
   

 

 

  

Capital Markets—0.9%

    

Arlington Asset Investment Corp. - Class A (b)

     37,700        498,771   

Cowen Group, Inc. - Class A (a) (b)

     264,200        1,011,886   

International FCStone, Inc. (a)

     8,200        274,372   

Investment Technology Group, Inc.

     63,800        1,085,876   

Janus Capital Group, Inc. (b)

     24,500        345,205   

KCG Holdings, Inc. - Class A (a)

     131,047        1,613,189   

Oppenheimer Holdings, Inc. - Class A

     20,509        356,446   
   

 

 

  
      5,185,745   
   

 

 

  

Chemicals—0.6%

    

Intrepid Potash, Inc. (a)

     177,400        523,330   

KMG Chemicals, Inc.

     6,200        142,724   

Minerals Technologies, Inc.

     6,500        298,090   

Olin Corp.

     81,400        1,404,964   

Rayonier Advanced Materials, Inc. (b)

     109,200        1,069,068   
   

 

 

  
      3,438,176   
   

 

 

  

Commercial Services & Supplies—2.1%

    

ACCO Brands Corp. (a)

     531,000        3,786,030   

Ennis, Inc.

     30,500        587,125   

Essendant, Inc.

     91,500        2,974,665   

Quad/Graphics, Inc.

     166,707        1,550,375   

West Corp.

     127,800        2,756,646   
   

 

 

  
      11,654,841   
   

 

 

  

Communications Equipment—1.9%

    

Black Box Corp.

     76,092        725,157   

Comtech Telecommunications Corp.

     54,882        1,102,579   

InterDigital, Inc. (b)

     68,800        3,373,952   

NETGEAR, Inc. (a) (b)

     58,400        2,447,544   

Polycom, Inc. (a)

     249,900        3,146,241   
   

 

 

  
      10,795,473   
   

 

 

  

Construction & Engineering—1.6%

    

Argan, Inc.

     67,810        2,197,044   

Comfort Systems USA, Inc.

     51,200        1,455,104   

EMCOR Group, Inc.

     111,600        5,361,264   
   

 

 

  
      9,013,412   
   

 

 

  

Consumer Finance—0.6%

    

Cash America International, Inc. (b)

     57,000        1,707,150   

Nelnet, Inc. - Class A

     40,300        1,352,871   
   

 

 

  
      3,060,021   
   

 

 

  

Containers & Packaging—0.6%

    

Graphic Packaging Holding Co.

     230,300        2,954,749   

Containers & Packaging—(Continued)

    

Myers Industries, Inc.

     20,000      266,400   
   

 

 

  
      3,221,149   
   

 

 

  

Distributors—0.0%

    

VOXX International Corp. (a) (b)

     32,400        170,424   
   

 

 

  

Diversified Consumer Services—1.1%

    

Ascent Capital Group, Inc. - Class A (a) (b)

     24,900        416,328   

Houghton Mifflin Harcourt Co. (a)

     32,600        710,028   

K12, Inc. (a)

     147,900        1,301,520   

Regis Corp. (a)

     250,500        3,544,575   
   

 

 

  
      5,972,451   
   

 

 

  

Diversified Financial Services—0.0%

    

Marlin Business Services Corp. (b)

     11,874        190,696   
   

 

 

  

Diversified Telecommunication Services—0.6%

  

Cincinnati Bell, Inc. (a)

     727,600        2,619,360   

FairPoint Communications, Inc. (a) (b)

     12,300        197,661   

Intelsat S.A. (a) (b)

     76,600        318,656   

Windstream Holdings, Inc. (b)

     33,000        212,520   
   

 

 

  
      3,348,197   
   

 

 

  

Electric Utilities—2.1%

    

El Paso Electric Co.

     108,505        4,177,443   

PNM Resources, Inc.

     51,900        1,586,583   

Portland General Electric Co.

     139,500        5,073,615   

Spark Energy, Inc. - Class A (b)

     8,100        167,832   

Unitil Corp.

     18,900        678,132   
   

 

 

  
      11,683,605   
   

 

 

  

Electrical Equipment—0.3%

    

General Cable Corp. (b)

     68,400        918,612   

LSI Industries, Inc.

     51,565        628,577   
   

 

 

  
      1,547,189   
   

 

 

  

Electronic Equipment, Instruments & Components—2.8%

  

Benchmark Electronics, Inc. (a)

     180,200        3,724,734   

Checkpoint Systems, Inc.

     34,300        215,061   

Coherent, Inc. (a)

     20,000        1,302,200   

Insight Enterprises, Inc. (a)

     138,600        3,481,632   

Sanmina Corp. (a)

     21,900        450,702   

Tech Data Corp. (a)

     55,500        3,684,090   

Vishay Intertechnology, Inc. (b)

     237,100        2,857,055   
   

 

 

  
      15,715,474   
   

 

 

  

Energy Equipment & Services—1.5%

    

Archrock, Inc.

     14,600        109,792   

Atwood Oceanics, Inc. (b)

     44,500        455,235   

Geospace Technologies Corp. (a) (b)

     40,300        567,021   

GulfMark Offshore, Inc. - Class A (a) (b)

     167,900        784,093   

Helix Energy Solutions Group, Inc. (a) (b)

     269,800        1,419,148   

Key Energy Services, Inc. (a) (b)

     930,700        448,691   

North Atlantic Drilling, Ltd. (a)

     30,940        76,112   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Energy Equipment & Services—(Continued)

  

  

Parker Drilling Co. (a) (b)

     113,000      $ 205,660   

Pioneer Energy Services Corp. (a)

     477,700        1,036,609   

SEACOR Holdings, Inc. (a) (b)

     44,100        2,317,896   

Unit Corp. (a) (b)

     97,100        1,184,620   
   

 

 

  
      8,604,877   
   

 

 

  

Food & Staples Retailing—0.2%

    

Smart & Final Stores, Inc. (a) (b)

     20,900        380,589   

SpartanNash Co.

     30,900        668,676   
   

 

 

  
      1,049,265   
   

 

 

  

Food Products—0.8%

    

Farmer Bros Co. (a)

     4,000        129,080   

Fresh Del Monte Produce, Inc. (b)

     37,800        1,469,664   

Pinnacle Foods, Inc.

     55,200        2,343,792   

Sanderson Farms, Inc. (b)

     1,900        147,288   

Seneca Foods Corp. - Class A (a)

     3,300        95,634   
   

 

 

  
      4,185,458   
   

 

 

  

Gas Utilities—2.3%

    

AGL Resources, Inc.

     31,000        1,978,110   

Chesapeake Utilities Corp.

     11,150        632,762   

Laclede Group, Inc. (The)

     64,939        3,858,026   

Northwest Natural Gas Co. (b)

     52,200        2,641,842   

Piedmont Natural Gas Co., Inc.

     16,700        952,234   

Southwest Gas Corp.

     54,900        3,028,284   
   

 

 

  
      13,091,258   
   

 

 

  

Health Care Equipment & Supplies—1.4%

    

Halyard Health, Inc. (a) (b)

     14,500        484,445   

Inogen, Inc. (a)

     14,700        589,323   

Meridian Bioscience, Inc. (b)

     48,900        1,003,428   

Orthofix International NV (a)

     27,000        1,058,670   

Quidel Corp. (a) (b)

     109,000        2,310,800   

Rockwell Medical, Inc. (a) (b)

     58,700        601,088   

SurModics, Inc. (a)

     74,086        1,501,723   
   

 

 

  
      7,549,477   
   

 

 

  

Health Care Providers & Services—2.2%

    

Addus HomeCare Corp. (a) (b)

     39,800        926,544   

Alliance HealthCare Services, Inc. (a)

     46,900        430,542   

Amsurg Corp. (a)

     8,700        661,200   

Centene Corp. (a) (b)

     45,800        3,014,098   

Cross Country Healthcare, Inc. (a)

     180,300        2,955,117   

Five Star Quality Care, Inc. (a)

     33,100        105,258   

Surgical Care Affiliates, Inc. (a)

     92,000        3,662,520   

Triple-S Management Corp. - Class B (a)

     25,300        604,923   
   

 

 

  
      12,360,202   
   

 

 

  

Hotels, Restaurants & Leisure—1.4%

    

Bob Evans Farms, Inc. (b)

     43,600        1,693,860   

Bravo Brio Restaurant Group, Inc. (a)

     14,900        134,100   

Isle of Capri Casinos, Inc. (a)

     231,241        3,221,187   

Jack in the Box, Inc.

     6,800        521,628   

Ruby Tuesday, Inc. (a)

     23,300        128,383   

Hotels, Restaurants & Leisure—(Continued)

    

Ruth’s Hospitality Group, Inc.

     99,600      1,585,632   

Speedway Motorsports, Inc.

     14,900        308,728   
   

 

 

  
      7,593,518   
   

 

 

  

Household Durables—0.8%

    

CalAtlantic Group, Inc.

     7,678        291,150   

CSS Industries, Inc. (b)

     37,951        1,077,049   

KB Home (b)

     71,300        879,129   

Leggett & Platt, Inc.

     34,800        1,462,296   

MDC Holdings, Inc. (b)

     14,100        359,973   

NACCO Industries, Inc. - Class A

     12,600        531,720   
   

 

 

  
      4,601,317   
   

 

 

  

Household Products—0.5%

    

Central Garden & Pet Co. - Class A (a)

     221,600        3,013,760   
   

 

 

  

Independent Power and Renewable Electricity Producers—0.5%

  

Atlantic Power Corp. (b)

     763,400        1,503,898   

Ormat Technologies, Inc. (b)

     42,300        1,542,681   
   

 

 

  
      3,046,579   
   

 

 

  

Insurance—5.0%

    

American Equity Investment Life Holding Co. (b)

     28,200        677,646   

Arch Capital Group, Ltd. (a)

     12,456        868,806   

Argo Group International Holdings, Ltd.

     44,964        2,690,646   

CNO Financial Group, Inc. (b)

     347,600        6,635,684   

Global Indemnity plc (a)

     4,200        121,884   

Hallmark Financial Services, Inc. (a)

     26,721        312,368   

Horace Mann Educators Corp.

     85,611        2,840,573   

Kemper Corp.

     14,200        528,950   

Maiden Holdings, Ltd. (b)

     33,400        497,994   

Navigators Group, Inc. (The) (a)

     13,000        1,115,270   

Primerica, Inc. (b)

     39,700        1,875,031   

ProAssurance Corp.

     64,100        3,110,773   

StanCorp Financial Group, Inc.

     23,300        2,653,404   

Symetra Financial Corp.

     115,400        3,666,258   

United Fire Group, Inc.

     6,300        241,353   
   

 

 

  
      27,836,640   
   

 

 

  

Internet & Catalog Retail—0.5%

    

Liberty TripAdvisor Holdings, Inc. - Class A (a) (b)

     97,200        2,949,048   
   

 

 

  

Internet Software & Services—0.9%

    

Bazaarvoice, Inc. (a)

     189,300        829,134   

Benefitfocus, Inc. (a) (b)

     15,100        549,489   

Blucora, Inc. (a) (b)

     135,400        1,326,920   

EarthLink Holdings Corp.

     226,700        1,684,381   

Monster Worldwide, Inc. (a) (b)

     138,500        793,605   
   

 

 

  
      5,183,529   
   

 

 

  

IT Services—1.2%

    

Convergys Corp. (b)

     135,900        3,382,551   

EVERTEC, Inc. (b)

     12,600        210,924   

ModusLink Global Solutions, Inc. (a) (b)

     27,500        68,200   

Sykes Enterprises, Inc. (a)

     45,400        1,397,412   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

IT Services—(Continued)

    

Unisys Corp. (a) (b)

     171,100      $ 1,890,655   
   

 

 

  
      6,949,742   
   

 

 

  

Leisure Products—0.2%

    

Nautilus, Inc. (a)

     60,600        1,013,232   
   

 

 

  

Life Sciences Tools & Services—0.1%

    

Affymetrix, Inc. (a) (b)

     37,100        374,339   
   

 

 

  

Machinery—2.4%

    

Accuride Corp. (a)

     30,100        49,966   

AGCO Corp. (b)

     34,800        1,579,572   

Briggs & Stratton Corp. (b)

     98,100        1,697,130   

Douglas Dynamics, Inc.

     135,942        2,864,298   

Federal Signal Corp.

     72,900        1,155,465   

Hurco Cos., Inc.

     23,482        623,682   

Hyster-Yale Materials Handling, Inc. (b)

     25,200        1,321,740   

Kadant, Inc.

     48,107        1,953,625   

Mueller Water Products, Inc. - Class A

     107,500        924,500   

Wabash National Corp. (a) (b)

     67,400        797,342   

Watts Water Technologies, Inc. - Class A

     7,600        377,492   
   

 

 

  
      13,344,812   
   

 

 

  

Marine—0.4%

    

Matson, Inc.

     47,500        2,024,925   
   

 

 

  

Media—0.4%

    

Central European Media Enterprises, Ltd. - Class A (a) (b)

     55,200        148,488   

Entercom Communications Corp. - Class A (a)

     66,060        741,854   

Saga Communications, Inc. - Class A (b)

     3,235        124,386   

Time, Inc. (b)

     79,800        1,250,466   
   

 

 

  
      2,265,194   
   

 

 

  

Metals & Mining—0.9%

    

Cliffs Natural Resources, Inc. (a) (b)

     249,100        393,578   

Schnitzer Steel Industries, Inc. - Class A (b)

     132,800        1,908,336   

Worthington Industries, Inc.

     85,300        2,570,942   
   

 

 

  
      4,872,856   
   

 

 

  

Multi-Utilities—1.6%

    

Avista Corp. (b)

     125,800        4,449,546   

NorthWestern Corp. (b)

     78,783        4,273,978   
   

 

 

  
      8,723,524   
   

 

 

  

Multiline Retail—0.5%

    

Dillard’s, Inc. - Class A (b)

     45,400        2,983,234   
   

 

 

  

Oil, Gas & Consumable Fuels—2.4%

    

Adams Resources & Energy, Inc.

     1,600        61,440   

Alon USA Energy, Inc. (b)

     33,500        497,140   

Approach Resources, Inc. (a) (b)

     108,900        200,376   

Bill Barrett Corp. (a) (b)

     800,100        3,144,393   

Frontline, Ltd.

     78,000        233,220   

Gastar Exploration, Inc. (a) (b)

     136,400        178,684   

Oil, Gas & Consumable Fuels—(Continued)

  

  

Halcon Resources Corp. (a) (b)

     150,700      189,882   

Jones Energy, Inc. - Class A (a)

     84,400        324,940   

Penn Virginia Corp. (a) (b)

     310,000        93,124   

REX American Resources Corp. (a) (b)

     98,400        5,320,488   

Rex Energy Corp. (a) (b)

     334,000        350,700   

Stone Energy Corp. (a) (b)

     561,700        2,409,693   

Triangle Petroleum Corp. (a) (b)

     265,700        204,589   
   

 

 

  
      13,208,669   
   

 

 

  

Paper & Forest Products—0.9%

    

Domtar Corp.

     46,200        1,707,090   

Schweitzer-Mauduit International, Inc.

     79,600        3,342,404   
   

 

 

  
      5,049,494   
   

 

 

  

Pharmaceuticals—0.4%

    

Amphastar Pharmaceuticals, Inc. (a) (b)

     31,000        441,130   

Medicines Co. (The) (a) (b)

     38,000        1,418,920   

Revance Therapeutics, Inc. (a) (b)

     9,300        317,688   
   

 

 

  
      2,177,738   
   

 

 

  

Professional Services—1.9%

    

Barrett Business Services, Inc. (b)

     80,160        3,490,166   

FTI Consulting, Inc. (a)

     143,400        4,970,244   

RPX Corp. (a)

     54,100        595,100   

VSE Corp. (b)

     24,900        1,548,282   
   

 

 

  
      10,603,792   
   

 

 

  

Real Estate Investment Trusts—13.4%

    

AG Mortgage Investment Trust, Inc. (b)

     34,400        441,696   

American Assets Trust, Inc.

     8,400        322,140   

Apartment Investment & Management Co. - Class A

     71,800        2,874,154   

ARMOUR Residential REIT, Inc. (b)

     15,700        341,632   

Ashford Hospitality Prime, Inc.

     34,732        503,614   

Ashford Hospitality Trust, Inc. (b)

     239,095        1,508,689   

Capstead Mortgage Corp. (b)

     396,058        3,461,547   

CBL & Associates Properties, Inc.

     153,100        1,893,847   

Cedar Realty Trust, Inc.

     100,100        708,708   

CoreSite Realty Corp.

     83,600        4,741,792   

CubeSmart (b)

     182,500        5,588,150   

CyrusOne, Inc. (b)

     2,800        104,860   

CYS Investments, Inc. (b)

     739,500        5,272,635   

DCT Industrial Trust, Inc. (b)

     174,075        6,505,183   

DiamondRock Hospitality Co.

     116,200        1,121,330   

DuPont Fabros Technology, Inc. (b)

     25,300        804,287   

Education Realty Trust, Inc.

     32,000        1,212,160   

EPR Properties

     27,500        1,607,375   

FelCor Lodging Trust, Inc.

     258,969        1,890,474   

First Industrial Realty Trust, Inc.

     45,900        1,015,767   

First Potomac Realty Trust

     177,900        2,028,060   

Franklin Street Properties Corp.

     59,200        612,720   

Getty Realty Corp. (b)

     53,036        909,567   

Gladstone Commercial Corp. (b)

     26,600        388,094   

Government Properties Income Trust (b)

     166,400        2,640,768   

Gramercy Property Trust, Inc.

     176,700        1,364,124   

Hatteras Financial Corp.

     79,700        1,048,055   

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Real Estate Investment Trusts—(Continued)

  

Highwoods Properties, Inc.

     21,300      $ 928,680   

Hospitality Properties Trust

     58,000        1,516,700   

LaSalle Hotel Properties (b)

     28,900        727,124   

LTC Properties, Inc.

     36,000        1,553,040   

Mack-Cali Realty Corp.

     46,600        1,088,110   

Mid-America Apartment Communities, Inc.

     5,232        475,118   

Monogram Residential Trust, Inc.

     85,500        834,480   

Pebblebrook Hotel Trust (b)

     46,800        1,311,336   

Pennsylvania Real Estate Investment Trust

     109,300        2,390,391   

Potlatch Corp. (b)

     111,100        3,359,664   

PS Business Parks, Inc.

     30,800        2,692,844   

RAIT Financial Trust (b)

     344,700        930,690   

Saul Centers, Inc.

     4,300        220,461   

Silver Bay Realty Trust Corp.

     23,700        371,142   

Sunstone Hotel Investors, Inc.

     159,226        1,988,733   

Taubman Centers, Inc.

     5,000        383,600   

Urstadt Biddle Properties, Inc. - Class A

     28,400        546,416   

Washington Real Estate Investment Trust (b)

     89,100        2,411,046   

WP Glimcher, Inc.

     2,247        23,841   
   

 

 

  
      74,664,844   
   

 

 

  

Real Estate Management & Development—1.2%

  

Alexander & Baldwin, Inc.

     74,700        2,637,657   

Forestar Group, Inc. (a) (b)

     170,000        1,859,800   

St. Joe Co. (The) (a) (b)

     118,900        2,200,839   
   

 

 

  
      6,698,296   
   

 

 

  

Road & Rail—0.7%

    

AMERCO

     1,600        623,200   

ArcBest Corp.

     78,500        1,679,115   

PAM Transportation Services, Inc. (a)

     18,245        503,380   

USA Truck, Inc. (a)

     58,600        1,022,570   
   

 

 

  
      3,828,265   
   

 

 

  

Semiconductors & Semiconductor Equipment—2.7%

  

Advanced Energy Industries, Inc. (a)

     98,900        2,791,947   

Alpha & Omega Semiconductor, Ltd. (a) (b)

     12,000        110,280   

Amkor Technology, Inc. (a)

     277,600        1,687,808   

Cohu, Inc.

     153,400        1,851,538   

Cypress Semiconductor Corp. (a) (b)

     304,302        2,985,203   

First Solar, Inc. (a)

     37,600        2,481,224   

FormFactor, Inc. (a)

     121,700        1,095,300   

IXYS Corp.

     48,210        608,892   

Ultra Clean Holdings, Inc. (a)

     27,800        142,336   

Xcerra Corp. (a)

     250,239        1,513,946   
   

 

 

  
      15,268,474   
   

 

 

  

Software—2.8%

    

Aspen Technology, Inc. (a) (b)

     41,700        1,574,592   

EnerNOC, Inc. (a) (b)

     137,300        528,605   

Fair Isaac Corp.

     23,300        2,194,394   

Rovi Corp. (a) (b)

     283,300        4,719,778   

Take-Two Interactive Software, Inc. (a) (b)

     183,100        6,379,204   
   

 

 

  
      15,396,573   
   

 

 

  

Specialty Retail—1.5%

    

Abercrombie & Fitch Co. - Class A (b)

     54,200      1,463,400   

Children’s Place, Inc. (The) (b)

     99,000        5,464,800   

Guess?, Inc. (b)

     79,700        1,504,736   
   

 

 

  
      8,432,936   
   

 

 

  

Textiles, Apparel & Luxury Goods—0.5%

  

Iconix Brand Group, Inc. (a) (b)

     96,200        657,046   

Movado Group, Inc.

     82,700        2,126,217   
   

 

 

  
      2,783,263   
   

 

 

  

Thrifts & Mortgage Finance—2.8%

    

BankFinancial Corp.

     8,085        102,113   

Beneficial Bancorp, Inc. (a)

     214,855        2,861,869   

Brookline Bancorp, Inc.

     27,500        316,250   

Charter Financial Corp. (b)

     100,100        1,322,321   

Fox Chase Bancorp, Inc.

     9,800        198,842   

Kearny Financial Corp.

     7,291        92,377   

Meridian Bancorp, Inc.

     120,600        1,700,460   

MGIC Investment Corp. (a)

     37,600        332,008   

Northfield Bancorp, Inc. (b)

     217,600        3,464,192   

OceanFirst Financial Corp. (b)

     20,500        410,615   

Oritani Financial Corp.

     33,000        544,500   

Territorial Bancorp, Inc.

     5,800        160,892   

United Financial Bancorp, Inc.

     35,300        454,664   

Walker & Dunlop, Inc. (a)

     98,300        2,832,023   

Waterstone Financial, Inc.

     13,000        183,300   

WSFS Financial Corp.

     27,795        899,446   
   

 

 

  
      15,875,872   
   

 

 

  

Tobacco—1.0%

    

Universal Corp. (b)

     95,667        5,365,005   
   

 

 

  

Trading Companies & Distributors—0.4%

  

DXP Enterprises, Inc. (a)

     47,101        1,073,903   

MRC Global, Inc. (a)

     46,800        603,720   

Titan Machinery, Inc. (a)

     51,100        558,523   
   

 

 

  
      2,236,146   
   

 

 

  

Water Utilities—0.6%

    

American States Water Co.

     58,900        2,470,855   

California Water Service Group

     40,600        944,762   
   

 

 

  
      3,415,617   
   

 

 

  

Wireless Telecommunication Services—0.0%

  

Spok Holdings, Inc.

     12,700        232,664   
   

 

 

  

Total Common Stocks
(Cost $542,248,628)

       543,642,601   
   

 

 

  
Short-Term Investments—26.8%   

Mutual Fund—24.2%

    

State Street Navigator Securities Lending MET Portfolio (c)

     134,921,537        134,921,537   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio

Schedule of Investments as of December 31, 2015

Short-Term Investments—(Continued)

 

Security Description   Principal
Amount*		     Value  

Repurchase Agreement—2.6%

    

Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $14,632,281 on 01/04/16, collateralized by $15,115,000 U.S. Treasury Note at 0.625% due 04/30/18 with a value of $14,926,063.

     14,632,232      $ 14,632,232   
   

 

 

  

Total Short-Term Investments
(Cost $149,553,769)

       149,553,769   
   

 

 

  

Total Investments—124.3%
(Cost $691,802,397) (d)

       693,196,370   

Other assets and liabilities (net)—(24.3)%

       (135,457,592 ) 
   

 

 

  
Net Assets—100.0%     $ 557,738,778   
   

 

 

  

 

* 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 December 31, 2015, the market value of securities loaned was $138,497,111 and the collateral received consisted of cash in the amount of $134,921,537 and non-cash collateral with a value of $9,714,037. 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 on loan as of December 31, 2015.
(d) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $693,170,574. The aggregate unrealized appreciation and depreciation of investments were $77,990,008 and $(77,964,212), respectively, resulting in net unrealized appreciation of $25,796 for federal income tax purposes.

Futures Contracts

 

Futures Contracts—Long

    Expiration
Date		      Number of
Contracts		      Notional
Amount		      Unrealized
Appreciation		  

Russell 2000 Mini Index Futures

      03/18/16         125         USD         13,972,100       $ 171,650   
              

 

 

  

 

(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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2     Level 3      Total  

Total Common Stocks*

    $ 543,642,601       $ —        $ —         $ 543,642,601   
Short-Term Investments           

Mutual Fund

      134,921,537         —          —           134,921,537   

Repurchase Agreement

      —           14,632,232        —           14,632,232   

Total Short-Term Investments

      134,921,537         14,632,232        —           149,553,769   

Total Investments

    $ 678,564,138       $ 14,632,232      $ —         $ 693,196,370   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (134,921,537 )    $ —         $ (134,921,537 ) 
Futures Contracts           

Futures Contracts (Unrealized Appreciation)

    $ 171,650       $ —        $ —         $ 171,650   

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 693,196,370   

Cash

      26,847   

Cash collateral for futures contracts

      864,998   

Receivable for:

   

Investments sold

      83,152   

Fund shares sold

      9,749   

Dividends and interest

      1,218,697   

Prepaid expenses

      1,642   
  

 

 

  

Total Assets

      695,401,455   

Liabilities

   

Collateral for securities loaned

      134,921,537   

Payables for:

   

Investments purchased

      2,042,317   

Fund shares redeemed

      27,674   

Variation margin on futures contracts

      143,750   

Accrued Expenses:

   

Management fees

      326,312   

Distribution and service fees

      6,337   

Deferred trustees’ fees

      81,937   

Other expenses

      112,813   
  

 

 

  

Total Liabilities

      137,662,677   
  

 

 

  

Net Assets

    $ 557,738,778   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 513,969,045   

Undistributed net investment income

      9,684,056   

Accumulated net realized gain

      32,520,966   

Unrealized appreciation on investments, futures contracts and foreign currency transactions

      1,564,711   
  

 

 

  

Net Assets

    $ 557,738,778   
  

 

 

  

Net Assets

   

Class A

    $ 528,273,125   

Class B

      29,465,653   

Capital Shares Outstanding*

   

Class A

      34,865,951   

Class B

      1,961,946   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 15.15   

Class B

      15.02   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $691,802,397.
(b) Includes securities loaned at value of $138,497,111.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends (a)

    $ 13,498,554   

Interest

      190   

Securities lending income

      815,796   
  

 

 

  

Total investment income

      14,314,540   

Expenses

   

Management fees

      4,783,338   

Administration fees

      15,321   

Custodian and accounting fees

      116,709   

Distribution and service fees—Class B

      78,275   

Audit and tax services

      40,455   

Legal

      26,445   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      32,499   

Insurance

      4,025   

Miscellaneous

      15,850   
  

 

 

  

Total expenses

      5,148,090   

Less management fee waiver

      (588,334 ) 
  

 

 

  

Net expenses

      4,559,756   
  

 

 

  

Net Investment Income

      9,754,784   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      34,761,212   

Futures contracts

      689,787   

Foreign currency transactions

      (998 ) 
  

 

 

  

Net realized gain

      35,450,001   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (87,652,285 ) 

Futures contracts

      (803,275 ) 

Foreign currency transactions

      (701 ) 
  

 

 

  

Net change in unrealized depreciation

      (88,456,261 ) 
  

 

 

  

Net realized and unrealized loss

      (53,006,260 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (43,251,476 ) 
  

 

 

  

 

(a) Net of foreign withholding taxes of $19,013.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 9,754,784      $ 8,486,441   

Net realized gain

      35,450,001        52,208,494   

Net change in unrealized depreciation

      (88,456,261 )      (31,816,570 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (43,251,476 )      28,878,365   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (7,884,092 )      (8,011,314 ) 

Class B

      (351,762 )      (267,345 ) 

Net realized capital gains

     

Class A

      (50,159,695 )      (87,679,384 ) 

Class B

      (2,732,783 )      (3,695,921 ) 
  

 

 

    

 

 

  

Total distributions

      (61,128,332 )      (99,653,964 ) 
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (17,667,620 )      (26,338,519 ) 
  

 

 

    

 

 

  

Total decrease in net assets

      (122,047,428 )      (97,114,118 ) 

Net Assets

     

Beginning of period

      679,786,206        776,900,324   
  

 

 

    

 

 

  

End of period

    $ 557,738,778      $ 679,786,206   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 9,684,056      $ 8,257,969   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      264,755      $ 4,416,525        2,369,421      $ 41,163,248   

Reinvestments

      3,486,113        58,043,787        5,675,605        95,690,698   

Redemptions

      (4,668,135 )      (82,466,191 )      (9,685,830 )      (167,274,836 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (917,267 )    $ (20,005,879 )      (1,640,804 )    $ (30,420,890 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      179,043      $ 2,941,744        224,136      $ 3,921,256   

Reinvestments

      186,716        3,084,545        236,613        3,963,266   

Redemptions

      (218,624 )      (3,688,030 )      (214,007 )      (3,802,151 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      147,135      $ 2,338,259        246,742      $ 4,082,371   
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (17,667,620 )      $ (26,338,519 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio

Financial Highlights

 

Selected per share data       
     Class A  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 18.09       $ 19.93       $ 15.07       $ 13.14       $ 14.85   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.27         0.22         0.21         0.21         0.15   

Net realized and unrealized gain (loss) on investments

      (1.42 )       0.52         4.77         1.84         (1.62 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (1.15 )       0.74         4.98         2.05         (1.47 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.24 )       (0.22 )       (0.12 )       (0.12 )       (0.24 ) 

Distributions from net realized capital gains

      (1.55 )       (2.36 )       0.00         0.00         0.00   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (1.79 )       (2.58 )       (0.12 )       (0.12 )       (0.24 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 15.15       $ 18.09       $ 19.93       $ 15.07       $ 13.14   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (7.25 )       4.66         33.25         15.66         (10.12 ) 

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      0.82         0.82         0.83         0.84         0.85   

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

      0.73         0.73         0.75         0.84         0.85   

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

      1.59         1.22         1.21         1.44         1.08   

Portfolio turnover rate (%)

      38         35         110         38         47   

Net assets, end of period (in millions)

    $ 528.3       $ 647.2       $ 745.9       $ 377.3       $ 302.8   
     Class B  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 17.94       $ 19.79       $ 14.97       $ 13.06       $ 14.78   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.22         0.18         0.16         0.17         0.12   

Net realized and unrealized gain (loss) on investments

      (1.39 )       0.50         4.74         1.83         (1.62 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (1.17 )       0.68         4.90         2.00         (1.50 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.20 )       (0.17 )       (0.08 )       (0.09 )       (0.22 ) 

Distributions from net realized capital gains

      (1.55 )       (2.36 )       0.00         0.00         0.00   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (1.75 )       (2.53 )       (0.08 )       (0.09 )       (0.22 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 15.02       $ 17.94       $ 19.79       $ 14.97       $ 13.06   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (7.43 )       4.37         32.90         15.36         (10.36 ) 

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      1.07         1.07         1.08         1.09         1.10   

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

      0.98         0.98         1.00         1.09         1.10   

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

      1.34         1.00         0.90         1.18         0.85   

Portfolio turnover rate (%)

      38         35         110         38         47   

Net assets, end of period (in millions)

    $ 29.5       $ 32.6       $ 31.0       $ 25.4       $ 21.8   

 

(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) Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is JPMorgan 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

 

MIST-14

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 real estate investment trust (REIT) adjustments. These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In

 

MIST-15

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $14,632,232, 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 December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

 

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2015, with a contractual maturity of overnight and continuous.

3. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts 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 cash 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. If futures contracts are exchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

 

MIST-16

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

The following table summarizes the fair value of derivatives haled by the Portfolio at December 31, 2015 by category of risk exposure:

 

    

Asset Derivatives

  

Risk Exposure

   

Statement of Assets &
Liabilities Location

    Fair Value  

Equity

    Unrealized appreciation on futures contracts (a)    $ 171,650   
     

 

 

  

 

  (a) 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 tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Equity  

Futures contracts

    $ 689,787   
  

 

 

  

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

    Equity  

Futures contracts

    $ (803,275 ) 
  

 

 

  

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Futures contracts long

    $ 16,642   

 

  ‡ Averages are based on activity levels during the period.

4. Certain Risks

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”).

Market 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, 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the

 

MIST-17

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to Portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 225,832,703       $ 0       $ 275,937,515   

During the year ended December 31, 2015, the Portfolio engaged in security transactions with other affiliated Portfolios. These amounted to $97,304 in sales of investments, which are included above.

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers

for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$4,783,338      0.800 %    First $100 million
     0.775 %    $100 million to $500 million
     0.750 %    $500 million to $1 billion
     0.725 %    Over $1 billion

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. J.P. Morgan Investment Management, Inc. is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, for the period May 1, 2015 to April 30, 2016, 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 $50 million
0.125%    $50 million to $100 million
0.100%    $100 million to $500 million
0.075%    $500 million to $1billion
0.050%    Over $1 billion

An identical agreement was in place for the period November 1, 2014 to April 30, 2015. Amounts waived for the year ended December 31, 2015 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, LLC, 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

 

MIST-18

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 year ended December 31, 2015 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 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$30,029,197    $ 43,684,657       $ 31,099,135       $ 55,969,307       $ 61,128,332       $ 99,653,964   

As of December 31, 2015, 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		      Other
Accumulated
Capital Losses		      Total  
$11,821,929    $ 32,004,859       $ 24,884       $ —       $ 43,851,672   

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, 2015, the Portfolio had no post-enactment accumulated capital losses and no pre-enactment accumulated capital loss carryforwards.

9. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-19

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of JPMorgan Small Cap Value 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 JPMorgan Small Cap Value Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 JPMorgan Small Cap Value Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-20

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-21

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-22

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment

 

MIST-23

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of

 

MIST-24

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

JPMorgan Small Cap Value Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and J.P. Morgan Investment Management Inc. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the one-year period ended June 30, 2015, and underperformed the median of its Performance Universe and its Lipper Index for the three- and five-year periods ended June 30, 2015. The Board further considered that the Portfolio outperformed its benchmark, the Russell 2000 Value Index, for the one-year period ended October 31, 2015, and underperformed its benchmark for the three- and five-year periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-1 fees) were below its Expense Group median, Expense Universe median, and Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also took into account that the Portfolio’s contractual sub-advisory fees were below the average of the Sub-advised Expense Group and the average of the Sub-advised Expense Universe at the Portfolio’s current size. In addition, the Board considered that the Adviser had negotiated reductions to the Portfolio’s sub-advisory fee schedule and that the Adviser agreed to waive a portion of its advisory fee in order for contractholders to benefit from the lower sub-advisory fee effective November 1, 2014.

 

MIST-25

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Managed by Loomis, Sayles & Company L.P.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A and B shares of the Loomis Sayles Global Markets Portfolio returned 1.47% and 1.23%, respectively. The Portfolio’s benchmarks, the MSCI World Index1 and the Citigroup World Government Bond Index (“Citi WGBI”)2, returned -0.87% and -3.57%, respectively. A blend of the MSCI World Index (60%) and the Citi WGBI (40%) returned -1.72%.

MARKET ENVIRONMENT / CONDITIONS

A fourth-quarter rally capped off a volatile year, but the return for global equities remained negative over the 12-month reporting period. Global equity markets generally followed an upward course for the first eight months of 2015, with only a brief interruption in June, when Greek political volatility disturbed markets. Stocks fell sharply in August, with many indexes experiencing a 10% correction for the first time since 2011. Concerns about the health of China’s economy, sharply falling commodity prices, a surprise devaluation of the renminbi, and a generally uncertain global growth outlook triggered the selloff. Stocks bounced back in the fourth quarter, largely due to an October rally fueled by greater stability in China and continued central bank easing in Europe, Japan and China. But investor sentiment soured again in December, as mixed economic data, still-falling oil prices and uncertainty surrounding the pace of U.S. Federal Reserve (the “Fed”) tightening drove stock prices lower.

After months of speculation, the Fed increased the Federal Funds rate by 0.25% in December, further supporting the monetary policy divergence between the U.S. and the rest of the world. Credit spreads widened for the majority of the year, due in part to heavy new issuance, fears of China’s economic health and sharp declines in commodity prices. Virtually all markets were under pressure with energy and mining credits, high yield names and emerging market issuers suffering the most. The U.S. dollar continued to strengthen against virtually every currency. Emerging market currencies traded weaker versus developed market currencies with few exceptions, and currencies of commodity exporters were hit particularly hard.

PORTFOLIO REVIEW / PERIOD END POSITIONING

For the global equity portion of the Portfolio, stock selection in Information Technology, Consumer Discretionary, and Financials were the largest contributors to relative performance. Stock selection in the Industrials, Energy, and Consumer Staples sectors detracted from performance. On a regional basis, all regions contributed positively to relative and absolute performance, led by North America and Europe.

The Portfolio’s most significant individual contributors for the quarter were Amazon, Alphabet (formerly Google), and Autozone. Alphabet delivered strong results, greater transparency, and capital discipline. Improvements in fundamentals, coupled with a highly attractive valuation, led to strong stock performance. Amazon delivered strong profitability and more transparency within Amazon Web Services, its cloud-computing platform. The company reported strong revenue growth in an environment where many global retailers and businesses are decelerating. Shares of AutoZone, a U.S. auto parts retailer, rose due to a relatively stronger business model in the do-it-yourself segment. The company grew market share and expanded margins via increased private-label offerings and modest price increases.

The Portfolio’s largest individual detractors were Valeant Pharmaceuticals, Genesee and Wyoming, and Kinder Morgan. Valeant, a Canadian pharmaceuticals company, fell over renewed concerns about the company’s use of the specialty pharmacy distribution channel and aggressive business practices. Based on these developments, we eliminated the position. Genesee and Wyoming, a short-line railroad company, performed poorly in 2015 as weakening end markets in coal, energy, and iron ore weighed on carloads and lower volumes pressured margins. As a result, earnings and cash flow were far weaker than initially anticipated. Kinder Morgan, an energy infrastructure company, fell as energy commodity price weakness intensified and the company’s dividend growth outlook soured. Kinder Morgan’s reliance on external capital markets to fund growth also became an issue as the company’s cost of incremental capital rose throughout the year. Based on these developments, we sold the position during the reporting period.

For the fixed income portion of the Portfolio, security selection in high yield industrials detracted meaningfully from performance due to extended declines in raw material prices, particularly oil. Specifically, U.S. energy and metals and mining names weighed on results; these bonds underperformed given their direct economic exposure to weakening commodity prices. Meanwhile, issuer selection in some of the stronger performing sectors, such as banking, insurance, and retail, contributed positively, partially offsetting some of the negative performance.

Exposure to local currency emerging markets weighed on results as these currencies remained under intense selling pressure throughout much of the period. In particular, holdings denominated in the Brazilian real, Mexican peso, Polish zloty, and South African rand detracted. In major developed markets, positions denominated in the Norwegian krone, euro, and British pound also detracted due to U.S. dollar strength.

The Portfolio’s equity positions at year end were the direct result of our fundamental research and reflect what we believed were the most attractive opportunities based on quality, intrinsic value, and valuation. From a sector perspective, at year end the Portfolio was overweight the Consumer Discretionary, Information Technology, Industrials, Healthcare, and Financials sectors. The Portfolio’s primary underweights were in the Energy and Consumer Staples sectors. The Portfolio held no equity exposure to the Telecommunications and Utilities sectors. From a regional perspective, the Portfolio was underweight developed Asia the most, and

 

MIST-1

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Managed by Loomis, Sayles & Company L.P.

Portfolio Manager Commentary*—(Continued)

 

slightly underweight both Europe and emerging markets. The Portfolio’s only regional overweight at year end was in North America.

In the fixed income segment, we continued to find better value in U.S. dollar debt markets over the euro, yen, and other currencies. Hard currency emerging market holdings have remained more resilient, and we preferred that segment though with a more modest allocation than in recent years due to the idiosyncratic risks. At year end, the Portfolio maintained a slightly shorter duration position given the potential risk in U.S. yields.

Dan Fuss

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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        Since Inception3  
Loomis Sayles Global Markets Portfolio                 

Class A

        1.47           7.42           7.52   

Class B

        1.23           7.16           7.25   
MSCI World Index        -0.87           7.59           4.14   
Citigroup World Government Bond Index        -3.57           -0.08           3.35   

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 date of the Class A and Class B shares is 5/1/2006. Index since inception return is based on the Portfolio’s inception date.

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 DECEMBER 31, 2015

Top Equity Sectors

 

     % of
Net Assets		  
Financials      16.1   
Information Technology      13.1   
Consumer Discretionary      11.6   
Health Care      9.5   
Industrials      8.5   

Top Fixed Income Sectors

 

     % of
Net Assets		  
Corporate Bonds & Notes      22.8   
Foreign Government      4.8   
U.S. Treasury & Government Agencies      2.9   
Convertible Bonds      1.8   
Municipals      0.2   

 

MIST-3

Met Investors Series Trust

Loomis Sayles Global Markets 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A

    Actual      0.77 %     $ 1,000.00         $ 973.50         $ 3.83   
   Hypothetical*      0.77 %     $ 1,000.00         $ 1,021.32         $ 3.92   

Class B

    Actual      1.02 %     $ 1,000.00         $ 972.00         $ 5.07   
   Hypothetical*      1.02 %     $ 1,000.00         $ 1,020.06         $ 5.19   

* 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 (184 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 December 31, 2015

Common Stocks—65.7% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—4.2%

  

Thales S.A.

     99,817      $ 7,479,456   

TransDigm Group, Inc. (a) (b)

     54,731        12,503,297   
   

 

 

  
      19,982,753   
   

 

 

  

Banks—7.1%

  

Bank of Ireland (a)

     10,782,492        3,951,770   

HDFC Bank, Ltd.

     269,944        5,549,344   

ING Groep NV

     525,018        7,067,291   

M&T Bank Corp.

     42,362        5,133,427   

Mitsubishi UFJ Financial Group, Inc.

     911,400        5,640,559   

Wells Fargo & Co.

     115,822        6,296,084   
   

 

 

  
      33,638,475   
   

 

 

  

Beverages—2.7%

  

Anheuser-Busch InBev S.A.

     69,168        8,543,979   

Asahi Group Holdings, Ltd.

     133,300        4,167,230   
   

 

 

  
      12,711,209   
   

 

 

  

Biotechnology—1.9%

  

Alexion Pharmaceuticals, Inc. (a)

     48,066        9,168,589   
   

 

 

  

Building Products—1.6%

  

Assa Abloy AB - Class B

     145,415        3,045,671   

Geberit AG

     13,255        4,458,292   
   

 

 

  
      7,503,963   
   

 

 

  

Capital Markets—1.5%

  

Goldman Sachs Group, Inc. (The)

     40,216        7,248,130   
   

 

 

  

Chemicals—1.3%

  

LyondellBasell Industries NV - Class A

     37,410        3,250,929   

Sherwin-Williams Co. (The)

     11,206        2,909,078   
   

 

 

  
      6,160,007   
   

 

 

  

Diversified Financial Services—2.8%

  

FactSet Research Systems, Inc. (b)

     37,194        6,046,628   

London Stock Exchange Group plc

     180,642        7,299,995   
   

 

 

  
      13,346,623   
   

 

 

  

Energy Equipment & Services—1.1%

  

Schlumberger, Ltd.

     76,887        5,362,868   
   

 

 

  

Food Products—0.8%

  

Universal Robina Corp.

     895,450        3,533,809   
   

 

 

  

Health Care Providers & Services—1.6%

  

UnitedHealth Group, Inc.

     64,079        7,538,254   
   

 

 

  

Hotels, Restaurants & Leisure—0.9%

  

Starwood Hotels & Resorts Worldwide, Inc.

     64,126        4,442,649   
   

 

 

  

Household Durables—2.6%

  

Jarden Corp. (a) (b)

     213,684        12,205,630   
   

 

 

  

Insurance—4.6%

  

AIA Group, Ltd.

     1,218,000      7,256,306   

Legal & General Group plc

     1,751,446        6,907,374   

Travelers Cos., Inc. (The)

     67,267        7,591,754   
   

 

 

  
      21,755,434   
   

 

 

  

Internet & Catalog Retail—3.1%

  

Amazon.com, Inc. (a)

     8,776        5,931,611   

Priceline Group, Inc. (The) (a)

     6,649        8,477,142   
   

 

 

  
      14,408,753   
   

 

 

  

Internet Software & Services—8.0%

  

Alibaba Group Holding, Ltd. (ADR) (a)

     128,458        10,439,782   

Alphabet, Inc. - Class A (a)

     13,473        10,482,129   

Alphabet, Inc. - Class C (a)

     9,737        7,389,214   

Facebook, Inc. - Class A (a)

     91,758        9,603,392   
   

 

 

  
      37,914,517   
   

 

 

  

IT Services—3.9%

  

CGI Group, Inc. - Class A (a)

     189,300        7,579,114   

HCL Technologies, Ltd.

     408,164        5,281,975   

Nomura Research Institute, Ltd. (b)

     148,500        5,707,586   
   

 

 

  
      18,568,675   
   

 

 

  

Life Sciences Tools & Services—0.6%

  

Mettler-Toledo International, Inc. (a)

     8,996        3,050,813   
   

 

 

  

Machinery—1.1%

  

Atlas Copco AB - A Shares

     206,601        5,033,142   
   

 

 

  

Media—1.4%

  

Comcast Corp. - Class A

     120,419        6,795,244   
   

 

 

  

Personal Products—1.1%

  

Hengan International Group Co., Ltd.

     540,000        5,066,350   
   

 

 

  

Pharmaceuticals—5.4%

  

Allergan plc (a)

     45,922        14,350,625   

Novo Nordisk A/S - Class B

     95,789        5,505,989   

Roche Holding AG

     19,925        5,491,093   
   

 

 

  
      25,347,707   
   

 

 

  

Road & Rail—1.0%

  

Genesee & Wyoming, Inc. - Class A (a) (b)

     84,189        4,520,107   
   

 

 

  

Semiconductors & Semiconductor Equipment—1.1%

  

Texas Instruments, Inc.

     95,637        5,241,864   
   

 

 

  

Specialty Retail—2.8%

  

AutoZone, Inc. (a) (b)

     17,794        13,201,547   
   

 

 

  

Textiles, Apparel & Luxury Goods—0.8%

  

Luxottica Group S.p.A.

     54,100        3,526,747   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares/
Principal
Amount*		     Value  

Trading Companies & Distributors—0.7%

  

Brenntag AG

     62,699      $ 3,272,405   
   

 

 

  

Total Common Stocks
(Cost $261,896,104)

       310,546,264   
   

 

 

  
Corporate Bonds & Notes—22.7%   

Advertising—0.1%

  

Outfront Media Capital LLC / Outfront Media Capital Corp.
5.250%, 02/15/22

     25,000        25,562   

5.875%, 03/15/25

     55,000        55,825   

WPP plc
6.000%, 04/04/17 (GBP)

     160,000        248,594   
   

 

 

  
      329,981   
   

 

 

  

Aerospace/Defense—0.1%

  

Embraer Netherlands Finance B.V.
5.050%, 06/15/25

     105,000        95,550   

TransDigm, Inc.
6.500%, 07/15/24

     76,000        75,582   

6.500%, 05/15/25 (144A)

     75,000        72,656   
   

 

 

  
      243,788   
   

 

 

  

Airlines—0.4%

  

Air Canada
7.625%, 10/01/19 (144A) (CAD)

     470,000        357,926   

Air Canada Pass-Through Trust
4.125%, 06/15/29 (144A)

     175,000        175,588   

Delta Air Lines Pass-Through Trust
8.021%, 08/10/22

     1,011,600        1,135,521   

U.S. Airways Pass-Through Trust
5.900%, 10/01/24

     66,439        73,415   

8.000%, 10/01/19

     33,389        36,060   

United Continental Holdings, Inc.
6.375%, 06/01/18

     305,000        317,389   
   

 

 

  
      2,095,899   
   

 

 

  

Auto Manufacturers—1.7%

  

Ford Motor Co.
6.625%, 10/01/28

     1,675,000        1,933,968   

Ford Motor Credit Co. LLC
2.459%, 03/27/20

     3,000,000        2,908,470   

General Motors Financial Co., Inc.
2.400%, 04/10/18

     3,000,000        2,985,273   

3.450%, 04/10/22

     100,000        95,926   

Kia Motors Corp.
3.625%, 06/14/16 (144A)

     300,000        302,457   
   

 

 

  
      8,226,094   
   

 

 

  

Auto Parts & Equipment—0.3%

  

Goodyear Tire & Rubber Co. (The)
7.000%, 03/15/28

     1,228,000        1,295,540   
Security Description       
Principal
Amount*		     Value  

Auto Parts & Equipment—(Continued)

  

Magna International, Inc.
1.900%, 11/24/23 (EUR)

     100,000      109,349   

Tupy Overseas S.A.
6.625%, 07/17/24 (144A)

     200,000        174,500   
   

 

 

  
      1,579,389   
   

 

 

  

Banks—2.8%

  

Akbank TAS
4.000%, 01/24/20 (144A)

     200,000        192,942   

Axis Bank, Ltd.
3.250%, 05/21/20 (144A)

     225,000        225,664   

Banco de Credito e Inversiones
3.000%, 09/13/17 (144A)

     600,000        603,062   

Banco Santander Brasil S.A.
4.625%, 02/13/17 (144A)

     400,000        403,400   

Banco Santander Mexico S.A.
4.125%, 11/09/22 (144A)

     150,000        149,437   

Banco Votorantim S.A.
6.250%, 05/16/16 (144A) (BRL)

     450,000        144,278   

Bank of Tokyo-Mitsubishi UFJ, Ltd. (The)
1.700%, 03/05/18 (144A)

     375,000        371,878   

2.150%, 09/14/18 (144A)

     360,000        358,969   

Barclays plc
3.650%, 03/16/25

     225,000        216,231   

Cooperatieve Centrale Raiffeisen-Boerenleenbank BA
4.375%, 08/04/25

     350,000        355,969   

Corpbanca S.A.
3.125%, 01/15/18

     230,000        224,125   

Credit Agricole S.A.
4.375%, 03/17/25 (144A)

     200,000        193,488   

7.500%, 06/23/26 (GBP) (c)

     160,000        231,449   

Goldman Sachs Group, Inc. (The)
3.375%, 02/01/18 (CAD)

     300,000        224,539   

6.750%, 10/01/37

     945,000        1,104,645   

HSBC Holdings plc
5.750%, 12/20/27 (GBP)

     110,000        180,243   

ICICI Bank, Ltd.
6.375%, 04/30/22 (144A) (c)

     300,000        306,597   

Industrial Bank of Korea
2.375%, 07/17/17 (144A)

     300,000        301,876   

Itau Unibanco Holding S.A.
2.850%, 05/26/18 (144A) (b)

     385,000        366,135   

KEB Hana Bank
4.000%, 11/03/16 (144A)

     200,000        203,889   

Lloyds Banking Group plc
4.500%, 11/04/24 (b)

     200,000        203,025   

Macquarie Bank, Ltd.
6.625%, 04/07/21 (144A)

     500,000        560,140   

Morgan Stanley
4.100%, 05/22/23

     200,000        202,040   

4.350%, 09/08/26

     315,000        316,030   

7.625%, 03/03/16 (AUD)

     500,000        367,027   

Royal Bank of Scotland Group plc
6.000%, 12/19/23

     470,000        506,197   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Banks—(Continued)

  

Santander Holdings USA, Inc.
2.650%, 04/17/20

     400,000      $ 392,427   

Santander UK Group Holdings plc
4.750%, 09/15/25 (144A)

     200,000        197,361   

Shinhan Bank
2.250%, 04/15/20 (144A)

     400,000        392,926   

Siam Commercial Bank PCL
3.500%, 04/07/19 (144A)

     420,000        425,741   

Societe Generale S.A.
4.250%, 04/14/25 (144A)

     465,000        438,827   

4.750%, 11/24/25 (144A)

     260,000        251,585   

6.750%, 04/07/21 (EUR) (c)

     195,000        216,375   

Standard Chartered plc
4.000%, 10/21/25 (EUR) (c)

     250,000        273,954   

State Bank of India
4.125%, 08/01/17 (144A)

     300,000        308,842   

TC Ziraat Bankasi A/S
4.250%, 07/03/19 (144A)

     380,000        374,201   

Turkiye Halk Bankasi A/S
4.750%, 02/11/21 (144A)

     210,000        199,771   

Turkiye Is Bankasi A/S
3.875%, 11/07/17 (144A)

     400,000        399,700   

UniCredit S.p.A.
6.950%, 10/31/22 (EUR)

     300,000        380,978   

Woori Bank
5.875%, 04/13/21 (144A)

     200,000        224,162   

Yapi ve Kredi Bankasi A/S
5.250%, 12/03/18 (144A)

     360,000        365,285   
   

 

 

  
      13,355,410   
   

 

 

  

Beverages—0.1%

  

Constellation Brands, Inc.
4.750%, 11/15/24

     110,000        112,200   

DS Services of America, Inc.
10.000%, 09/01/21 (144A)

     125,000        141,875   
   

 

 

  
      254,075   
   

 

 

  

Building Materials—0.3%

  

Atrium Windows & Doors, Inc.
7.750%, 05/01/19 (144A)

     215,000        159,100   

Cemex Finance LLC
6.000%, 04/01/24 (144A)

     265,000        227,238   

Cemex S.A.B. de C.V.
5.700%, 01/11/25 (144A) (b)

     200,000        167,250   

CIMPOR Financial Operations B.V.
5.750%, 07/17/24 (144A)

     410,000        272,650   

Masco Corp.
6.500%, 08/15/32

     30,000        30,300   

7.750%, 08/01/29

     200,000        222,000   

Union Andina de Cementos SAA
5.875%, 10/30/21 (144A) (b)

     450,000        434,250   
   

 

 

  
      1,512,788   
   

 

 

  

Chemicals—0.6%

  

Braskem Finance, Ltd.
5.750%, 04/15/21 (144A) (b)

     200,000      174,000   

Chemours Co. (The)
6.625%, 05/15/23 (144A)

     430,000        301,000   

7.000%, 05/15/25 (144A)

     80,000        54,600   

Hercules, Inc.
6.500%, 06/30/29

     10,000        8,450   

Hexion, Inc.
7.875%, 02/15/23 (d) (e)

     899,000        237,726   

9.200%, 03/15/21 (d) (e)

     1,910,000        682,185   

Incitec Pivot Finance LLC
6.000%, 12/10/19 (144A)

     80,000        86,744   

INEOS Group Holdings S.A.
5.750%, 02/15/19 (EUR)

     180,000        195,615   

Israel Chemicals, Ltd.
4.500%, 12/02/24 (144A)

     380,000        379,848   

OCP S.A.
4.500%, 10/22/25 (144A)

     405,000        376,702   

6.875%, 04/25/44 (144A)

     245,000        239,909   

Solvay Finance America LLC
3.400%, 12/03/20 (144A)

     200,000        198,393   
   

 

 

  
      2,935,172   
   

 

 

  

Commercial Services—0.1%

  

DP World, Ltd.
3.250%, 05/18/20 (144A) (b)

     350,000        347,389   

RR Donnelley & Sons Co.
7.000%, 02/15/22

     255,000        241,294   
   

 

 

  
      588,683   
   

 

 

  

Cosmetics/Personal Care—0.0%

  

Avon Products, Inc.
8.700%, 03/15/43

     40,000        28,800   
   

 

 

  

Diversified Financial Services—2.0%

  

Ally Financial, Inc.
3.750%, 11/18/19

     4,325,000        4,265,531   

BOC Aviation Pte, Ltd.
3.000%, 03/30/20

     200,000        196,733   

Jefferies Group LLC
5.125%, 01/20/23

     50,000        49,606   

6.250%, 01/15/36

     175,000        161,659   

6.450%, 06/08/27

     50,000        52,843   

6.875%, 04/15/21

     480,000        536,966   

Ladder Capital Finance Holdings LLLP / Ladder Capital Finance Corp.
7.375%, 10/01/17

     90,000        89,663   

Navient Corp.
5.000%, 10/26/20 (b)

     2,085,000        1,829,587   

5.500%, 01/25/23

     555,000        444,000   

5.625%, 08/01/33 (d)

     975,000        653,250   

5.875%, 10/25/24

     40,000        32,000   

Nomura Holdings, Inc.
2.750%, 03/19/19

     485,000        487,617   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Diversified Financial Services—(Continued)

  

Quicken Loans, Inc.
5.750%, 05/01/25 (144A) (b)

     125,000      $ 119,063   

Springleaf Finance Corp.
7.750%, 10/01/21

     165,000        162,525   

8.250%, 10/01/23

     65,000        65,650   

Unifin Financiera SAPI de C.V.
6.250%, 07/22/19 (144A)

     385,000        354,200   
   

 

 

  
      9,500,893   
   

 

 

  

Electric—0.6%

  

AES Corp.
4.875%, 05/15/23

     430,000        376,250   

5.500%, 03/15/24 (b)

     240,000        214,200   

DPL, Inc.
6.750%, 10/01/19

     131,000        131,000   

Dubai Electricity & Water Authority
6.375%, 10/21/16 (144A)

     200,000        206,460   

E-CL S.A.
5.625%, 01/15/21 (144A)

     250,000        269,847   

EDP Finance B.V.
2.000%, 04/22/25 (EUR)

     100,000        99,193   

4.125%, 01/15/20 (144A)

     200,000        200,460   

Emgesa S.A. E.S.P
8.750%, 01/25/21 (144A) (COP)

     1,210,000,000        372,163   

Empresas Publicas de Medellin E.S.P.
8.375%, 02/01/21 (144A) (COP)

     1,610,000,000        484,240   

Transelec S.A.
4.250%, 01/14/25 (144A)

     460,000        450,703   
   

 

 

  
      2,804,516   
   

 

 

  

Engineering & Construction—0.0%

  

AECOM
5.750%, 10/15/22

     20,000        20,600   

5.875%, 10/15/24

     20,000        20,400   

Sydney Airport Finance Co. Pty., Ltd.
3.375%, 04/30/25 (144A)

     40,000        37,497   

5.125%, 02/22/21 (144A)

     110,000        119,201   
   

 

 

  
      197,698   
   

 

 

  

Food—0.3%

  

BRF S.A.
7.750%, 05/22/18 (144A) (BRL)

     480,000        101,065   

Cosan Luxembourg S.A.
5.000%, 03/14/23 (144A)

     200,000        164,250   

SUPERVALU, Inc.
6.750%, 06/01/21

     1,415,000        1,280,575   
   

 

 

  
      1,545,890   
   

 

 

  

Forest Products & Paper—0.2%

  

Celulosa Arauco y Constitucion S.A.
4.750%, 01/11/22

     400,000        407,113   

Inversiones CMPC S.A.
4.375%, 05/15/23 (144A)

     400,000        378,125   
   

 

 

  
      785,238   
   

 

 

  

Gas—0.1%

  

China Resources Gas Group, Ltd.
4.500%, 04/05/22 (144A) (b)

     200,000      207,426   
   

 

 

  

Healthcare-Services—1.9%

  

HCA, Inc.
7.050%, 12/01/27

     80,000        80,600   

7.500%, 11/06/33

     5,060,000        5,388,900   

7.580%, 09/15/25

     375,000        404,063   

7.690%, 06/15/25

     755,000        813,512   

7.750%, 07/15/36

     1,420,000        1,505,200   

Tenet Healthcare Corp.
5.000%, 03/01/19

     215,000        198,338   

6.875%, 11/15/31

     910,000        737,100   
   

 

 

  
      9,127,713   
   

 

 

  

Holding Companies-Diversified—0.0%

  

Hutchison Whampoa International 11, Ltd.
3.500%, 01/13/17 (144A)

     200,000        203,386   
   

 

 

  

Home Builders—0.1%

  

K Hovnanian Enterprises, Inc.
5.000%, 11/01/21

     700,000        469,000   

7.000%, 01/15/19 (144A)

     45,000        30,150   

8.000%, 11/01/19 (144A)

     65,000        40,300   

TRI Pointe Holdings, Inc. / TRI Pointe Group, Inc.
4.375%, 06/15/19

     30,000        29,325   
   

 

 

  
      568,775   
   

 

 

  

Home Furnishings—0.1%

  

Arcelik A/S
5.000%, 04/03/23 (144A) (b)

     300,000        273,487   
   

 

 

  

Housewares—0.0%

  

Newell Rubbermaid, Inc.
4.000%, 12/01/24

     150,000        138,469   
   

 

 

  

Insurance—0.4%

  

AIA Group, Ltd.
3.200%, 03/11/25 (144A)

     200,000        193,044   

Forethought Financial Group, Inc.
8.625%, 04/15/21 (144A)

     820,000        928,452   

Genworth Holdings, Inc.
4.800%, 02/15/24 (b)

     85,000        57,375   

4.900%, 08/15/23

     210,000        139,650   

6.500%, 06/15/34

     90,000        54,450   

Old Mutual plc
8.000%, 06/03/21 (GBP)

     280,000        439,425   

Old Republic International Corp.
4.875%, 10/01/24

     175,000        179,334   
   

 

 

  
      1,991,730   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Internet—0.1%

  

Baidu, Inc.
3.250%, 08/06/18

     600,000      $ 607,685   
   

 

 

  

Iron/Steel—0.5%

  

ArcelorMittal
7.750%, 03/01/41 (b)

     540,000        365,175   

GTL Trade Finance, Inc.
5.893%, 04/29/24 (144A) (b)

     452,000        320,920   

Hyundai Steel Co.
4.625%, 04/21/16 (144A)

     400,000        402,915   

Samarco Mineracao S.A.
4.125%, 11/01/22 (144A)

     300,000        96,000   

United States Steel Corp.
6.650%, 06/01/37

     85,000        34,850   

7.500%, 03/15/22 (b)

     290,000        142,100   

Vale Overseas, Ltd.
6.875%, 11/21/36 (b)

     585,000        408,938   

Vale S.A.
5.625%, 09/11/42 (b)

     720,000        476,171   
   

 

 

  
      2,247,069   
   

 

 

  

Machinery-Diversified—0.0%

  

Cleaver-Brooks, Inc.
8.750%, 12/15/19 (144A)

     65,000        62,725   
   

 

 

  

Media—0.4%

  

DISH DBS Corp.
5.000%, 03/15/23

     160,000        138,800   

5.875%, 11/15/24

     570,000        507,300   

Grupo Televisa S.A.B.
7.250%, 05/14/43 (MXN)

     6,000,000        290,110   

Myriad International Holding B.V.
6.000%, 07/18/20 (144A)

     200,000        212,786   

Time Warner Cable, Inc.
4.500%, 09/15/42

     45,000        35,315   

5.250%, 07/15/42 (GBP)

     235,000        304,026   

5.500%, 09/01/41

     30,000        27,110   

Viacom, Inc.
4.375%, 03/15/43

     10,000        7,325   

5.250%, 04/01/44

     50,000        41,255   

5.850%, 09/01/43

     10,000        8,980   

VTR Finance B.V.
6.875%, 01/15/24 (144A)

     200,000        184,000   
   

 

 

  
      1,757,007   
   

 

 

  

Mining—0.5%

  

Corp. Nacional del Cobre de Chile
4.500%, 09/16/25 (144A) (b)

     445,000        419,050   

Freeport-McMoRan, Inc.
3.875%, 03/15/23

     945,000        538,650   

5.400%, 11/14/34

     60,000        31,800   

5.450%, 03/15/43

     650,000        338,000   

Glencore Finance Canada, Ltd.
5.550%, 10/25/42 (144A)

     435,000        307,980   

Mining—(Continued)

  

Hecla Mining Co.
6.875%, 05/01/21

     320,000      233,600   

Minera y Metalurgica del Boleo S.A. de C.V.
2.875%, 05/07/19 (144A)

     480,000        483,186   

Southern Copper Corp.
3.875%, 04/23/25 (b)

     240,000        215,220   
   

 

 

  
      2,567,486   
   

 

 

  

Multi-National—0.5%

  

Banco Latinoamericano de Comercio Exterior S.A.
3.250%, 05/07/20 (144A) (b)

     280,000        275,800   

3.750%, 04/04/17 (144A) (b)

     625,000        632,813   

Central American Bank for Economic Integration
3.875%, 02/09/17 (144A)

     550,000        558,800   

International Bank for Reconstruction & Development
2.500%, 03/12/20 (AUD)

     500,000        360,755   

International Finance Corp.
7.800%, 06/03/19 (INR)

     29,000,000        449,447   
   

 

 

  
      2,277,615   
   

 

 

  

Oil & Gas—2.0%

  

Antero Resources Corp.
5.125%, 12/01/22

     155,000        117,800   

5.375%, 11/01/21

     70,000        56,000   

California Resources Corp.
5.000%, 01/15/20 (b)

     2,760,000        983,250   

Chesapeake Energy Corp.
4.875%, 04/15/22 (b)

     2,145,000        595,366   

5.750%, 03/15/23

     130,000        37,700   

6.125%, 02/15/21

     200,000        56,400   

6.625%, 08/15/20 (b)

     75,000        21,750   

7.250%, 12/15/18 (b)

     40,000        15,800   

Chevron Corp.
2.419%, 11/17/20

     285,000        283,397   

Cimarex Energy Co.
4.375%, 06/01/24

     675,000        598,826   

CNOOC Finance 2015 Australia Pty, Ltd.
2.625%, 05/05/20

     200,000        195,511   

CNOOC Finance 2015 USA LLC
3.500%, 05/05/25

     200,000        190,369   

Continental Resources, Inc.
3.800%, 06/01/24 (b)

     125,000        88,053   

4.500%, 04/15/23

     10,000        7,185   

Ecopetrol S.A.
5.875%, 09/18/23 (b)

     370,000        340,400   

5.875%, 05/28/45

     205,000        145,550   

Halcon Resources Corp.
8.875%, 05/15/21 (b)

     185,000        53,650   

Korea National Oil Corp.
3.125%, 04/03/17 (144A)

     200,000        203,070   

Noble Energy, Inc.
5.625%, 05/01/21

     245,000        239,656   

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Oil & Gas—(Continued)

  

Oasis Petroleum, Inc.
6.875%, 03/15/22 (b)

     55,000      $ 35,200   

6.875%, 01/15/23

     85,000        52,700   

7.250%, 02/01/19 (b)

     115,000        82,513   

Pacific Exploration and Production Corp.
5.125%, 03/28/23 (144A)

     600,000        120,000   

5.625%, 01/19/25 (144A)

     235,000        47,000   

Pertamina Persero PT
4.300%, 05/20/23 (144A)

     560,000        509,056   

Petrobras Global Finance B.V.
4.375%, 05/20/23 (b)

     1,095,000        722,700   

5.750%, 01/20/20

     365,000        286,525   

6.250%, 12/14/26 (GBP)

     200,000        187,042   

6.850%, 06/05/15

     470,000        304,325   

Petroleos Mexicanos
4.250%, 01/15/25 (144A) (b)

     320,000        280,000   

5.625%, 01/23/46 (144A)

     265,000        202,778   

7.470%, 11/12/26 (MXN)

     5,600,000        290,526   

Range Resources Corp.
4.875%, 05/15/25 (144A)

     130,000        98,800   

5.000%, 08/15/22 (b)

     190,000        142,025   

5.000%, 03/15/23

     115,000        85,675   

Shell International Finance B.V.
3.250%, 05/11/25

     200,000        195,195   

Thai Oil PCL
3.625%, 01/23/23 (144A)

     350,000        342,958   

Whiting Petroleum Corp.
5.000%, 03/15/19

     240,000        181,200   

6.500%, 10/01/18 (b)

     220,000        166,650   

YPF S.A.
8.750%, 04/04/24 (144A)

     720,000        698,400   
   

 

 

  
      9,261,001   
   

 

 

  

Oil & Gas Services—0.0%

  

FTS International, Inc.
6.250%, 05/01/22

     85,000        23,800   
   

 

 

  

Packaging & Containers—0.8%

  

Owens-Brockway Glass Container, Inc.
5.375%, 01/15/25 (144A) (b)

     1,230,000        1,202,325   

Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC
5.750%, 10/15/20

     900,000        915,471   

8.250%, 02/15/21

     1,150,000        1,106,875   

Sealed Air Corp.
4.875%, 12/01/22 (144A)

     10,000        10,025   

5.500%, 09/15/25 (144A)

     280,000        285,600   
   

 

 

  
      3,520,296   
   

 

 

  

Pharmaceuticals—0.9%

  

AbbVie, Inc.
2.500%, 05/14/20

     4,330,000        4,286,466   
   

 

 

  

Pipelines—0.5%

  

Enbridge Energy Partners L.P.
5.875%, 10/15/25 (b)

     230,000      221,665   

7.375%, 10/15/45

     215,000        205,987   

MPLX L.P.
4.500%, 07/15/23 (144A)

     10,000        8,947   

4.875%, 06/01/25 (144A)

     40,000        35,800   

ONEOK Partners L.P.
4.900%, 03/15/25

     20,000        16,845   

6.200%, 09/15/43

     10,000        7,626   

Regency Energy Partners L.P. / Regency Energy Finance Corp.
5.000%, 10/01/22

     440,000        389,786   

5.500%, 04/15/23

     95,000        85,421   

Sabine Pass Liquefaction LLC
5.625%, 02/01/21

     300,000        276,000   

Targa Resources Partners L.P. / Targa Resources Partners Finance Corp.
4.125%, 11/15/19

     235,000        195,637   

5.000%, 01/15/18 (144A)

     100,000        92,500   

6.750%, 03/15/24 (144A) (b)

     530,000        451,825   

Transportadora de Gas del Sur S.A.
9.625%, 05/14/20 (144A)

     263,674        269,606   
   

 

 

  
      2,257,645   
   

 

 

  

Real Estate Investment Trusts—0.4%

  

iStar, Inc.
4.875%, 07/01/18

     70,000        68,600   

5.000%, 07/01/19

     1,730,000        1,680,263   
   

 

 

  
      1,748,863   
   

 

 

  

Retail—1.2%

  

J.C. Penney Corp., Inc.
7.625%, 03/01/97

     155,000        99,975   

New Albertsons, Inc.
7.450%, 08/01/29

     5,740,000        5,079,900   

8.000%, 05/01/31

     225,000        204,750   

Parkson Retail Group, Ltd.
4.500%, 05/03/18

     200,000        177,231   

Toys “R” Us, Inc.
7.375%, 10/15/18

     100,000        47,500   
   

 

 

  
      5,609,356   
   

 

 

  

Semiconductors—0.2%

  

Micron Technology, Inc.
5.250%, 08/01/23 (144A)

     170,000        152,575   

5.500%, 02/01/25

     395,000        343,650   

5.625%, 01/15/26 (144A)

     505,000        436,825   
   

 

 

  
      933,050   
   

 

 

  

Shipbuilding—0.0%

  

Huntington Ingalls Industries, Inc.
5.000%, 11/15/25 (144A)

     180,000        182,700   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Software—0.1%

  

Nuance Communications, Inc.
1.000%, 12/15/35 (144A)

     350,000      $ 336,656   
   

 

 

  

Telecommunications—2.3%

  

Alcatel-Lucent USA, Inc.
6.450%, 03/15/29

     55,000        55,687   

Bharti Airtel International Netherlands B.V.
5.125%, 03/11/23 (144A)

     500,000        517,590   

5.350%, 05/20/24 (144A)

     390,000        409,417   

British Telecommunications plc
5.750%, 12/07/28 (GBP)

     540,000        961,206   

CenturyLink, Inc.
6.875%, 01/15/28

     45,000        33,525   

7.600%, 09/15/39

     475,000        363,375   

7.650%, 03/15/42

     185,000        141,525   

Colombia Telecomunicaciones S.A. E.S.P.
5.375%, 09/27/22 (144A)

     250,000        225,625   

Level 3 Communications, Inc.
5.750%, 12/01/22

     60,000        61,350   

Level 3 Financing, Inc.
5.625%, 02/01/23

     380,000        387,600   

7.000%, 06/01/20

     380,000        397,100   

Millicom International Cellular S.A.
4.750%, 05/22/20 (144A) (b)

     225,000        201,375   

MTN Mauritius Investments, Ltd.
4.755%, 11/11/24 (144A)

     400,000        348,000   

Philippine Long Distance Telephone Co.
8.350%, 03/06/17

     95,000        101,769   

Qwest Capital Funding, Inc.
7.750%, 02/15/31

     1,445,000        1,224,637   

SoftBank Group Corp.
4.500%, 04/15/20 (144A)

     400,000        398,000   

Sprint Capital Corp.
6.875%, 11/15/28

     1,250,000        871,875   

8.750%, 03/15/32

     350,000        262,500   

Sprint Communications, Inc.
7.000%, 08/15/20

     1,500,000        1,158,750   

11.500%, 11/15/21

     2,000,000        1,840,000   

Telstra Corp., Ltd.
3.125%, 04/07/25 (144A)

     400,000        383,889   

Virgin Media Finance plc
4.500%, 01/15/25 (144A) (EUR)

     160,000        164,838   

Wind Acquisition Finance S.A.
7.375%, 04/23/21 (144A)

     360,000        340,200   
   

 

 

  
      10,849,833   
   

 

 

  

Textiles—0.1%

  

INVISTA Finance LLC
4.250%, 10/15/19 (144A)

     305,000        295,850   
   

 

 

  

Transportation—0.0%

  

Autoridad del Canal de Panama
4.950%, 07/29/35 (144A)

     200,000        206,000   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $116,989,899)

       107,526,403   
   

 

 

  
Foreign Government—4.9%   
Security Description   Principal
Amount*		     Value  

Sovereign—4.9%

  

Brazil Letras do Tesouro Nacional
Zero Coupon, 07/01/16 (BRL)

     4,900,000      1,155,124   

Brazil Notas do Tesouro Nacional
10.000%, 01/01/19 (BRL)

     1,000,000        217,197   

10.000%, 01/01/21 (BRL)

     1,635,000        328,971   

Brazilian Government International Bond 8.500%, 01/05/24 (BRL) (b)

     350,000        75,197   

Chile Government International Bond
5.500%, 08/05/20 (CLP)

     130,000,000        188,791   

Dominican Republic International Bonds
5.500%, 01/27/25 (144A)

     530,000        510,125   

8.625%, 04/20/27 (144A)

     200,000        232,000   

Export Credit Bank of Turkey
5.000%, 09/23/21 (144A)

     225,000        220,813   

Export-Import Bank of Korea
3.000%, 05/22/18 (144A) (NOK)

     1,700,000        197,432   

Hungary Government International Bonds
5.375%, 03/25/24

     540,000        591,300   

5.750%, 11/22/23

     410,000        458,749   

Iceland Government International Bond
5.875%, 05/11/22 (144A)

     500,000        567,145   

Indonesia Government International Bonds
2.875%, 07/08/21 (144A) (EUR)

     220,000        236,551   

4.125%, 01/15/25 (144A)

     200,000        191,668   

4.750%, 01/08/26 (144A)

     200,000        197,532   

5.125%, 01/15/45 (144A) (b)

     200,000        180,869   

Indonesia Treasury Bonds
6.125%, 05/15/28 (IDR)

     5,300,000,000        301,867   

7.875%, 04/15/19 (IDR)

     10,200,000,000        719,498   

8.375%, 03/15/24 (IDR)

     5,900,000,000        416,133   

11.500%, 09/15/19 (IDR)

     2,901,000,000        227,299   

Italy Buoni Poliennali Del Tesoro
1.500%, 06/01/25 (EUR)

     185,000        201,183   

4.500%, 08/01/18 (EUR)

     955,000        1,155,316   

4.750%, 08/01/23 (144A) (EUR)

     625,000        854,029   

Jamaica Government International Bond 6.750%, 04/28/28

     265,000        263,013   

Korea Treasury Bond
2.750%, 09/10/17 (KRW)

     885,000,000        768,464   

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

     26,700,000        1,602,703   

6.500%, 06/09/22 (MXN)

     10,420,000        622,122   

8.000%, 12/07/23 (MXN)

     6,158,800        399,972   

8.500%, 12/13/18 (MXN)

     19,350,000        1,235,079   

Mexico Government International Bond
4.000%, 03/15/2115 (EUR)

     100,000        90,763   

New Zealand Government Bonds
3.000%, 09/20/30 (NZD) (f)

     1,195,000        897,248   

5.000%, 03/15/19 (NZD)

     1,015,000        740,653   

New Zealand Government Bonds
5.500%, 04/15/23 (NZD)

     1,070,000        839,180   

Norwegian Government Bonds
2.000%, 05/24/23 (144A) (NOK)

     8,437,000        1,001,099   

4.250%, 05/19/17 (144A) (NOK)

     760,000        90,041   

Philippine Government International Bond
4.950%, 01/15/21 (PHP)

     30,000,000        647,912   

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of December 31, 2015

Foreign Government—(Continued)

 

Security Description   Principal
Amount*		     Value  

Sovereign—(Continued)

  

Poland Government Bonds
4.000%, 10/25/23 (PLN)

     7,110,000      $ 1,962,086   

5.500%, 10/25/19 (PLN)

     1,330,000        381,778   

Russian Federal Bond - OFZ
6.200%, 01/31/18 (RUB)

     26,500,000        337,639   

Spain Government Bonds
1.600%, 04/30/25 (144A) (EUR)

     180,000        194,443   

4.300%, 10/31/19 (144A) (EUR)

     875,000        1,089,291   

Sweden Government Bond
5.000%, 12/01/20 (SEK)

     2,650,000        385,694   
   

 

 

  

Total Foreign Government
(Cost $28,248,984)

       22,973,969   
   

 

 

  
U.S. Treasury & Government Agencies—2.9%   

U.S. Treasury—2.9%

  

U.S. Treasury Notes
0.250%, 05/15/16

     1,945,000        1,943,633   

0.375%, 10/31/16

     4,550,000        4,535,959   

0.500%, 11/30/16

     4,545,000        4,532,928   

0.625%, 08/31/17

     710,000        705,452   

1.000%, 03/15/18

     1,450,000        1,444,958   

1.500%, 07/31/16

     685,000        688,452   
   

 

 

  

Total U.S. Treasury & Government Agencies (Cost $13,878,510)

       13,851,382   
   

 

 

  
Convertible Bonds—1.8%   

Apparel—0.0%

  

Iconix Brand Group, Inc.
1.500%, 03/15/18

     115,000        56,638   
   

 

 

  

Chemicals—0.0%

  

RPM International, Inc.
2.250%, 12/15/20 (b)

     20,000        22,763   
   

 

 

  

Computers—0.1%

  

Brocade Communications Systems, Inc.
1.375%, 01/01/20 (144A) (b)

     205,000        196,800   
   

 

 

  

Home Builders—0.1%

  

CalAtlantic Group, Inc.
0.250%, 06/01/19

     70,000        62,606   

KB Home
1.375%, 02/01/19

     190,000        169,931   
   

 

 

  
      232,537   
   

 

 

  

Insurance—0.5%

  

Old Republic International Corp.
3.750%, 03/15/18 (b)

     1,875,000        2,374,219   
   

 

 

  

Internet—0.1%

  

Priceline Group, Inc. (The)
0.900%, 09/15/21

     595,000      600,206   
   

 

 

  

Miscellaneous Manufacturing—0.0%

  

Trinity Industries, Inc.
3.875%, 06/01/36

     45,000        53,859   
   

 

 

  

Oil & Gas—0.0%

  

Chesapeake Energy Corp.
2.500%, 05/15/37

     110,000        51,700   
   

 

 

  

Semiconductors—1.0%

  

Intel Corp.
3.250%, 08/01/39

     2,670,000        4,440,543   

Rovi Corp.
0.500%, 03/01/20 (144A)

     485,000        423,769   
   

 

 

  
      4,864,312   
   

 

 

  

Telecommunications—0.0%

  

Ciena Corp.
3.750%, 10/15/18 (144A)

     115,000        142,600   
   

 

 

  

Total Convertible Bonds
(Cost $6,288,684)

       8,595,634   
   

 

 

  
Municipals—0.2%   

Tobacco Settlement Financing Corp.
6.706%, 06/01/46
(Cost $1,304,713)

     1,305,000        1,005,933   
   

 

 

  
Floating Rate Loans (g)—0.2%   

Multi-Utilities—0.1%

  

PowerTeam Services LLC
1st Lien Term Loan,
4.250%, 05/06/20

     241,747        235,804   

2nd Lien Term Loan,
8.250%, 11/06/20

     60,000        57,600   
   

 

 

  
      293,404   
   

 

 

  

Telecommunications—0.1%

  

FairPoint Communications, Inc.
Term Loan, 7.500%, 02/14/19

     442,488        441,888   
   

 

 

  

Total Floating Rate Loans
(Cost $743,517)

       735,292   
   

 

 

  
Mortgage-Backed Securities—0.1%   

Commercial Mortgage-Backed Securities—0.1%

  

GS Mortgage Securities Trust
5.795%, 08/10/45 (c)

     40,000        39,375   

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of December 31, 2015

Mortgage-Backed Securities—(Continued)

 

Security Description   Shares/
Principal
Amount*		     Value  

Commercial Mortgage-Backed Securities—(Continued)

  

Institutional Mortgage Securities Canada, Inc.
2.616%, 07/12/47 (144A) (CAD)

     555,000      $ 405,952   
   

 

 

  

Total Mortgage-Backed Securities
(Cost $556,284)

       445,327   
   

 

 

  
Convertible Preferred Stocks—0.1%   

Metals & Mining—0.0%

  

Alcoa, Inc.
5.375%, 10/01/17

     1,115        37,141   
   

 

 

  

Oil, Gas & Consumable Fuels—0.0%

  

Chesapeake Energy Corp.
5.000%, 12/31/49 (b)

     694        12,145   

5.750%, 12/31/49 (144A)

     430        81,987   
   

 

 

  
      94,132   
   

 

 

  

Real Estate Investment Trusts—0.1%

  

Weyerhaeuser Co.
6.375%, 07/01/16

     2,829        142,242   
   

 

 

  

Total Convertible Preferred Stocks
(Cost $444,389)

       273,515   
   

 

 

  
Short-Term Investments—6.1%                

Mutual Fund—5.3%

  

State Street Navigator Securities Lending MET Portfolio (h)

     24,898,589        24,898,589   
   

 

 

  

Repurchase Agreement—0.8%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $3,899,024 on 01/04/16, collateralized by $3,965,000 U.S. Treasury Note at 1.500% due 12/31/18 with a value of $3,979,869.

     3,899,011        3,899,011   
   

 

 

  

Total Short-Term Investments
(Cost $28,797,600)

       28,797,600   
   

 

 

  

Total Investments—104.7%
(Cost $459,148,684) (i)

       494,751,319   

Other assets and liabilities (net)—(4.7)%

       (22,089,844 ) 
   

 

 

  
Net Assets—100.0%     $ 472,661,475   
   

 

 

  

 

* 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 December 31, 2015, the market value of securities loaned was $43,051,151 and the collateral received consisted of cash in the amount of $24,898,589 and non-cash collateral with a value of $19,365,365. 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) Variable or floating rate security. The stated rate represents the rate at December 31, 2015. Maturity date shown for callable securities reflects the earliest possible call date.
(d) Illiquid security. As of December 31, 2015, these securities represent 0.3% of net assets.
(e) Security was valued in good faith under procedures approved by the Board of Trustees. As of December 31, 2015, these securities represent 0.2% of net assets.
(f) Principal amount of security is adjusted for inflation.
(g) 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.
(h) Represents investment of cash collateral received from securities on loan as of December 31, 2015.
(i) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $460,026,229. The aggregate unrealized appreciation and depreciation of investments were $62,562,547 and $(27,837,457), respectively, resulting in net unrealized appreciation of $34,725,090 for federal income tax purposes.
(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 December 31, 2015, the market value of 144A securities was $38,089,101, which is 8.1% 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
(BRL)— Brazilian Real
(CAD)— Canadian Dollar
(CLP)— Chilean Peso
(COP)— Colombian Peso
(EUR)— Euro
(GBP)— British Pound
(IDR)— Indonesian Rupiah
(INR)— Indian Rupee
(KRW)— South Korean Won
(MXN)— Mexican Peso
(NOK)— Norwegian Krone

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of December 31, 2015

 

(NZD)— New Zealand Dollar
(PHP)— Philippine Peso
(PLN)— Polish Zloty
(RUB)— Russian Ruble
(SEK)— Swedish Krona

 

Country Diversification as of
December 31, 2015 (Unaudited)

   

% of
Net Assets

  

United States

      55.0   

Ireland

      3.9   

United Kingdom

      3.7   

Japan

      3.6   

Netherlands

      2.9   

Hong Kong

      2.6   

India

      2.5   

China

      2.2   

Switzerland

      2.1   

Canada

      1.9   

 

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy

     

Counterparty

    Settlement
Date		      In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
EUR     11,480,000      

Morgan Stanley & Co.

      03/16/16         USD        12,643,785       $ (145,521 ) 
GBP     1,575,000      

Credit Suisse International

      03/16/16         USD        2,374,620         (52,479 ) 
JPY     966,000,000      

Credit Suisse International

      03/16/16         USD        7,857,747         192,456   

Contracts to Deliver

                                  
AUD     1,226,000      

Credit Suisse International

      03/16/16         USD        879,557         (10,707 ) 
BRL     5,800,000      

Credit Suisse International

      03/09/16         USD        1,486,417         49,481   
EUR     2,500,000      

Morgan Stanley & Co.

      03/16/16         USD        2,661,628         (60,119 ) 
IDR     18,200,000,000      

Credit Suisse International

      03/16/16         USD        1,286,219         (11,224 ) 
MXN     43,800,000      

UBS AG

      03/16/16         USD        2,608,463         79,875   
NOK     2,250,000      

UBS AG

      03/16/16         USD        259,238         5,222   
NZD     3,390,000      

Credit Suisse International

      03/16/16         USD        2,274,690         (33,956 ) 
PLN     10,355,000      

Citibank N.A.

      03/16/16         USD        2,596,409         (39,747 ) 
SEK     9,775,000      

UBS AG

      03/16/16         USD        1,126,395         (33,938 ) 

Cross Currency Contracts to Buy

                           
EUR     617,943      

Credit Suisse International

      03/16/16         NOK        5,900,000         6,670   
               

 

 

  

Net Unrealized Depreciation

  

    $ (53,987 ) 
               

 

 

  

 

(AUD)— Australian Dollar
(BRL)— Brazilian Real
(EUR)— Euro
(GBP)— British Pound
(IDR)— Indonesian Rupiah
(JPY)— Japanese Yen
(MXN)— Mexican Peso
(NOK)— Norwegian Krone
(NZD)— New Zealand Dollar
(PLN)— Polish Zloty
(SEK)— Swedish Krona

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2      Level 3      Total  
Common Stocks            

Aerospace & Defense

    $ 12,503,297       $ 7,479,456       $ —         $ 19,982,753   

Banks

      16,978,855         16,659,620         —           33,638,475   

Beverages

      —           12,711,209         —           12,711,209   

Biotechnology

      9,168,589         —           —           9,168,589   

Building Products

      —           7,503,963         —           7,503,963   

Capital Markets

      7,248,130         —           —           7,248,130   

Chemicals

      6,160,007         —           —           6,160,007   

Diversified Financial Services

      6,046,628         7,299,995         —           13,346,623   

Energy Equipment & Services

      5,362,868         —           —           5,362,868   

Food Products

      —           3,533,809         —           3,533,809   

Health Care Providers & Services

      7,538,254         —           —           7,538,254   

Hotels, Restaurants & Leisure

      4,442,649         —           —           4,442,649   

Household Durables

      12,205,630         —           —           12,205,630   

Insurance

      7,591,754         14,163,680         —           21,755,434   

Internet & Catalog Retail

      14,408,753         —           —           14,408,753   

Internet Software & Services

      37,914,517         —           —           37,914,517   

IT Services

      7,579,114         10,989,561         —           18,568,675   

Life Sciences Tools & Services

      3,050,813         —           —           3,050,813   

Machinery

      —           5,033,142         —           5,033,142   

Media

      6,795,244         —           —           6,795,244   

Personal Products

      —           5,066,350         —           5,066,350   

Pharmaceuticals

      14,350,625         10,997,082         —           25,347,707   

Road & Rail

      4,520,107         —           —           4,520,107   

Semiconductors & Semiconductor Equipment

      5,241,864         —           —           5,241,864   

Specialty Retail

      13,201,547         —           —           13,201,547   

Textiles, Apparel & Luxury Goods

      —           3,526,747         —           3,526,747   

Trading Companies & Distributors

      —           3,272,405         —           3,272,405   

Total Common Stocks

      202,309,245         108,237,019         —           310,546,264   
Corporate Bonds & Notes            

Advertising

      —           329,981         —           329,981   

Aerospace/Defense

      —           243,788         —           243,788   

Airlines

      —           2,095,899         —           2,095,899   

Auto Manufacturers

      —           8,226,094         —           8,226,094   

Auto Parts & Equipment

      —           1,579,389         —           1,579,389   

Banks

      —           13,355,410         —           13,355,410   

 

See accompanying notes to financial statements.

 

MIST-15

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of December 31, 2015

Fair Value Hierarchy—(Continued)

 

Description    Level 1      Level 2     Level 3      Total  

Beverages

    $ —         $ 254,075      $ —         $ 254,075   

Building Materials

      —           1,512,788        —           1,512,788   

Chemicals

      —           2,015,261        919,911         2,935,172   

Commercial Services

      —           588,683        —           588,683   

Cosmetics/Personal Care

      —           28,800        —           28,800   

Diversified Financial Services

      —           9,500,893        —           9,500,893   

Electric

      —           2,804,516        —           2,804,516   

Engineering & Construction

      —           197,698        —           197,698   

Food

      —           1,545,890        —           1,545,890   

Forest Products & Paper

      —           785,238        —           785,238   

Gas

      —           207,426        —           207,426   

Healthcare-Services

      —           9,127,713        —           9,127,713   

Holding Companies-Diversified

      —           203,386        —           203,386   

Home Builders

      —           568,775        —           568,775   

Home Furnishings

      —           273,487        —           273,487   

Housewares

      —           138,469        —           138,469   

Insurance

      —           1,991,730        —           1,991,730   

Internet

      —           607,685        —           607,685   

Iron/Steel

      —           2,247,069        —           2,247,069   

Machinery-Diversified

      —           62,725        —           62,725   

Media

      —           1,757,007        —           1,757,007   

Mining

      —           2,567,486        —           2,567,486   

Multi-National

      —           2,277,615        —           2,277,615   

Oil & Gas

      —           9,261,001        —           9,261,001   

Oil & Gas Services

      —           23,800        —           23,800   

Packaging & Containers

      —           3,520,296        —           3,520,296   

Pharmaceuticals

      —           4,286,466        —           4,286,466   

Pipelines

      —           2,257,645        —           2,257,645   

Real Estate Investment Trusts

      —           1,748,863        —           1,748,863   

Retail

      —           5,609,356        —           5,609,356   

Semiconductors

      —           933,050        —           933,050   

Shipbuilding

      —           182,700        —           182,700   

Software

      —           336,656        —           336,656   

Telecommunications

      —           10,849,833        —           10,849,833   

Textiles

      —           295,850        —           295,850   

Transportation

      —           206,000        —           206,000   

Total Corporate Bonds & Notes

      —           106,606,492        919,911         107,526,403   

Total Foreign Government*

      —           22,973,969        —           22,973,969   

Total U.S. Treasury & Government Agencies*

      —           13,851,382        —           13,851,382   

Total Convertible Bonds*

      —           8,595,634        —           8,595,634   

Total Municipals

      —           1,005,933        —           1,005,933   

Total Floating Rate Loans*

      —           735,292        —           735,292   

Total Mortgage-Backed Securities*

      —           445,327        —           445,327   
Convertible Preferred Stocks           

Metals & Mining

      37,141         —          —           37,141   

Oil, Gas & Consumable Fuels

      —           94,132        —           94,132   

Real Estate Investment Trusts

      142,242         —          —           142,242   

Total Convertible Preferred Stocks

      179,383         94,132        —           273,515   
Short-Term Investments           

Mutual Fund

      24,898,589         —          —           24,898,589   

Repurchase Agreement

      —           3,899,011        —           3,899,011   

Total Short-Term Investments

      24,898,589         3,899,011        —           28,797,600   

Total Investments

    $ 227,387,217       $ 266,444,191      $ 919,911       $ 494,751,319   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (24,898,589 )    $ —         $ (24,898,589 ) 

 

See accompanying notes to financial statements.

 

MIST-16

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of December 31, 2015

Fair Value Hierarchy—(Continued)

 

Description    Level 1      Level 2     Level 3      Total  
Forward Contracts           

Forward Foreign Currency Exchange Contracts (Unrealized Appreciation)

    $ —         $ 333,704      $ —         $ 333,704   

Forward Foreign Currency Exchange Contracts (Unrealized Depreciation)

      —           (387,691 )      —           (387,691 ) 

Total Forward Contracts

    $ —         $ (53,987 )    $ —         $ (53,987 ) 

 

* 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,
2014		     Accrued
Discounts/
(Premiums)		     Realized
Gain/
(Loss)		     Change in
Unrealized
Depreciation		     Sales     Transfers
in to
Level 3		     Balance
as of
December 31,
2015		     Change in
Unrealized
Depreciation
from Investments
Still Held at
December 31,
2015		  
Corporate Bonds & Notes                

Aerospace/Defense

   $ 0      $ —      $ 250      $ —      $ (250 )    $ —      $ —      $ —   

Chemicals

     —        31,000        —        (1,020,354 )      —        1,909,265        919,911        (1,020,354 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ —      $ 31,000      $ 250      $ (1,020,354 )    $ (250 )    $ 1,909,265      $ 919,911      $ (1,020,354 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Corporate Bonds & Notes in the amount of $1,909,265 were transferred into level 3 due to the lack of a reliable vendor or broker quotation which resulted in insufficient market inputs to determine price.

 

See accompanying notes to financial statements.

 

MIST-17

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 494,751,319   

Cash

      12,400   

Cash denominated in foreign currencies (c)

      1,674,868   

Unrealized appreciation on forward foreign currency exchange contracts

      333,704   

Receivable for:

   

Fund shares sold

      9,541   

Dividends and interest

      2,388,372   

Prepaid expenses

      1,369   
  

 

 

  

Total Assets

      499,171,573   

Liabilities

   

Unrealized depreciation on forward foreign currency exchange contracts

      387,691   

Collateral for securities loaned

      24,898,589   

Payables for:

   

Fund shares redeemed

      194,021   

Foreign taxes

      389,129   

Accrued Expenses:

   

Management fees

      283,189   

Distribution and service fees

      67,537   

Deferred trustees' fees

      123,067   

Other expenses

      166,875   
  

 

 

  

Total Liabilities

      26,510,098   
  

 

 

  

Net Assets

    $ 472,661,475   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 415,987,772   

Undistributed net investment income

      6,964,750   

Accumulated net realized gain

      14,590,991   

Unrealized appreciation on investments and foreign currency transactions (d)

      35,117,962   
  

 

 

  

Net Assets

    $ 472,661,475   
  

 

 

  

Net Assets

   

Class A

    $ 156,487,749   

Class B

      316,173,726   

Capital Shares Outstanding*

   

Class A

      10,384,078   

Class B

      21,164,731   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 15.07   

Class B

      14.94   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $459,148,684.
(b) Includes securities loaned at value of $43,051,151.
(c) Identified cost of cash denominated in foreign currencies was $1,688,001.
(d) Includes foreign capital gains tax of $389,129.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends (a)

    $ 4,442,404   

Interest (b)

      8,278,833   

Securities lending income

      128,990   
  

 

 

  

Total investment income

      12,850,227   

Expenses

   

Management fees

      3,546,395   

Administration fees

      12,731   

Custodian and accounting fees

      208,516   

Distribution and service fees—Class B

      846,950   

Audit and tax services

      62,730   

Legal

      26,437   

Trustees' fees and expenses

      35,173   

Shareholder reporting

      36,192   

Insurance

      3,277   

Miscellaneous

      20,429   
  

 

 

  

Total expenses

      4,798,830   

Less broker commission recapture

      (22,082 ) 
  

 

 

  

Net expenses

      4,776,748   
  

 

 

  

Net Investment Income

      8,073,479   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments (c)

      23,878,718   

Foreign currency transactions

      400,185   
  

 

 

  

Net realized gain

      24,278,903   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments (d)

      (24,433,979 ) 

Foreign currency transactions

      (167,027 ) 
  

 

 

  

Net change in unrealized depreciation

      (24,601,006 ) 
  

 

 

  

Net realized and unrealized loss

      (322,103 ) 
  

 

 

  

Net Increase in Net Assets From Operations

    $ 7,751,376   
  

 

 

  

 

(a) Net of foreign withholding taxes of $195,021.
(b) Net of foreign withholding taxes of $23,795.
(c) Net of foreign capital gains tax of $129,683.
(d) Includes change in foreign capital gains tax of $(18,637).

 

See accompanying notes to financial statements.

 

MIST-18

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 8,073,479      $ 9,070,600   

Net realized gain

      24,278,903        27,289,022   

Net change in unrealized depreciation

      (24,601,006 )      (18,004,001 ) 
  

 

 

    

 

 

  

Increase in net assets from operations

      7,751,376        18,355,621   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (3,071,733 )      (4,091,618 ) 

Class B

      (5,362,993 )      (7,158,160 ) 
  

 

 

    

 

 

  

Total distributions

      (8,434,726 )      (11,249,778 ) 
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (42,144,975 )      (25,916,414 ) 
  

 

 

    

 

 

  

Total decrease in net assets

      (42,828,325 )      (18,810,571 ) 

Net Assets

     

Beginning of period

      515,489,800        534,300,371   
  

 

 

    

 

 

  

End of period

    $ 472,661,475      $ 515,489,800   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 6,964,750      $ 7,253,760   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      218,028      $ 3,371,627        1,040,648      $ 15,523,935   

Reinvestments

      196,654        3,071,733        282,570        4,091,618   

Redemptions

      (1,349,654 )      (20,846,919 )      (2,164,562 )      (32,388,542 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (934,972 )    $ (14,403,559 )      (841,344 )    $ (12,772,989 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      1,734,526      $ 26,616,922        2,641,330      $ 39,276,962   

Reinvestments

      345,776        5,362,993        497,786        7,158,160   

Redemptions

      (3,887,875 )      (59,721,331 )      (4,012,592 )      (59,578,547 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (1,807,573 )    $ (27,741,416 )      (873,476 )    $ (13,143,425 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (42,144,975 )      $ (25,916,414 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-19

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Financial Highlights

 

Selected per share data       
     Class A  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 15.12       $ 14.92       $ 13.06       $ 11.42       $ 11.84   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.27         0.29         0.35         0.36         0.27   

Net realized and unrealized gain (loss) on investments

      (0.04 )       0.26        1.87        1.59        (0.39 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.23        0.55        2.22        1.95        (0.12 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.28 )      (0.35 )      (0.36 )      (0.31 )      (0.30 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.28 )      (0.35 )      (0.36 )      (0.31 )      (0.30 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 15.07       $ 15.12       $ 14.92       $ 13.06       $ 11.42   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      1.47        3.76        17.34        17.24        (1.25 )

Ratios/Supplemental Data

               

Ratio of expenses to average net assets (%)

      0.78         0.78         0.78         0.79         0.80   

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

      1.76         1.91         2.53         2.93         2.22   

Portfolio turnover rate (%)

      40         45         59         33         58   

Net assets, end of period (in millions)

    $ 156.5       $ 171.1       $ 181.4       $ 173.7       $ 168.9   
     Class B  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 14.99       $ 14.80       $ 12.95       $ 11.33       $ 11.77   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.23         0.25         0.31         0.33         0.24   

Net realized and unrealized gain (loss) on investments

      (0.04 )       0.25        1.86        1.58        (0.40 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.19        0.50        2.17        1.91        (0.16 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.24 )      (0.31 )      (0.32 )      (0.29 )      (0.28 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.24 )      (0.31 )      (0.32 )      (0.29 )      (0.28 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 14.94       $ 14.99       $ 14.80       $ 12.95       $ 11.33   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      1.23        3.47        17.13        16.93        (1.48 )

Ratios/Supplemental Data

               

Ratio of expenses to average net assets (%)

      1.03         1.03         1.03         1.04         1.05   

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

      1.51         1.65         2.26         2.67         1.99   

Portfolio turnover rate (%)

      40         45         59         33         58   

Net assets, end of period (in millions)

    $ 316.2       $ 344.4       $ 352.9       $ 242.8       $ 218.5   

 

(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.

 

See accompanying notes to financial statements.

 

MIST-20

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC ("MetLife Advisers" or the "Adviser"), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 and subject to general oversight by the Board. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally 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 or official closing 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 ("OTC") are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity

 

MIST-21

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 through an independent pricing service based on the mean between closing bid and ask prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or broker-dealer. These contracts are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

Options, including swaptions, and futures contracts that are traded OTC are generally valued on the basis of quotations provided by broker-dealers or prices provided by 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, yield curves, credit curves, measures of volatility and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts (other than centrally cleared swaps) are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and other pricing services. Such quotations and prices are derived utilizing observable data, including the underlying reference securities or indices, credit spread quotations and expected default recovery rates determined by the pricing service. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or an independent pricing service when the exchange price is not available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third party prices are used to produce daily settlement prices. These securities are categorized as Level 2 within the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates, including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio's understanding of the applicable countries' tax rules and rates.

 

MIST-22

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Notes to Financial Statements—December 31, 2015—(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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 adjustment, foreign capital tax, broker commission recapture, real estate investment trust (REIT) adjustments, contingent payment debt instrument adjustments, convertible preferred stock and paydown transactions. These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

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 December 31, 2015, the Portfolio had no when-issued and delayed-delivery securities.

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-23

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Notes to Financial Statements—December 31, 2015—(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.

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 generally 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.

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, 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. The purchase of assignments will typically result in the Portfolio having a direct contractual relationship with the borrower, and the Portfolio may enforce compliance by the borrower with the terms of the loan agreement.

The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments it acquires direct rights against the borrower of the loan. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing.

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.

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.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement ("MRA"), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $3,899,011, 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 December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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

 

MIST-24

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

market value of the loaned securities must be maintained for the duration of the loan. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

The following table provides a breakdown of the collateral received and the remaining contractual maturities for securities lending transactions, which are accounted for as secured borrowings.

 

     Remaining Contractual Maturity of the Agreements
As of December 31, 2015		  
      Overnight and
Continuous		     Up to
30 Days		      31 - 90
Days		      Greater than
90 days		     Total  

Securities Lending Transactions

             

Common Stocks

    $ (16,915,943 )    $ —       $ —       $ —      $ (16,915,943 ) 

Convertible Bonds

      (440,636 )      —         —         —        (440,636 ) 

Convertible Preferred Stocks

      (10,645 )      —         —         —        (10,645 ) 

Corporate Bonds & Notes

      (7,271,460 )      —         —         —        (7,271,460 ) 

Foreign Government

      (259,905 )      —         —         —        (259,905 ) 

Total

    $ (24,898,589 )    $ —       $ —       $ —      $ (24,898,589 ) 

Total Borrowings

    $ (24,898,589 )    $ —       $ —       $ —      $ (24,898,589 ) 

Gross amount of recognized liabilities for securities lending transactions

  

   $ (24,898,589 ) 

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 valuation 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-25

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of 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    $ 333,704       Unrealized depreciation on forward foreign currency exchange contracts    $ 387,691   
     

 

 

        

 

 

  

The Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized 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 ("MNA") (see Note 4), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Assets
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Received†		      Net Amount*  

Credit Suisse International

    $ 248,607       $ (108,366 )    $ —       $ 140,241   

UBS AG

      85,097         (33,938 )      —         51,159   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 333,704       $ (142,304 )    $ —       $ 191,400   
  

 

 

     

 

 

    

 

 

     

 

 

  

The following table presents the Portfolio's derivative liabilities by counterparty net of amounts available for offset under an MNA, or similar agreement, and net of the related collateral pledged by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Liabilities
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Pledged†		      Net Amount**  

Citibank N.A.

    $ 39,747       $ —      $ —       $ 39,747   

Credit Suisse International

      108,366         (108,366 )      —         —   

Morgan Stanley & Co.

      205,640         —        —         205,640   

UBS AG

      33,938         (33,938 )      —         —   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 387,691       $ (142,304 )    $ —       $ 245,387   
  

 

 

     

 

 

    

 

 

     

 

 

  

 

  * Net amount represents the net amount receivable from the counterparty in the event of default.
  ** Net amount represents the net amount payable due to the counterparty in the event of default.
  † In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Foreign
Exchange		  

Forward foreign currency transactions

    $ 737,903   
  

 

 

  

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

    Foreign
Exchange		  

Forward foreign currency transactions

    $ (190,301 ) 
  

 

 

  

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Forward foreign currency transactions

    $ 37,944,115   

 

  ‡ Averages are based on activity levels during 2015.

 

MIST-26

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

4. Certain Risks

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").

Market 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, 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 ("Master Agreements") with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC 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 ("GMRAs") or Master Repurchase Agreements ("MRAs"), 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. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may 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-27

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$15,968,346    $ 180,002,197       $ 18,654,858       $ 218,918,880   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management

Fees earned by

MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$3,546,395      0.700 %    First $500 million
     0.650 %    $500 million to $1 billion
     0.600 %    Over $1 billion

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Loomis, Sayles & Company, L.P. is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

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, LLC, 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 year ended December 31, 2015 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 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-28

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$8,434,726    $ 11,249,778       $ —       $ —       $ 8,434,726       $ 11,249,778   

As of December 31, 2015, 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  
$7,929,232    $ 14,584,359       $ 34,283,179       $ —       $ —       $ 56,796,770   

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.

During the year ended December 31, 2015, the Portfolio utilized capital loss carryforwards of $9,948,450.

As of December 31, 2015, the Portfolio had no post-enactment accumulated capital losses and no pre-enactment accumulated capital loss carryforwards.

9. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 ("ASU") which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-29

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Loomis Sayles Global Markets 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 Loomis Sayles Global Markets Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian, brokers and agent banks; when replies were not received from brokers or agent banks, 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 Loomis Sayles Global Markets Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-30

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-31

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-32

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

 

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-33

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-34

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

Loomis Sayles Global Markets Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Loomis, Sayles & Company, L.P. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board took into account that the Portfolio outperformed its Blended Index for the one-, three-, and five-year periods ended June 30, 2015. The Board also noted that the Portfolio outperformed the median of its Performance Universe for the five-year period ended June 30, 2015 and underperformed the median of its Performance Universe for the one- and three-year periods ended June 30, 2015. The Board further considered that the Portfolio outperformed its blended index, 60% MSCI World Index/40% Citigroup World Government Bond Index, for the one-, three-, and five-year periods ended October 31, 2015. The Board further noted that the Portfolio outperformed its other blended benchmark for the one-, three-, and five-year periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-1 fees) were above its Expense Group median, Expense Universe median, and Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also took into account that the Portfolio’s contractual sub-advisory fees were above the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-35

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Managed by Lord, Abbett & Co. LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A, B, and E shares of the Lord Abbett Bond Debenture Portfolio returned -1.87%, -2.17%, and -2.07%, respectively. The Portfolio’s benchmarks, the Barclays U.S. Aggregate Bond Index1, Bank of America Merrill Lynch High Yield Master II Constrained Index2, and the Hybrid Index3, returned 0.55%, -4.61%, and -3.29%, respectively.

MARKET ENVIRONMENT / CONDITIONS

Fixed-income investors spent much of the year wondering about the likelihood and timing of an increase in interest rates. Finally, in December, the policy-setting arm of the Federal Reserve (the “Fed”), the Federal Open Market Committee, increased interest rates for the first time since 2006, to a target range of 0.25-0.5%, in a widely expected move. Expectations of a rate hike had steadily increased over the latter months of 2015.

U.S. gross domestic product (GDP) expanded in each of the first three quarters of 2015. Further, the U.S. jobless rate stood at 5.0% in December, representing its lowest level since 2008. Oil prices fell throughout the year, which was beneficial to consumers at the pump but detrimental to companies in the Energy sector. U.S. inflation remained at low levels throughout the year, even when energy prices were not taken into account. The core Consumer Price Index (CPI), which excludes volatile food and energy prices, posted a year-over-year increase of 2.0% in November, which represents the first month in over a year that this metric is in line with the Fed’s stated inflation target of 2.0%.

Meanwhile, reflecting the demand for high-quality fixed-income assets, the Barclays U.S. Aggregate Bond Index, a market benchmark that is nearly half composed of Government-related debt, posted a gain for the year. Certain credit-sensitive asset classes, such as High-Yield Corporate bonds, underperformed the investment-grade Barclays U.S. Aggregate Bond Index by a wide margin. This negative performance in the High-Yield bond market owed, in large part, to weakness in the energy and metals and mining sectors. Despite this weak performance, the high yield default rate by the end of 2015 was well below the historical average.

PORTFOLIO REVIEW / PERIOD END POSITIONING

Throughout the year, we decreased the Portfolio’s allocation to High-Yield bonds and maintained an underweight to High-Yield bonds as of year-end versus the Hybrid Index, which likely contributed to relative performance, as the High-Yield market underperformed Government-related and Investment-Grade securities. Within the Portfolio’s High-Yield allocation, among the names that contributed the most to performance was drug store chain Rite Aid Corp. Oil and gas company Eclipse Resources Corp. was among the names that detracted the most from performance within the sector.

The Portfolio maintained an underweight to Convertible securities throughout the year. However, within the Portfolio’s Equity-Related portion, the Portfolio maintained a significant allocation to Equities, which contributed to performance relative to the Hybrid Index, as the Equity markets outperformed the Convertible, Investment-Grade, and High-Yield Corporate bond markets. One of the names that contributed the most to performance within the Convertible portion of the Portfolio was technology company Nvidia Corp., while the Portfolio’s holdings in home-furnishings company Restoration Hardware were among the Convertible securities that detracted the most from absolute performance. The Portfolio’s holdings in Restoration Hardware were sold during the period. At year end, we continued to seek Convertible securities of companies with good prospects for improving earnings results.

Within the Portfolio’s Investment-Grade bond allocation, we maintained an underweight in U.S. Treasuries, which detracted from performance relative to the Barclays U.S. Aggregate Bond Index, as U.S. Treasuries outperformed Corporates during the period. Within the Portfolio’s Investment-Grade allocation, among the names that contributed the most to absolute performance was online retailer Amazon.com. Oceaneering International, Inc., a subsea engineering and technology company, was among the names that detracted the most from performance within the sector.

 

MIST-1

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Managed by Lord, Abbett & Co. LLC

Portfolio Manager Commentary*—(Continued)

 

As of December 31, 2015, relative to the Hybrid Index, the Portfolio held an underweight in High Yield and Equity-Related securities and an overweight in Investment-Grade securities. During the period, we reduced the Portfolio’s exposure to High-Yield bonds and added exposure to Investment-Grade issuers to reduce the Portfolio’s risk profile. Additionally, we continued to weight the Equity-Related portion of the Portfolio toward Equities rather than Convertibles, as Equities provided portfolio diversification, greater liquidity, and a more diverse opportunity set to express certain investment themes than did convertible securities.

Steven F. Rocco

Robert A. Lee

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, 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 subject to change at any time based upon economic, market, or other conditions and the advisory 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year  
Lord Abbett Bond Debenture Portfolio                 

Class A

        -1.87           5.77           6.96   

Class B

        -2.17           5.49           6.69   

Class E

        -2.07           5.60           6.79   
Barclays U.S. Aggregate Bond Index        0.55           3.25           4.51   
BofA Merrill Lynch High Yield Master II Constrained Index        -4.61           4.84           6.82   
Hybrid Index        -3.29           5.13           6.44   

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 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 DECEMBER 31, 2015

Top Sectors

 

     % of
Net Assets		  
Corporate Bonds & Notes      71.5   
Common Stocks      12.6   
Convertible Bonds      4.7   
Mortgage-Backed Securities      3.7   
Floating Rate Loans      1.9   
Convertible Preferred Stocks      1.3   
Foreign Government      1.0   

 

MIST-3

Met Investors Series Trust

Lord Abbett Bond Debenture 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual      0.56 %     $ 1,000.00         $ 950.80         $ 2.75   
   Hypothetical*      0.56 %     $ 1,000.00         $ 1,022.38         $ 2.85   

Class B(a)

    Actual      0.81 %     $ 1,000.00         $ 949.40         $ 3.98   
   Hypothetical*      0.81 %     $ 1,000.00         $ 1,021.12         $ 4.13   

Class E(a)

    Actual      0.71 %     $ 1,000.00         $ 949.60         $ 3.49   
   Hypothetical*      0.71 %     $ 1,000.00         $ 1,021.63         $ 3.62   

* 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 (184 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

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—71.5% of Net Assets

 

Security Description   Principal
Amount*		     Value  

Aerospace/Defense—0.9%

    

Aerojet Rocketdyne Holdings, Inc.
7.125%, 03/15/21

     1,775,000      $ 1,846,000   

BAE Systems Holdings, Inc.
3.850%, 12/15/25 (144A)

     2,202,000        2,179,914   

Harris Corp.
4.854%, 04/27/35

     570,000        560,855   

5.054%, 04/27/45

     2,441,000        2,390,147   

Lockheed Martin Corp.

    

3.550%, 01/15/26

     1,651,000        1,656,810   

4.700%, 05/15/46

     1,101,000        1,127,832   

TransDigm, Inc.
6.500%, 07/15/24

     1,227,000        1,220,252   
   

 

 

  
      10,981,810   
   

 

 

  

Agriculture—0.4%

  

Altria Group, Inc.
5.375%, 01/31/44

     1,129,000        1,214,397   

Reynolds American, Inc.

    

4.450%, 06/12/25

     1,747,000        1,827,067   

5.850%, 08/15/45

     1,609,000        1,788,790   
   

 

 

  
      4,830,254   
   

 

 

  

Airlines—0.2%

  

Air Canada
7.750%, 04/15/21 (144A)

     1,550,000        1,612,000   

Air Canada Pass-Through Trust
4.125%, 12/15/27 (144A) (a) (b)

     1,108,000        1,111,723   
   

 

 

  
      2,723,723   
   

 

 

  

Apparel—0.2%

  

William Carter Co. (The)
5.250%, 08/15/21

     2,375,000        2,440,312   
   

 

 

  

Auto Parts & Equipment—0.5%

  

International Automotive Components Group S.A.
9.125%, 06/01/18 (144A)

     1,297,000        1,108,935   

MPG Holdco I, Inc.
7.375%, 10/15/22 (a)

     1,200,000        1,212,000   

Nemak S.A.B. de C.V.
5.500%, 02/28/23 (144A) (a)

     600,000        601,500   

Omega U.S. Sub LLC
8.750%, 07/15/23 (144A) (a)

     1,725,000        1,591,312   

ZF North America Capital, Inc.
4.500%, 04/29/22 (144A)

     1,425,000        1,392,938   
   

 

 

  
      5,906,685   
   

 

 

  

Banks—6.5%

  

ABN AMRO Bank NV
4.750%, 07/28/25 (144A)

     3,011,000        3,001,064   

ANZ New Zealand International, Ltd.
2.850%, 08/06/20 (144A) (a)

     1,703,000        1,717,303   

Bank of America Corp.

    

4.200%, 08/26/24

     1,200,000        1,190,614   

4.250%, 10/22/26

     2,452,000        2,427,073   

6.500%, 10/23/24 (c)

     1,950,000        2,054,812   

Banks—(Continued)

  

Bank of China, Ltd.
5.000%, 11/13/24 (144A) (a)

     1,875,000      1,930,509   

BankUnited, Inc.
4.875%, 11/17/25

     3,165,000        3,112,901   

Barclays plc
5.250%, 08/17/45

     1,127,000        1,135,210   

BNP Paribas S.A.
4.375%, 09/28/25 (144A)

     2,229,000        2,182,909   

7.375%, 08/19/25 (144A) (a) (c)

     1,092,000        1,120,665   

CIT Group, Inc.
5.000%, 08/15/22 (a)

     2,540,000        2,608,275   

Citigroup, Inc.

    

4.400%, 06/10/25

     1,690,000        1,706,914   

4.450%, 09/29/27

     2,424,000        2,407,951   

5.950%, 01/30/23 (c)

     2,375,000        2,323,937   

Citizens Financial Group, Inc.

    

4.350%, 08/01/25 (a)

     1,130,000        1,125,429   

5.500%, 04/06/20 (144A) (c)

     2,050,000        2,018,225   

Commerzbank AG
8.125%, 09/19/23 (144A)

     2,200,000        2,524,962   

Credit Suisse Group AG
7.500%, 12/11/23 (144A) (c)

     1,965,000        2,062,920   

Credit Suisse Group Funding Guernsey, Ltd.
3.800%, 09/15/22 (144A)

     2,408,000        2,406,100   

Discover Bank
7.000%, 04/15/20

     1,052,000        1,197,789   

Fifth Third Bancorp
2.875%, 07/27/20

     1,203,000        1,201,665   

Goldman Sachs Group, Inc. (The)
5.150%, 05/22/45

     1,206,000        1,171,492   

HSBC Holdings plc

    

4.250%, 08/18/25

     2,253,000        2,235,893   

6.375%, 03/30/25 (a) (c)

     1,150,000        1,148,562   

Industrial & Commercial Bank of China, Ltd.
3.231%, 11/13/19

     2,400,000        2,438,995   

Intesa Sanpaolo S.p.A.
7.700%, 09/17/25 (144A) (a) (c)

     1,122,000        1,143,037   

JPMorgan Chase & Co.

    

3.875%, 09/10/24

     2,422,000        2,409,270   

6.750%, 02/01/24 (c)

     1,105,000        1,204,450   

LBG Capital No.1 plc
8.000%, 06/15/20 (144A) (c)

     560,000        582,120   

Lloyds Banking Group plc

    

4.582%, 12/10/25 (144A)

     3,011,000        3,018,335   

7.500%, 06/27/24 (c)

     1,363,000        1,451,595   

Morgan Stanley
4.000%, 07/23/25

     1,165,000        1,199,687   

National Savings Bank
5.150%, 09/10/19 (144A)

     700,000        652,750   

Nordea Bank AB
6.125%, 09/23/24 (144A) (c)

     1,292,000        1,261,573   

Popular, Inc.
7.000%, 07/01/19

     2,725,000        2,547,875   

Royal Bank of Scotland Group plc
7.500%, 08/10/20 (c)

     1,512,000        1,574,370   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Banks—(Continued)

  

Santander Holdings USA, Inc.
4.500%, 07/17/25

     1,763,000      $ 1,794,639   

Santander UK Group Holdings plc
4.750%, 09/15/25 (144A)

     673,000        664,121   

Santander UK plc
7.950%, 10/26/29

     272,000        344,645   

Societe Generale S.A.

    

6.000%, 01/27/20 (144A) (a) (c)

     1,248,000        1,178,736   

8.000%, 09/29/25 (144A) (a) (c)

     1,138,000        1,159,698   

Standard Chartered plc
6.500%, 04/02/20 (144A) (a) (c)

     2,275,000        2,198,062   

Synovus Financial Corp.
7.875%, 02/15/19

     1,500,000        1,665,000   

UBS Group Funding Jersey, Ltd.
4.125%, 09/24/25 (144A)

     2,089,000        2,086,834   

Wells Fargo & Co.
4.900%, 11/17/45

     2,203,000        2,222,646   

Zions Bancorporation
5.800%, 06/15/23 (c) (d)

     39,000        37,343   
   

 

 

  
      78,848,955   
   

 

 

  

Beverages—1.2%

    

Brown-Forman Corp.
4.500%, 07/15/45

     2,186,000        2,260,707   

Coca-Cola Bottling Co. Consolidated
3.800%, 11/25/25

     1,101,000        1,101,527   

Constellation Brands, Inc.

    

4.250%, 05/01/23

     2,500,000        2,500,000   

6.000%, 05/01/22

     1,192,000        1,311,200   

Cott Beverages, Inc.

    

5.375%, 07/01/22

     400,000        392,000   

6.750%, 01/01/20

     859,000        886,917   

Dr Pepper Snapple Group, Inc.

    

3.400%, 11/15/25

     2,204,000        2,164,855   

4.500%, 11/15/45

     1,102,000        1,077,474   

Fomento Economico Mexicano S.A.B. de C.V.
4.375%, 05/10/43

     1,328,000        1,173,390   

PepsiCo, Inc.

    

4.250%, 10/22/44

     751,000        745,144   

4.450%, 04/14/46

     1,178,000        1,216,819   
   

 

 

  
      14,830,033   
   

 

 

  

Biotechnology—0.6%

    

Celgene Corp.
5.000%, 08/15/45

     1,784,000        1,790,936   

Gilead Sciences, Inc.

    

2.550%, 09/01/20

     1,675,000        1,674,364   

3.500%, 02/01/25

     2,525,000        2,546,058   

4.750%, 03/01/46

     1,675,000        1,695,144   
   

 

 

  
      7,706,502   
   

 

 

  

Building Materials—1.2%

    

Builders FirstSource, Inc.
10.750%, 08/15/23 (144A)

     2,400,000        2,382,000   

Building Materials—(Continued)

    

Building Materials Corp. of America
5.375%, 11/15/24 (144A)

     2,044,000      2,038,890   

Griffon Corp.
5.250%, 03/01/22

     1,053,000        1,004,299   

Lafarge S.A.
7.125%, 07/15/36

     950,000        1,089,609   

Masonite International Corp.
5.625%, 03/15/23 (144A)

     1,167,000        1,204,928   

Norbord, Inc.
6.250%, 04/15/23 (144A)

     1,355,000        1,338,062   

Ply Gem Industries, Inc.
6.500%, 02/01/22

     2,651,000        2,402,565   

Unifrax I LLC / Unifrax Holding Co.
7.500%, 02/15/19 (144A) (b)

     1,356,000        1,200,060   

Vulcan Materials Co.
4.500%, 04/01/25

     1,250,000        1,237,500   
   

 

 

  
      13,897,913   
   

 

 

  

Chemicals—0.8%

    

Celanese U.S. Holdings LLC
5.875%, 06/15/21

     780,000        822,900   

Grupo Idesa S.A. de C.V.
7.875%, 12/18/20 (144A)

     1,450,000        1,435,500   

Huntsman International LLC
5.125%, 11/15/22 (144A) (a)

     1,370,000        1,233,000   

Israel Chemicals, Ltd.
4.500%, 12/02/24 (144A)

     2,450,000        2,449,020   

Kissner Milling Co., Ltd.
7.250%, 06/01/19 (144A) (a)

     1,079,000        1,011,563   

OCP S.A.
6.875%, 04/25/44 (144A)

     1,175,000        1,150,583   

Platform Specialty Products Corp.
6.500%, 02/01/22 (144A) (a)

     1,925,000        1,665,125   
   

 

 

  
      9,767,691   
   

 

 

  

Commercial Services—1.2%

    

ADT Corp. (The)
3.500%, 07/15/22 (a)

     1,525,000        1,364,875   

Cleveland Clinic Foundation (The)
4.858%, 01/01/2114

     1,450,000        1,406,013   

ExamWorks Group, Inc.
5.625%, 04/15/23

     1,347,000        1,340,265   

FTI Consulting, Inc.
6.000%, 11/15/22

     2,000,000        2,095,000   

Jaguar Holding Co. II / Pharmaceutical Product Development LLC
6.375%, 08/01/23 (144A)

     1,320,000        1,287,000   

Jurassic Holdings III, Inc.
6.875%, 02/15/21 (144A)

     1,875,000        1,125,000   

Metropolitan Museum of Art (The)
3.400%, 07/01/45

     2,025,000        1,841,296   

Midas Intermediate Holdco II LLC / Midas Intermediate Holdco II Finance, Inc.
7.875%, 10/01/22 (144A)

     1,400,000        1,253,000   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Commercial Services—(Continued)

    

NES Rentals Holdings, Inc.
7.875%, 05/01/18 (144A)

     1,100,000      $ 1,001,000   

Sotheby’s
5.250%, 10/01/22 (144A)

     2,050,000        1,865,500   
   

 

 

  
      14,578,949   
   

 

 

  

Computers—0.3%

    

Compiler Finance Sub, Inc.
7.000%, 05/01/21 (144A)

     868,000        364,560   

Dell, Inc.
7.100%, 04/15/28

     1,375,000        1,323,437   

Hewlett Packard Enterprise Co.
4.900%, 10/15/25 (144A)

     1,918,000        1,880,818   
   

 

 

  
      3,568,815   
   

 

 

  

Cosmetics/Personal Care—0.3%

    

Elizabeth Arden, Inc.
7.375%, 03/15/21 (a)

     2,638,000        1,688,320   

Estee Lauder Cos., Inc. (The)
4.375%, 06/15/45

     2,353,000        2,374,313   
   

 

 

  
      4,062,633   
   

 

 

  

Diversified Financial Services—4.1%

    

AerCap Ireland Capital, Ltd. / AerCap Global Aviation Trust

    

3.750%, 05/15/19

     1,450,000        1,448,187   

5.000%, 10/01/21

     2,250,000        2,317,500   

Air Lease Corp.
3.875%, 04/01/21

     1,182,000        1,187,910   

Aircastle, Ltd.
5.500%, 02/15/22

     1,942,000        1,990,550   

Alliance Data Systems Corp.
6.375%, 04/01/20 (144A)

     6,825,000        6,893,250   

Ally Financial, Inc.
5.750%, 11/20/25

     3,467,000        3,510,337   

Charles Schwab Corp. (The)
3.450%, 02/13/26

     1,209,000        1,229,448   

CME Group, Inc.
3.000%, 03/15/25

     2,300,000        2,256,424   

Denali Borrower LLC / Denali Finance Corp.
5.625%, 10/15/20 (144A)

     1,145,000        1,199,388   

E*Trade Financial Corp.
4.625%, 09/15/23

     1,186,000        1,205,273   

Intercontinental Exchange, Inc.
3.750%, 12/01/25

     2,419,000        2,425,652   

International Lease Finance Corp.

    

6.250%, 05/15/19

     2,750,000        2,945,937   

8.250%, 12/15/20

     3,000,000        3,547,500   

Ladder Capital Finance Holdings LLLP / Ladder Capital Finance Corp.
5.875%, 08/01/21 (144A)

     1,900,000        1,729,000   

Lazard Group LLC
3.750%, 02/13/25

     1,736,000        1,601,719   

Diversified Financial Services—(Continued)

  

  

Macquarie Group, Ltd.
6.000%, 01/14/20 (144A)

     1,800,000      1,986,638   

MasterCard, Inc.
3.375%, 04/01/24

     1,780,000        1,819,055   

National Financial Partners Corp.
9.000%, 07/15/21 (144A)

     1,302,000        1,191,330   

Navient Corp.
5.000%, 10/26/20 (a)

     1,211,000        1,062,653   

Neuberger Berman Group LLC / Neuberger Berman Finance Corp.
4.875%, 04/15/45 (144A)

     996,000        839,805   

OneMain Financial Holdings, Inc.
6.750%, 12/15/19 (144A)

     1,286,000        1,303,683   

Rio Oil Finance Trust
9.250%, 07/06/24 (144A) (a)

     3,681,000        2,723,940   

Springleaf Finance Corp.
5.250%, 12/15/19

     302,000        286,900   

TD Ameritrade Holding Corp.

    

2.950%, 04/01/22

     1,150,000        1,139,122   

3.625%, 04/01/25

     1,850,000        1,872,137   
   

 

 

  
      49,713,338   
   

 

 

  

Electric—1.6%

    

AES El Salvador Trust II
6.750%, 03/28/23 (144A)

     1,425,000        1,271,813   

AES Gener S.A.
5.000%, 07/14/25 (144A) (a)

     850,000        812,089   

AES Panama SRL
6.000%, 06/25/22 (144A)

     1,500,000        1,488,750   

Dynegy, Inc.
7.625%, 11/01/24 (a)

     1,095,000        936,006   

E.CL S.A.
4.500%, 01/29/25 (144A) (a)

     2,075,000        2,042,082   

El Paso Electric Co.
5.000%, 12/01/44

     1,243,000        1,217,088   

Entergy Arkansas, Inc.
4.950%, 12/15/44

     2,096,000        2,066,285   

Illinois Power Generating Co.
7.000%, 04/15/18 (a)

     2,475,000        1,658,250   

IPALCO Enterprises, Inc.
3.450%, 07/15/20 (d)

     111,000        108,780   

Lamar Funding, Ltd.
3.958%, 05/07/25 (144A) (a)

     2,050,000        1,821,425   

Louisville Gas & Electric Co.
4.375%, 10/01/45

     776,000        792,817   

NSG Holdings LLC / NSG Holdings, Inc.
7.750%, 12/15/25 (144A)

     2,845,589        3,073,236   

Oncor Electric Delivery Co. LLC
3.750%, 04/01/45

     2,110,000        1,753,689   
   

 

 

  
      19,042,310   
   

 

 

  

Electrical Components & Equipment—0.3%

  

Artesyn Embedded Technologies, Inc.
9.750%, 10/15/20 (144A)

     2,450,000        2,174,375   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Electrical Components & Equipment—(Continued)

  

General Cable Corp.
5.750%, 10/01/22 (a)

     1,450,000      $ 1,116,500   
   

 

 

  
      3,290,875   
   

 

 

  

Electronics—0.2%

    

Trimble Navigation, Ltd.
4.750%, 12/01/24

     2,861,000        2,842,750   
   

 

 

  

Energy-Alternate Sources—0.1%

    

Alta Wind Holdings LLC
7.000%, 06/30/35 (144A)

     1,355,113        1,451,662   
   

 

 

  

Engineering & Construction—0.3%

    

AECOM
5.875%, 10/15/24

     1,254,000        1,279,080   

China Railway Resources Huitung, Ltd.
3.850%, 02/05/23

     1,450,000        1,436,123   

SBA Communications Corp.
4.875%, 07/15/22

     900,000        886,500   
   

 

 

  
      3,601,703   
   

 

 

  

Entertainment—0.7%

    

CCM Merger, Inc.
9.125%, 05/01/19 (144A)

     1,500,000        1,565,625   

Cedar Fair L.P. / Canada’s Wonderland Co. / Magnum Management Corp.
5.250%, 03/15/21

     1,700,000        1,751,000   

Gibson Brands, Inc.
8.875%, 08/01/18 (144A)

     2,800,000        1,624,000   

Mohegan Tribal Gaming Authority
9.750%, 09/01/21 (a)

     1,900,000        1,895,250   

River Rock Entertainment Authority (The)
9.000%, 11/01/18 (d) (e)

     1,397,000        96,044   

Rivers Pittsburgh Borrower L.P. / Rivers Pittsburgh Finance Corp.
9.500%, 06/15/19 (144A) (b)

     1,490,000        1,542,150   
   

 

 

  
      8,474,069   
   

 

 

  

Environmental Control—0.1%

    

ADS Waste Holdings, Inc.
8.250%, 10/01/20

     1,340,000        1,350,050   
   

 

 

  

Food—1.7%

    

B&G Foods, Inc.
4.625%, 06/01/21

     2,525,000        2,499,750   

BI-LO LLC / BI-LO Finance Corp.
9.250%, 02/15/19 (144A) (a)

     1,250,000        1,259,375   

Diamond Foods, Inc.
7.000%, 03/15/19 (144A)

     2,240,000        2,312,800   

Ingles Markets, Inc.
5.750%, 06/15/23

     1,330,000        1,326,675   

JBS USA LLC / JBS USA Finance, Inc.

    

5.875%, 07/15/24 (144A)

     1,204,000        1,089,620   

7.250%, 06/01/21 (144A)

     445,000        441,663   

Food—(Continued)

    

Land O’ Lakes, Inc.
6.000%, 11/15/22 (144A)

     2,000,000      2,090,000   

Pinnacle Foods Finance LLC / Pinnacle Foods Finance Corp.
4.875%, 05/01/21

     1,400,000        1,344,000   

Post Holdings, Inc.
7.750%, 03/15/24 (144A)

     1,005,000        1,052,737   

Premier Foods Finance plc
6.500%, 03/15/21 (144A) (GBP)

     1,025,000        1,435,502   

WhiteWave Foods Co. (The)
5.375%, 10/01/22

     5,780,000        6,112,350   
   

 

 

  
      20,964,472   
   

 

 

  

Forest Products & Paper—0.2%

    

Cascades, Inc.
5.500%, 07/15/22 (144A)

     1,303,000        1,263,910   

Millar Western Forest Products, Ltd.
8.500%, 04/01/21

     2,000,000        1,030,000   
   

 

 

  
      2,293,910   
   

 

 

  

Gas—0.4%

    

Dominion Gas Holdings LLC
3.600%, 12/15/24 (a)

     1,775,000        1,756,552   

LBC Tank Terminals Holding Netherlands B.V.
6.875%, 05/15/23 (144A)

     1,965,000        1,945,350   

Southern Star Central Corp.
5.125%, 07/15/22 (144A)

     1,425,000        1,175,625   
   

 

 

  
      4,877,527   
   

 

 

  

Hand/Machine Tools—0.1%

    

Milacron LLC / Mcron Finance Corp.
7.750%, 02/15/21 (144A)

     1,100,000        1,025,750   
   

 

 

  

Healthcare-Products—1.1%

    

Hologic, Inc.
5.250%, 07/15/22 (144A)

     1,333,000        1,359,660   

Kinetic Concepts, Inc. / KCI USA, Inc.

    

10.500%, 11/01/18

     1,000,000        975,000   

12.500%, 11/01/19

     938,000        853,580   

Mallinckrodt International Finance S.A. / Mallinckrodt CB LLC
5.750%, 08/01/22 (144A) (a)

     2,807,000        2,694,720   

Medtronic, Inc.

    

3.150%, 03/15/22

     2,393,000        2,419,124   

4.375%, 03/15/35

     1,250,000        1,263,553   

St. Jude Medical, Inc.
3.875%, 09/15/25

     1,112,000        1,122,375   

Sterigenics-Nordion Holdings LLC
6.500%, 05/15/23 (144A)

     1,700,000        1,623,500   

Stryker Corp.
3.375%, 11/01/25

     1,110,000        1,095,590   
   

 

 

  
      13,407,102   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Healthcare-Services—3.6%

    

Amsurg Corp.

    

5.625%, 11/30/20 (a)

     2,565,000      $ 2,603,475   

5.625%, 07/15/22

     963,000        953,370   

Centene Corp.
4.750%, 05/15/22 (a)

     1,227,000        1,187,123   

CHS/Community Health Systems, Inc.

    

6.875%, 02/01/22 (a)

     1,000,000        948,750   

8.000%, 11/15/19

     4,337,000        4,369,527   

DaVita HealthCare Partners, Inc.
5.750%, 08/15/22

     3,500,000        3,605,000   

Dignity Health

    

3.812%, 11/01/24

     1,800,000        1,829,167   

4.500%, 11/01/42

     339,000        319,404   

Fresenius Medical Care U.S. Finance II, Inc.

    

4.750%, 10/15/24 (144A)

     700,000        682,500   

5.875%, 01/31/22 (144A)

     3,225,000        3,450,750   

HCA, Inc.

    

4.250%, 10/15/19

     1,200,000        1,224,000   

5.375%, 02/01/25

     1,600,000        1,580,000   

7.050%, 12/01/27

     263,000        264,973   

7.500%, 02/15/22

     5,537,000        6,132,227   

7.580%, 09/15/25 (d)

     575,000        619,563   

7.690%, 06/15/25

     1,767,000        1,903,943   

MEDNAX, Inc.
5.250%, 12/01/23 (144A)

     825,000        829,125   

Memorial Sloan-Kettering Cancer Center
4.200%, 07/01/55

     1,825,000        1,756,915   

MPH Acquisition Holdings LLC
6.625%, 04/01/22 (144A)

     2,675,000        2,681,688   

Tenet Healthcare Corp.

    

6.750%, 06/15/23 (a)

     3,233,000        2,998,607   

8.125%, 04/01/22

     3,125,000        3,117,187   
   

 

 

  
      43,057,294   
   

 

 

  

Holding Companies-Diversified—0.3%

    

Argos Merger Sub, Inc.
7.125%, 03/15/23 (144A)

     2,540,000        2,518,410   

MUFG Americas Holdings Corp.
3.000%, 02/10/25

     1,175,000        1,124,917   
   

 

 

  
      3,643,327   
   

 

 

  

Home Builders—1.2%

    

Ashton Woods USA LLC / Ashton Woods Finance Co.
6.875%, 02/15/21 (144A)

     1,650,000        1,402,500   

Brookfield Residential Properties, Inc.

    

6.500%, 12/15/20 (144A)

     1,975,000        1,903,406   

DR Horton, Inc.
4.750%, 02/15/23

     495,000        504,157   

K Hovnanian Enterprises, Inc.
7.250%, 10/15/20 (144A)

     1,350,000        1,161,000   

Lennar Corp.
4.500%, 11/15/19

     1,475,000        1,499,891   

PulteGroup, Inc.
6.375%, 05/15/33

     3,500,000        3,552,500   

Home Builders—(Continued)

    

Toll Brothers Finance Corp.
5.625%, 01/15/24 (a)

     1,375,000      1,423,125   

William Lyon Homes, Inc.
7.000%, 08/15/22

     3,350,000        3,358,375   
   

 

 

  
      14,804,954   
   

 

 

  

Household Products/Wares—0.1%

    

SC Johnson & Son, Inc.
4.750%, 10/15/46 (144A)

     1,088,000        1,133,260   
   

 

 

  

Housewares—0.2%

    

American Greetings Corp.
7.375%, 12/01/21

     1,930,000        2,016,850   
   

 

 

  

Insurance—1.3%

    

ACE INA Holdings, Inc.
4.350%, 11/03/45

     1,104,000        1,121,810   

Allied World Assurance Co. Holdings, Ltd.
4.350%, 10/29/25

     4,351,000        4,283,051   

American Equity Investment Life Holding Co.
6.625%, 07/15/21

     1,706,000        1,774,240   

CNO Financial Group, Inc.
5.250%, 05/30/25

     2,367,000        2,408,423   

Prudential Financial, Inc.
5.375%, 05/15/45 (c)

     1,212,000        1,210,485   

Teachers Insurance & Annuity Association of America
4.900%, 09/15/44 (144A)

     1,771,000        1,788,862   

TIAA Asset Management Finance Co. LLC
4.125%, 11/01/24 (144A)

     1,807,000        1,813,138   

XLIT, Ltd.
4.450%, 03/31/25

     1,227,000        1,201,543   
   

 

 

  
      15,601,552   
   

 

 

  

Internet—2.3%

    

Alibaba Group Holding, Ltd.

    

3.125%, 11/28/21

     2,975,000        2,885,378   

3.600%, 11/28/24

     2,300,000        2,197,056   

Amazon.com, Inc.
4.800%, 12/05/34

     7,581,000        7,981,845   

Blue Coat Holdings, Inc.
8.375%, 06/01/23 (144A) (a)

     1,537,000        1,544,685   

Expedia, Inc.
5.000%, 02/15/26 (144A)

     3,767,000        3,676,355   

Netflix, Inc.
5.375%, 02/01/21

     3,700,000        3,885,000   

Priceline Group, Inc. (The)
3.650%, 03/15/25

     1,625,000        1,581,551   

VeriSign, Inc.

    

4.625%, 05/01/23

     1,263,000        1,222,900   

5.250%, 04/01/25 (a)

     1,073,000        1,078,365   

Zayo Group LLC / Zayo Capital, Inc.
6.000%, 04/01/23

     1,935,000        1,828,575   
   

 

 

  
      27,881,710   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Iron/Steel—0.3%

    

Allegheny Ludlum Corp.
6.950%, 12/15/25

     1,497,000      $ 898,200   

Steel Dynamics, Inc.

    

5.125%, 10/01/21

     1,825,000        1,688,125   

5.500%, 10/01/24

     1,068,000        974,550   
   

 

 

  
      3,560,875   
   

 

 

  

Leisure Time—0.5%

    

NCL Corp., Ltd.
5.250%, 11/15/19 (144A)

     925,000        945,239   

Royal Caribbean Cruises, Ltd.
7.500%, 10/15/27

     3,500,000        3,981,250   

Viking Cruises, Ltd.
8.500%, 10/15/22 (144A)

     1,300,000        1,231,750   
   

 

 

  
      6,158,239   
   

 

 

  

Lodging—1.8%

    

Boyd Gaming Corp.
6.875%, 05/15/23

     2,025,000        2,080,687   

Caesars Entertainment Resort Properties LLC / Caesars Growth Properties Finance, Inc.
11.000%, 10/01/21

     1,000,000        905,000   

Caesars Growth Properties Holdings LLC / Caesars Growth Properties Finance, Inc.
9.375%, 05/01/22

     2,110,000        1,730,200   

Hilton Worldwide Finance LLC / Hilton Worldwide Finance Corp.
5.625%, 10/15/21

     2,200,000        2,279,750   

MCE Finance, Ltd.
5.000%, 02/15/21 (144A)

     2,450,000        2,229,500   

MGM Resorts International

    

6.000%, 03/15/23 (a)

     2,532,000        2,513,010   

7.750%, 03/15/22

     947,000        1,006,188   

Playa Resorts Holding B.V.
8.000%, 08/15/20 (144A)

     2,300,000        2,334,500   

Seminole Hard Rock Entertainment, Inc. / Seminole Hard Rock International LLC
5.875%, 05/15/21 (144A)

     1,525,000        1,521,187   

Sugarhouse HSP Gaming Prop Mezz L.P. / Sugarhouse HSP Gaming Finance Corp.
6.375%, 06/01/21 (144A) (b)

     2,950,000        2,743,500   

Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp.
5.375%, 03/15/22

     1,352,000        1,284,711   

Wynn Macau, Ltd.
5.250%, 10/15/21 (144A) (a)

     1,850,000        1,628,000   
   

 

 

  
      22,256,233   
   

 

 

  

Machinery-Construction & Mining—0.1%

  

BlueLine Rental Finance Corp.
7.000%, 02/01/19 (144A)

     1,350,000        1,215,000   
   

 

 

  

Media—4.7%

    

Altice Financing S.A.
6.625%, 02/15/23 (144A)

     1,200,000        1,185,000   

Media—(Continued)

    

Altice Finco S.A.
9.875%, 12/15/20 (144A)

     2,900,000      3,088,500   

Altice Luxembourg S.A.
7.750%, 05/15/22 (144A)

     3,500,000        3,158,750   

AMC Networks, Inc.

    

4.750%, 12/15/22 (a)

     2,825,000        2,825,000   

7.750%, 07/15/21

     1,500,000        1,575,000   

Cablevision Systems Corp.
5.875%, 09/15/22 (a)

     4,000,000        3,400,000   

CCO Holdings LLC / CCO Holdings Capital Corp.

    

5.125%, 05/01/23 (144A)

     800,000        800,000   

6.625%, 01/31/22

     2,300,000        2,423,625   

CCO Safari LLC

    

4.908%, 07/23/25 (144A)

     2,270,000        2,267,791   

6.384%, 10/23/35 (144A)

     1,777,000        1,795,358   

Columbus International, Inc.
7.375%, 03/30/21 (144A) (a)

     1,600,000        1,584,000   

DISH DBS Corp.

    

5.000%, 03/15/23

     2,222,000        1,927,585   

5.875%, 07/15/22

     1,125,000        1,049,063   

6.750%, 06/01/21

     2,218,000        2,234,635   

Mediacom Broadband LLC / Mediacom Broadband Corp.
6.375%, 04/01/23 (a)

     3,481,000        3,402,678   

Mediacom LLC / Mediacom Capital Corp.
7.250%, 02/15/22

     400,000        404,000   

Myriad International Holdings B.V.
5.500%, 07/21/25 (144A)

     2,035,000        1,957,735   

Neptune Finco Corp.
10.875%, 10/15/25 (144A)

     6,447,000        6,753,232   

Numericable-SFR SAS
6.000%, 05/15/22 (144A)

     1,950,000        1,891,500   

RCN Telecom Services LLC / RCN Capital Corp.
8.500%, 08/15/20 (144A)

     1,225,000        1,237,250   

Sirius XM Radio, Inc.
6.000%, 07/15/24 (144A)

     1,015,000        1,060,675   

Time Warner Cable, Inc.
5.875%, 11/15/40

     1,912,000        1,811,937   

Unitymedia Hessen GmbH & Co. KG / Unitymedia NRW GmbH

    

5.000%, 01/15/25 (144A)

     888,000        848,040   

5.500%, 01/15/23 (144A)

     2,975,000        2,967,563   

Univision Communications, Inc.
5.125%, 02/15/25 (144A)

     1,930,000        1,833,500   

VTR Finance B.V.
6.875%, 01/15/24 (144A)

     1,850,000        1,702,000   

Wave Holdco LLC / Wave Holdco Corp.
8.250%, 07/15/19 (144A) (f)

     949,000        915,785   
   

 

 

  
      56,100,202   
   

 

 

  

Mining—1.6%

    

Aleris International, Inc.
7.875%, 11/01/20

     1,094,000        833,628   

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Mining—(Continued)

    

BHP Billiton Finance USA, Ltd.

    

6.250%, 10/19/75 (144A) (a) (c)

     2,791,000      $ 2,731,691   

6.750%, 10/19/75 (144A) (a) (c)

     2,501,000        2,413,465   

Coeur Mining, Inc.
7.875%, 02/01/21

     1,631,000        974,523   

Freeport-McMoRan, Inc.
3.875%, 03/15/23

     3,743,000        2,133,510   

HudBay Minerals, Inc.
9.500%, 10/01/20

     1,468,000        1,075,310   

Imperial Metals Corp.
7.000%, 03/15/19 (144A)

     1,450,000        1,290,500   

Lundin Mining Corp.
7.875%, 11/01/22 (144A)

     1,415,000        1,301,800   

Mirabela Nickel, Ltd.
1.000%, 09/16/44 (d) (g)

     32,601        3   

MMC Norilsk Nickel OJSC via MMC Finance, Ltd.
6.625%, 10/14/22 (144A)

     1,700,000        1,730,600   

New Gold, Inc.

    

6.250%, 11/15/22 (144A)

     1,400,000        1,113,000   

7.000%, 04/15/20 (144A)

     1,358,000        1,222,200   

Newmont Mining Corp.

    

4.875%, 03/15/42

     1,331,000        951,078   

6.250%, 10/01/39

     665,000        531,243   

Thompson Creek Metals Co., Inc.

    

7.375%, 06/01/18 (a)

     1,103,000        209,570   

9.750%, 12/01/17

     63,000        54,180   

Volcan Cia Minera SAA
5.375%, 02/02/22 (144A)

     1,200,000        762,000   
   

 

 

  
      19,328,301   
   

 

 

  

Miscellaneous Manufacturing—1.4%

    

FGI Operating Co. LLC / FGI Finance, Inc.
7.875%, 05/01/20

     2,325,000        1,674,000   

Gates Global LLC / Gates Global Co.
6.000%, 07/15/22 (144A) (a)

     1,648,000        1,186,560   

General Electric Co.
4.000%, 06/15/22 (c)

     10,740,150        10,740,150   

Hexcel Corp.
4.700%, 08/15/25

     1,977,000        1,957,756   

Siemens Financieringsmaatschappij NV
3.250%, 05/27/25 (144A) (a)

     1,715,000        1,712,882   
   

 

 

  
      17,271,348   
   

 

 

  

Office/Business Equipment—0.2%

    

CDW LLC / CDW Finance Corp.
5.500%, 12/01/24

     2,210,000        2,314,975   
   

 

 

  

Oil & Gas—6.4%

    

Antero Resources Corp.
5.375%, 11/01/21

     2,500,000        2,000,000   

Bill Barrett Corp.
7.000%, 10/15/22 (a)

     1,668,000        1,117,560   

Bonanza Creek Energy, Inc.
6.750%, 04/15/21

     691,000        418,055   

Oil & Gas—(Continued)

    

Carrizo Oil & Gas, Inc.

    

6.250%, 04/15/23

     1,719,000      1,392,390   

7.500%, 09/15/20

     1,050,000        917,438   

Citgo Holding, Inc.
10.750%, 02/15/20 (144A)

     3,691,000        3,580,270   

Clayton Williams Energy, Inc.
7.750%, 04/01/19 (a)

     1,441,000        1,111,371   

Concho Resources, Inc.
5.500%, 04/01/23

     4,875,000        4,509,375   

Continental Resources, Inc.
5.000%, 09/15/22

     3,538,000        2,609,275   

CrownRock L.P. / CrownRock Finance, Inc.
7.125%, 04/15/21 (144A)

     3,850,000        3,609,375   

Denbury Resources, Inc.
5.500%, 05/01/22

     1,800,000        597,564   

Devon Energy Corp.
5.850%, 12/15/25 (a)

     1,875,000        1,823,520   

Diamondback Energy, Inc.
7.625%, 10/01/21 (a)

     3,650,000        3,686,500   

Eclipse Resources Corp.
8.875%, 07/15/23 (144A)

     1,999,000        954,523   

Encana Corp.
6.500%, 08/15/34

     2,737,000        2,213,707   

EOG Resources, Inc.
3.150%, 04/01/25

     1,248,000        1,180,397   

EP Energy LLC / Everest Acquisition Finance, Inc.
6.375%, 06/15/23

     907,000        453,500   

EXCO Resources, Inc.
8.500%, 04/15/22

     2,315,000        416,700   

Gulfport Energy Corp.
6.625%, 05/01/23

     279,000        232,965   

7.750%, 11/01/20

     1,950,000        1,745,250   

Hilcorp Energy I L.P. / Hilcorp Finance Co.
5.000%, 12/01/24 (144A)

     2,800,000        2,324,000   

Kosmos Energy, Ltd.
7.875%, 08/01/21 (144A) (a)

     2,550,000        2,052,750   

Kunlun Energy Co., Ltd.
3.750%, 05/13/25 (144A)

     2,275,000        2,214,849   

MEG Energy Corp.
7.000%, 03/31/24 (144A)

     5,487,000        3,895,770   

Memorial Resource Development Corp.
5.875%, 07/01/22

     2,673,000        2,338,875   

Newfield Exploration Co.
5.625%, 07/01/24

     2,491,000        2,123,577   

Northern Tier Energy LLC / Northern Tier Finance Corp.
7.125%, 11/15/20

     2,575,000        2,600,750   

Oasis Petroleum, Inc.

    

6.500%, 11/01/21

     1,071,000        709,538   

6.875%, 03/15/22 (a)

     796,000        509,440   

7.250%, 02/01/19 (a)

     786,000        563,955   

Occidental Petroleum Corp.
3.500%, 06/15/25

     1,850,000        1,806,893   

Paramount Resources, Ltd.
6.875%, 06/30/23 (144A)

     2,092,000        1,652,680   

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Oil & Gas—(Continued)

    

Parsley Energy LLC / Parsley Finance Corp.
7.500%, 02/15/22 (144A)

     1,450,000      $ 1,384,750   

PDC Energy, Inc.
7.750%, 10/15/22

     3,159,000        3,032,640   

Range Resources Corp.
4.875%, 05/15/25 (144A)

     2,875,000        2,185,000   

Rice Energy, Inc.
6.250%, 05/01/22 (a)

     1,958,000        1,409,760   

RSP Permian, Inc.
6.625%, 10/01/22

     1,525,000        1,403,000   

Seven Generations Energy, Ltd.

    

6.750%, 05/01/23 (144A) (a)

     690,000        579,600   

8.250%, 05/15/20 (144A)

     2,275,000        2,047,500   

Shell International Finance B.V.

    

3.250%, 05/11/25

     2,273,000        2,218,391   

4.375%, 05/11/45

     990,000        934,626   

4.550%, 08/12/43

     735,000        714,438   

SM Energy Co.
6.500%, 11/15/21 (a)

     1,725,000        1,285,125   

Ultra Petroleum Corp.
6.125%, 10/01/24 (144A)

     1,575,000        358,313   

YPF S.A.
8.500%, 07/28/25 (144A)

     2,105,000        2,005,013   
   

 

 

  
      76,920,968   
   

 

 

  

Oil & Gas Services—0.4%

  

Gulfmark Offshore, Inc.
6.375%, 03/15/22 (a)

     809,000        434,838   

Light Tower Rentals, Inc.
8.125%, 08/01/19 (144A)

     871,000        444,210   

Oceaneering International, Inc.
4.650%, 11/15/24

     2,021,000        1,695,924   

Weatherford International, Ltd.

    

4.500%, 04/15/22 (a)

     2,373,000        1,708,560   

5.125%, 09/15/20 (a)

     232,000        187,920   
   

 

 

  
      4,471,452   
   

 

 

  

Packaging & Containers—1.6%

  

Ball Corp.

    

4.000%, 11/15/23

     1,439,000        1,372,446   

4.375%, 12/15/20

     1,377,000        1,398,516   

BWAY Holding Co.
9.125%, 08/15/21 (144A)

     1,263,000        1,180,905   

Coveris Holdings S.A.
7.875%, 11/01/19 (144A)

     1,330,000        1,160,425   

Crown Cork & Seal Co., Inc.
7.375%, 12/15/26

     1,655,000        1,779,125   

Graphic Packaging International, Inc.

    

4.750%, 04/15/21

     1,400,000        1,428,000   

4.875%, 11/15/22

     1,337,000        1,353,712   

Pactiv LLC
7.950%, 12/15/25

     1,300,000        1,209,000   

Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC

    

5.750%, 10/15/20

     1,250,000        1,271,488   

8.250%, 02/15/21

     2,125,000        2,045,312   

Packaging & Containers—(Continued)

  

Sealed Air Corp.

    

4.875%, 12/01/22 (144A)

     1,345,000      1,348,363   

5.125%, 12/01/24 (144A)

     619,000        619,000   

6.875%, 07/15/33 (144A)

     3,100,000        3,169,750   
   

 

 

  
      19,336,042   
   

 

 

  

Pharmaceuticals—1.6%

  

AbbVie, Inc.

    

3.200%, 11/06/22

     792,000        779,592   

4.500%, 05/14/35

     1,131,000        1,107,924   

AstraZeneca plc
3.375%, 11/16/25

     2,201,000        2,185,060   

Bayer U.S. Finance LLC
3.375%, 10/08/24 (144A)

     2,404,000        2,421,109   

DPx Holdings B.V.
7.500%, 02/01/22 (144A)

     1,850,000        1,803,750   

Grifols Worldwide Operations, Ltd.
5.250%, 04/01/22

     3,000,000        3,015,000   

Mead Johnson Nutrition Co.
4.125%, 11/15/25

     1,653,000        1,665,429   

Merck & Co., Inc.
3.700%, 02/10/45

     1,934,000        1,785,952   

Pfizer, Inc.
5.600%, 09/15/40

     1,431,000        1,647,319   

Quintiles Transnational Corp.
4.875%, 05/15/23 (144A)

     1,217,000        1,223,085   

Zoetis, Inc.
3.250%, 02/01/23

     2,125,000        2,029,048   
   

 

 

  
      19,663,268   
   

 

 

  

Pipelines—1.7%

  

Boardwalk Pipelines L.P.
4.950%, 12/15/24

     1,066,000        926,919   

Energy Transfer Equity L.P.

    

5.500%, 06/01/27

     1,376,000        1,045,760   

5.875%, 01/15/24 (a)

     1,638,000        1,334,970   

Florida Gas Transmission Co. LLC
4.350%, 07/15/25 (144A) (a)

     2,016,000        1,848,464   

Genesis Energy L.P. / Genesis Energy Finance Corp.
6.750%, 08/01/22

     1,704,000        1,448,400   

IFM U.S. Colonial Pipeline 2 LLC
6.450%, 05/01/21 (144A) (b)

     2,500,000        2,665,353   

Midcontinent Express Pipeline LLC
6.700%, 09/15/19 (144A) (b)

     157,000        146,795   

Rockies Express Pipeline LLC
6.875%, 04/15/40 (144A)

     2,825,000        2,429,500   

Sabine Pass Liquefaction LLC
5.750%, 05/15/24

     3,943,000        3,430,410   

SemGroup Corp.
7.500%, 06/15/21

     571,000        511,045   

Tesoro Logistics L.P. / Tesoro Logistics Finance Corp.

    

5.500%, 10/15/19 (144A)

     600,000        582,000   

5.875%, 10/01/20

     1,753,000        1,674,115   

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Pipelines—(Continued)

  

Tesoro Logistics L.P. / Tesoro Logistics Finance Corp.

    

6.125%, 10/15/21

     1,200,000      $ 1,140,000   

6.250%, 10/15/22 (144A)

     1,050,000        994,875   
   

 

 

  
      20,178,606   
   

 

 

  

Real Estate—0.5%

  

CBRE Services, Inc.

    

4.875%, 03/01/26

     2,746,000        2,735,348   

5.000%, 03/15/23

     1,409,000        1,416,171   

5.250%, 03/15/25

     1,275,000        1,291,483   
   

 

 

  
      5,443,002   
   

 

 

  

Real Estate Investment Trusts—1.7%

  

Alexandria Real Estate Equities, Inc.
4.300%, 01/15/26

     1,102,000        1,086,632   

Brixmor Operating Partnership L.P.

    

3.850%, 02/01/25

     2,480,000        2,409,526   

3.875%, 08/15/22

     2,403,000        2,391,961   

Crown Castle International Corp.
5.250%, 01/15/23

     1,850,000        1,944,812   

CubeSmart L.P.
4.000%, 11/15/25

     1,108,000        1,099,479   

Digital Delta Holdings LLC
4.750%, 10/01/25 (144A)

     1,668,000        1,682,775   

EPR Properties
4.500%, 04/01/25

     1,888,000        1,794,771   

Equinix, Inc.

    

5.375%, 04/01/23

     1,065,000        1,086,300   

5.875%, 01/15/26

     1,214,000        1,250,420   

Goodman Funding Property, Ltd.
6.000%, 03/22/22 (144A)

     1,200,000        1,331,695   

Iron Mountain, Inc.
6.000%, 10/01/20 (144A)

     1,657,000        1,748,135   

MPT Operating Partnership L.P. / MPT Finance Corp.
5.500%, 05/01/24

     986,000        981,070   

RHP Hotel Properties L.P. / RHP Finance Corp.

    

5.000%, 04/15/21

     1,200,000        1,221,000   

5.000%, 04/15/23

     463,000        463,000   
   

 

 

  
      20,491,576   
   

 

 

  

Retail—3.4%

    

1011778 BC ULC / New Red Finance, Inc.
6.000%, 04/01/22 (144A)

     1,300,000        1,339,000   

Arcos Dorados Holdings, Inc.
6.625%, 09/27/23 (144A) (a)

     825,000        763,125   

AutoZone, Inc.
2.500%, 04/15/21

     800,000        780,614   

Brookstone Holdings Corp.
10.000%, 07/07/21 (d) (f)

     246,752        168,100   

CST Brands, Inc.
5.000%, 05/01/23

     2,692,000        2,665,080   

Retail—(Continued)

    

Dollar Tree, Inc.
5.750%, 03/01/23 (144A)

     2,572,000      $ 2,662,020   

El Puerto de Liverpool S.A.B. de C.V.
3.950%, 10/02/24 (144A)

     1,331,000        1,292,734   

Hema Bondco I B.V.
6.250%, 06/15/19 (144A) (EUR)

     1,475,000        1,192,599   

Hillman Group, Inc. (The)
6.375%, 07/15/22 (144A) (a)

     1,746,000        1,449,180   

JC Penney Corp., Inc.
5.650%, 06/01/20 (a)

     2,750,000        2,200,000   

McDonald’s Corp.

    

2.750%, 12/09/20

     441,000        440,696   

3.700%, 01/30/26

     1,047,000        1,046,139   

4.600%, 05/26/45

     1,259,000        1,211,347   

4.875%, 12/09/45

     1,102,000        1,108,712   

Neiman Marcus Group, Ltd. LLC
8.000%, 10/15/21 (144A) (a)

     3,113,000        2,303,620   

New Albertsons, Inc.

    

7.450%, 08/01/29

     1,000,000        885,000   

7.750%, 06/15/26

     2,250,000        2,070,000   

New Look Secured Issuer plc
6.500%, 07/01/22 (144A) (GBP)

     1,150,000        1,678,885   

PF Chang’s China Bistro, Inc.
10.250%, 06/30/20 (144A) (a)

     1,480,000        1,213,600   

Rite Aid Corp.
6.125%, 04/01/23 (144A)

     1,825,000        1,888,875   

7.700%, 02/15/27

     4,000,000        4,660,000   

SACI Falabella
4.375%, 01/27/25 (144A) (a)

     1,425,000        1,410,843   

Sally Holdings LLC / Sally Capital, Inc.
5.500%, 11/01/23

     875,000        894,687   

Serta Simmons Bedding LLC
8.125%, 10/01/20 (144A)

     1,325,000        1,384,625   

Tops Holding LLC / Tops Markets II Corp.
8.000%, 06/15/22 (144A)

     2,692,000        2,651,620   

Yum! Brands, Inc.

    

3.750%, 11/01/21

     703,000        646,733   

3.875%, 11/01/23

     957,000        847,575   
   

 

 

  
      40,855,409   
   

 

 

  

Savings & Loans—0.2%

    

Nationwide Building Society
3.900%, 07/21/25 (144A)

     2,252,000        2,322,922   

Washington Mutual Bank
6.875%, 06/15/11 (d) (e) (g)

     6,000,000        600   
   

 

 

  
      2,323,522   
   

 

 

  

Semiconductors—0.4%

    

Lam Research Corp.
3.800%, 03/15/25

     1,176,000        1,106,918   

Qorvo, Inc.
7.000%, 12/01/25 (144A)

     3,302,000        3,401,060   
   

 

 

  
      4,507,978   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Shipbuilding—0.1%

    

Huntington Ingalls Industries, Inc.

    

5.000%, 12/15/21 (144A)

     500,000      $ 509,375   

5.000%, 11/15/25 (144A)

     624,000        633,360   
   

 

 

  
      1,142,735   
   

 

 

  

Software—2.3%

    

Activision Blizzard, Inc.

    

5.625%, 09/15/21 (144A)

     2,299,000        2,408,203   

6.125%, 09/15/23 (144A)

     2,800,000        2,968,000   

Adobe Systems, Inc.
3.250%, 02/01/25 (a)

     1,837,000        1,792,877   

Fidelity National Information Services, Inc.
5.000%, 10/15/25

     2,922,000        3,002,326   

First Data Corp.

    

5.750%, 01/15/24 (144A)

     1,468,000        1,445,980   

7.000%, 12/01/23 (144A)

     3,759,000        3,759,000   

Informatica LLC
7.125%, 07/15/23 (144A)

     1,588,000        1,437,140   

Microsoft Corp.

    

2.375%, 02/12/22

     2,432,000        2,400,515   

4.000%, 02/12/55

     2,645,000        2,375,929   

MSCI, Inc.
5.750%, 08/15/25 (144A)

     1,350,000        1,383,750   

Oracle Corp.

    

4.125%, 05/15/45

     1,923,000        1,823,360   

4.375%, 05/15/55

     2,590,000        2,369,420   
   

 

 

  
      27,166,500   
   

 

 

  

Telecommunications—5.4%

    

Comcel Trust via Comunicaciones Celulares S.A.
6.875%, 02/06/24 (144A)

     2,375,000        1,828,750   

CommScope Technologies Finance LLC
6.000%, 06/15/25 (144A)

     1,407,000        1,354,238   

CommScope, Inc.
5.500%, 06/15/24 (144A)

     2,200,000        2,090,000   

Consolidated Communications, Inc.
6.500%, 10/01/22

     1,342,000        1,127,280   

CPI International, Inc.
8.750%, 02/15/18 (a) (d)

     2,030,000        1,999,550   

Digicel Group, Ltd.

    

7.125%, 04/01/22 (144A)

     1,500,000        1,125,000   

8.250%, 09/30/20 (144A)

     1,300,000        1,072,500   

Digicel, Ltd.

    

6.750%, 03/01/23 (144A) (a)

     1,400,000        1,169,000   

7.000%, 02/15/20 (144A) (a)

     2,600,000        2,366,000   

Frontier Communications Corp.

    

6.875%, 01/15/25

     3,560,000        2,932,550   

9.250%, 07/01/21

     1,225,000        1,203,563   

10.500%, 09/15/22 (144A)

     2,526,000        2,516,527   

11.000%, 09/15/25 (144A)

     4,857,000        4,808,430   

GCI, Inc.
6.875%, 04/15/25

     1,525,000        1,559,312   

Hughes Satellite Systems Corp.
7.625%, 06/15/21

     3,500,000        3,710,000   

Telecommunications—(Continued)

    

Inmarsat Finance plc
4.875%, 05/15/22 (144A)

     2,775,000      2,705,625   

Intelsat Luxembourg S.A.
6.750%, 06/01/18 (a)

     2,880,000        2,131,200   

7.750%, 06/01/21

     2,343,000        1,095,353   

Sable International Finance, Ltd.
6.875%, 08/01/22 (144A)

     1,305,000        1,259,325   

Sprint Capital Corp.
6.900%, 05/01/19

     1,158,000        943,770   

Sprint Communications, Inc.
7.000%, 08/15/20

     480,000        370,800   

Sprint Corp.
7.875%, 09/15/23

     568,000        426,568   

T-Mobile USA, Inc.
6.500%, 01/15/24 (a)

     5,803,000        5,919,060   

6.500%, 01/15/26

     1,286,000        1,298,204   

6.625%, 11/15/20

     1,100,000        1,143,439   

6.633%, 04/28/21

     3,425,000        3,553,437   

6.836%, 04/28/23

     228,000        235,980   

Telecom Italia S.p.A.
5.303%, 05/30/24 (144A)

     1,350,000        1,333,125   

Telefonica Celular del Paraguay S.A.
6.750%, 12/13/22 (144A)

     800,000        730,000   

UPCB Finance IV, Ltd.
5.375%, 01/15/25 (144A)

     2,296,000        2,163,980   

Virgin Media Finance plc
6.000%, 10/15/24 (144A)

     925,000        922,688   

Virgin Media Secured Finance plc
5.375%, 04/15/21 (144A)

     3,600,000        3,717,000   

Wind Acquisition Finance S.A.
7.375%, 04/23/21 (144A)

     4,250,000        4,016,250   
   

 

 

  
      64,828,504   
   

 

 

  

Textiles—0.1%

  

Springs Industries, Inc.
6.250%, 06/01/21

     1,396,000        1,382,040   
   

 

 

  

Transportation—0.9%

  

Autoridad del Canal de Panama
4.950%, 07/29/35 (144A)

     1,200,000        1,236,000   

Central Japan Railway Co.
4.250%, 11/24/45 (144A)

     1,663,000        1,692,816   

Florida East Coast Holdings Corp.
6.750%, 05/01/19 (144A)

     2,995,000        2,740,425   

9.750%, 05/01/20 (144A)

     872,000        592,960   

Hornbeck Offshore Services, Inc.
5.875%, 04/01/20

     2,650,000        1,828,500   

Watco Cos. LLC / Watco Finance Corp.
6.375%, 04/01/23 (144A)

     1,400,000        1,379,000   

XPO Logistics, Inc.
6.500%, 06/15/22 (144A) (a)

     662,000        612,350   

7.875%, 09/01/19 (144A)

     1,234,000        1,254,694   
   

 

 

  
      11,336,745   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $912,117,734)

       862,872,260   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—12.6%

 

Security Description   Shares     Value  

Aerospace & Defense—0.3%

    

General Dynamics Corp.

     8,701      $ 1,195,169   

Orbital ATK, Inc.

     13,378        1,195,191   

Raytheon Co.

     9,482        1,180,793   
   

 

 

  
      3,571,153   
   

 

 

  

Airlines—0.2%

    

Alaska Air Group, Inc. (a)

     16,357        1,316,902   

Southwest Airlines Co.

     28,333        1,220,019   
   

 

 

  
      2,536,921   
   

 

 

  

Auto Components—0.1%

    

Drew Industries, Inc. (a)

     22,651        1,379,219   
   

 

 

  

Banks—0.6%

    

Bank of the Ozarks, Inc. (a)

     23,567        1,165,624   

BankUnited, Inc.

     33,543        1,209,561   

First Republic Bank (a)

     18,727        1,237,106   

Signature Bank (a) (h)

     10,015        1,536,000   

Synovus Financial Corp. (a)

     21,143        684,610   

Western Alliance Bancorp (h)

     32,921        1,180,547   
   

 

 

  
      7,013,448   
   

 

 

  

Beverages—0.6%

    

Brown-Forman Corp. - Class B (a)

     12,665        1,257,381   

Constellation Brands, Inc. - Class A

     12,677        1,805,712   

Dr Pepper Snapple Group, Inc. (a)

     14,026        1,307,223   

Fomento Economico Mexicano S.A.B. de C.V. (ADR)

     12,846        1,186,328   

Monster Beverage Corp. (a) (h)

     9,692        1,443,721   
   

 

 

  
      7,000,365   
   

 

 

  

Biotechnology—0.2%

    

Alexion Pharmaceuticals, Inc. (h)

     6,411        1,222,898   

Vertex Pharmaceuticals, Inc. (h)

     9,656        1,215,015   
   

 

 

  
      2,437,913   
   

 

 

  

Building Products—0.3%

    

Advanced Drainage Systems, Inc. (a)

     12,281        295,112   

A.O. Smith Corp. (a)

     16,027        1,227,828   

Fortune Brands Home & Security, Inc. (a)

     21,515        1,194,083   

Masco Corp.

     21,756        615,695   
   

 

 

  
      3,332,718   
   

 

 

  

Capital Markets—0.1%

    

E*Trade Financial Corp. (h)

     20,915        619,921   
   

 

 

  

Chemicals—0.5%

    

Chemtura Corp. (a) (h)

     41,604        1,134,541   

Ecolab, Inc. (a)

     10,468        1,197,330   

International Flavors & Fragrances, Inc. (a)

     5,159        617,222   

Scotts Miracle-Gro Co. (The) - Class A

     18,031        1,163,180   

Trinseo S.A. (a) (h)

     66,695        1,880,799   
   

 

 

  
      5,993,072   
   

 

 

  

Commercial Services & Supplies—0.1%

    

Cintas Corp. (a)

     6,934      631,341   
   

 

 

  

Communications Equipment—0.1%

    

Arista Networks, Inc. (h)

     16,145        1,256,727   
   

 

 

  

Construction & Engineering—0.2%

    

Dycom Industries, Inc. (a) (h)

     15,180        1,061,993   

Granite Construction, Inc. (a)

     28,721        1,232,418   
   

 

 

  
      2,294,411   
   

 

 

  

Construction Materials—0.3%

    

Martin Marietta Materials, Inc. (a)

     8,450        1,154,101   

Summit Materials, Inc. - Class A (a) (h)

     60,767        1,217,770   

Vulcan Materials Co.

     12,138        1,152,746   
   

 

 

  
      3,524,617   
   

 

 

  

Containers & Packaging—0.1%

    

AptarGroup, Inc. (a)

     8,444        613,457   

Berry Plastics Group, Inc. (h)

     33,747        1,220,966   
   

 

 

  
      1,834,423   
   

 

 

  

Distributors—0.2%

    

Core-Mark Holding Co., Inc. (a)

     15,658        1,283,017   

Pool Corp. (a)

     14,727        1,189,647   
   

 

 

  
      2,472,664   
   

 

 

  

Diversified Consumer Services—0.1%

    

Bright Horizons Family Solutions, Inc. (a) (h)

     19,597        1,309,080   
   

 

 

  

Diversified Financial Services—0.2%

    

CBOE Holdings, Inc. (a)

     18,197        1,180,985   

Intercontinental Exchange, Inc.

     5,163        1,323,071   
   

 

 

  
      2,504,056   
   

 

 

  

Electrical Equipment—0.1%

    

Acuity Brands, Inc. (a)

     5,385        1,259,013   
   

 

 

  

Electronic Equipment, Instruments & Components—0.2%

  

Fitbit, Inc. - Class A (a) (h)

     41,236        1,220,173   

Ingram Micro, Inc. - Class A (a)

     39,064        1,186,765   
   

 

 

  
      2,406,938   
   

 

 

  

Food & Staples Retailing—0.3%

    

Casey’s General Stores, Inc. (a)

     17,813        2,145,576   

Kroger Co. (The) (a)

     14,806        619,335   

Sprouts Farmers Market, Inc. (a) (h)

     54,688        1,454,154   
   

 

 

  
      4,219,065   
   

 

 

  

Food Products—0.4%

    

Amplify Snack Brands, Inc. (a) (h)

     52,074        599,892   

B&G Foods, Inc. (a)

     35,131        1,230,288   

Blue Buffalo Pet Products, Inc. (a) (h)

     67,656        1,265,844   

Ingredion, Inc. (a)

     12,773        1,224,164   
   

 

 

  
      4,320,188   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-15

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Health Care Equipment & Supplies—0.3%

  

C.R. Bard, Inc.

     6,480      $ 1,227,571   

Edwards Lifesciences Corp. (h)

     19,795        1,563,409   

STERIS plc (a)

     17,174        1,293,889   
   

 

 

  
      4,084,869   
   

 

 

  

Health Care Providers & Services—0.1%

  

Acadia Healthcare Co., Inc. (a) (h)

     17,268        1,078,559   
   

 

 

  

Hotels, Restaurants & Leisure—1.5%

    

Boyd Gaming Corp. (a) (h)

     94,201        1,871,774   

Churchill Downs, Inc. (a)

     4,289        606,851   

Isle of Capri Casinos, Inc. (a) (h)

     48,482        675,354   

McDonald’s Corp.

     11,271        1,331,556   

MGM Resorts International (a) (h)

     54,330        1,234,378   

Restaurant Brands International, Inc.

     34,517        1,289,555   

Royal Caribbean Cruises, Ltd. (a)

     12,788        1,294,273   

Shake Shack, Inc. - Class A (a) (h)

     32,486        1,286,446   

Six Flags Entertainment Corp. (a)

     33,227        1,825,491   

Starbucks Corp.

     53,301        3,199,659   

Vail Resorts, Inc. (a)

     9,728        1,245,087   

Wendy’s Co. (The) (a)

     60,109        647,374   

Wynn Resorts, Ltd. (a)

     27,997        1,937,112   
   

 

 

  
      18,444,910   
   

 

 

  

Household Products—0.1%

    

Clorox Co. (The)

     10,053        1,275,022   
   

 

 

  

Industrial Conglomerates—0.2%

    

Danaher Corp. (a)

     6,499        603,627   

Roper Technologies, Inc. (a)

     7,234        1,372,941   
   

 

 

  
      1,976,568   
   

 

 

  

Insurance—0.3%

    

Argo Group International Holdings, Ltd.

     20,540        1,229,113   

Aspen Insurance Holdings, Ltd. (a)

     25,714        1,241,986   

Hanover Insurance Group, Inc. (The) (a)

     15,405        1,253,043   
   

 

 

  
      3,724,142   
   

 

 

  

Internet & Catalog Retail—0.6%

    

Amazon.com, Inc. (h)

     3,801        2,569,058   

Netflix, Inc. (a) (h)

     24,552        2,808,258   

TripAdvisor, Inc. (a) (h)

     15,032        1,281,478   

Wayfair, Inc. - Class A (h)

     12,500        595,250   
   

 

 

  
      7,254,044   
   

 

 

  

Internet Software & Services—0.4%

    

Alibaba Group Holding, Ltd. (ADR) (h)

     14,467        1,175,733   

Alphabet, Inc. - Class C (h)

     2,385        1,809,929   

Facebook, Inc. - Class A (h)

     23,824        2,493,420   
   

 

 

  
      5,479,082   
   

 

 

  

IT Services—0.6%

    

Accenture plc - Class A

     6,073        634,629   

Booz Allen Hamilton Holding Corp.

     20,873        643,932   

IT Services—(Continued)

    

First Data Corp. - Class A (h)

     142,300      2,279,646   

Leidos Holdings, Inc. (a)

     26,301        1,479,694   

MasterCard, Inc. - Class A

     13,058        1,271,327   

PayPal Holdings, Inc. (h)

     33,741        1,221,424   
   

 

 

  
      7,530,652   
   

 

 

  

Machinery—0.1%

    

Graco, Inc. (a)

     8,887        640,486   

Toro Co. (The) (a)

     16,705        1,220,634   
   

 

 

  
      1,861,120   
   

 

 

  

Media—0.1%

    

ION Media Networks, Inc. (d) (g) (h)

     785        227,179   

Starz - Class A (a) (h)

     32,131        1,076,388   
   

 

 

  
      1,303,567   
   

 

 

  

Metals & Mining—0.0%

    

Mirabela Nickel, Ltd. (d) (g) (h)

     5,556,301        0   
   

 

 

  

Oil, Gas & Consumable Fuels—0.4%

    

Concho Resources, Inc. (h)

     11,225        1,042,354   

Diamondback Energy, Inc. (a) (h)

     16,300        1,090,470   

Parsley Energy, Inc. - Class A (h)

     73,189        1,350,337   

Seven Generations Energy, Ltd. - Class A (h)

     109,943        1,071,064   
   

 

 

  
      4,554,225   
   

 

 

  

Paper & Forest Products—0.0%

    

PT Indah Kiat Pulp and Paper Corp.

     1,867,500        129,149   
   

 

 

  

Personal Products—0.1%

    

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

     8,245        726,055   
   

 

 

  

Pharmaceuticals—0.2%

    

Eli Lilly & Co.

     16,163        1,361,895   

Zoetis, Inc.

     13,271        635,946   
   

 

 

  
      1,997,841   
   

 

 

  

Professional Services—0.1%

    

Equifax, Inc.

     11,391        1,268,615   

Korn/Ferry International

     17,060        566,051   
   

 

 

  
      1,834,666   
   

 

 

  

Real Estate Investment Trusts—0.6%

    

CubeSmart (a)

     40,077        1,227,158   

Equinix, Inc. (a)

     2,174        657,418   

Extra Space Storage, Inc. (a)

     13,672        1,206,007   

InfraREIT, Inc. (a)

    82,462        1,525,547   

National Storage Affiliates Trust (a)

     41,189        705,568   

Public Storage

     2,430        601,911   

QTS Realty Trust, Inc. - Class A (a)

     26,832        1,210,391   
   

 

 

  
      7,134,000   
   

 

 

  

Road & Rail—0.1%

    

AMERCO (a)

     3,162        1,231,599   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-16

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares/
Principal
Amount*		     Value  

Semiconductors & Semiconductor Equipment—0.1%

  

Cavium, Inc. (a) (h)

     10,151      $ 667,022   
   

 

 

  

Software—0.3%

  

Activision Blizzard, Inc.

     31,116        1,204,500   

SS&C Technologies Holdings, Inc. (a)

     17,731        1,210,496   

Tableau Software, Inc. - Class A (a) (h)

     7,382        695,532   
   

 

 

  
      3,110,528   
   

 

 

  

Specialty Retail—0.4%

  

Home Depot, Inc. (The)

     14,089        1,863,270   

Murphy USA, Inc. (a) (h)

     26,678        1,620,422   

Tile Shop Holdings, Inc. (h)

     76,069        1,247,532   
   

 

 

  
      4,731,224   
   

 

 

  

Textiles, Apparel & Luxury Goods—0.2%

  

NIKE, Inc. - Class B (a)

     33,052        2,065,750   
   

 

 

  

Tobacco—0.2%

  

Altria Group, Inc.

     21,836        1,271,074   

Reynolds American, Inc.

     27,070        1,249,280   
   

 

 

  
      2,520,354   
   

 

 

  

Trading Companies & Distributors—0.1%

  

Beacon Roofing Supply, Inc. (a) (h)

     34,841        1,434,752   
   

 

 

  

Water Utilities—0.2%

  

American Water Works Co., Inc. (a)

     20,065        1,198,884   

Aqua America, Inc. (a)

     41,840        1,246,832   
   

 

 

  
      2,445,716   
   

 

 

  

Wireless Telecommunication Services—0.1%

  

T-Mobile U.S., Inc. (h)

     31,734        1,241,434   
   

 

 

  

Total Common Stocks
(Cost $150,593,204)

       151,754,103   
   

 

 

  
Convertible Bonds—4.7%   

Agriculture—0.2%

  

Vector Group, Ltd.
1.750%, 04/15/20 (a) (c)

     2,453,000        2,804,086   
   

 

 

  

Airlines—0.4%

  

JetBlue Airways Corp.
6.750%, 10/15/39

     950,000        4,421,656   
   

 

 

  

Auto Manufacturers—0.2%

  

Tesla Motors, Inc.
1.250%, 03/01/21 (a)

     2,915,000        2,670,869   
   

 

 

  

Biotechnology—1.1%

  

Gilead Sciences, Inc.
1.625%, 05/01/16

     825,000        3,686,203   

Biotechnology—(Continued)

  

Incyte Corp.
0.375%, 11/15/18

     874,000      1,881,831   

Ionis Pharmaceuticals, Inc.
1.000%, 11/15/21

     1,432,000        1,611,000   

Regeneron Pharmaceuticals, Inc.
1.875%, 10/01/16

     925,000        5,972,610   
   

 

 

  
      13,151,644   
   

 

 

  

Building Materials—0.1%

  

Griffon Corp.
4.000%, 01/15/17 (144A)

     935,000        1,210,825   
   

 

 

  

Commercial Services—0.1%

  

Live Nation Entertainment, Inc.
2.500%, 05/15/19

     1,420,000        1,443,963   
   

 

 

  

Engineering & Construction—0.3%

  

Dycom Industries, Inc.
0.750%, 09/15/21 (144A) (a)

     3,825,000        3,758,062   
   

 

 

  

Holding Companies-Diversified—0.1%

  

Misarte
3.250%, 01/01/16 (EUR)

     1,358,429        1,686,581   
   

 

 

  

Internet—0.7%

  

LinkedIn Corp.
0.500%, 11/01/19

     1,285,000        1,347,644   

Priceline Group, Inc. (The)
1.000%, 03/15/18

     1,200,000        1,706,250   

Twitter, Inc.
1.000%, 09/15/21

     1,579,000        1,319,452   

VeriSign, Inc.
4.297%, 08/15/37

     1,350,000        3,456,843   
   

 

 

  
      7,830,189   
   

 

 

  

Oil & Gas—0.1%

  

PDC Energy, Inc.
3.250%, 05/15/16 (144A)

     1,000,000        1,294,375   
   

 

 

  

Semiconductors—0.5%

  

Novellus Systems, Inc.
2.625%, 05/15/41

     1,121,000        2,637,853   

NVIDIA Corp.
1.000%, 12/01/18

     1,707,000        2,843,222   
   

 

 

  
      5,481,075   
   

 

 

  

Software—0.9%

  

Proofpoint, Inc.
0.750%, 06/15/20 (144A)

     1,145,000        1,197,241   

Red Hat, Inc.
0.250%, 10/01/19 (a)

     2,458,000        3,200,009   

salesforce.com, Inc.
0.250%, 04/01/18

     3,150,000        4,051,687   

 

See accompanying notes to financial statements.

 

MIST-17

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of December 31, 2015

Convertible Bonds—(Continued)

 

Security Description   Principal
Amount*		     Value  

Software—(Continued)

  

Workday, Inc.
1.500%, 07/15/20

     1,850,000      $ 2,194,562   
   

 

 

  
      10,643,499   
   

 

 

  

Total Convertible Bonds
(Cost $57,912,934)

       56,396,824   
   

 

 

  
Mortgage-Backed Securities—3.7%   

Commercial Mortgage-Backed Securities—3.7%

  

Banc of America Commercial Mortgage Trust
3.167%, 09/15/48

     447,000        325,304   

Barclays Commercial Mortgage Trust
3.375%, 03/12/36 (144A)

     575,000        562,593   

BB-UBS Trust
4.026%, 11/05/36 (144A) (c)

     2,775,000        2,655,592   

Citigroup Commercial Mortgage Trust
4.345%, 10/10/47

     875,000        885,511   

4.533%, 10/10/47 (c)

     1,900,000        1,825,896   

4.625%, 01/14/43 (144A) (c)

     1,200,000        1,125,285   

Commercial Mortgage Pass-Through Certificates
1.073%, 12/10/47 (c) (i)

     19,743,215        1,232,857   

4.349%, 12/10/47 (c)

     1,000,000        1,010,392   

4.443%, 07/10/50 (c)

     1,726,000        1,339,604   

4.466%, 12/10/47 (c)

     650,000        613,124   

Commercial Mortgage Trust
0.044%, 12/10/47 (144A) (c) (i)

     10,100,000        62,660   

0.114%, 11/10/47 (144A) (c) (i)

     16,375,000        170,806   

0.500%, 12/10/47 (144A) (c) (i)

     4,850,000        169,997   

1.285%, 11/10/47 (144A) (c) (i)

     1,225,000        122,112   

4.507%, 11/10/47 (c)

     1,250,000        1,214,874   

4.612%, 09/10/47 (c)

     970,000        954,296   

Commercial WWP Mortgage Trust
3.898%, 03/10/31 (144A)

     1,800,000        1,779,553   

Credit Suisse Commercial Mortgage Trust
4.373%, 09/15/37 (144A)

     2,300,000        2,071,858   

DBUBS Mortgage Trust
5.453%, 07/10/44 (144A) (c)

     1,700,000        1,770,747   

Great Wolf Trust
7.185%, 05/15/32 (144A) (c)

     3,000,000        2,867,137   

GS Mortgage Securities Trust
4.511%, 11/10/47 (144A) (c)

     1,900,000        1,588,659   

Impact Funding LLC
0.342%, 08/25/47 (144A) (c) (i)

     3,100,000        104,997   

6.000%, 01/25/51 (144A) (c)

     1,175,000        1,284,862   

6.378%, 01/25/51 (144A) (c)

     1,125,000        1,224,382   

JPMBB Commercial Mortgage Securities Trust
0.311%, 11/15/47 (c) (i)

     9,300,000        230,453   

0.476%, 01/15/48 (c) (i)

     8,125,000        297,828   

0.500%, 01/15/48 (144A) (c) (i)

     6,475,000        228,428   

3.927%, 01/15/48 (144A) (c)

     1,825,000        1,368,047   

4.619%, 08/15/48 (c)

     1,983,000        1,812,093   

JPMorgan Chase Commercial Mortgage Securities Trust
3.805%, 06/10/27 (144A) (c)

     1,200,000        1,169,335   

4.281%, 01/15/32 (144A) (c)

     1,700,000        1,671,867   

Commercial Mortgage-Backed Securities—(Continued)

  

Morgan Stanley Bank of America Merrill Lynch Trust
0.442%, 12/15/47 (144A) (c) (i)

     13,150,000      482,391   

0.602%, 12/15/46 (144A) (i)

     6,175,000        268,612   

3.989%, 12/15/46 (144A)

     1,200,000        1,170,885   

4.000%, 12/15/47

     1,350,000        1,274,031   

4.073%, 05/15/46 (c)

     850,000        834,040   

4.081%, 07/15/46 (c)

     725,000        705,035   

4.384%, 12/15/46 (144A)

     2,500,000        2,514,750   

4.750%, 12/15/46 (144A)

     1,150,000        1,087,095   

SFAVE Commercial Mortgage Securities Trust
3.872%, 01/05/35 (144A) (c)

     557,000        544,735   

4.144%, 01/05/35 (144A) (c)

     1,250,000        1,182,566   

Wells Fargo Commercial Mortgage Trust
0.396%, 12/15/47 (c) (i)

     10,125,000        324,790   

WFCG Commercial Mortgage Trust
3.471%, 11/15/29 (144A) (c)

     878,146        865,216   
   

 

 

  

Total Mortgage-Backed Securities
(Cost $46,838,591)

       44,995,295   
   

 

 

  
Floating Rate Loans(j)—1.9%   

Chemicals—0.1%

  

Britax U.S. Holdings, Inc.
Term Loan, 4.500%, 10/15/20 (d)

     1,944,659        1,367,743   
   

 

 

  

Diversified Financial Services—0.2%

  

AWAS Finance Luxembourg S.A.
Term Loan, 3.500%, 07/16/18

     1,393,212        1,388,858   

RPI Finance Trust
Term Loan B4, 3.500%, 11/09/20

     1,210,617        1,206,330   
   

 

 

  
      2,595,188   
   

 

 

  

Electronic Equipment, Instruments & Components—0.0%

  

TTM Technologies, Inc.
1st Lien Term Loan, 6.000%, 05/31/21

     59,305        54,264   
   

 

 

  

Energy Equipment & Services—0.1%

  

Chief Exploration & Development LLC
2nd Lien Term Loan, 7.500%, 05/12/21 (d)

     1,500,000        1,012,500   
   

 

 

  

Entertainment—0.3%

  

Cowlitz Tribal Gaming Authority
Term Loan, 13.000%, 10/20/20 (d)

     2,225,000        2,102,625   

Six Flags Theme Parks, Inc.
Term Loan B, 3.500%, 06/30/22

     1,200,401        1,198,400   
   

 

 

  
      3,301,025   
   

 

 

  

Leisure Time—0.1%

  

Delta 2 (LUX) S.a.r.l.
2nd Lien Term Loan, 7.750%, 07/31/22

     1,350,000        1,252,969   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-18

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of December 31, 2015

Floating Rate Loans (j)—(Continued)

 

Security Description   Shares/
Principal
Amount*		     Value  

Lodging—0.1%

  

Caesars Entertainment Resort Properties LLC / Caesars Growth Properties Finance, Inc.
Term Loan B, 7.000%, 10/11/20

     1,321,629      $ 1,203,508   
   

 

 

  

Mining—0.2%

  

FMG Resources (August 2006) Pty, Ltd.
Term Loan B, 4.250%, 06/30/19

     3,072,143        2,306,239   
   

 

 

  

Oil & Gas—0.0%

  

Templar Energy LLC
2nd Lien Term Loan, 8.500%, 11/25/20

     2,383,000        291,917   
   

 

 

  

Packaging & Containers—0.2%

  

Crown Americas LLC Delayed Draw
Term Loan, 2.174%, 12/19/18

     1,696,938        1,695,877   
   

 

 

  

Retail—0.1%

  

Bass Pro Group LLC
Term Loan, 4.000%, 06/05/20

     1,092,743        1,053,131   

Rue21, Inc.
Term Loan B, 5.625%, 10/09/20

     778,010        637,968   
   

 

 

  
      1,691,099   
   

 

 

  

Semiconductors—0.3%

  

Avago Technologies Cayman, Ltd.
Term Loan B, 11/06/22 (k)

     2,449,000        2,422,810   

NXP B.V.
Term Loan D, 3.250%, 01/11/20

     825,716        814,775   
   

 

 

  
      3,237,585   
   

 

 

  

Software—0.1%

  

First Data Corp.
Term Loan, 4.168%, 07/08/22

     1,175,000        1,159,474   
   

 

 

  

Telecommunications—0.1%

  

FairPoint Communications, Inc.
Term Loan, 7.500%, 02/14/19

     1,385,751        1,383,874   
   

 

 

  

Total Floating Rate Loans
(Cost $25,405,863)

       22,553,262   
   

 

 

  
Convertible Preferred Stocks—1.3%   

Food Products—0.3%

  

Post Holdings, Inc.
5.250%, 06/01/17

     25,700        3,010,241   
   

 

 

  

Home Builders—0.1%

  

William Lyon Homes
6.500%, 12/01/17

     15,000        1,324,650   
   

 

 

  

Machinery—0.4%

  

Stanley Black & Decker, Inc.
6.250%, 11/17/16 (a)

     42,000        4,905,180   
   

 

 

  

Oil, Gas & Consumable Fuels—0.1%

  

Kinder Morgan, Inc.
9.750%, 10/26/18 (a)

     44,750      1,803,425   
   

 

 

  

Pharmaceuticals—0.1%

  

Teva Pharmaceutical Industries, Ltd.
7.000%, 12/15/18

     1,500        1,526,038   
   

 

 

  

Wireless Telecommunication Services—0.3%

  

T-Mobile U.S., Inc.
5.500%, 12/15/17

     44,800        3,033,408   
   

 

 

  

Total Convertible Preferred Stocks
(Cost $16,240,775)

       15,602,942   
   

 

 

  
Foreign Government—1.0%   

Municipal—0.1%

    

City of Buenos Aires Argentina
8.950%, 02/19/21 (144A)

     1,200,000        1,266,000   
   

 

 

  

Sovereign—0.9%

    

Angolan Goverment International Bond
9.500%, 11/12/25 (144A)

     1,300,000        1,209,000   

Bermuda Government International Bond
4.854%, 02/06/24 (144A)

     1,425,000        1,469,175   

Dominican Republic International Bond
6.850%, 01/27/45 (144A)

     2,350,000        2,214,875   

Ethiopia International Bond
6.625%, 12/11/24 (144A)

     1,885,000        1,669,167   

Government of the Cayman Island
5.950%, 11/24/19 (144A)

     800,000        896,000   

Jamaica Government International Bonds
6.750%, 04/28/28

     2,100,000        2,084,250   

7.625%, 07/09/25 (a)

     1,250,000        1,326,563   
   

 

 

  
      10,869,030   
   

 

 

  

Total Foreign Government (Cost $12,677,637)

       12,135,030   
   

 

 

  
Short-Term Investments—12.2%   

Mutual Fund—10.3%

    

State Street Navigator Securities Lending MET Portfolio (l)

     124,790,592        124,790,592   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-19

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of December 31, 2015

Short-Term Investments—(Continued)

 

Security Description   Principal
Amount*		     Value  

Repurchase Agreement—1.9%

    

Fixed Income Clearing Corp.
Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $23,115,037 on 01/04/16, collateralized by $23,490,000 U.S. Treasury Note at 1.500% due 12/31/18 with a value of $23,578,088.

     23,114,960      $ 23,114,960   
   

 

 

  

Total Short-Term Investments (Cost $147,905,552)

       147,905,552   
   

 

 

  

Total Investments—108.9% (Cost $1,369,692,290) (m)

       1,314,215,268   

Other assets and liabilities (net)—(8.9)%

       (107,889,781 ) 
   

 

 

  
Net Assets—100.0%     $ 1,206,325,487   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of December 31, 2015, the market value of securities loaned was $167,736,206 and the collateral received consisted of cash in the amount of $124,790,592 and non-cash collateral with a value of $50,721,645. 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) 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 December 31, 2015, the market value of restricted securities was $9,409,581, which is 0.8% of net assets. See details shown in the Restricted Securities table that follows.
(c) Variable or floating rate security. The stated rate represents the rate at December 31, 2015. Maturity date shown for callable securities reflects the earliest possible call date.
(d) Illiquid security. As of December 31, 2015, these securities represent 0.6% of net assets.
(e) Non-income producing; security is in default and/or issuer is in bankruptcy.
(f) Payment-in-kind security for which part of the income earned may be paid as additional principal.
(g) Security was valued in good faith under procedures approved by the Board of Trustees. As of December 31, 2015, these securities represent less than 0.05% of net assets.
(h) Non-income producing security.
(i) Interest only security.
(j) 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.
(k) This loan will settle after December 31, 2015, at which time the interest rate will be determined.
(l) Represents investment of cash collateral received from securities on loan as of December 31, 2015.
(m) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $1,372,860,922. The aggregate unrealized appreciation and depreciation of investments were $20,024,383 and $(78,670,037), respectively, resulting in net unrealized depreciation of $(58,645,654) for federal income tax purposes.
(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 December 31, 2015, the market value of 144A securities was $402,974,707, which is 33.4% 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.
(EUR)— Euro
(GBP)— British Pound

 

Restricted Securities

    Acquisition
Date		      Principal
Amount		      Cost      Value  

Air Canada Pass-Through Trust 4.125%, 12/15/27

      12/01/15       $ 1,108,000       $ 1,108,000       $ 1,111,723   

IFM U.S. Colonial Pipeline 2 LLC 6.450%, 05/01/21

      04/14/11         2,500,000         2,499,162         2,665,353   

Midcontinent Express Pipeline LLC 6.700%, 09/15/19

      10/30/14         157,000         176,036         146,795   

Rivers Pittsburgh Borrower L.P. / Rivers Pittsburgh Finance Corp. 9.500%, 06/15/19

      05/30/12         1,490,000         1,553,225         1,542,150   

Sugarhouse HSP Gaming Prop Mezz L.P. / Sugarhouse HSP Gaming Finance Corp. 6.375%, 06/01/21

      05/16/13—07/11/13         2,950,000         2,952,420         2,743,500   

Unifrax I LLC / Unifrax Holding Co. 7.500%, 02/15/19

      07/28/14         1,356,000         1,383,120         1,200,060   
           

 

 

  
            $ 9,409,581   
           

 

 

  

 

See accompanying notes to financial statements.

 

MIST-20

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of December 31, 2015

Futures Contracts

 

 

Futures Contracts—Long

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

U.S. Treasury Note 5 Year Futures

      03/31/16         1,012        USD         120,026,563      $ (286,406 ) 

Futures Contracts—Short

                                 

U.S. Treasury Long Bond Futures

      03/21/16         (247 )      USD         (37,933,362 )      (42,888 ) 

U.S. Treasury Note 10 Year Futures

      03/21/16         (1,856 )      USD         (234,347,422 )      665,422   
            

 

 

  

Net Unrealized Appreciation

  

   $ 336,128   
            

 

 

  

 

(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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2      Level 3      Total  
Corporate Bonds & Notes            

Aerospace/Defense

    $ —         $ 10,981,810       $ —         $ 10,981,810   

Agriculture

      —           4,830,254         —           4,830,254   

Airlines

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

Apparel

      —           2,440,312         —           2,440,312   

Auto Parts & Equipment

      —           5,906,685         —           5,906,685   

Banks

      —           78,848,955         —           78,848,955   

Beverages

      —           14,830,033         —           14,830,033   

Biotechnology

      —           7,706,502         —           7,706,502   

Building Materials

      —           13,897,913         —           13,897,913   

Chemicals

      —           9,767,691         —           9,767,691   

Commercial Services

      —           14,578,949         —           14,578,949   

Computers

      —           3,568,815         —           3,568,815   

Cosmetics/Personal Care

      —           4,062,633         —           4,062,633   

Diversified Financial Services

      —           49,713,338         —           49,713,338   

Electric

      —           19,042,310         —           19,042,310   

Electrical Components & Equipment

      —           3,290,875         —           3,290,875   

Electronics

      —           2,842,750         —           2,842,750   

Energy-Alternate Sources

      —           1,451,662         —           1,451,662   

Engineering & Construction

      —           3,601,703         —           3,601,703   

Entertainment

      —           8,474,069         —           8,474,069   

Environmental Control

      —           1,350,050         —           1,350,050   

Food

      —           20,964,472         —           20,964,472   

 

See accompanying notes to financial statements.

 

MIST-21

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of December 31, 2015

Fair Value Hierarchy—(Continued)

 

Description    Level 1      Level 2      Level 3      Total  

Forest Products & Paper

    $ —         $ 2,293,910       $ —         $ 2,293,910   

Gas

      —           4,877,527         —           4,877,527   

Hand/Machine Tools

      —           1,025,750         —           1,025,750   

Healthcare-Products

      —           13,407,102         —           13,407,102   

Healthcare-Services

      —           43,057,294         —           43,057,294   

Holding Companies-Diversified

      —           3,643,327         —           3,643,327   

Home Builders

      —           14,804,954         —           14,804,954   

Household Products/Wares

      —           1,133,260         —           1,133,260   

Housewares

      —           2,016,850         —           2,016,850   

Insurance

      —           15,601,552         —           15,601,552   

Internet

      —           27,881,710         —           27,881,710   

Iron/Steel

      —           3,560,875         —           3,560,875   

Leisure Time

      —           6,158,239         —           6,158,239   

Lodging

      —           22,256,233         —           22,256,233   

Machinery-Construction & Mining

      —           1,215,000         —           1,215,000   

Media

      —           56,100,202         —           56,100,202   

Mining

      —           19,328,298         3         19,328,301   

Miscellaneous Manufacturing

      —           17,271,348         —           17,271,348   

Office/Business Equipment

      —           2,314,975         —           2,314,975   

Oil & Gas

      —           76,920,968         —           76,920,968   

Oil & Gas Services

      —           4,471,452         —           4,471,452   

Packaging & Containers

      —           19,336,042         —           19,336,042   

Pharmaceuticals

      —           19,663,268         —           19,663,268   

Pipelines

      —           20,178,606         —           20,178,606   

Real Estate

      —           5,443,002         —           5,443,002   

Real Estate Investment Trusts

      —           20,491,576         —           20,491,576   

Retail

      —           40,855,409         —           40,855,409   

Savings & Loans

      —           2,322,922         600         2,323,522   

Semiconductors

      —           4,507,978         —           4,507,978   

Shipbuilding

      —           1,142,735         —           1,142,735   

Software

      —           27,166,500         —           27,166,500   

Telecommunications

      —           64,828,504         —           64,828,504   

Textiles

      —           1,382,040         —           1,382,040   

Transportation

      —           11,336,745         —           11,336,745   

Total Corporate Bonds & Notes

      —           862,871,657         603         862,872,260   
Common Stocks            

Aerospace & Defense

      3,571,153         —           —           3,571,153   

Airlines

      2,536,921         —           —           2,536,921   

Auto Components

      1,379,219         —           —           1,379,219   

Banks

      7,013,448         —           —           7,013,448   

Beverages

      7,000,365         —           —           7,000,365   

Biotechnology

      2,437,913         —           —           2,437,913   

Building Products

      3,332,718         —           —           3,332,718   

Capital Markets

      619,921         —           —           619,921   

Chemicals

      5,993,072         —           —           5,993,072   

Commercial Services & Supplies

      631,341         —           —           631,341   

Communications Equipment

      1,256,727         —           —           1,256,727   

Construction & Engineering

      2,294,411         —           —           2,294,411   

Construction Materials

      3,524,617         —           —           3,524,617   

Containers & Packaging

      1,834,423         —           —           1,834,423   

Distributors

      2,472,664         —           —           2,472,664   

Diversified Consumer Services

      1,309,080         —           —           1,309,080   

Diversified Financial Services

      2,504,056         —           —           2,504,056   

Electrical Equipment

      1,259,013         —           —           1,259,013   

Electronic Equipment, Instruments & Components

      2,406,938         —           —           2,406,938   

Food & Staples Retailing

      4,219,065         —           —           4,219,065   

Food Products

      4,320,188         —           —           4,320,188   

Health Care Equipment & Supplies

      4,084,869         —           —           4,084,869   

 

See accompanying notes to financial statements.

 

MIST-22

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of December 31, 2015

Fair Value Hierarchy—(Continued)

 

Description    Level 1     Level 2     Level 3      Total  

Health Care Providers & Services

    $ 1,078,559      $ —        $ —         $ 1,078,559   

Hotels, Restaurants & Leisure

      18,444,910        —          —           18,444,910   

Household Products

      1,275,022        —          —           1,275,022   

Industrial Conglomerates

      1,976,568        —          —           1,976,568   

Insurance

      3,724,142        —          —           3,724,142   

Internet & Catalog Retail

      7,254,044        —          —           7,254,044   

Internet Software & Services

      5,479,082        —          —           5,479,082   

IT Services

      7,530,652        —          —           7,530,652   

Machinery

      1,861,120        —          —           1,861,120   

Media

      1,076,388        —          227,179         1,303,567   

Metals & Mining

      —          —          0         0   

Oil, Gas & Consumable Fuels

      4,554,225        —          —           4,554,225   

Paper & Forest Products

      —          129,149        —           129,149   

Personal Products

      726,055        —          —           726,055   

Pharmaceuticals

      1,997,841        —          —           1,997,841   

Professional Services

      1,834,666        —          —           1,834,666   

Real Estate Investment Trusts

      7,134,000        —          —           7,134,000   

Road & Rail

      1,231,599        —          —           1,231,599   

Semiconductors & Semiconductor Equipment

      667,022        —          —           667,022   

Software

      3,110,528        —          —           3,110,528   

Specialty Retail

      4,731,224        —          —           4,731,224   

Textiles, Apparel & Luxury Goods

      2,065,750        —          —           2,065,750   

Tobacco

      2,520,354        —          —           2,520,354   

Trading Companies & Distributors

      1,434,752        —          —           1,434,752   

Water Utilities

      2,445,716        —          —           2,445,716   

Wireless Telecommunication Services

      1,241,434        —          —           1,241,434   

Total Common Stocks

      151,397,775        129,149        227,179         151,754,103   

Total Convertible Bonds*

      —          56,396,824        —           56,396,824   

Total Mortgage-Backed Securities*

      —          44,995,295        —           44,995,295   

Total Floating Rate Loans*

      —          22,553,262        —           22,553,262   
Convertible Preferred Stocks          

Food Products

      3,010,241        —          —           3,010,241   

Home Builders

      —          1,324,650        —           1,324,650   

Machinery

      4,905,180        —          —           4,905,180   

Oil, Gas & Consumable Fuels

      1,803,425        —          —           1,803,425   

Pharmaceuticals

      1,526,038        —          —           1,526,038   

Wireless Telecommunication Services

      3,033,408        —          —           3,033,408   

Total Convertible Preferred Stocks

      14,278,292        1,324,650        —           15,602,942   

Total Foreign Government*

      —          12,135,030        —           12,135,030   
Short-Term Investments          

Mutual Fund

      124,790,592        —          —           124,790,592   

Repurchase Agreement

      —          23,114,960        —           23,114,960   

Total Short-Term Investments

      124,790,592        23,114,960        —           147,905,552   

Total Investments

    $ 290,466,659      $ 1,023,520,827      $ 227,782       $ 1,314,215,268   
                                   

Collateral for Securities Loaned (Liability)

    $ —        $ (124,790,592 )    $ —         $ (124,790,592 ) 
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 665,422      $ —        $ —         $ 665,422   

Futures Contracts (Unrealized Depreciation)

      (329,294 )      —          —           (329,294 ) 

Total Futures Contracts

    $ 336,128      $ —        $ —         $ 336,128   

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-23

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of December 31, 2015

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,
2014		     Realized
Gain/
(Loss)		     Accrued
Discounts
(Premiums)		     Change in
Unrealized
Appreciation/
(Depreciation)		     Purchases     Sales     Transfer
out of
Level 3		     Balance as of
December 31,
2015		     Change in

Unrealized
Appreciation
(Depreciation)
from Investments

Still Held at
December  31,
2015		  
Corporate Bonds & Notes                  

Mining

   $ 3      $ —      $ 4      $ (327 )    $ 323      $ —      $ —      $ 3      $ (327 ) 

Retail

     223,812        —        —        —          —        (223,812 )      —        —   

Saving & Loans

     600        —        —        —          —        —        600        —   
Common Stocks                  

Media

     169,403        —        —        57,776          —        —        227,179        57,776   

Metals & Mining

     131,549        —        —        (131,549 )        —        —        0        (131,549 ) 
Escrow Shares                  

Retail

     4,451        5,839        —        (111 )        (10,179 )      —        —        —   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 529,818      $ 5,839      $ 4      $ (74,211 )    $ 323      $ (10,179 )    $ (223,812 )    $ 227,782      $ (74,100 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Corporate Bonds & Notes in the amount of $223,812 were transferred out of Level 3 due to the initiation of a vendor or broker providing prices that are based on market activity which has been determined to be significant observable inputs.

 

See accompanying notes to financial statements.

 

MIST-24

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 1,314,215,268   

Cash

      266,313   

Cash denominated in foreign currencies (c)

      147,678   

Cash collateral for futures contracts

      2,921,184   

Receivable for:

   

Investments sold

      8,597,754   

Fund shares sold

      326,824   

Dividends and interest

      14,249,251   

Prepaid expenses

      3,635   
  

 

 

  

Total Assets

      1,340,727,907   

Liabilities

   

Collateral for securities loaned

      124,790,592   

Payables for:

   

Investments purchased

      7,536,517   

Fund shares redeemed

      505,785   

Variation margin on futures contracts

      532,183   

Accrued Expenses:

   

Management fees

      536,705   

Distribution and service fees

      144,274   

Deferred trustees’ fees

      81,937   

Other expenses

      274,427   
  

 

 

  

Total Liabilities

      134,402,420   
  

 

 

  

Net Assets

    $ 1,206,325,487   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 1,220,906,306   

Undistributed net investment income

      59,185,416   

Accumulated net realized loss

      (18,618,978 ) 

Unrealized depreciation on investments, futures contracts and foreign currency transactions

      (55,147,257 ) 
  

 

 

  

Net Assets

    $ 1,206,325,487   
  

 

 

  

Net Assets

   

Class A

    $ 529,750,427   

Class B

      659,993,452   

Class E

      16,581,608   

Capital Shares Outstanding*

   

Class A

      45,683,430   

Class B

      57,638,853   

Class E

      1,442,623   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 11.60   

Class B

      11.45   

Class E

      11.49   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,369,692,290.
(b) Includes securities loaned at value of $167,736,206.
(c) Identified cost of cash denominated in foreign currencies was $152,363.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends (a)

    $ 1,988,014   

Interest

      64,304,755   

Securities lending income

      1,419,674  
  

 

 

  

Total investment income

      67,712,443  

Expenses

   

Management fees

      6,866,760   

Administration fees

      32,183   

Custodian and accounting fees

      229,849   

Distribution and service fees—Class B

      1,838,046   

Distribution and service fees—Class E

      28,121   

Audit and tax services

      65,456   

Legal

      30,105   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      160,027   

Insurance

      8,910   

Miscellaneous

      18,281  
  

 

 

  

Total expenses

      9,312,911  

Less management fee waiver

      (66,300 )
  

 

 

  

Net expenses

      9,246,611  
  

 

 

  

Net Investment Income

      58,465,832  
  

 

 

  

Net Realized and Unrealized Loss

   
Net realized loss on:   

Investments

      (11,857,160 ) 

Futures contracts

      (3,054,164 ) 

Foreign currency transactions

      (30,199 )
  

 

 

  

Net realized loss

      (14,941,523 )
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (66,373,114 ) 

Futures contracts

      233,619   

Foreign currency transactions

      1,602  
  

 

 

  

Net change in unrealized depreciation

      (66,137,893 )
  

 

 

  

Net realized and unrealized loss

      (81,079,416 )
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (22,613,584 )
  

 

 

  

 

(a) Net of foreign withholding taxes of $5,909.

 

See accompanying notes to financial statements.

 

MIST-25

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 58,465,832      $ 68,471,050   

Net realized gain (loss)

      (14,941,523 )      62,026,910   

Net change in unrealized depreciation

      (66,137,893 )     (59,542,286 )
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (22,613,584 )     70,955,674  
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (32,724,041 )      (36,660,759 ) 

Class B

      (40,253,407 )      (45,157,543 ) 

Class E

      (1,049,700 )      (1,256,379 ) 

Net realized capital gains

     

Class A

      (23,055,574 )      (17,089,978 ) 

Class B

      (29,794,305 )      (21,987,704 ) 

Class E

      (763,024 )     (602,285 )
  

 

 

    

 

 

  

Total distributions

      (127,640,051 )     (122,754,648 )
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (21,200,204 )     (38,974,240 )
  

 

 

    

 

 

  

Total decrease in net assets

      (171,453,839 )      (90,773,214 ) 

Net Assets

     

Beginning of period

      1,377,779,326       1,468,552,540  
  

 

 

    

 

 

  

End of period

    $ 1,206,325,487      $ 1,377,779,326   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 59,185,416      $ 73,783,849   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      1,254,698      $ 15,882,615        2,238,273      $ 29,402,800   

Reinvestments

      4,546,016        55,779,615        4,202,560        53,750,737   

Redemptions

      (5,808,940 )      (73,210,032 )      (7,813,025 )      (102,547,240 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (8,226 )    $ (1,547,802 )      (1,372,192 )    $ (19,393,703 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      3,699,105      $ 46,091,036        5,498,341      $ 72,158,652   

Reinvestments

      5,774,749        70,047,712        5,303,732        67,145,247   

Redemptions

      (10,902,306 )      (134,916,818 )      (11,995,075 )      (156,556,330 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (1,428,452 )    $ (18,778,070 )      (1,193,002 )    $ (17,252,431 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      149,982      $ 1,910,881        119,523      $ 1,580,886   

Reinvestments

      148,950        1,812,724        146,352        1,858,664   

Redemptions

      (368,612 )      (4,597,937 )      (439,761 )      (5,767,656 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (69,680 )    $ (874,332 )      (173,886 )    $ (2,328,106 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (21,200,204 )      $ (38,974,240 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-26

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Financial Highlights

 

Selected per share data                                  
     Class A  
     Year Ended December 31,  
     2015     2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 13.05      $ 13.55       $ 13.43       $ 12.80       $ 12.98  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (a)

      0.57        0.64         0.73         0.75         0.80   

Net realized and unrealized gain (loss) on investments

      (0.74 )     0.03        0.32        0.86        (0.17 )
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.17 )     0.67        1.05        1.61        0.63  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.75 )      (0.80 )       (0.93 )       (0.98 )       (0.81 ) 

Distributions from net realized capital gains

      (0.53 )     (0.37 )      0.00        0.00        0.00  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (1.28 )     (1.17 )      (0.93 )      (0.98 )      (0.81 )
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.60      $ 13.05       $ 13.55       $ 13.43       $ 12.80  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (1.87 )     5.12        8.17        13.19        4.83  

Ratios/Supplemental Data

              

Gross ratio of expenses to average net assets (%)

      0.56        0.55         0.54         0.54         0.54   

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

      0.55        0.55         0.54         0.54         0.54   

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

      4.53        4.86         5.50         5.76         6.18   

Portfolio turnover rate (%)

      113  (d)      87         46         47         36   

Net assets, end of period (in millions)

    $ 529.8      $ 596.3       $ 637.9       $ 722.9       $ 715.6   
     Class B  
     Year Ended December 31,  
     2015     2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 12.90      $ 13.41       $ 13.29       $ 12.67       $ 12.87  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (a)

      0.53        0.60         0.69         0.71         0.76   

Net realized and unrealized gain (loss) on investments

      (0.74 )     0.02        0.33        0.86        (0.19 )
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.21 )     0.62        1.02        1.57        0.57  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.71 )      (0.76 )       (0.90 )       (0.95 )       (0.77 ) 

Distributions from net realized capital gains

      (0.53 )     (0.37 )      0.00        0.00        0.00  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (1.24 )     (1.13 )      (0.90 )      (0.95 )      (0.77 )
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.45      $ 12.90       $ 13.41       $ 13.29       $ 12.67  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (2.17 )     4.83        7.98        12.95        4.46  

Ratios/Supplemental Data

              

Gross ratio of expenses to average net assets (%)

      0.81        0.80         0.79         0.79         0.79   

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

      0.80        0.80         0.79         0.79         0.79   

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

      4.28        4.61         5.24         5.51         5.98   

Portfolio turnover rate (%)

      113  (d)      87         46         47         36   

Net assets, end of period (in millions)

    $ 660.0      $ 761.9       $ 808.0       $ 812.6       $ 780.4   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-27

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Financial Highlights

 

Selected per share data                                  
     Class E  
     Year Ended December 31,  
     2015     2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 12.94      $ 13.45       $ 13.33       $ 12.71       $ 12.89  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (a)

      0.55        0.62         0.71         0.72         0.78   

Net realized and unrealized gain (loss) on investments

      (0.74 )     0.02        0.32        0.86        (0.18 )
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.19 )     0.64        1.03        1.58        0.60  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.73 )      (0.78 )       (0.91 )       (0.96 )       (0.78 ) 

Distributions from net realized capital gains

      (0.53 )     (0.37 )      0.00        0.00        0.00  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (1.26 )     (1.15 )      (0.91 )      (0.96 )      (0.78 )
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.49      $ 12.94       $ 13.45       $ 13.33       $ 12.71  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (2.07 )     4.90        8.06        13.01        4.69  

Ratios/Supplemental Data

              

Gross ratio of expenses to average net assets (%)

      0.71        0.70         0.69         0.69         0.69   

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

      0.70        0.70         0.69         0.69         0.69   

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

      4.38        4.71         5.34         5.61         6.07   

Portfolio turnover rate (%)

      113  (d)      87         46         47         36   

Net assets, end of period (in millions)

    $ 16.6      $ 19.6       $ 22.7       $ 23.9       $ 24.3   

 

(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) Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).
(d) Includes mortgage dollar roll and TBA transactions; excluding these transactions the portfolio turnover rate would have been 102% for year ended December 31, 2015.

 

See accompanying notes to financial statements.

 

MIST-28

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 and subject to general oversight by the Board. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity

 

MIST-29

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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.

Futures contracts that 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.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 convertible preferred stocks, foreign currency transactions, premium amortization adjustments, distribution redesignations, convertible bonds adjustments, adjustments to prior period accumulated balances, real estate investment trust (REIT) adjustments, return of capital adjustments and paydown adjustments. These adjustments have no impact on net assets or the results 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

 

MIST-30

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

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.

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 sale commitments are valued at the current market value of the underlying securities, according to the procedures described under “Investment Valuation and Fair Value Measurements”.

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 generally 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.

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, 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. The purchase of assignments will typically result in the Portfolio having a direct contractual relationship with the borrower, and the Portfolio may enforce compliance by the borrower with the terms of the loan agreement.

The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments it acquires direct rights against the borrower of the loan. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing.

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.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the

 

MIST-31

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $23,114,960, 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 December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

The following table provides a breakdown of the collateral received and the remaining contractual maturities for securities lending transactions, which are accounted for as secured borrowings.

 

    

Remaining Contractual Maturity of the Agreements

As of December 31, 2015

  
      Overnight and
Continuous		     Up to
30 Days		      31 - 90
Days		      Greater than
90 days		     Total  
Securities Lending Transactions             

Common Stocks

    $ (56,681,401 )    $ —       $ —       $ —      $ (56,681,401 ) 

Convertible Bonds

      (5,524,990 )      —         —         —        (5,524,990 ) 

Convertible Preferred Stocks

      (6,937,942 )      —         —         —        (6,937,942 ) 

Corporate Bonds & Notes

      (55,123,205 )      —         —         —        (55,123,205 ) 

Foreign Government

      (523,054 )      —         —         —        (523,054 ) 

Total

    $ (124,790,592 )    $ —       $ —       $ —      $ (124,790,592 ) 

Total Borrowings

    $ (124,790,592 )    $ —       $ —       $ —      $ (124,790,592 ) 

Gross amount of recognized liabilities for securities lending transactions

  

   $ (124,790,592 ) 

 

MIST-32

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

3. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts 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 cash 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. If futures contracts are exchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of 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)    $ 665,422       Unrealized depreciation on futures contracts (a)    $ 329,294   
     

 

 

        

 

 

  

 

  (a) 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 tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Interest Rate  

Futures contracts

    $ (3,054,164 ) 
  

 

 

  

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

    Interest Rate  

Futures contracts

    $ 233,619   
  

 

 

  

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Futures contracts long

    $ 106,857,143   

Futures contracts short

      (150,558,333 ) 

 

  ‡ Averages are based on activity levels during 2015.

4. Certain Risks

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”).

Market 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, interest rate, and price fluctuations.

 

MIST-33

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Notes to Financial Statements—December 31, 2015—(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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC options).

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to Portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

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 but excluding short-term securities, for the year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$146,644,528    $ 1,326,531,384       $ 194,873,437       $ 1,439,135,014   

Purchases and sales of mortgage dollar rolls and TBA transactions for the year ended December 31, 2015 were as follows:

 

Purchases

    Sales  
$146,644,528    $ 183,425,568   

The Portfolio engaged in security transactions with other accounts managed by Lord, Abbett & Co. LLC. that amounted to $331,217 in purchases and $19,911,576 in sales of investments, which are included above.

 

MIST-34

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management Fees
earned by MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$6,866,760      0.600 %    First $250 million
     0.550 %    $250 million to $500 million
     0.500 %    $500 million to $1 billion
     0.450 %    Over $1 billion

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Lord, Abbett & Co. LLC is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, for the period May 1, 2015 to April 30, 2016, 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
0.020%    $1 billion to $1.5 billion
0.040%    Over $1.5 billion

An identical agreement was in place for the period January 1, 2015 to April 30, 2015. Amounts waived for the year ended December 31, 2015 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, LLC, 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 year ended December 31, 2015 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 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-35

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$79,090,151    $ 91,288,007       $ 48,549,900       $ 31,466,641       $ 127,640,051       $ 122,754,648   

As of December 31, 2015, 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		     Other
Accumulated
Capital Losses		     Total  
$59,611,415    $ —       $ (58,652,019 )    $ (15,458,278 )    $ (14,498,882 ) 

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, 2015, the Portfolio had post-enactment accumulated short term capital losses of $15,458,278.

9. Recent Accounting Pronouncements

In May 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

10. Subsequent Events

At a meeting held on November 17, 2015, the Board approved the acquisition of the Portfolio by the Metropolitan Series Fund Western Asset Management Strategic Bond Opportunities Portfolio (“Western Asset Management Strategic Bond Opportunities Portfolio”), subject to the approval of shareholders of the Portfolio. On February 26, 2016, the shareholders of the Portfolio will consider the approval of the proposed Agreement and Plan of Reorganization providing for the acquisition of all the assets and assumption of all liabilities of the Portfolio by the Western Asset Management Strategic Bond Opportunities Portfolio in exchange for shares of the Western Asset Management Strategic Bond Opportunities Portfolio. It is anticipated that the reorganization will close on or about April 29, 2016.

 

MIST-36

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Lord Abbett Bond Debenture 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 Lord Abbett Bond Debenture Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian, brokers and agent banks; when replies were not received from brokers or agent banks, 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 Lord Abbett Bond Debenture Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-37

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-38

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-39

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-40

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-41

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

Lord Abbett Bond Debenture Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Lord, Abbett & Co. LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the one-, three-, and five-year periods ended June 30, 2015. The Board further noted that the Portfolio outperformed one of its benchmarks, the BoA Merrill Lynch U.S. High Yield Master II Constrained Index, for the one-, three-, and five-year period ended October 31, 2015. The Board also took into account that the Portfolio outperformed its blended benchmark for the one-, three-, and five-year periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, Expense Universe median, and Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also considered that the Portfolio’s contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size. In addition, the Board considered that the Adviser had negotiated reductions to the Portfolio’s sub-advisory fee schedule and that the Adviser agreed to waive a portion of its advisory fee in order for contractholders to benefit from the lower sub-advisory fee effective January 1, 2015.

At the November Meeting, the Board also approved a proposal to reorganize the Portfolio into the Western Asset Management Strategic Bond Opportunities Portfolio, a series of MSF. The Board noted that the Sub-Adviser is expected to continue to manage the Portfolio until the reorganization is completed, which is expected to occur, if approved by shareholders of the Portfolio, on or about May 1, 2016.

 

MIST-42

Met Investors Series Trust

Met/Artisan International Portfolio

Managed by Artisan Partners Limited Partnership

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A and B shares of the Met/Artisan International Portfolio returned -3.49% and -3.49%, respectively. The Portfolio’s benchmark, the MSCI All Country World (“ACWI”) ex-U.S. Index1, returned -5.66%.

MARKET ENVIRONMENT / CONDITIONS

2015 was a year marked by bouts of volatility on slowing global growth concerns. Global equities sold off in late summer, and again in the last week of the year. Annual performance varied by region. In local currency terms, Japan and Europe were positive, the United States was generally flat and emerging markets landed squarely in the red. The MSCI ACWI ex-U.S. Index was up 1.9% in local currency terms. The strengthening U.S. dollar erased gains for dollar investors and the Index was down -5.7% in U.S. dollar terms.

Diverging central bank policies extended into the last weeks of the year. In December, the United States Federal Reserve (the “Fed”) cited solid household spending and job growth as reasons for raising its target rate by 25 basis points. Though this was the first rate hike in over nine years, it was highly anticipated and almost a non-event. Further, the Fed indicated it would remain accommodative, pointing to a gradual pace of future tightening. In contrast, in December, the European Central Bank further cut its already-negative deposit rate and extended its €60 billion-a-month bond purchases by an additional six months.

Despite lackluster economic growth, Japanese equities led much of the world in 2015, perhaps bolstered by prevailing optimism over Prime Minister Shinzo Abe’s reforms—including massive quantitative easing and a push towards more shareholder-friendly corporate governance. The country dodged another technical recession when third quarter annualized Gross Domestic Product growth was revised higher from -0.8% to 1.0%.

The oil supply glut intensified throughout the year, weighing on companies and countries heavily dependent on commodities. The Organization of Petroleum Exporting Countries (“OPEC”) members stubbornly clung to high outputs while vying for market share against each other and the United States (which for its part lifted its 40-year ban on crude oil exports). Iran went a step further, vowing to ramp oil exports after international sanctions are lifted, presumably in 2016. All told, crude oil prices fell 30% for the year. In turn, energy stocks fell sharply.

A host of factors—including a strong dollar, the start of a Fed tightening cycle, overcapacity in China (a major commodity importer), and geopolitical unrest—all pressured emerging markets equities in 2015. Commodity exporters fared worse, though Chinese markets also ended the year down as the country’s declining manufacturing sector and moves to devalue its yuan added to mounting fears over a potential “hard landing.”

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio held up better than the MSCI ACWI ex-U.S. Index during the year. The Portfolio’s lighter exposure to the weak Energy and Financials sectors was beneficial, as was its heavier exposure to the stronger Health Care and Consumer Discretionary sectors. Relative to the Index, the Portfolio also benefited from its currency exposures—particularly its heavier exposure to the U.S. dollar and lack of exposure to certain sharply depreciating currencies such as the Brazilian real.

The Portfolio’s top individual contributors included Internet company Tencent (China), auto supplier Delphi, and insurance company AIA (Hong Kong). Consolidation across China’s technology sector helped lift Tencent. Further, Tencent has been successfully selling advertising and subscription-based services on its massively popular gaming, social networking and instant messaging platforms—online advertising revenue doubled over the past year. Owing to both favorable demographics trends as well as solid execution, Asian insurance company AIA continues to deliver strong growth in value of new business (a key industry metric). AIA is also expanding margins by optimizing its product mix and improving agent productivity.

Earlier in the year, our research led us to a grouping of secular growth trends in the automotive industry, including 1) technological innovation; 2) improvements in safety features; and 3) heightened emphasis on the environment. The effort served as the backdrop for an early-2015 purchase of Delphi. The company’s diversified product portfolio, with rare exposure to all three mega trends, has supported organic growth in excess of global auto industry production. Further, Delphi has achieved cost advantages through scale, supporting its best-in-class margins.

On the down side, the Portfolio’s Industrials and Consumer Discretionary holdings collectively trailed those of the Index. Individual holdings, such as Internet company Baidu (China), auto maker Porsche Automobile (Germany) and Spanish-language media company Grupo Televisa (Mexico) were notable detractors from performance.

Baidu shares fell sharply in the third quarter 2015 as the company announced a major investment in new verticals that would weigh on margins. Shares later rallied in the fourth quarter 2015 as the company announced an asset swap with online travel company Ctrip (China) that would allow Baidu to divest a loss-making business from its balance sheet and alleviate some margin pressures. Still, fourth-quarter gains were not enough to erase all year-to-date losses.

Grupo Televisa was pressured by viewership fragmentation stemming from a structural shift to pay TV and online formats. Meanwhile, Porsche Automobil fell as a result of Volkswagen’s (Germany) vehicle-rigging scandal (Porsche is a major owner in Volkswagen). We chose to exit our position in favor of other opportunities.

 

 

MIST-1

Met Investors Series Trust

Met/Artisan International Portfolio

Managed by Artisan Partners Limited Partnership

Portfolio Manager Commentary*—(Continued)

 

Portfolio positioning remains focused on our themes, emphasizing what we believe are high-quality companies with sustainable growth characteristics trading at attractive valuations. As of December 31, 2015, the Portfolio’s largest sector overweights relative to the benchmark were Health Care, Consumer Discretionary and Technology—partly reflecting the presence of our demographics and technology themes. The largest sector underweights were Financials and Energy. Within Financials, we maintained a preference for insurance companies, which represented a slight overweight relative to the benchmark; however, we were underweight banks. Historically our process has found limited opportunities in the Energy sector, where, in our view, companies tend to be commodity-driven and lack the necessary characteristics to generate long-term sustainable earnings growth.

Mark L. Yockey

Charles-Henri Hamker

Andrew Euretig

Portfolio Managers

Artisan Partners Limited Partnership

 

* 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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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/Artisan International Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE MSCI AC WORLD (EX-U.S.) INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        Since Inception2  
Met/Artisan International Portfolio            

Class A

        -3.49           -1.86   

Class B

        -3.49           -4.08   
MSCI AC World (ex-U.S.) Index        -5.66           -6.19   

1 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.

2 Inception date of the Class A and Class B shares are 4/29/2014 and 11/12/2014, respectively. Index since inception return is based on the Class A inception date.

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
Medtronic plc      5.1   
Bayer AG      4.4   
Baidu, Inc. (ADR)      3.9   
AIA Group, Ltd.      3.7   
Nestle S.A.      3.0   
Roche Holding AG      2.9   
Tencent Holdings, Ltd.      2.9   
Liberty Global plc - Series C      2.7   
Syngenta AG      2.7   
Delphi Automotive plc      2.5   

Top Countries

 

     % of
Net Assets		  
United Kingdom      21.5   
United States      15.0   
Switzerland      13.1   
Germany      11.9   
Japan      9.4   
China      6.9   
France      5.2   
Hong Kong      3.7   
Ireland      3.1   
Belgium      2.4   

 

MIST-3

Met Investors Series Trust

Met/Artisan International 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, July 1, 2015 through December 31, 2015.

 

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/Artisan International Portfolio

         Annualized
Expense
Ratio		    Beginning
Account Value
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A

    Actual    0.81%    $ 1,000.00         $ 927.70         $ 3.94   
   Hypothetical*    0.81%    $ 1,000.00         $ 1,021.12         $ 4.13   

Class B

    Actual    1.06%    $ 1,000.00         $ 927.60         $ 5.15   
   Hypothetical*    1.06%    $ 1,000.00         $ 1,019.86         $ 5.40   

* 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 (184 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

 

MIST-4

Met Investors Series Trust

Met/Artisan International Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—93.2% of Net Assets

 

Security Description   Shares     Value  

Belgium—2.4%

    

Anheuser-Busch InBev S.A.

     53,103      $ 6,559,549   

Telenet Group Holding NV (a)

     151,722        8,176,718   

UCB S.A.

     101,146        9,104,322   
   

 

 

  
      23,840,589   
   

 

 

  

Canada—0.5%

    

Canadian Pacific Railway, Ltd.

     33,774        4,309,562   
   

 

 

  

China—6.9%

    

Baidu, Inc. (ADR) (a)

     202,138        38,212,167   

Beijing Enterprises Water Group, Ltd. (a) (b)

     2,294,000        1,602,786   

Tencent Holdings, Ltd.

     1,446,200        28,249,539   
   

 

 

  
      68,064,492   
   

 

 

  

France—5.2%

    

L’Oreal S.A.

     43,691        7,350,600   

LVMH Moet Hennessy Louis Vuitton SE

     44,756        6,996,556   

Orange S.A. (144A)

     493,118        8,272,714   

Pernod-Ricard S.A.

     80,803        9,186,574   

Zodiac Aerospace (b)

     810,978        19,329,949   
   

 

 

  
      51,136,393   
   

 

 

  

Germany—11.0%

    

Allianz SE

     57,977        10,270,954   

Bayer AG

     348,851        43,767,298   

Beiersdorf AG

     162,847        14,814,220   

Linde AG

     151,637        22,010,614   

Vonovia SE

     319,335        9,891,308   

Wirecard AG (b)

     150,688        7,604,384   
   

 

 

  
      108,358,778   
   

 

 

  

Hong Kong—3.7%

    

AIA Group, Ltd.

     6,141,572        36,588,772   
   

 

 

  

India—0.8%

    

Infosys, Ltd. (ADR)

     468,558        7,848,346   
   

 

 

  

Ireland—1.8%

    

Allegion plc (b)

     77,242        5,091,793   

Allergan plc (a)

     40,078        12,524,375   
   

 

 

  
      17,616,168   
   

 

 

  

Italy—0.6%

    

Mediaset S.p.A.

     1,489,517        6,168,859   
   

 

 

  

Japan—9.4%

    

IHI Corp.

     1,607,000        4,418,382   

Japan Tobacco, Inc.

     595,592        21,868,436   

NGK Insulators, Ltd.

     787,000        17,752,449   

Olympus Corp.

     449,300        17,696,344   

Ono Pharmaceutical Co., Ltd. (b)

     52,800        9,384,404   

Toyota Motor Corp.

     352,600        21,642,604   
   

 

 

  
      92,762,619   
   

 

 

  

Mexico—1.6%

    

Grupo Televisa S.A.B. (ADR)

     592,890      16,132,537   
   

 

 

  

Netherlands—2.1%

    

ASML Holding NV

     236,037        21,034,770   
   

 

 

  

South Korea—0.0%

    

Orion Corp.

     115        113,669   
   

 

 

  

Spain—1.4%

    

Grifols S.A.

     137,698        6,339,039   

Grifols S.A. (ADR)

     241,920        7,838,208   
   

 

 

  
      14,177,247   
   

 

 

  

Sweden—1.0%

    

Swedbank AB - A Shares

     430,626        9,457,499   
   

 

 

  

Switzerland—13.1%

    

Actelion, Ltd. (a)

     109,166        15,021,068   

Adecco S.A. (a)

     100,985        6,934,011   

Nestle S.A.

     400,888        29,715,285   

Novartis AG

     181,489        15,513,062   

Roche Holding AG

     104,521        28,804,747   

Syngenta AG

     66,904        26,260,092   

TE Connectivity, Ltd.

     105,277        6,801,947   
   

 

 

  
      129,050,212   
   

 

 

  

Taiwan—0.4%

    

Taiwan Semiconductor Manufacturing Co., Ltd.

     940,000        4,056,172   
   

 

 

  

United Kingdom—21.5%

    

Aon plc

     118,629        10,938,780   

Babcock International Group plc

     346,213        5,155,520   

BT Group plc

     1,055,388        7,294,007   

Carnival plc

     262,081        14,880,314   

Croda International plc

     173,016        7,711,664   

Delphi Automotive plc

     286,866        24,593,022   

Diageo plc

     39,759        1,084,247   

Imperial Tobacco Group plc

     229,842        12,088,668   

InterContinental Hotels Group plc

     251,204        9,747,629   

International Consolidated Airlines Group S.A.

     1,969,430        17,576,867   

Johnson Matthey plc

     504,137        19,576,613   

Liberty Global plc - Class A (a) (b)

     398,079        16,862,626   

Liberty Global plc - Class C (a) (b)

     646,154        26,343,699   

Lloyds Banking Group plc

     12,031,054        12,949,256   

Worldpay Group plc (144A) (a)

     1,716,917        7,784,850   

WPP plc

     768,303        17,684,578   
   

 

 

  
      212,272,340   
   

 

 

  

United States—9.8%

    

Autoliv, Inc.

     95,401        12,051,707   

Cognizant Technology Solutions Corp. - Class A (a)

     281,900        16,919,638   

Medtronic plc

     653,620        50,276,450   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Met/Artisan International Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares/
Principal
Amount*		     Value  

United States—(Continued)

  

Royal Caribbean Cruises, Ltd. (b)

     111,059      $ 11,240,281   

WABCO Holdings, Inc. (a) (b)

     59,898        6,125,170   
   

 

 

  
      96,613,246   
   

 

 

  

Total Common Stocks
(Cost $917,567,977)

       919,602,270   
   

 

 

  
Equity Linked Security—1.3%   

Ireland—1.3%

  

Ryanair Holdings plc (HSBC Bank plc), 10/29/18 (c)
(Cost $8,317,513)

     808,245        13,184,185   
   

 

 

  
Preferred Stock—0.9%   

Germany—0.9%

    

Henkel AG & Co. KGaA
(Cost $8,963,150)

     80,787        9,005,492   
   

 

 

  
Short-Term Investments—9.7%   

Mutual Fund—4.5%

  

State Street Navigator Securities Lending
MET Portfolio (d)

     44,173,464        44,173,464   
   

 

 

  

Repurchase Agreement—5.2%

    

Fixed Income Clearing Corp.
Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $50,976,336 on 01/04/16, collateralized by $52,130,000 Federal Farm Credit Bank at 1.100% due 03/14/18 with a value of $51,997,590.

     50,976,166        50,976,166   
   

 

 

  

Total Short-Term Investments
(Cost $95,149,630)

       95,149,630   
   

 

 

  

Total Investments—105.1%
(Cost $1,029,998,270) (e)

       1,036,941,577   

Other assets and liabilities (net)—(5.1)%

       (50,050,074 ) 
   

 

 

  
Net Assets—100.0%     $ 986,891,503   
   

 

 

  

 

* 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 December 31, 2015, the market value of securities loaned was $42,563,588 and the collateral received consisted of cash in the amount of $44,173,464. The cash collateral is invested in a money market fund managed by an affiliate of the custodian.
(c) Security whose performance, including redemption at maturity, is linked to the price of the underlying equity security. The investment is subject to credit risk of the issuing financial institution (HSBC Bank plc) in addition to the market risk of the underlying security.
(d) Represents investment of cash collateral received from securities on loan as of December 31, 2015.
(e) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $1,031,526,522. The aggregate unrealized appreciation and depreciation of investments were $56,171,259 and $(50,756,204), respectively, resulting in net unrealized appreciation of $5,415,055 for federal income tax purposes.
(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 December 31, 2015, the market value of 144A securities was $16,057,564, which is 1.6% 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.

 

Ten Largest Industries as of
December 31, 2015 (Unaudited)

   

% of
Net Assets

  

Pharmaceuticals

      12.1   

Media

      9.3   

Chemicals

      7.6   

Health Care Equipment & Supplies

      6.9   

Internet Software & Services

      6.7   

Insurance

      5.8   

IT Services

      4.1   

Auto Components

      3.7   

Hotels, Restaurants & Leisure

      3.6   

Banks

      3.6   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Met/Artisan International Portfolio

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2     Level 3      Total  
Common Stocks           

Belgium

    $ —         $ 23,840,589      $ —         $ 23,840,589   

Canada

      4,309,562         —          —           4,309,562   

China

      38,212,167         29,852,325        —           68,064,492   

France

      —           51,136,393        —           51,136,393   

Germany

      —           108,358,778        —           108,358,778   

Hong Kong

      —           36,588,772        —           36,588,772   

India

      7,848,346         —          —           7,848,346   

Ireland

      17,616,168         —          —           17,616,168   

Italy

      —           6,168,859        —           6,168,859   

Japan

      —           92,762,619        —           92,762,619   

Mexico

      16,132,537         —          —           16,132,537   

Netherlands

      —           21,034,770        —           21,034,770   

South Korea

      —           113,669        —           113,669   

Spain

      7,838,208         6,339,039        —           14,177,247   

Sweden

      —           9,457,499        —           9,457,499   

Switzerland

      6,801,947         122,248,265        —           129,050,212   

Taiwan

      —           4,056,172        —           4,056,172   

United Kingdom

      78,738,127         133,534,213        —           212,272,340   

United States

      84,561,539         12,051,707        —           96,613,246   

Total Common Stocks

      262,058,601         657,543,669        —           919,602,270   

Total Equity Linked Security*

      13,184,185         —          —           13,184,185   

Total Preferred Stock*

      —           9,005,492        —           9,005,492   
Short-Term Investments           

Mutual Fund

      44,173,464         —          —           44,173,464   

Repurchase Agreement

      —           50,976,166        —           50,976,166   

Total Short-Term Investments

      44,173,464         50,976,166        —           95,149,630   

Total Investments

    $ 319,416,250       $ 717,525,327      $ —         $ 1,036,941,577   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (44,173,464 )    $ —         $ (44,173,464 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Met/Artisan International Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 1,036,941,577   

Cash denominated in foreign currencies (c)

      136,855   

Receivable for:

   

Investments sold

      1,699,209   

Fund shares sold

      71   

Dividends and interest

      1,690,611   

Prepaid expenses

      2,855   
  

 

 

  

Total Assets

      1,040,471,178   

Liabilities

   

Collateral for securities loaned

      44,173,464   

Payables for:

   

Investments purchased

      8,521,629   

Accrued Expenses:

   

Management fees

      630,094   

Distribution and service fees

      26   

Deferred trustees’ fees

      28,671   

Other expenses

      225,791   
  

 

 

  

Total Liabilities

      53,579,675   
  

 

 

  

Net Assets

    $ 986,891,503   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 1,027,588,834   

Undistributed net investment income

      9,182,103   

Accumulated net realized loss

      (56,720,905 ) 

Unrealized appreciation on investments and foreign currency transactions

      6,841,471   
  

 

 

  

Net Assets

    $ 986,891,503   
  

 

 

  

Net Assets

   

Class A

    $ 986,767,422   

Class B

      124,081   

Capital Shares Outstanding*

   

Class A

      102,593,395   

Class B

      12,913   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 9.62   

Class B

      9.61   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,029,998,270.
(b) Includes securities loaned at value of $42,563,588.
(c) Identified cost of cash denominated in foreign currencies was $137,575.

 

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends (a)

    $ 16,553,071   

Securities lending income

      362,649   
  

 

 

  

Total investment income

      16,915,720   

Expenses

   

Management fees

      7,595,587   

Administration fees

      24,668   

Custodian and accounting fees

      388,798   

Distribution and service fees—Class B

      152   

Audit and tax services

      55,160   

Legal

      29,356   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      37,401   

Insurance

      6,534   

Miscellaneous

      10,097   
  

 

 

  

Total expenses

      8,182,926   

Less broker commission recapture

      (1,970 ) 
  

 

 

  

Net expenses

      8,180,956   
  

 

 

  

Net Investment Income

      8,734,764   
  

 

 

  

Net Realized and Unrealized Loss

   
Net realized loss on:   

Investments

      (33,791,249 ) 

Foreign currency transactions

      (211,707 ) 
  

 

 

  

Net realized loss

      (34,002,956 ) 
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (11,947,418 ) 

Foreign currency transactions

      (47,629 ) 
  

 

 

  

Net change in unrealized depreciation

      (11,995,047 ) 
  

 

 

  

Net realized and unrealized loss

      (45,998,003 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (37,263,239 ) 
  

 

 

  

 

(a) Net of foreign withholding taxes of $1,430,348.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Met/Artisan International Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Period Ended
December 31,
2014(a)		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 8,734,764      $ 5,704,246   

Net realized loss

      (34,002,956 )      (20,224,307 ) 

Net change in unrealized appreciation (depreciation)

      (11,995,047 )      18,836,518   
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (37,263,239 )      4,316,457   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (7,750,139 )      0   

Class B

      (410 )      0   
  

 

 

    

 

 

  

Total distributions

      (7,750,549 )      0   
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      57,069,562        970,519,272   
  

 

 

    

 

 

  

Total increase in net assets

      12,055,774        974,835,729   

Net Assets

     

Beginning of period

      974,835,729        —   
  

 

 

    

 

 

  

End of period

    $ 986,891,503      $ 974,835,729   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 9,182,103      $ 7,651,431   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Period Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A (a)

         

Sales

      7,982,205      $ 83,222,953        98,371,303      $ 983,894,348   

Reinvestments

      732,527        7,750,139        0        0   

Redemptions

      (3,176,333 )      (34,031,445 )      (1,316,307 )      (13,376,076 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      5,538,399      $ 56,941,647        97,054,996      $ 970,518,272   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B (b)

         

Sales

      13,822      $ 137,371        98      $ 1,000   

Reinvestments

      39        410        0        0   

Redemptions

      (1,046 )      (9,866 )      0        0   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      12,815      $ 127,915        98      $ 1,000   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 57,069,562        $ 970,519,272   
    

 

 

      

 

 

  

 

(a) Commencement of operations of Class A was April 29, 2014.
(b) Commencement of operations of Class B was November 12, 2014.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Met/Artisan International Portfolio

Financial Highlights

 

Selected per share data              
     Class A  
     Year Ended
December 31,		  
     2015      2014(a)  

Net Asset Value, Beginning of Period

    $ 10.04       $ 10.00   
  

 

 

     

 

 

  

Income (Loss) from Investment Operations

      

Net investment income (b)

      0.09         0.06   

Net realized and unrealized loss on investments

      (0.43 )       (0.02 ) 
  

 

 

     

 

 

  

Total from investment operations

      (0.34 )       0.04   
  

 

 

     

 

 

  

Less Distributions

      

Distributions from net investment income

      (0.08 )       0.00   
  

 

 

     

 

 

  

Total distributions

      (0.08 )       0.00   
  

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 9.62       $ 10.04   
  

 

 

     

 

 

  

Total Return (%) (c)

      (3.49 )       0.40  (d) 

Ratios/Supplemental Data

      

Ratio of expenses to average net assets (%)

      0.81         0.83  (e) 
  

 

 

     

 

 

  

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

      0.86         0.86  (e) 

Portfolio turnover rate (%)

      49         33  (d) 

Net assets, end of period (in millions)

    $ 986.8       $ 974.8   
     Class B  
     Year Ended
December 31,		  
     2015      2014(f)  

Net Asset Value, Beginning of Period

    $ 10.03       $ 10.15   
  

 

 

     

 

 

  

Income (Loss) from Investment Operations

      

Net investment income (loss) (b)

      0.05         (0.00 )(g) 

Net realized and unrealized loss on investments

      (0.39 )       (0.12 ) 
  

 

 

     

 

 

  

Total from investment operations

      (0.34 )       (0.12 ) 
  

 

 

     

 

 

  

Less Distributions

      

Distributions from net investment income

      (0.08 )       0.00   
  

 

 

     

 

 

  

Total distributions

      (0.08 )       0.00   
  

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 9.61       $ 10.03   
  

 

 

     

 

 

  

Total Return (%) (c)

      (3.49 )       (1.18 )(d) 

Ratios/Supplemental Data

      

Ratio of expenses to average net assets (%)

      1.06         1.29  (e) 

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

      0.50         (0.04 )(e) 

Portfolio turnover rate (%)

      49         33  (d) 

Net assets, end of period (in millions)

    $ 0.1       $ 0.0  (h) 

 

(a) Commencement of operations of the Portfolio and Class A was April 29, 2014.
(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) Commencement of operations of Class B was November 12, 2014.
(g) Net investment loss was less than $0.01.
(h) Net assets, end of period rounds to less than $0.1 million.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Met/Artisan International Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Met/Artisan 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 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally categorized as Level 2 within the fair value hierarchy.

 

MIST-11

Met Investors Series Trust

Met/Artisan International Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Forward foreign currency exchange contracts are valued through an independent pricing service based on the mean between closing bid and ask prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or broker-dealer. These contracts are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

Options, including swaptions, and futures contracts that are traded OTC are generally valued on the basis of quotations provided by broker-dealers or prices provided by 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, yield curves, credit curves, measures of volatility 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 market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

 

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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, broker commission recapture and passive foreign investment companies (PFICs). These adjustments have no impact on net assets or the results of operations.

 

MIST-12

Met Investors Series Trust

Met/Artisan International Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

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.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $50,976,166, 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 December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2015, with a contractual maturity of overnight and continuous.

 

MIST-13

Met Investors Series Trust

Met/Artisan International Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

3. Certain Risks

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”).

Market 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, 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may 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.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 516,407,499       $ 0       $ 474,169,259   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the annual rate of 0.750% of average daily net assets. Fees earned by MetLife Advisers with respect to the Portfolio for the year ended December 31, 2015 were $7,595,587.

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Artisan Partners Limited Partnership is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

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.

 

MIST-14

Met Investors Series Trust

Met/Artisan International Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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, LLC, 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 year ended December 31, 2015 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 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$7,750,549    $ —       $ —       $ —       $ 7,750,549       $ —   

As of December 31, 2015, 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		      Other
Accumulated
Capital Losses		     Total  
$9,259,384    $ —       $ 5,310,508       $ (55,238,551 )    $ (40,668,659 ) 

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.

At December 31, 2015, the Portfolio had short-term accumulated capital losses of $48,664,640 and long-term accumulated capital losses of $6,573,911.

8. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-15

Met Investors Series Trust

Met/Artisan International Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Met/Artisan International 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 Met/Artisan International Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets and the financial highlights for the year ended December 31, 2015 and for the period April 29, 2014 (commencement of operations) to December 31, 2014. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 Met/Artisan International Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets and the financial highlights for the year ended December 31, 2015 and for the period April 29, 2014 (commencement of operations) to December 31, 2014, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-16

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-17

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-18

Met Investors Series Trust

Met/Artisan International Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser.

Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-19

Met Investors Series Trust

Met/Artisan International Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

 

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those

 

MIST-20

Met Investors Series Trust

Met/Artisan International Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

Met/Artisan International Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Artisan Partners Limited Partnership regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the one-year and since-inception (beginning April 29, 2014) periods ended June 30, 2015. In addition, the Board considered that the Portfolio outperformed its benchmark, the MSCI All Country World (ex.-U.S.) Index, for the one-year and since-inception periods ended October 31, 2015. The Board also noted that the Portfolio commenced operations on April 29, 2014.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, Expense Universe median, and Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were above the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also considered that the Portfolio’s contractual sub-advisory fees were above the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-21

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Managed by Eaton Vance Management

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A and B shares of the Met/Eaton Vance Floating Rate Portfolio returned -0.66% and -0.83%, respectively. The Portfolio’s benchmark, the S&P/LSTA Leveraged Loan Index1, returned -0.69%.

MARKET ENVIRONMENT / CONDITIONS

During calendar year 2015, the U.S. floating-rate loan market experienced broadly declining loan prices that were only partially offset by interest income. As a result, the S&P/LSTA Leveraged Loan Index, a loan market barometer, returned -0.69% for the 12-month period.

The period was dominated by risk-averse sentiment among investors. Slowing growth in China, declining prices for oil and other commodities, weakness in the global economic recovery and uncertainty around the Federal Reserve’s expected rate hike all dragged on returns of most asset classes across the capital markets, including floating-rate loans.

Loan prices edged lower as retail investors exited loan mutual funds. Further downward pressure on loan prices came from high-yield bond funds that sold floating-rate loan holdings to cover redemptions. Meanwhile, institutional loan investors generally stayed the course, with strong demand exhibited in both collateralized loan obligations and traditional institutional channels.

Performance trends within the loan market were bifurcated in a number of ways during the period. Of note, larger and more actively traded loans underperformed less liquid loans, resulting from selling pressure in retail products. Loans in industries affected by declining commodity prices including Oil & Gas, Metals & Mining, and Utilities were among the worst-performing industries during the period. Meanwhile, investor preference for quality showcased itself in credit tier performance, with higher-quality loans generally outperforming lower-rated issues.

With the U.S. economy continuing its uneven but gradual recovery, healthy corporate fundamentals kept the default rate fairly benign during the period. The trailing-twelve-month default rate, a measure of corporate health and credit risk in the market, was 1.54% by principal amount, below the market’s 10-year average of 2.59%, according to Standard & Poor’s Leveraged Commentary & Data.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio’s return was in line with its benchmark over the reporting period, returning -0.66% versus -0.69%. In an environment marked by heightened volatility and risk aversion by retail investors, more widely held and actively traded issues took the brunt of selling pressure from investors exiting the asset class. As these loans tend to be issued by larger and more durable companies, which the Portfolio has tended to favor, positioning in larger loans was a relative detractor to performance versus the Index. By way of example, the S&P/LSTA Leveraged Loan 100 Index, a barometer of the largest loans within the Index, returned -2.75% for the one-year period, well below the -0.69% broader Index return.

Contributing to relative performance results was the Portfolio’s quality positioning. Looking across ratings tiers for the 12-month period, BB-rated loans in the Index returned 2.23%, B-rated loans in the Index returned -0.82%, CCC-rated loans in the Index returned -8.43%, and defaulted loans in the Index returned -42.86%. The negative performance of the defaulted loan category was due in large part to the continued decline of the defaulted loan issued by Energy Future Holdings (“EFH”), a major component of the Index that was not held by the Portfolio. The Portfolio’s overweight to BB-rated loans and underexposure to the CCC-rated loan and defaulted loan categories benefited relative performance during the period. The Portfolio’s avoidance of the defaulted EFH loan in particular was the largest individual contributor to performance versus the Index during the period.

The Portfolio employs a rigorous, bottom-up credit research process where loan selection drives portfolio performance. That said, looking at the impact of performance results by industry, the Portfolio benefited from underweight exposures to the underperforming Oil & Gas and Utilities industries. Modestly detracting from relative performance were underweight exposures to the Lodging & Casinos and Surface Transport industries.

The cornerstones of the strategy’s investment philosophy are intense, internal credit research and broad diversification. The Portfolio held 412 issuer positions across 36 industries as of December 31, 2015. As of the end of the calendar year 2015, the Portfolio maintained a sizeable overweight position in BB-rated loans versus the benchmark (45.4% vs. 37.9%) and minimal exposure to the more distressed loan categories rated below B (1.6% vs. 4.9%). The Portfolio’s higher quality positioning was also exhibited in its average loan price of $93.21 vs. a $91.26 average loan price for the Index as of December 31, 2015.

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

 

MIST-1

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Managed by Eaton Vance Management

Portfolio Manager Commentary*—(Continued)

 

their coupons every 61 days on average as of December 31, 2015, resulting in a portfolio duration of roughly 0.17 years for the period.

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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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/Eaton Vance Floating Rate Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE S&P/LSTA LEVERAGED LOAN INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        Since Inception2  
Met/Eaton Vance Floating Rate Portfolio                 

Class A

        -0.66           2.83           3.09   

Class B

        -0.83           2.58           2.84   
S&P/LSTA Leveraged Loan Index        -0.69           3.41           3.68   

1 The Standard & Poor’s/Loan Syndications and Trading Association (S&P/LSTA) Leveraged Loan 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 date of the Class A and Class B shares is 4/30/2010. Index since inception return is based on the Portfolio’s inception date.

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 DECEMBER 31, 2015

Ten Largest Industries as of December 31, 2015 (Unaudited)

 

     % of
Net Assets		  
Retail      6.5   
Healthcare-Services      6.2   
Commercial Services      5.7   
Chemicals      5.6   
Software      5.5   
Food      5.2   
Media      4.9   
Telecommunications      4.5   
Diversified Financial Services      3.2   
Healthcare Products      2.9   

 

MIST-3

Met Investors Series Trust

Met/Eaton Vance Floating Rate 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A

    Actual      0.67 %     $ 1,000.00         $ 973.30         $ 3.33   
   Hypothetical*      0.67 %     $ 1,000.00         $ 1,021.83         $ 3.41   

Class B

    Actual      0.92 %     $ 1,000.00         $ 972.20         $ 4.57   
   Hypothetical*      0.92 %     $ 1,000.00         $ 1,020.57         $ 4.69   

* 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 (184 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

 

MIST-4

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of December 31, 2015

Floating Rate Loans (a)—94.1% of Net Assets

 

Security Description   Principal
Amount*		     Value  

Advertising—0.4%

  

inVentiv Health, Inc.

    

Incremental Term Loan B3, 7.750%, 05/15/18

     1,543,450      $ 1,522,872   

Term Loan B4, 7.750%, 05/15/18

     1,681,243        1,658,827   
   

 

 

  
      3,181,699   
   

 

 

  

Aerospace/Defense—2.1%

  

BE Aerospace, Inc.

    

Term Loan B, 4.000%, 12/16/21

     938,182        940,234   

Flying Fortress, Inc.

    

Term Loan, 3.500%, 04/30/20

     2,729,167        2,722,911   

Silver II U.S. Holdings LLC

    

Term Loan, 4.000%, 12/13/19

     5,335,643        4,566,420   

TransDigm, Inc.

    

Term Loan C, 3.750%, 02/28/20

     7,690,746        7,529,456   

Term Loan D, 3.750%, 06/04/21

     1,773,000        1,731,260   
   

 

 

  
      17,490,281   
   

 

 

  

Auto Components—1.0%

  

CS Intermediate Holdco 2 LLC

    

Term Loan B, 4.000%, 04/04/21

     689,500        680,594   

Dayco Products LLC

    

Term Loan B, 5.250%, 12/12/19

     987,437        979,414   

Federal-Mogul Holdings Corp.

    

Term Loan C, 4.750%, 04/15/21

     4,246,250        3,755,808   

MPG Holdco I, Inc.

    

Term Loan B, 3.750%, 10/20/21

     2,587,555        2,533,494   

Visteon Corp.

    

Delayed Draw Term Loan B, 3.500%, 04/09/21

     685,417        680,811   
   

 

 

  
      8,630,121   
   

 

 

  

Auto Manufacturers—1.1%

  

Chrysler Group LLC

    

Term Loan B, 3.250%, 12/31/18

     4,200,188        4,169,211   

Term Loan B, 3.500%, 05/24/17

     4,718,824        4,710,448   
   

 

 

  
      8,879,659   
   

 

 

  

Auto Parts & Equipment—1.0%

  

Affinia Group Intermediate Holdings, Inc.

    

Term Loan B2, 4.750%, 04/27/20

     365,896        366,239   

Goodyear Tire & Rubber Co. (The)

    

2nd Lien Term Loan, 3.750%, 04/30/19

     3,650,000        3,657,574   

Horizon Global Corp.

    

Term Loan B, 7.000%, 06/30/21

     487,500        470,437   

Schaeffler AG

    

Term Loan B, 4.250%, 05/15/20

     346,923        347,964   

TI Group Automotive Systems LLC

    

Term Loan, 4.500%, 06/30/22

     1,695,750        1,661,835   

Tower Automotive Holdings USA LLC

    

Term Loan, 4.000%, 04/23/20

     1,430,479        1,373,260   
   

 

 

  
      7,877,309   
   

 

 

  

Beverages—0.1%

  

Flavors Holdings, Inc.

    

1st Lien Term Loan, 6.750%, 04/03/20

     750,000        671,250   
   

 

 

  

Biotechnology—0.1%

  

AMAG Pharmaceuticals, Inc.

    

1st Lien Term Loan, 4.750%, 08/13/21

     1,061,563      1,025,071   
   

 

 

  

Building Materials—0.3%

  

CPG International, Inc.

    

Term Loan, 4.750%, 09/30/20

     610,938        577,336   

Quikrete Holdings, Inc.

    

1st Lien Term Loan, 4.000%, 09/28/20

     945,346        937,370   

Summit Materials Cos. I LLC

    

Term Loan B, 4.250%, 07/17/22

     621,875        616,239   

Tank Holding Corp.

    

Term Loan, 5.250%, 03/16/22

     722,842        712,903   
   

 

 

  
      2,843,848   
   

 

 

  

Capital Markets—1.2%

  

Armor Holding II LLC

    

1st Lien Term Loan, 5.750%, 06/26/20

     2,132,358        2,072,385   

Corporate Capital Trust, Inc.

    

Term Loan B, 4.000%, 05/15/19

     1,155,000        1,141,256   

Guggenheim Partners LLC

    

Term Loan, 4.250%, 07/22/20

     1,718,268        1,711,108   

Medley LLC

    

Term Loan, 6.500%, 06/15/19 (b)

     496,591        504,040   

NXT Capital, Inc.

    

6.250%, 09/04/18

     792,662        792,642   

Term Loan B, 6.250%, 09/04/18

     733,125        733,107   

RCS Capital Corp.

    

1st Lien Term Loan, 7.500%, 04/29/19 (b)

     2,661,690        1,863,183   

Salient Partners L.P.

    

Term Loan, 7.500%, 05/19/21

     788,000        764,360   

Sheridan Investment Partners II L.P.

    

Term Loan A, 4.250%, 12/16/20

     100,156        58,341   

Term Loan B, 4.250%, 12/16/20

     719,991        419,395   

Term Loan M, 4.250%, 12/16/20

     37,353        21,758   
   

 

 

  
      10,081,575   
   

 

 

  

Chemicals—5.6%

  

Allnex (Luxembourg) & Cy SCA

    

Term Loan B1, 4.500%, 10/03/19

     915,979        914,834   

Allnex USA, Inc.

    

Term Loan B2, 4.500%, 10/03/19

     475,258        474,664   

Aruba Investments, Inc.

    

Term Loan B, 4.500%, 02/02/22

     299,985        295,673   

Axalta Coating Systems U.S. Holdings, Inc.

    

Term Loan, 3.750%, 02/01/20

     4,462,418        4,432,935   

AZ Chem U.S., Inc.

    

1st Lien Term Loan, 4.500%, 06/12/21

     1,130,507        1,129,329   

Chemours Co. (The)

    

Term Loan B, 3.750%, 05/12/22

     3,731,250        3,432,750   

ECO Services Operations LLC

    

Term Loan B, 4.750%, 12/04/21

     396,000        391,917   

Emerald Performance Materials LLC

    

1st Lien Term Loan, 4.500%, 08/01/21

     484,659        477,086   

Flint Group GmbH

    

Term Loan C, 4.500%, 09/07/21

     140,087        136,848   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of December 31, 2015

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Chemicals—(Continued)

  

Flint Group U.S. LLC

    

1st Lien Term Loan B2, 4.500%, 09/07/21

     847,413      $ 820,578   

Gemini HDPE LLC

    

Term Loan B, 4.750%, 08/07/21

     1,434,365        1,425,400   

Huntsman International LLC

    

Incremental Term Loan, 3.750%, 10/01/21

     2,029,500        2,016,816   

Ineos U.S. Finance LLC

    

Term Loan, 3.750%, 05/04/18

     6,556,311        6,400,599   

Term Loan, 4.250%, 03/31/22

     694,747        672,416   

Kronos Worldwide, Inc.

    

Term Loan, 4.000%, 02/18/20

     319,313        290,308   

MacDermid, Inc.

    

1st Lien Term Loan, 5.500%, 06/07/20

     2,286,313        2,218,200   

Term Loan B2, 5.500%, 06/07/20

     594,000        575,438   

Term Loan B3, 5.500%, 06/07/20

     523,688        508,370   

Minerals Technologies, Inc.

    

Term Loan B1, 3.768%, 05/09/21

     1,332,212        1,335,542   

Omnova Solutions, Inc.

    

Term Loan B1, 4.250%, 05/31/18

     1,736,131        1,713,344   

Orion Engineered Carbons GmbH

    

Term Loan, 5.000%, 07/25/21

     524,454        527,076   

OXEA Finance LLC

    

Term Loan B2, 4.250%, 01/15/20

     2,131,500        2,059,562   

PolyOne Corp.

    

Term Loan B, 3.750%, 11/11/22

     475,000        474,406   

PQ Corp.

    

Term Loan, 4.000%, 08/07/17

     1,816,810        1,805,455   

Sonneborn LLC

    

Term Loan, 4.750%, 12/10/20

     378,675        377,018   

Sonneborn Refined Products B.V.

    

Term Loan, 4.750%, 12/10/20

     66,825        66,533   

Tata Chemicals North America, Inc.

    

Term Loan B, 3.750%, 08/07/20

     1,042,144        1,016,403   

Trinseo Materials Operating SCA

    

Term Loan B, 4.250%, 11/05/21

     1,318,375        1,301,895   

Tronox Pigments (Netherlands) B.V.

    

Term Loan, 4.500%, 03/19/20

     4,458,083        3,976,052   

Unifrax Corp.

    

Term Loan, 4.250%, 11/28/18

     221,702        213,942   

Univar, Inc.

    

Term Loan, 4.250%, 07/01/22

     3,266,813        3,173,182   

VAT Lux III S.a.r.l.

    

Term Loan, 4.250%, 02/11/21

     1,631,228        1,613,896   
   

 

 

  
      46,268,467   
   

 

 

  

Coal—0.5%

  

Alpha Natural Resources LLC

    

Term Loan, 10.000%, 01/31/17

     425,000        405,875   

Term Loan B, 3.500%, 05/22/20

     2,712,563        1,218,394   

Arch Coal, Inc.

    

Term Loan B, 6.250%, 05/16/18

     2,751,676        1,270,358   

Murray Energy Corp.

    

Term Loan B1, 7.000%, 04/16/17

     298,327        239,780   

Term Loan B2, 7.500%, 04/16/20

     1,865,459        1,202,288   
   

 

 

  
      4,336,695   
   

 

 

  

Commercial Services—5.7%

  

Acosta Holdco, Inc.

    

Term Loan, 4.250%, 09/26/21

     3,814,084      3,646,264   

Albany Molecular Research, Inc.

    

Term Loan B, 5.750%, 07/16/21

     698,250        694,759   

BakerCorp International, Inc.

    

Term Loan, 4.250%, 02/14/20

     727,911        633,283   

Brickman Group, Ltd. LLC

    

1st Lien Term Loan, 4.000%, 12/18/20

     882,034        857,158   

Bright Horizons Family Solutions, Inc.

    

Term Loan B, 4.000%, 01/30/20

     1,458,647        1,458,511   

Ceridian LLC

    

Term Loan, 4.500%, 09/15/20

     599,749        515,035   

Education Management LLC

    

Term Loan A, 5.500%, 07/02/20 (b) (c)

     259,470        119,304   

Term Loan B, 2.000%, 07/02/20 (b) (c)

     454,280        112,207   

Garda World Security Corp.

    

Delayed Draw Term Loan, 4.004%, 11/06/20

     721,676        691,682   

Term Loan B, 4.004%, 11/06/20

     3,393,179        3,252,152   

Hertz Corp. (The)

    

Term Loan B, 3.750%, 03/11/18

     1,746,000        1,744,181   

Term Loan B2, 3.000%, 03/11/18

     2,477,930        2,456,248   

IAP Worldwide Services, Inc.

    

2nd Lien Term Loan, 8.000%, 07/18/19 (b)

     338,041        270,433   

Revolver, 07/18/18 (b) (d)

     248,024        222,849   

IPC Corp.

    

Term Loan B, 5.500%, 08/06/21

     1,687,250        1,594,451   

Jaguar Holding Co. II

    

Term Loan B, 4.250%, 08/18/22

     4,402,875        4,289,501   

KAR Auction Services, Inc.

    

Term Loan B2, 3.500%, 03/11/21

     4,606,065        4,603,187   

Laureate Education, Inc.

    

Term Loan B, 5.000%, 06/15/18

     3,704,419        3,111,712   

Live Nation Entertainment, Inc.

    

Term Loan B1, 3.500%, 08/16/20

     2,662,339        2,660,121   

McGraw-Hill Global Education Holdings LLC

    

Term Loan B, 4.750%, 03/22/19

     665,907        658,415   

Merrill Communications LLC

    

Term Loan, 6.250%, 06/01/22

     621,262        568,455   

Monitronics International, Inc.

    

Term Loan B, 4.250%, 03/23/18

     957,254        930,929   

Term Loan B1, 4.500%, 04/02/22

     1,215,813        1,164,140   

Rent-A-Center, Inc.

    

Term Loan B, 3.750%, 03/19/21

     540,375        507,953   

ServiceMaster Co.

    

Term Loan B, 4.250%, 07/01/21

     2,394,688        2,379,721   

SGS Cayman L.P.

    

Term Loan B, 6.000%, 04/23/21

     200,448        199,947   

SunEdison Semiconductor B.V.

    

1st Lien Term Loan, 6.500%, 05/27/19

     675,755        668,998   

Truven Health Analytics, Inc.

    

Term Loan B, 4.500%, 06/06/19

     1,572,391        1,509,495   

Weight Watchers International, Inc.

    

Term Loan B2, 4.000%, 04/02/20

     6,977,688        5,137,322   
   

 

 

  
      46,658,413   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of December 31, 2015

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Computers—0.5%

  

Dell, Inc.

    

Term Loan C, 3.750%, 10/29/18

     814,581      $ 813,223   

SkillSoft Corp.

    

1st Lien Term Loan, 5.750%, 04/28/21

     2,221,875        1,733,063   

Smart Technologies ULC

    

Term Loan, 10.500%, 01/31/18 (b)

     519,531        502,543   

TNS, Inc.

    

1st Lien Term Loan, 5.000%, 02/14/20

     924,547        912,990   
   

 

 

  
      3,961,819   
   

 

 

  

Construction Materials—0.2%

  

Fairmount Santrol, Inc.

    

Term Loan B1, 3.875%, 03/15/17

     391,000        276,632   

Term Loan B2, 4.500%, 09/05/19

     1,979,438        992,193   

Headwaters, Inc.

    

Term Loan B, 4.500%, 03/24/22

     199,000        199,415   
   

 

 

  
      1,468,240   
   

 

 

  

Cosmetics/Personal Care—0.4%

  

Coty, Inc.

    

Term Loan B, 3.750%, 10/27/22

     825,000        825,516   

Galleria Co.

    

Term Loan B, 10/22/22 (d)

     1,675,000        1,663,484   

Revlon Consumer Products Corp.

    

Term Loan, 4.000%, 10/08/19

     1,154,853        1,151,605   
   

 

 

  
      3,640,605   
   

 

 

  

Distribution/Wholesale—0.2%

  

ABC Supply Co., Inc.

    

Term Loan, 3.500%, 04/16/20

     1,363,563        1,352,654   
   

 

 

  

Distributors—0.0%

  

PFS Holding Corp.

    

1st Lien Term Loan, 4.500%, 01/31/21

     245,625        222,291   
   

 

 

  

Diversified Consumer Services—0.2%

  

Knowledge Universe Education LLC

    

1st Lien Term Loan, 6.000%, 07/28/22

     1,122,188        1,094,133   

WASH Multifamily Laundry Systems LLC

    

1st Lien Term Loan, 4.250%, 05/14/22

     298,500        291,597   
   

 

 

  
      1,385,730   
   

 

 

  

Diversified Financial Services—3.2%

  

AlixPartners LLP

    

Term Loan B, 4.500%, 07/28/22

     598,500        594,759   

Altisource Solutions S.a.r.l.

    

Term Loan B, 4.500%, 12/09/20

     1,441,446        1,261,266   

Astro AB Borrower, Inc.

    

1st Lien Term Loan, 5.500%, 04/30/22

     323,375        320,343   

Citco Funding LLC

    

Term Loan, 4.250%, 06/29/18

     2,396,241        2,383,260   

Clipper Acquisitions Corp.

    

Term Loan B, 3.000%, 02/06/20

     1,481,987        1,452,347   

Diversified Financial Services—(Continued)

  

Delos Finance S.a.r.l.

    

Term Loan B, 3.500%, 03/06/21

     2,675,000      2,668,647   

Grosvenor Capital Management Holdings LLP

    

Term Loan B, 3.750%, 01/04/21

     3,955,909        3,817,453   

Hamilton Lane Advisors LLC

    

Term Loan B, 4.250%, 07/09/22

     523,688        521,069   

Harbourvest Partners LLC

    

Term Loan, 3.250%, 02/04/21

     761,122        757,316   

La Frontera Generation LLC

    

Term Loan, 4.500%, 09/30/20

     2,726,404        2,592,355   

LPL Holdings, Inc.

    

Extended Term Loan B, 4.250%, 03/29/21

     3,385,687        3,360,295   

MIP Delaware LLC

    

Term Loan B1, 4.000%, 03/09/20

     391,785        389,337   

Nord Anglia Education Finance LLC

    

Term Loan, 5.000%, 03/31/21

     2,177,179        2,122,750   

Ocwen Financial Corp.

    

Term Loan, 5.500%, 02/15/18

     678,186        678,398   

PGX Holdings, Inc.

    

1st Lien Term Loan, 5.750%, 09/29/20

     546,763        544,030   

Walker & Dunlop, Inc.

    

Term Loan B, 5.250%, 12/11/20

     673,723        675,408   

Walter Investment Management Corp.

    

Term Loan, 4.750%, 12/19/20

     2,148,888        1,861,474   
   

 

 

  
      26,000,507   
   

 

 

  

Electric—2.4%

  

Calpine Construction Finance Co. L.P.

    

Term Loan B1, 3.000%, 05/03/20

     999,375        948,574   

Term Loan B2, 3.250%, 01/31/22

     1,002,498        953,208   

Calpine Corp.

    

Delayed Draw Term Loan, 4.000%, 10/30/20

     367,500        359,231   

Term Loan B3, 4.000%, 10/09/19

     774,000        758,681   

Term Loan B5, 3.500%, 05/27/22

     3,208,875        3,057,458   

Dynegy Holdings, Inc.

    

Term Loan B2, 4.000%, 04/23/20

     3,972,355        3,850,702   

EFS Cogen Holdings I LLC

    

Term Loan B, 3.750%, 12/17/20

     460,477        447,238   

Energy Future Intermediate Holding Co. LLC

    

Term Loan, 4.250%, 06/19/16

     1,725,000        1,722,035   

Granite Acquisition, Inc.

    

Term Loan B, 5.000%, 12/19/21

     2,465,517        2,215,883   

Term Loan C, 5.000%, 12/19/21

     109,579        98,484   

Invenergy Thermal Operating I LLC

    

Term Loan B, 6.500%, 10/07/22

     174,563        169,325   

Longview Power LLC

    

Term Loan B, 7.000%, 04/13/21

     1,268,625        1,110,047   

NRG Energy, Inc.

    

Term Loan B, 2.750%, 07/02/18

     3,965,247        3,872,314   
   

 

 

  
      19,563,180   
   

 

 

  

Electrical Components & Equipment—1.3%

  

Dell International LLC

    

Term Loan B2, 4.000%, 04/29/20

     5,994,875        5,966,148   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of December 31, 2015

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Electrical Components & Equipment—(Continued)

  

Electrical Components International, Inc.

    

Term Loan B, 5.750%, 05/28/21

     839,736      $ 834,488   

Orbotech, Inc.

    

Term Loan B, 5.000%, 08/06/20

     359,452        354,060   

Pelican Products, Inc.

    

Term Loan, 5.250%, 04/10/20

     1,593,249        1,567,358   

Zebra Technologies Corp.

    

Term Loan B, 4.750%, 10/27/21

     1,965,625        1,970,386   
   

 

 

  
      10,692,440   
   

 

 

  

Electronics—1.6%

  

CDW LLC

    

Term Loan, 3.250%, 04/29/20

     3,234,319        3,162,896   

CompuCom Systems, Inc.

    

Term Loan B, 4.250%, 05/11/20

     2,136,502        1,367,361   

EIG Investors Corp.

    

Term Loan, 5.000%, 11/09/19

     4,848,400        4,736,281   

Excelitas Technologies Corp.

    

1st Lien Term Loan, 6.000%, 10/31/20

     1,813,374        1,620,702   

Fender Musical Instruments Corp.

    

Term Loan B, 5.750%, 04/03/19

     251,750        249,151   

Sensus USA, Inc.

    

1st Lien Term Loan, 4.500%, 05/09/17

     2,042,372        1,996,419   
   

 

 

  
      13,132,810   
   

 

 

  

Energy Equipment & Services—0.4%

  

EnergySolutions LLC

    

Term Loan, 6.750%, 05/29/20

     797,179        617,814   

Floatel International, Ltd.

    

Term Loan B, 6.000%, 06/27/20

     1,031,625        466,810   

Seadrill Partners Finco LLC

    

Term Loan B, 4.000%, 02/21/21

     3,848,588        1,592,353   

Seventy Seven Operating LLC

    

Term Loan B, 3.750%, 06/25/21

     492,500        361,577   
   

 

 

  
      3,038,554   
   

 

 

  

Engineering & Construction—0.1%

  

Brock Holdings III, Inc.

    

Term Loan B, 6.000%, 03/16/17

     786,256        734,658   
   

 

 

  

Entertainment—1.8%

  

Affinity Gaming LLC

    

Term Loan B, 5.250%, 11/09/17

     388,333        388,818   

Amaya Holdings B.V.

    

1st Lien Term Loan, 5.000%, 08/01/21

     4,007,418        3,753,616   

CDS U.S. Intermediate Holdings, Inc.

    

1st Lien Term Loan, 5.000%, 07/08/22

     423,938        401,151   

National CineMedia LLC

    

Term Loan, 3.180%, 11/26/19

     500,000        496,875   

Pinnacle Entertainment, Inc.

    

Term Loan B2, 3.750%, 08/13/20

     267,903        267,505   

Scientific Games International, Inc.

    

Term Loan B1, 6.000%, 10/18/20

     3,479,000        3,208,508   

Term Loan B2, 6.000%, 10/01/21

     866,250        793,701   

Entertainment—(Continued)

  

SeaWorld Parks & Entertainment, Inc.

    

Term Loan B2, 3.000%, 05/14/20

     2,907,276      2,731,023   

Seminole Hard Rock Entertainment, Inc.

    

Term Loan B, 3.500%, 05/14/20

     268,125        263,433   

WMG Acquisition Corp.

    

Term Loan, 3.750%, 07/01/20

     2,350,415        2,234,069   
   

 

 

  
      14,538,699   
   

 

 

  

Environmental Control—0.2%

  

Darling International, Inc.

    

Term Loan B, 3.250%, 01/06/21

     736,875        722,138   

Tervita Corp.

    

Term Loan, 6.250%, 05/15/18

     1,531,736        1,192,200   
   

 

 

  
      1,914,338   
   

 

 

  

Food—5.2%

  

AdvancePierre Foods, Inc.

    

Term Loan, 5.750%, 07/10/17

     3,198,852        3,198,052   

Albertson’s LLC

    

Term Loan B2, 5.500%, 03/21/19

     2,174,586        2,166,582   

Term Loan B3, 5.125%, 08/25/19

     3,104,063        3,078,842   

Term Loan B4, 5.500%, 08/25/21

     1,092,247        1,084,738   

Aramark Services, Inc.

    

Extended Synthetic LOC 2, 3.693%, 07/26/16

     35,838        35,322   

Extended Synthetic LOC 3, 3.701%, 07/26/16

     37,189        36,829   

Blue Buffalo Co., Ltd.

    

Term Loan B3, 3.750%, 08/08/19

     1,209,679        1,206,655   

Centerplate, Inc.

    

Term Loan A, 4.754%, 11/26/19

     463,003        459,531   

Charger OpCo B.V.

    

Term Loan B1, 4.250%, 07/02/22

     2,109,754        2,097,886   

Clearwater Seafoods L.P.

    

Term Loan B, 4.750%, 06/26/19

     426,723        425,478   

Del Monte Foods, Inc.

    

1st Lien Term Loan, 4.255%, 02/18/21

     1,502,015        1,446,941   

Diamond Foods, Inc.

    

Term Loan, 4.250%, 08/20/18

     1,176,742        1,175,087   

Dole Food Co., Inc.

    

Term Loan B, 4.500%, 11/01/18

     2,657,043        2,643,758   

High Liner Foods, Inc.

    

Term Loan B, 4.250%, 04/24/21

     859,688        848,941   

JBS USA LLC

    

Incremental Term Loan, 3.750%, 09/18/20

     1,564,000        1,555,202   

Term Loan, 3.750%, 05/25/18

     4,960,810        4,943,760   

Term Loan B, 4.000%, 10/30/22

     675,000        665,499   

NPC International, Inc.

    

Term Loan B, 4.750%, 12/28/18

     2,078,363        2,060,177   

Pinnacle Foods Finance LLC

    

Incremental Term Loan H, 3.000%, 04/29/20

     684,250        674,842   

Post Holdings, Inc.

    

Incremental Term Loan, 3.750%, 06/02/21

     259,944        259,835   

Supervalu, Inc.

    

Term Loan B, 4.500%, 03/21/19

     8,563,488        8,463,132   

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of December 31, 2015

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Food—(Continued)

  

U.S. Foods, Inc.

    

Term Loan, 4.500%, 03/31/19

     4,779,944      $ 4,741,107   
   

 

 

  
      43,268,196   
   

 

 

  

Hand/Machine Tools—0.3%

  

Apex Tool Group LLC

    

Term Loan B, 4.500%, 01/31/20

     1,660,599        1,588,640   

Milacron LLC

    

Term Loan B, 4.500%, 09/28/20

     1,155,479        1,146,091   
   

 

 

  
      2,734,731   
   

 

 

  

Healthcare-Products—2.9%

  

Alere, Inc.

    

Term Loan B, 4.250%, 06/18/22

     1,622,715        1,611,123   

BSN Medical, Inc.

    

Term Loan B1B, 4.000%, 08/28/19

     544,144        535,981   

CeramTec Acquisition Corp.

    

Term Loan B2, 4.250%, 08/30/20

     30,959        30,778   

CHG Healthcare Services, Inc.

    

Term Loan, 4.250%, 11/19/19

     1,146,272        1,127,645   

Convatec, Inc.

    

Term Loan, 4.250%, 06/15/20

     2,978,022        2,936,455   

DJO Finance LLC

    

Term Loan, 4.250%, 06/08/20

     3,449,731        3,360,614   

Faenza Acquisition GmbH

    

Term Loan B1, 4.250%, 08/30/20

     297,166        295,433   

Term Loan B3, 4.250%, 08/30/20

     90,429        89,902   

Greatbatch, Ltd.

    

Term Loan B, 5.250%, 10/27/22

     925,000        920,086   

Halyard Health, Inc.

    

Term Loan B, 4.000%, 11/01/21

     586,774        586,187   

Hill-Rom Holdings, Inc.

    

Term Loan B, 3.500%, 09/08/22

     1,385,813        1,387,536   

Kinetic Concepts, Inc.

    

Term Loan E1, 4.500%, 05/04/18

     4,764,327        4,593,607   

Mallinckrodt International Finance S.A.

    

Incremental Term Loan B1, 3.500%, 03/19/21

     1,110,938        1,088,024   

Term Loan B, 3.250%, 03/19/21

     1,645,688        1,600,431   

New Millennium HoldCo, Inc.

    

Term Loan, 7.500%, 12/21/20 (b)

     1,081,690        989,855   

Physio-Control International, Inc.

    

1st Lien Term Loan, 5.500%, 06/06/22

     450,000        442,688   

Sage Products Holdings III LLC

    

Term Loan B, 4.250%, 12/13/19

     1,039,591        1,028,329   

Sterigenics-Nordion Holdings LLC

    

Term Loan B, 4.250%, 05/15/22

     723,188        705,108   

Tecomet, Inc.

    

1st Lien Term Loan, 5.750%, 12/05/21

     1,089,000        1,001,880   
   

 

 

  
      24,331,662   
   

 

 

  

Healthcare-Services—6.2%

  

Acadia Healthcare Co., Inc.

    

Term Loan B, 4.250%, 02/11/22

     247,500        248,119   

Healthcare-Services—(Continued)

  

ADMI Corp.

    

Term Loan B, 5.500%, 04/30/22

     323,375      323,510   

Alliance Healthcare Services, Inc.

    

Term Loan B, 4.250%, 06/03/19

     1,156,815        1,104,758   

Ardent Legacy Acquisitions, Inc.

    

Term Loan B, 6.500%, 07/21/21

     498,750        496,256   

ATI Holdings, Inc.

    

Term Loan, 5.250%, 12/20/19

     412,618        410,297   

CareCore National LLC

    

Term Loan B, 5.500%, 03/05/21

     444,347        379,917   

Community Health Systems, Inc.

    

Term Loan F, 3.657%, 12/31/18

     1,997,908        1,972,577   

Term Loan G, 3.750%, 12/31/19

     2,791,861        2,725,990   

Term Loan H, 4.000%, 01/27/21

     5,136,950        5,055,082   

Concentra, Inc.

    

1st Lien Term Loan, 4.005%, 06/01/22

     298,500        297,008   

CPI Buyer LLC

    

1st Lien Term Loan, 5.500%, 08/18/21

     1,012,190        974,233   

DaVita HealthCare Partners, Inc.

    

Term Loan B, 3.500%, 06/24/21

     3,152,000        3,142,528   

Emdeon Business Services LLC

    

Term Loan B2, 3.750%, 11/02/18

     2,371,936        2,333,392   

Envision Healthcare Corp.

    

Term Loan, 4.250%, 05/25/18

     6,755,896        6,734,784   

Iasis Healthcare LLC

    

Term Loan B2, 4.500%, 05/03/18

     1,498,614        1,473,887   

IMS Health, Inc.

    

Term Loan, 3.500%, 03/17/21

     3,141,624        3,057,846   

Kindred Healthcare, Inc.

    

Term Loan, 4.250%, 04/09/21

     1,600,625        1,544,603   

LHP Hospital Group, Inc.

    

Term Loan, 9.000%, 07/03/18

     743,126        728,264   

MMM Holdings, Inc.

    

Term Loan, 9.750%, 12/12/17

     1,215,798        668,689   

MSO of Puerto Rico, Inc.

    

Term Loan, 9.750%, 12/12/17

     883,879        486,133   

National Mentor Holdings, Inc.

    

Term Loan B, 4.250%, 01/31/21

     1,059,900        1,032,960   

Onex Carestream Finance L.P.

    

1st Lien Term Loan, 5.000%, 06/07/19

     4,294,774        3,952,983   

Opal Acquisition, Inc.

    

1st Lien Term Loan, 5.000%, 11/27/20

     3,233,735        2,736,548   

Ortho-Clinical Diagnostics, Inc.

    

Term Loan B, 4.750%, 06/30/21

     3,004,250        2,564,878   

Radnet Management, Inc.

    

Term Loan B, 4.271%, 10/10/18

     1,888,451        1,874,287   

RCHP, Inc.

    

1st Lien Term Loan, 6.000%, 04/23/19

     2,074,187        2,049,987   

Select Medical Corp.

    

Term Loan B, 5.000%, 06/01/18

     1,593,142        1,588,163   

Steward Health Care System LLC

    

Term Loan B, 6.750%, 04/12/20

     1,316,250        1,283,344   
   

 

 

  
      51,241,023   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of December 31, 2015

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Home Furnishings—0.1%

  

Tempur-Pedic International, Inc.

    

Term Loan B, 3.500%, 03/18/20

     456,760      $ 456,689   
   

 

 

  

Hotels, Restaurants & Leisure—0.6%

  

1011778 B.C. Unlimited Liability Co.

    

Term Loan B2, 3.750%, 12/12/21

     4,705,736        4,683,681   
   

 

 

  

Household Products/Wares—1.2%

  

KIK Custom Products, Inc.

    

Term Loan B, 6.000%, 08/26/22

     1,546,125        1,488,145   

Libbey Glass, Inc.

    

Term Loan B, 3.750%, 04/09/21

     443,250        437,709   

Prestige Brands, Inc.

    

Term Loan B3, 3.500%, 09/03/21

     711,062        708,099   

Spectrum Brands, Inc.

    

Term Loan, 3.500%, 06/23/22

     1,877,977        1,873,952   

Spin Holdco, Inc.

    

Term Loan B, 4.250%, 11/14/19

     3,105,569        2,993,965   

Sun Products Corp. (The)

    

Term Loan, 5.500%, 03/23/20

     2,586,927        2,431,711   

Zep, Inc.

    

Term Loan, 5.750%, 06/27/22

     348,250        345,203   
   

 

 

  
      10,278,784   
   

 

 

  

Industrial Conglomerates—0.2%

  

IG Investment Holdings LLC

    

Term Loan B, 6.000%, 10/29/21

     1,857,908        1,848,618   
   

 

 

  

Insurance—2.7%

  

Alliant Holdings I, Inc.

    

Term Loan B, 4.500%, 08/12/22

     1,890,500        1,854,463   

AmWINS Group LLC

    

Term Loan, 5.250%, 09/06/19

     1,044,069        1,043,509   

AssuredPartners, Inc.

    

1st Lien Term Loan, 5.750%, 10/21/22

     725,000        722,281   

Asurion LLC

    

2nd Lien Term Loan, 8.500%, 03/03/21

     1,575,000        1,351,547   

Term Loan B1, 5.000%, 05/24/19

     4,152,858        3,927,046   

Term Loan B2, 4.250%, 07/08/20

     926,250        848,290   

Term Loan B4, 5.000%, 08/04/22

     5,273,500        4,873,595   

CGSC of Delaware Holding Corp.

    

1st Lien Term Loan, 5.000%, 04/16/20

     463,125        446,916   

Cunningham Lindsey U.S., Inc.

    

1st Lien Term Loan, 5.000%, 12/10/19

     1,327,342        909,230   

Hub International, Ltd.

    

Term Loan B, 4.000%, 10/02/20

     2,810,564        2,652,470   

USI, Inc.

    

Term Loan B, 4.250%, 12/27/19

     3,573,365        3,453,882   
   

 

 

  
      22,083,229   
   

 

 

  

Internet—2.3%

  

Ancestry.com, Inc.

    

Term Loan B, 5.000%, 08/17/22

     1,521,188        1,515,483   

Ascend Learning LLC

    

Term Loan B, 5.500%, 07/31/19

     1,866,950        1,863,061   

Internet—(Continued)

  

Getty Images, Inc.

    

Term Loan B, 4.750%, 10/18/19

     6,533,048      4,144,402   

Go Daddy Operating Co. LLC

    

Term Loan B, 4.250%, 05/13/21

     5,659,856        5,633,917   

Match Group, Inc.

    

Term Loan B1, 5.500%, 11/16/22

     1,100,000        1,091,750   

RP Crown Parent LLC

    

Term Loan, 6.000%, 12/21/18

     3,602,161        3,223,935   

Sabre, Inc.

    

Term Loan B, 4.000%, 02/19/19

     1,139,750        1,129,777   

SurveyMonkey, Inc.

    

Term Loan B, 6.250%, 02/05/19

     524,635        515,454   
   

 

 

  
      19,117,779   
   

 

 

  

Internet Software & Services—0.4%

  

Answers Corp.

    

1st Lien Term Loan, 6.250%, 10/03/21

     1,113,750        762,919   

Extreme Reach, Inc.

    

1st Lien Term Loan, 6.750%, 02/07/20

     694,098        684,554   

Sutherland Global Services, Inc.

    

Term Loan B, 6.000%, 04/23/21

     861,115        858,961   

Travelport Finance (Luxembourg) S.a.r.l.

    

Term Loan B, 5.750%, 09/02/21

     1,188,000        1,165,478   
   

 

 

  
      3,471,912   
   

 

 

  

Leisure Products—0.1%

  

Steinway Musical Instruments, Inc.

    

1st Lien Term Loan, 4.750%, 09/19/19

     977,581        973,304   
   

 

 

  

Leisure Time—1.0%

  

Bombardier Recreational Products, Inc.

    

Term Loan B, 3.750%, 01/30/19

     3,149,143        3,120,801   

ClubCorp Club Operations, Inc.

    

Term Loan, 12/15/22 (d)

     1,850,000        1,843,062   

LTF Merger Sub, Inc.

    

Term Loan B, 4.250%, 06/10/22

     1,368,125        1,333,911   

SRAM LLC

    

Term Loan B, 4.016%, 04/10/20

     1,674,676        1,389,981   

Town Sports International, Inc.

    

Term Loan B, 4.500%, 11/15/20

     1,220,680        494,375   
   

 

 

  
      8,182,130   
   

 

 

  

Lodging—1.4%

  

Boyd Gaming Corp.

    

Term Loan B, 4.000%, 08/14/20

     385,674        384,365   

Caesars Entertainment Operating Co.

    

Extended Term Loan B6, 0.000%, 03/01/17 (e)

     1,358,460        1,195,445   

CityCenter Holdings LLC

    

Term Loan B, 4.250%, 10/16/20

     798,221        794,728   

Four Seasons Holdings, Inc.

    

1st Lien Term Loan, 3.500%, 06/27/20

     682,979        674,442   

Golden Nugget, Inc.

    

Delayed Draw Term Loan, 5.500%, 11/21/19

     141,000        140,119   

Term Loan B, 5.500%, 11/21/19

     329,000        326,944   

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of December 31, 2015

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Lodging—(Continued)

  

Hilton Worldwide Finance LLC

    

Term Loan B2, 3.500%, 10/26/20

     4,461,266      $ 4,457,363   

MGM Resorts International

    

Term Loan B, 3.500%, 12/20/19

     2,425,000        2,398,478   

Playa Resorts Holding B.V.

    

Term Loan B, 4.000%, 08/09/19

     464,313        451,544   

Sonifi Solutions, Inc.

    

Term Loan C, 6.750%, 03/28/18 (b)

     843,164        147,553   

Tropicana Entertainment, Inc.

    

Term Loan, 4.000%, 11/27/20

     391,000        389,045   
   

 

 

  
      11,360,026   
   

 

 

  

Machinery—1.1%

  

Allison Transmission, Inc.

    

Term Loan B3, 3.500%, 08/23/19

     1,811,850        1,804,731   

CPM Holdings, Inc.

    

Term Loan B, 6.000%, 04/11/22

     273,625        272,086   

Delachaux S.A.

    

Term Loan B2, 4.500%, 10/28/21

     433,243        431,619   

Doosan Infracore International, Inc.

    

Term Loan B, 4.500%, 05/28/21

     998,885        986,398   

Dynacast International LLC

    

Term Loan B, 4.500%, 01/28/22

     620,313        604,805   

Gates Global, Inc.

    

Term Loan B, 4.250%, 07/05/21

     4,463,637        4,199,537   

Paladin Brands Holding, Inc.

    

Term Loan B, 7.254%, 08/16/19

     640,911        602,456   
   

 

 

  
      8,901,632   
   

 

 

  

Machinery-Diversified—0.9%

  

EWT Holdings III Corp.

    

1st Lien Term Loan, 4.750%, 01/15/21

     1,633,452        1,608,951   

Gardner Denver, Inc.

    

Term Loan, 4.250%, 07/30/20

     3,101,848        2,803,295   

PRA Holdings, Inc.

    

1st Lien Term Loan, 4.500%, 09/23/20

     2,662,361        2,638,235   
   

 

 

  
      7,050,481   
   

 

 

  

Marine—0.2%

  

Drillships Ocean Ventures, Inc.

    

Term Loan B, 5.500%, 07/25/21

     1,036,875        497,700   

Stena International S.a.r.l.

    

Term Loan B, 4.000%, 03/03/21

     1,670,250        1,419,713   
   

 

 

  
      1,917,413   
   

 

 

  

Media—4.9%

  

ALM Media Holdings, Inc.

    

1st Lien Term Loan, 5.500%, 07/31/20 (b)

     411,719        371,700   

Altice U.S. Finance I Corp.

    

Extended Term Loan, 4.250%, 12/22/22

     1,870,469        1,831,307   

AMC Entertainment, Inc.

    

Term Loan, 4.000%, 12/15/22

     2,100,000        2,100,262   

AP NMT Acquisition B.V.

    

1st Lien Term Loan, 6.750%, 08/13/21

     1,163,910        1,041,700   

Media—(Continued)

  

Atlantic Broadband Finance LLC

    

Term Loan B, 3.250%, 11/30/19

     712,189      709,518   

Block Communications, Inc.

    

Term Loan B, 4.000%, 11/07/21

     222,187        220,521   

CCO Safari III LLC

    

Term Loan I, 3.500%, 01/24/23

     2,075,000        2,073,444   

Charter Communications Operating LLC

    

Term Loan E, 3.000%, 07/01/20

     1,291,875        1,268,575   

Crossmark Holdings, Inc.

    

1st Lien Term Loan, 4.500%, 12/20/19

     1,433,065        1,074,799   

CSC Holdings, Inc.

    

Term Loan B, 2.924%, 04/17/20

     1,615,246        1,611,881   

Cumulus Media Holdings, Inc.

    

Term Loan, 4.250%, 12/23/20

     4,395,366        3,347,805   

Entercom Radio LLC

    

Term Loan B, 4.000%, 11/23/18

     356,033        354,253   

Entravision Communications Corp.

    

Term Loan, 3.500%, 05/31/20

     1,857,167        1,813,833   

Gray Television, Inc.

    

Term Loan B, 3.750%, 06/10/21

     244,833        242,445   

Hubbard Radio LLC

    

Term Loan B, 4.250%, 05/27/22

     668,611        623,480   

iHeartCommunications, Inc.

    

Extended Term Loan E, 7.924%, 07/30/19

     425,533        300,355   

Term Loan D, 7.174%, 01/30/19

     1,323,104        932,788   

Information Resources, Inc.

    

Term Loan B, 4.750%, 09/30/20

     1,221,875        1,219,810   

Kasima LLC

    

Term Loan B, 3.250%, 05/17/21

     649,632        645,843   

Mediacom Illinois LLC

    

Term Loan E, 3.390%, 10/23/17

     166,667        165,658   

Term Loan G, 3.500%, 06/30/21

     469,063        464,466   

MGOC, Inc.

    

Term Loan B, 4.000%, 07/31/20

     1,311,502        1,297,404   

MH Sub I LLC

    

1st Lien Term Loan, 4.750%, 07/08/21

     790,972        768,232   

Mission Broadcasting, Inc.

    

Term Loan B2, 3.750%, 10/01/20

     790,437        786,485   

Nexstar Broadcasting, Inc.

    

Term Loan B2, 3.750%, 10/01/20

     896,368        891,886   

Numericable Group S.A.

    

Term Loan B5, 4.563%, 07/31/22

     375,000        360,000   

Numericable U.S. LLC

    

Term Loan B1, 4.500%, 05/21/20

     1,220,822        1,180,002   

Term Loan B2, 4.500%, 05/21/20

     1,056,178        1,020,862   

Penton Media, Inc.

    

Term Loan, 4.750%, 10/03/19

     607,756        604,717   

ProQuest LLC

    

Term Loan B, 5.750%, 10/24/21

     668,239        650,698   

Raycom TV Broadcasting LLC

    

Term Loan B, 3.750%, 08/04/21

     790,247        786,296   

Sinclair Television Group, Inc.

    

Term Loan B, 3.000%, 04/09/20

     461,958        456,376   

Springer Science+Business Media Deutschland GmbH

    

Term Loan B9, 4.750%, 08/14/20

     3,370,653        3,240,041   

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of December 31, 2015

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Media—(Continued)

  

TWCC Holding Corp.

    

2nd Lien Term Loan, 7.000%, 06/26/20

     700,000      $ 698,907   

Univision Communications, Inc.

    

Term Loan C4, 4.000%, 03/01/20

     4,698,428        4,609,355   

Zuffa LLC

    

Term Loan B, 3.750%, 02/25/20

     982,290        959,697   
   

 

 

  
      40,725,401   
   

 

 

  

Metal Fabricate/Hardware—1.2%

  

Ameriforge Group, Inc.

    

1st Lien Term Loan, 5.000%, 12/19/19

     2,934,329        909,642   

JMC Steel Group, Inc.

    

Term Loan, 4.750%, 04/01/17

     4,354,674        4,229,478   

Rexnord LLC

    

1st Lien Term Loan B, 4.000%, 08/21/20

     4,472,063        4,345,355   

WireCo WorldGroup, Inc.

    

Term Loan, 6.000%, 02/15/17

     571,743        550,302   
   

 

 

  
      10,034,777   
   

 

 

  

Mining—1.4%

  

FMG Resources (August 2006) Pty, Ltd.

    

Term Loan B, 4.250%, 06/30/19

     8,980,333        6,741,482   

Neenah Foundry Co.

    

Term Loan, 6.750%, 04/26/17

     1,616,784        1,608,700   

Noranda Aluminum Acquisition Corp.

    

Term Loan B, 5.750%, 02/28/19

     962,500        490,073   

Novelis, Inc.

    

Term Loan B, 4.000%, 06/02/22

     2,661,625        2,547,676   
   

 

 

  
      11,387,931   
   

 

 

  

Miscellaneous Manufacturing—0.6%

  

Filtration Group Corp.

    

1st Lien Term Loan, 4.250%, 11/21/20

     289,721        281,875   

Husky Injection Molding Systems, Ltd.

    

1st Lien Term Loan, 4.250%, 06/30/21

     2,750,697        2,657,861   

RGIS Services LLC

    

Term Loan C, 5.500%, 10/18/17

     2,717,788        2,004,369   
   

 

 

  
      4,944,105   
   

 

 

  

Multi-Utilities—0.1%

  

Lonestar Generation LLC

    

Term Loan B, 5.250%, 02/20/21

     543,099        419,544   
   

 

 

  

Oil & Gas—2.5%

  

Bronco Midstream Funding LLC

    

Term Loan B, 5.000%, 08/15/20

     2,368,430        1,953,955   

CITGO Holding, Inc.

    

Term Loan B, 9.500%, 05/12/18

     952,128        950,938   

Citgo Petroleum Corp.

    

Term Loan B, 4.500%, 07/29/21

     2,447,775        2,374,342   

Crestwood Holdings LLC

    

Term Loan B1, 7.000%, 06/19/19

     1,712,671        1,087,546   

Emerald Expositions Holding, Inc.

    

Term Loan B, 4.750%, 06/17/20

     938,788        927,053   

Oil & Gas—(Continued)

  

Fieldwood Energy LLC

    

1st Lien Term Loan, 3.875%, 09/28/18

     1,051,437      720,234   

2nd Lien Term Loan, 8.375%, 09/30/20

     675,000        106,313   

MEG Energy Corp.

    

Term Loan, 3.750%, 03/31/20

     7,807,064        6,850,699   

Oxbow Carbon LLC

    

Term Loan B, 4.250%, 07/19/19

     2,322,676        2,180,412   

Paragon Offshore Finance Co.

    

Term Loan B, 3.750%, 07/18/21

     839,375        245,517   

Samson Investment Co.

    

2nd Lien Term Loan, 0.000%, 09/25/18 (e)

     825,000        41,250   

Sheridan Production Partners I LLC

    

Term Loan B2, 4.250%, 10/01/19

     1,893,796        1,117,340   

Term Loan B2 I-A, 4.250%, 10/01/19

     250,944        148,057   

Term Loan B2 I-M, 4.250%, 10/01/19

     153,278        90,434   

Southcross Energy Partners L.P.

    

1st Lien Term Loan, 5.250%, 08/04/21

     492,500        353,369   

Southcross Holdings Borrower L.P.

    

Term Loan B, 6.000%, 08/04/21

     394,000        213,745   

Targa Resources Corp.

    

Term Loan B, 5.750%, 02/25/22

     260,465        253,302   

TPF II Power LLC

    

Term Loan B, 5.500%, 10/02/21

     1,327,929        1,301,370   
   

 

 

  
      20,915,876   
   

 

 

  

Packaging & Containers—2.1%

  

Berry Plastics Holding Corp.

    

Term Loan E, 3.750%, 01/06/21

     4,123,000        4,072,320   

Term Loan F, 4.000%, 10/01/22

     1,071,060        1,063,897   

Hilex Poly Co. LLC

    

Term Loan B, 6.000%, 12/05/21

     2,630,125        2,631,222   

Multi Packaging Solutions, Inc.

    

Term Loan B, 4.250%, 09/30/20

     278,707        271,043   

Onex Wizard U.S. Acquisition, Inc.

    

Term Loan, 4.250%, 03/13/22

     2,708,294        2,673,232   

Reynolds Group Holdings, Inc.

    

Term Loan, 4.500%, 12/01/18

     5,206,251        5,161,915   

Signode Industrial Group U.S., Inc.

    

Term Loan B, 3.750%, 05/01/21

     1,079,167        1,040,047   

TricorBraun, Inc.

    

Term Loan B, 4.000%, 05/03/18

     573,945        569,162   
   

 

 

  
      17,482,838   
   

 

 

  

Pharmaceuticals—2.5%

  

Akorn, Inc.

    

Term Loan B, 6.000%, 04/16/21

     1,110,938        1,084,553   

Alkermes, Inc.

    

Term Loan, 3.500%, 09/18/19

     363,722        362,585   

Amneal Pharmaceuticals LLC

    

Term Loan, 4.501%, 11/01/19

     2,681,465        2,632,864   

Auris Luxembourg III S.a.r.l.

    

Term Loan B4, 4.250%, 01/15/22

     744,384        741,438   

DPx Holdings B.V.

    

Incremental Term Loan, 4.250%, 03/11/21

     2,905,750        2,807,681   

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of December 31, 2015

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Pharmaceuticals—(Continued)

  

Endo Luxembourg Finance Co. I S.a.r.l.

    

Term Loan B, 3.750%, 09/26/22

     2,650,000      $ 2,619,636   

Horizon Pharma, Inc.

    

Term Loan B, 4.500%, 05/07/21

     223,875        209,883   

Indivior Finance S.a.r.l.

    

Term Loan B, 7.000%, 12/19/19

     973,750        922,628   

Valeant Pharmaceuticals International, Inc.

    

Term Loan B, 3.750%, 12/11/19

     3,965,490        3,827,938   

Term Loan B, 3.750%, 08/05/20

     3,801,839        3,656,894   

Term Loan B F1, 4.000%, 04/01/22

     1,622,625        1,567,524   
   

 

 

  
      20,433,624   
   

 

 

  

Pipelines—0.2%

  

Energy Transfer Equity L.P.

    

Term Loan, 3.250%, 12/02/19

     1,825,000        1,648,583   

Term Loan, 4.000%, 12/02/19

     395,000        360,190   
   

 

 

  
      2,008,773   
   

 

 

  

Real Estate—1.4%

  

Auction.com LLC

    

Term Loan B, 6.000%, 05/08/22

     1,042,125        1,033,006   

DTZ U.S. Borrower LLC

    

1st Lien Term Loan, 4.250%, 11/04/21

     2,587,000        2,528,792   

MCS AMS Sub-Holdings LLC

    

Term Loan B, 7.500%, 10/15/19

     521,250        427,425   

RE/MAX International, Inc.

    

Term Loan B, 4.250%, 07/31/20

     1,585,841        1,560,071   

Realogy Corp.

    

Term Loan B, 3.750%, 03/05/20

     4,413,787        4,392,636   

RHP Hotel Properties L.P.

    

Term Loan B, 3.500%, 01/15/21

     664,875        664,148   

Starwood Property Trust, Inc.

    

Term Loan B, 3.500%, 04/17/20

     1,049,347        1,030,328   
   

 

 

  
      11,636,406   
   

 

 

  

Retail—6.5%

  

99 Cents Only Stores

    

Term Loan, 4.500%, 01/11/19

     2,031,460        1,340,763   

Ascena Retail Group, Inc.

    

Term Loan B, 5.250%, 08/21/22

     1,625,000        1,527,500   

Bass Pro Group LLC

    

Term Loan, 4.000%, 06/05/20

     1,146,517        1,104,956   

David’s Bridal, Inc.

    

Term Loan B, 5.250%, 10/11/19

     621,040        520,431   

Dollar Tree, Inc.

    

Term Loan B1, 3.500%, 07/06/22

     2,919,581        2,915,409   

Evergreen Acqco 1 L.P.

    

Term Loan, 5.000%, 07/09/19

     976,401        795,156   

General Nutrition Centers, Inc.

    

Term Loan, 3.250%, 03/04/19

     2,928,020        2,858,479   

Harbor Freight Tools USA, Inc.

    

1st Lien Term Loan, 4.750%, 07/26/19

     1,001,000        1,003,878   

J Crew Group, Inc.

    

Term Loan B, 4.000%, 03/05/21

     3,102,750        2,018,081   

Retail—(Continued)

  

Jo-Ann Stores, Inc.

    

Term Loan, 4.000%, 03/16/18

     2,599,576      2,430,603   

Landry’s, Inc.

    

Term Loan B, 4.000%, 04/24/18

     2,011,814        2,004,583   

Men’s Wearhouse, Inc. (The)

    

Term Loan B, 4.500%, 06/18/21

     939,886        837,282   

Michaels Stores, Inc.

    

Incremental Term Loan B2, 4.000%, 01/28/20

     811,029        807,608   

Term Loan B, 3.750%, 01/28/20

     2,437,500        2,414,953   

NBTY, Inc.

    

Term Loan B2, 3.500%, 10/01/17

     7,800,792        7,637,466   

Neiman Marcus Group, Inc. (The)

    

Term Loan, 4.250%, 10/25/20

     2,881,599        2,558,321   

P.F. Chang’s China Bistro, Inc.

    

Term Loan B, 4.250%, 07/02/19

     378,246        361,225   

Party City Holdings, Inc.

    

Term Loan B, 4.250%, 08/19/22

     2,693,250        2,621,712   

Pep Boys-Manny, Moe & Jack (The)

    

Term Loan B, 5.500%, 10/11/18

     436,500        436,358   

Petco Animal Supplies, Inc.

    

Term Loan, 4.000%, 11/24/17

     3,624,394        3,618,233   

PetSmart, Inc.

    

Term Loan B, 4.250%, 03/11/22

     4,800,875        4,690,604   

Pier 1 Imports (U.S.), Inc.

    

Term Loan B, 4.500%, 04/30/21

     1,512,075        1,391,109   

Pilot Travel Centers LLC

    

Term Loan B, 3.750%, 10/01/21

     1,472,618        1,478,141   

Rite Aid Corp.

    

2nd Lien Term Loan, 5.750%, 08/21/20

     450,000        452,344   

Serta Simmons Holdings LLC

    

Term Loan, 4.250%, 10/01/19

     4,681,550        4,666,920   

Toys “R” Us Property Co. I LLC

    

Term Loan B, 6.000%, 08/21/19

     1,509,232        1,363,339   
   

 

 

  
      53,855,454   
   

 

 

  

Semiconductors—1.9%

  

Avago Technologies Cayman, Ltd.

    

Term Loan B, 3.750%, 05/06/21

     7,051,081        7,046,674   

Entegris, Inc.

    

Term Loan B, 3.500%, 04/30/21

     352,492        349,995   

Lattice Semiconductor Corp.

    

Term Loan, 5.250%, 03/10/21

     2,064,625        1,961,394   

M/A-COM Technology Solutions Holdings, Inc.

    

Term Loan, 4.500%, 05/07/21

     492,500        491,269   

Microsemi Corp.

    

Term Loan B1, 3.250%, 02/19/20

     1,076,148        1,074,803   

Term Loan, 12/02/22 (d)

     965,000        984,688   

NXP B.V.

    

Term Loan B, 3.750%, 12/07/20

     1,675,000        1,669,765   

Term Loan D, 3.250%, 01/11/20

     2,077,188        2,049,665   
   

 

 

  
      15,628,253   
   

 

 

  

Software—5.5%

  

Activision Blizzard, Inc.

    

Term Loan B, 3.250%, 10/12/20

     2,616,250        2,617,885   

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of December 31, 2015

Floating Rate Loans (a)—(Continued)

 

Security Description  

Principal
Amount*

     Value  

Software—(Continued)

  

Campaign Monitor Finance Pty, Ltd.

    

1st Lien Term Loan, 6.250%, 03/18/21

     731,788      $ 720,812   

CCC Information Services, Inc.

    

Term Loan, 4.000%, 12/20/19

     828,268        815,499   

First Data Corp.

    

Extended Term Loan, 3.918%, 03/24/18

     4,848,844        4,794,295   

Term Loan, 3.918%, 09/24/18

     1,850,000        1,829,419   

Term Loan, 4.168%, 07/08/22

     775,000        764,759   

Global Healthcare Exchange LLC

    

Term Loan B, 5.500%, 08/15/22

     1,072,313        1,065,946   

GXS Group, Inc.

    

Term Loan B, 3.250%, 01/16/21

     1,004,500        1,001,235   

Hyland Software, Inc.

    

Term Loan, 4.750%, 07/01/22

     1,333,612        1,312,358   

Infor (U.S.), Inc.

    

Term Loan B3, 3.750%, 06/03/20

     428,590        403,812   

Term Loan B5, 3.750%, 06/03/20

     8,344,853        7,873,719   

Informatica Corp.

    

Term Loan, 4.500%, 08/05/22

     2,269,313        2,189,415   

ION Trading Finance, Ltd.

    

Term Loan B1, 4.250%, 06/10/21

     1,684,015        1,633,494   

Kronos, Inc.

    

Incremental Term Loan, 4.500%, 10/30/19

     5,210,174        5,138,534   

MA FinanceCo. LLC

    

Term Loan B, 5.250%, 11/19/21

     987,022        978,139   

Term Loan C, 4.500%, 11/20/19

     1,068,750        1,059,176   

Magic Newco LLC

    

1st Lien Term Loan, 5.000%, 12/12/18

     2,185,487        2,184,394   

MedAssets, Inc.

    

Term Loan B, 4.000%, 12/13/19

     345,058        343,333   

Mitel U.S. Holdings, Inc.

    

Term Loan, 5.500%, 04/29/22

     746,250        740,032   

Renaissance Learning, Inc.

    

1st Lien Term Loan, 4.500%, 04/09/21

     1,753,862        1,684,439   

Rocket Software, Inc.

    

Term Loan, 5.750%, 02/08/18

     404,140        402,372   

SS&C Technologies, Inc.

    

Term Loan B1, 4.007%, 07/08/22

     1,986,099        1,976,160   

Term Loan B2, 4.018%, 07/08/22

     292,286        290,823   

Sybil Software LLC

    

Term Loan B, 4.250%, 03/20/20

     1,091,884        1,087,334   

Vertafore, Inc.

    

1st Lien Term Loan, 4.250%, 10/03/19

     958,252        951,407   

Wall Street Systems Delaware, Inc.

    

Term Loan B, 4.500%, 04/30/21

     1,324,728        1,310,377   
   

 

 

  
      45,169,168   
   

 

 

  

Telecommunications—4.5%

  

CommScope, Inc.

    

Term Loan B4, 3.313%, 01/14/18

     623,512        621,953   

Term Loan B5, 3.827%, 12/29/22

     947,625        943,035   

Intelsat Jackson Holdings S.A.

    

Term Loan B2, 3.750%, 06/30/19

     8,125,000        7,706,562   

MCC Iowa LLC

    

Term Loan H, 3.250%, 01/29/21

     926,250        915,830   

Term Loan J, 3.750%, 06/30/21

     837,250        831,320   

Telecommunications—(Continued)

  

Neptune Finco Corp.

    

Term Loan B, 5.000%, 10/09/22

     3,750,000      3,749,666   

Syniverse Holdings, Inc.

    

Term Loan, 4.000%, 04/23/19

     1,751,683        1,300,625   

Term Loan B, 4.000%, 04/23/19

     1,892,898        1,405,477   

Telesat Canada

    

Term Loan B2, 3.500%, 03/28/19

     3,595,393        3,550,451   

UPC Financing Partnership

    

Term Loan AH, 3.250%, 06/30/21

     4,028,489        3,960,508   

Virgin Media Investment Holdings, Ltd.

    

Term Loan F, 3.500%, 06/30/23

     4,773,094        4,679,623   

West Corp.

    

Term Loan B10, 3.250%, 06/30/18

     4,540,400        4,472,294   

Windstream Corp.

    

Term Loan B5, 3.500%, 08/08/19

     870,975        845,571   

Ziggo Financing Partnership

    

Term Loan B1, 3.500%, 01/15/22

     961,447        935,533   

Term Loan B2A, 3.500%, 01/15/22

     619,574        602,875   

Term Loan B3, 3.500%, 01/15/22

     1,018,979        991,514   
   

 

 

  
      37,512,837   
   

 

 

  

Trading Companies & Distributors—0.1%

  

Solenis International L.P.

    

1st Lien Term Loan, 4.250%, 07/31/21

     296,250        284,894   

STS Operating, Inc.

    

Term Loan, 4.750%, 02/12/21

     319,313        301,750   
   

 

 

  
      586,644   
   

 

 

  

Transportation—0.1%

  

Atlantic Aviation FBO, Inc.

    

Term Loan B, 3.250%, 06/01/20

     634,932        629,377   

Kenan Advantage Group, Inc.

    

Delayed Draw Term Loan,
1.500%, 01/23/17 (f)

     47,872        47,274   

Term Loan, 4.000%, 07/31/22

     341,933        337,658   

Term Loan B, 4.000%, 07/31/22

     109,065        107,701   
   

 

 

  
      1,122,010   
   

 

 

  

Wireless Telecommunication Services—0.2%

  

SBA Senior Finance II LLC

    

Term Loan B1, 3.250%, 03/24/21

     1,945,375        1,907,987   
   

 

 

  

Total Floating Rate Loans
(Cost $831,317,937)

       777,263,831   
   

 

 

  
Common Stocks—0.0%                

Commercial Services—0.0%

  

Education Management Holding
LLC (b) (c) (g) (h)

     3,109,136        0   

IAP Worldwide Services LLC (b) (c) (g) (h)

     44        92,744   
   

 

 

  
      92,744   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares/
Principal
Amount*		     Value  

Health Care Providers & Services—0.0%

  

Millennium Health LLC (b) (c) (g) (h)

     31,600      $ 274,288   
   

 

 

  

Total Common Stocks
(Cost $459,290)

       367,032   
   

 

 

  
Preferred Stock—0.0%                

Commercial Services—0.0%

  

Education Management Corp. (b) (c) (g) (h)
(Cost $244,125)

     3,459        46,454   
   

 

 

  
Corporate Bonds & Notes—0.0%                

Aerospace/Defense—0.0%

  

Erickson Air-Crane, Inc.

    

6.000%, 11/02/20 (b) (c)
(Cost $46,013)

     55,446        24,108   
   

 

 

  
Short-Term Investment—5.1%                

Repurchase Agreement—5.1%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $41,963,349 on 01/04/16, collateralized by $42,700,000 U.S. Treasury Note at 1.625% due 06/30/20 with a value of $42,806,750.

     41,963,209        41,963,209   
   

 

 

  

Total Short-Term Investments
[cost $41,963,209)

       41,963,209   
   

 

 

  

Total Investments—99.2%
(Cost $874,030,574)

       819,664,634   

Unfunded Loan Commitments—(0.0)%
(Cost $(47,872))

       (47,872 ) 

Net Investments—99.2%
(Cost $873,982,702) (i)

       819,616,762   

Other assets and liabilities (net)—0.8%

       6,691,802   
   

 

 

  
Net Assets—100.0%     $ 826,308,564   
   

 

 

  

 

* 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 December 31, 2015, these securities represent 0.7% of net assets.
(c) Illiquid security. As of December 31, 2015, these securities represent 0.1% of net assets.
(d) This loan will settle after December 31, 2015, at which time the interest rate will be determined.
(e) Non-income producing; security is in default and/or issuer is in bankruptcy.
(f) 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.
(g) Security was acquired in connection with a restructuring of a senior loan and may be subject to restrictions on resale.
(h) Non-income producing security.
(i) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $874,224,119. The aggregate unrealized appreciation and depreciation of investments were $545,867 and $(55,153,224), respectively, resulting in net unrealized depreciation of $(54,607,357) for federal income tax purposes.
(LOC)— Letter of Credit

 

See accompanying notes to financial statements.

 

MIST-15

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2      Level 3      Total  
Floating Rate Loans            

Advertising

    $ —         $ 3,181,699       $ —         $ 3,181,699   

Aerospace/Defense

      —           17,490,281         —           17,490,281   

Auto Components

      —           8,630,121         —           8,630,121   

Auto Manufacturers

      —           8,879,659         —           8,879,659   

Auto Parts & Equipment

      —           7,877,309         —           7,877,309   

Beverages

      —           671,250         —           671,250   

Biotechnology

      —           1,025,071         —           1,025,071   

Building Materials

      —           2,843,848         —           2,843,848   

Capital Markets

      —           7,714,352         2,367,223         10,081,575   

Chemicals

      —           46,268,467         —           46,268,467   

Coal

      —           4,336,695         —           4,336,695   

Commercial Services

      —           45,933,620         724,793         46,658,413   

Computers

      —           3,459,276         502,543         3,961,819   

Construction Materials

      —           1,468,240         —           1,468,240   

Cosmetics/Personal Care

      —           3,640,605         —           3,640,605   

Distribution/Wholesale

      —           1,352,654         —           1,352,654   

Distributors

      —           222,291         —           222,291   

Diversified Consumer Services

      —           1,385,730         —           1,385,730   

Diversified Financial Services

      —           26,000,507         —           26,000,507   

Electric

      —           19,563,180         —           19,563,180   

Electrical Components & Equipment

      —           10,692,440         —           10,692,440   

Electronics

      —           13,132,810         —           13,132,810   

Energy Equipment & Services

      —           3,038,554         —           3,038,554   

Engineering & Construction

      —           734,658         —           734,658   

Entertainment

      —           14,538,699         —           14,538,699   

Environmental Control

      —           1,914,338         —           1,914,338   

Food

      —           43,268,196         —           43,268,196   

Hand/Machine Tools

      —           2,734,731         —           2,734,731   

Healthcare-Products

      —           23,341,807         989,855         24,331,662   

Healthcare-Services

      —           51,241,023         —           51,241,023   

Home Furnishings

      —           456,689         —           456,689   

Hotels, Restaurants & Leisure

      —           4,683,681         —           4,683,681   

Household Products/Wares

      —           10,278,784         —           10,278,784   

Industrial Conglomerates

      —           1,848,618         —           1,848,618   

Insurance

      —           22,083,229         —           22,083,229   

Internet

      —           19,117,779         —           19,117,779   

 

See accompanying notes to financial statements.

 

MIST-16

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of December 31, 2015

Fair Value Hierarchy—(Continued)

 

Description    Level 1      Level 2      Level 3      Total  

Internet Software & Services

    $ —         $ 3,471,912       $ —         $ 3,471,912   

Leisure Products

      —           973,304         —           973,304   

Leisure Time

      —           8,182,130         —           8,182,130   

Lodging

      —           11,212,473         147,553         11,360,026   

Machinery

      —           8,901,632         —           8,901,632   

Machinery-Diversified

      —           7,050,481         —           7,050,481   

Marine

      —           1,917,413         —           1,917,413   

Media

      —           40,353,701         371,700         40,725,401   

Metal Fabricate/Hardware

      —           10,034,777         —           10,034,777   

Mining

      —           11,387,931         —           11,387,931   

Miscellaneous Manufacturing

      —           4,944,105         —           4,944,105   

Multi-Utilities

      —           419,544         —           419,544   

Oil & Gas

      —           20,915,876         —           20,915,876   

Packaging & Containers

      —           17,482,838         —           17,482,838   

Pharmaceuticals

      —           20,433,624         —           20,433,624   

Pipelines

      —           2,008,773         —           2,008,773   

Real Estate

      —           11,636,406         —           11,636,406   

Retail

      —           53,855,454         —           53,855,454   

Semiconductors

      —           15,628,253         —           15,628,253   

Software

      —           45,169,168         —           45,169,168   

Telecommunications

      —           37,512,837         —           37,512,837   

Trading Companies & Distributors

      —           586,644         —           586,644   

Transportation (Less Unfunded Loan Commitments of $47,872)

      —           1,074,138         —           1,074,138   

Wireless Telecommunication Services

      —           1,907,987         —           1,907,987   

Total Floating Rate Loans (Less Unfunded Loan Commitments)

      —           772,112,292         5,103,667         777,215,959   

Total Common Stocks*

      —           —           367,032         367,032   

Total Preferred Stock*

      —           —           46,454         46,454   

Total Corporate Bonds & Notes*

      —           —           24,108         24,108   

Total Short-Term Investment*

      —           41,963,209         —           41,963,209   

Total Net Investments

    $ —         $ 814,075,501       $ 5,541,261       $ 819,616,762   
                                     

 

* 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,
2014		     Accrued
Discounts/
(Premiums)		     Realized
Gain		     Change in
Unrealized
Appreciation/
(Depreciation)		     Purchases     Sales     Transfers
into
Level 3		     Balance
as of
December 31,
2015		     Change in
Unrealized
Appreciation/
(Depreciation)
from
Investments
Still Held at
December 31,
2015		  
Floating Rate Loans                  

Capital Markets

   $ —      $ 9,224      $ 28,338      $ (693,164 )    $ 991,250      $ (249,433 ) (a)    $ 2,281,008      $ 2,367,223      $ (693,164 ) 

Commercial Services

     273,178        21,734        539        (483,470 )      668,221        (3,433 ) (a)      248,024        724,793        (483,470 ) 

Computers

     —        6,120        1,290        (18,734 )      —        (46,875 ) (a)      560,742        502,543        (18,734 ) 

Healthcare-Products

     —        554        —        (554 )      989,855        —        —        989,855        (554 ) 

Lodging

     57,109        56,114        1,487        5,525        35,503        (8,185 ) (a)      —        147,553        6,021   

Media

     688,968        2,142        8,089        (18,162 )      —        (730,625 ) (a)      421,288        371,700        (39,760 ) 
Preferred Stocks                  

Commercial Services

     —        —        —        (197,670 )      244,124        —        —        46,454        (197,670 ) 
Common Stocks                  

Commercial Services

     41,963        —        —        (82,082 )      132,863        —        —        92,744        (82,082 ) 

Health Care Providers & Services

     —        —        —        —        274,288        —        —        274,288        —   

 

See accompanying notes to financial statements.

 

MIST-17

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of December 31, 2015

Fair Value Hierarchy—(Continued)

 

Investments in
Securities

   Balance as of
December 31,
2014		     Accrued
Discounts/
(Premiums)		     Realized
Gain		     Change in
Unrealized
Appreciation/
(Depreciation)		     Purchases     Sales     Transfers
into
Level 3		     Balance
as of
December 31,
2015		     Change in
Unrealized
Appreciation/
(Depreciation)
from
Investments
Still Held at
December 31,
2015		  
Corporate Bonds & Notes                  

Aerospace/
Defense

   $ 46,941      $ 1,690      $ 2,957      $ (11,052 )    $ —      $ (16,428 ) (a)    $ —      $ 24,108      $ (11,052 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  $ 1,108,159      $ 97,578      $ 42,700      $ (1,499,363 )    $ 3,336,104      $ (1,054,979 )    $ 3,511,062      $ 5,541,261      $ (1,520,465 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Sales include principal reductions

Floating Rate Loans in the amount of $3,511,062 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.

 

See accompanying notes to financial statements.

 

MIST-18

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 819,616,762   

Cash

      9,765,577   

Receivable for:

   

Principal paydowns

      103,596   

Fund shares sold

      3,595   

Interest

      2,390,587   

Prepaid expenses

      2,387   
  

 

 

  

Total Assets

      831,882,504   

Liabilities

   

Payables for:

   

Investments purchased

      4,720,399   

Fund shares redeemed

      91,603   

Accrued Expenses:

   

Management fees

      425,076   

Distribution and service fees

      20,966   

Deferred trustees’ fees

      72,603   

Other expenses

      243,293   
  

 

 

  

Total Liabilities

      5,573,940   
  

 

 

  

Net Assets

    $ 826,308,564   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 853,553,198   

Undistributed net investment income

      33,349,203   

Accumulated net realized loss

      (6,227,897 ) 

Unrealized depreciation on investments

      (54,365,940 ) 
  

 

 

  

Net Assets

    $ 826,308,564   
  

 

 

  

Net Assets

   

Class A

    $ 728,330,808   

Class B

      97,977,756   

Capital Shares Outstanding*

   

Class A

      73,847,239   

Class B

      9,997,331   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 9.86   

Class B

      9.80   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $873,982,702.
(b) Investments at value is net of unfunded loan commitments of $47,872.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Interest

    $ 39,799,543   
  

 

 

  

Total investment income

      39,799,543   

Expenses

   

Management fees

      5,333,906   

Administration fees

      21,644   

Custodian and accounting fees

      341,114   

Distribution and service fees—Class B

      264,781   

Audit and tax services

      118,367   

Legal

      26,460   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      32,099   

Insurance

      5,716   

Miscellaneous

      14,607   
  

 

 

  

Total expenses

      6,193,867   
  

 

 

  

Net Investment Income

      33,605,676   
  

 

 

  

Net Realized and Unrealized Loss

   
Net realized loss on investments      (4,936,206 ) 
  

 

 

  
Net change in unrealized depreciation on investments      (32,715,787 ) 
  

 

 

  

Net realized and unrealized loss

      (37,651,993 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (4,046,317 ) 
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-19

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 33,605,676      $ 33,566,794   

Net realized loss

      (4,936,206 )      (1,237,749 ) 

Net change in unrealized depreciation

      (32,715,787 )      (23,377,536 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (4,046,317 )      8,951,509   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (29,660,064 )      (31,272,718 ) 

Class B

      (3,810,981 )      (4,260,389 ) 

Net realized capital gains

     

Class A

      0        (3,693,628 ) 

Class B

      0        (529,606 ) 
  

 

 

    

 

 

  

Total distributions

      (33,471,045 )      (39,756,341 ) 
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (39,238,626 )      (54,958,948 ) 
  

 

 

    

 

 

  

Total decrease in net assets

      (76,755,988 )      (85,763,780 ) 

Net Assets

     

Beginning of period

      903,064,552        988,828,332   
  

 

 

    

 

 

  

End of period

    $ 826,308,564      $ 903,064,552   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 33,349,203      $ 33,214,572   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      672,118      $ 6,962,687        3,069,597      $ 31,906,634   

Reinvestments

      2,925,056        29,660,064        3,404,708        34,966,346   

Redemptions

      (6,728,533 )      (68,769,213 )      (11,413,749 )      (117,482,370 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (3,131,359 )    $ (32,146,462 )      (4,939,444 )    $ (50,609,390 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      1,793,076      $ 18,308,603        2,469,832      $ 25,823,648   

Reinvestments

      377,699        3,810,981        468,689        4,789,995   

Redemptions

      (2,873,858 )      (29,211,748 )      (3,380,126 )      (34,963,201 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (703,083 )    $ (7,092,164 )      (441,605 )    $ (4,349,558 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (39,238,626 )      $ (54,958,948 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-20

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Financial Highlights

 

Selected per share data       
     Class A  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 10.31       $ 10.63       $ 10.69       $ 10.34       $ 10.34   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.39         0.37         0.42         0.46         0.42   

Net realized and unrealized gain (loss) on investments

      (0.45 )       (0.26 )       0.01         0.30         (0.18 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.06 )       0.11         0.43         0.76         0.24   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.39 )       (0.38 )       (0.44 )       (0.38 )       (0.21 ) 

Distributions from net realized capital gains

      0.00         (0.05 )       (0.05 )       (0.03 )       (0.03 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.39 )       (0.43 )       (0.49 )       (0.41 )       (0.24 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 9.86       $ 10.31       $ 10.63       $ 10.69       $ 10.34   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (0.66 )       1.01         4.13         7.51         2.33   

Ratios/Supplemental Data

               

Ratio of expenses to average net assets (%)

      0.67         0.67         0.67         0.68         0.68   

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

      3.83         3.59         3.95         4.42         4.10   

Portfolio turnover rate (%)

      23         30         40         42         40   

Net assets, end of period (in millions)

    $ 728.3       $ 793.5       $ 871.0       $ 759.9       $ 706.2   
     Class B  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 10.24       $ 10.58       $ 10.64       $ 10.29       $ 10.32   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.36         0.35         0.39         0.44         0.40   

Net realized and unrealized gain (loss) on investments

      (0.43 )       (0.28 )       0.02         0.30         (0.19 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.07 )       0.07         0.41         0.74         0.21   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.37 )       (0.36 )       (0.42 )       (0.36 )       (0.21 ) 

Distributions from net realized capital gains

      0.00         (0.05 )       (0.05 )       (0.03 )       (0.03 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.37 )       (0.41 )       (0.47 )       (0.39 )       (0.24 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 9.80       $ 10.24       $ 10.58       $ 10.64       $ 10.29   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (0.83 )       0.74         3.84         7.33         2.01   

Ratios/Supplemental Data

               

Ratio of expenses to average net assets (%)

      0.92         0.92         0.92         0.93         0.93   

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

      3.58         3.34         3.67         4.18         3.86   

Portfolio turnover rate (%)

      23         30         40         42         40   

Net assets, end of period (in millions)

    $ 98.0       $ 109.6       $ 117.8       $ 71.4       $ 56.4   

 

(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.

 

See accompanying notes to financial statements.

 

MIST-21

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 and subject to general oversight by the Board. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity

 

MIST-22

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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.

Futures contracts that 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.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 has no permanent book-tax differences at December 31, 2015.

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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

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, 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. The purchase of assignments will typically result in the Portfolio having a direct contractual relationship with the borrower, and the Portfolio may enforce compliance by the borrower with the terms of the loan agreement.

The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments it acquires direct rights against the borrower of the loan. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing.

 

MIST-23

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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.

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 December 31, 2015, the Portfolio had open unfunded loan commitments of $47,872. At December 31, 2015, the Portfolio had sufficient cash and/or securities to cover these commitments.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $41,963,209, 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 December 31, 2015.

3. Certain Risks

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”).

Market 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, 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 195,397,631       $ 0       $ 254,375,892   

 

MIST-24

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
Metlife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$5,333,906      0.625 %    First $100 million
     0.600 %    Over $100 million

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Eaton Vance Management is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

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, LLC, 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 year ended December 31, 2015 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 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$33,471,045    $ 36,723,835       $ —       $ 3,032,506       $ 33,471,045       $ 39,756,341   

 

MIST-25

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

As of December 31, 2015, 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		     Other
Accumulated
Capital Losses		     Total  
$33,421,806    $ —       $ (54,607,357 )    $ (5,986,480 )    $ (27,172,031 ) 

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, 2015, the Portfolio had post-enactment long-term accumulated capital losses of $5,986,480.

 

MIST-26

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Met/Eaton Vance Floating Rate 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 Met/Eaton Vance Floating Rate Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian, brokers, and agent banks; when replies were not received from brokers or agent banks, 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 Met/Eaton Vance Floating Rate Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-27

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-28

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-29

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-30

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-31

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

Met/Eaton Vance Floating Rate Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Eaton Vance Management regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of one of its Performance Universes and its Lipper Index for the one-year period ended June 30, 2015, and underperformed the median of the same Performance Universe and Lipper Index for the three- and five-year periods ended June 30, 2015. The Board also considered that the Portfolio outperformed the median of its other Performance Universe for the one- and five-year periods ended June 30, 2015 and performed equal to the median of its other Performance Universe for the three-year period ended June 30, 2015. The Board further considered that the Portfolio outperformed its benchmark, the S&P/LSTA Leveraged Loan Index, for the one-year period ended October 31, 2015, and underperformed its benchmark for the three- and five-year periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees were above the Expense Group median, Expense Universe median, and Sub-advised Expense Universe median. The Board noted that the Portfolio’s total expenses (exclusive of 12b-l fees) were below the median of the Expense Universe and Sub-advised Expense Universe, and were equal to the median of the Expense Group. The Board further noted that the Portfolio’s contractual management fees were above the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also took into account that the Portfolio’s contractual sub-advisory fees were above the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-32

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Managed by Franklin Advisers, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A and B shares of the Met/Franklin Low Duration Total Return Portfolio returned -0.26% and -0.62%, respectively. The Portfolio’s benchmark, the Barclays U.S. Government/Credit 1-3 Year Bond Index1, returned 0.65%.

MARKET ENVIRONMENT / CONDITIONS

The U.S. economy grew moderately during the 12 months under review amid healthy consumer spending. After a modest start in 2015, the economy strengthened in the second quarter but moderated in the third quarter as exports slowed and state and local governments reduced their spending. As new jobs were created, the unemployment rate fell to 5.0%, the lowest level in more than seven years. Annual inflation, as measured by the Consumer Price Index, remained subdued largely due to low energy prices.

After maintaining a near-zero interest rate for seven years to support the U.S. economy’s recovery, the Federal Reserve (the “Fed”) raised the Federal Funds rate to 0.25%–0.50% at its December meeting. Policymakers cited the labor market’s considerable improvement and were reasonably confident that inflation would move back to the Fed’s 2% medium-term objective.

The 10-year Treasury yield, which moves inversely to price, began the period at 2.17% and ended the period at 2.27%. For much of the year, yield movements to the downside appeared to reflect investor uncertainty given concerns about domestic data, geopolitical tensions, the Fed’s timing for raising interest rates, and events in China. However, near period end, decreasing concerns over China’s economy and the Fed’s decision to increase interest rates supported Treasury yields.

PORTFOLIO REVIEW / PERIOD END POSITIONING

During the period, the Portfolio’s selection within Commercial Mortgage-Backed Securities (“CMBS”) benefited performance. Exposure to non-U.S. yield curves and Non-Agency Residential MBS (“RMBS”) also contributed to results. In contrast, the Portfolio’s exposure to High Yield Corporate Credit, Investment-Grade Corporate Bonds, and foreign currencies detracted from results. The Portfolio’s defensive U.S. yield curve positioning was another detractor as yield curve movements had a negative impact relative to the benchmark.

Over the period, we increased the Portfolio’s allocations to High Yield and Investment-Grade Corporate Credit and RMBS. We decreased the Portfolio’s exposure to certain Treasury positions, some securitized sectors including Asset-Backed Securities and CMBS, as well as foreign currencies and assets denominated in foreign currencies.

In addition, the Portfolio employed derivatives as a tool in seeking efficient management of certain risks. We used derivatives to manage portfolio duration, credit risk, and currency exposures. During the period, the use of derivatives provided exposures through means that we believed to be advantageous to the Portfolio.

At period end, the Portfolio remained overweight compared to the benchmark 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. Accordingly, at period end, the Portfolio’s heaviest allocation was in Investment-Grade Corporate debt securities, followed by RMBS and U.S. Treasuries.

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, 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 subject to change at any time based upon economic, market, or other conditions and the advisory 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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/Franklin Low Duration Total Return Portfolio

A $10,000 INVESTMENT COMPARED TO THE BARCLAYS U.S. GOVERNMENT/CREDIT 1-3 YEAR BOND INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        Since Inception2  
Met/Franklin Low Duration Total Return Portfolio            

Class A

        -0.26           1.22   

Class B

        -0.62           0.96   
Barclays U.S. Government/Credit 1-3 Year Bond Index        0.65           0.91   

1 The Barclays U.S. Government/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 date of the Class A and B shares is 4/29/2011. Index since inception return is based on the Portfolio’s inception date.

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 DECEMBER 31, 2015

Top Sectors

 

     % of
Net Assets		  
Corporate Bonds & Notes      44.8   
Asset-Backed Securities      16.6   
Mortgage-Backed Securities      13.1   
U.S. Treasury & Government Agencies      12.7   
Floating Rate Loans      5.1   
Foreign Government      3.9   
Municipals      1.5   

 

MIST-2

Met Investors Series Trust

Met/Franklin Low Duration Total Return 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual      0.52 %     $ 1,000.00         $ 989.70         $ 2.61   
   Hypothetical*      0.52 %     $ 1,000.00         $ 1,022.58         $ 2.65   

Class B(a)

    Actual      0.77 %     $ 1,000.00         $ 988.60         $ 3.86   
   Hypothetical*      0.77 %     $ 1,000.00         $ 1,021.32         $ 3.92   

* 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 (184 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

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—44.8% of Net Assets

 

Security Description   Principal
Amount*		     Value  

Aerospace/Defense—0.2%

  

Lockheed Martin Corp.
1.850%, 11/23/18

     2,500,000      $ 2,495,580   
   

 

 

  

Agriculture—0.8%

  

Altria Group, Inc.
2.625%, 01/14/20

     3,900,000        3,907,242   

Japan Tobacco, Inc.
2.100%, 07/23/18 (144A)

     4,000,000        3,996,840   

Reynolds American, Inc.
2.300%, 06/12/18

     4,000,000        4,025,124   
   

 

 

  
      11,929,206   
   

 

 

  

Auto Manufacturers—0.6%

  

Ford Motor Credit Co. LLC
2.597%, 11/04/19

     3,000,000        2,945,514   

3.157%, 08/04/20

     5,000,000        4,982,480   

General Motors Financial Co., Inc.
2.625%, 07/10/17

     1,100,000        1,103,355   
   

 

 

  
      9,031,349   
   

 

 

  

Auto Parts & Equipment—0.4%

  

Delphi Automotive plc
3.150%, 11/19/20

     6,200,000        6,191,983   
   

 

 

  

Banks—14.2%

  

ANZ New Zealand International, Ltd.
2.850%, 08/06/20 (144A)

     4,600,000        4,638,635   

Banca Monte dei Paschi di Siena S.p.A.
2.875%, 04/16/21 (EUR)

     4,100,000        4,807,316   

Banco Comercial Portugues S.A.
4.750%, 06/22/17 (EUR)

     1,800,000        2,075,111   

Bank of America Corp.
1.361%, 01/15/19 (a)

     6,600,000        6,624,229   

2.600%, 01/15/19

     2,500,000        2,508,147   

2.650%, 04/01/19

     4,000,000        4,009,756   

Bank of New York Mellon Corp. (The)
1.234%, 08/17/20 (a)

     3,900,000        3,907,348   

Bankinter S.A.
1.750%, 06/10/19 (EUR)

     3,800,000        4,242,925   

BB&T Corp.
0.989%, 02/01/19 (a)

     8,000,000        7,930,664   

2.050%, 06/19/18 (b)

     1,000,000        1,005,685   

CIT Group, Inc.
3.875%, 02/19/19

     3,000,000        2,985,000   

4.250%, 08/15/17

     700,000        715,750   

5.000%, 05/15/17

     400,000        412,000   

5.250%, 03/15/18

     500,000        516,250   

Citigroup, Inc.
0.747%, 06/09/16 (a)

     6,400,000        6,381,146   

1.088%, 04/08/19 (a)

     1,600,000        1,589,326   

2.400%, 02/18/20

     4,600,000        4,546,180   

Credit Suisse AG
0.897%, 05/26/17 (a)

     3,900,000        3,885,527   

Depfa ACS Bank
1.650%, 12/20/16 (JPY)

     350,000,000        2,936,005   

2.125%, 10/13/17 (CHF)

     2,750,000        2,853,883   

Banks—(Continued)

  

Deutsche Bank AG
1.680%, 08/20/20 (a)

     4,600,000      4,606,537   

Fifth Third Bank
0.874%, 11/18/16 (a)

     7,300,000        7,298,949   

Goldman Sachs Group, Inc. (The)
1.712%, 09/15/20 (a)

     7,000,000        7,015,232   

HSBC Bank Brasil S.A. - Banco Multiplo
4.000%, 05/11/16 (144A)

     4,200,000        4,210,500   

HSBC USA, Inc.
2.000%, 08/07/18

     4,600,000        4,598,855   

Industrial & Commercial Bank of China, Ltd.
3.231%, 11/13/19

     4,000,000        4,064,992   

ING Bank NV
1.302%, 10/01/19 (144A) (a)

     6,300,000        6,265,690   

Intesa Sanpaolo S.p.A.
0.064%, 05/18/17 (EUR) (a)

     1,100,000        1,190,528   

2.375%, 01/13/17

     1,000,000        1,003,252   

3.875%, 01/16/18

     3,900,000        3,999,107   

3.875%, 01/15/19

     6,100,000        6,280,719   

JPMorgan Chase & Co.
1.220%, 01/25/18 (a)

     8,000,000        8,016,456   

2.200%, 10/22/19

     7,000,000        6,943,307   

Morgan Stanley
1.463%, 01/27/20 (a) (b)

     7,900,000        7,916,882   

MUFG Union Bank N.A.
1.353%, 09/26/16 (a)

     2,000,000        1,999,974   

National Australia Bank, Ltd.
1.875%, 07/23/18

     4,700,000        4,685,566   

Norddeutsche Landesbank Girozentrale
2.000%, 02/05/19 (144A)

     4,000,000        3,987,280   

Nykredit Realkredit A/S
2.000%, 04/01/16 (DKK)

     74,183,000        10,848,486   

Regions Financial Corp.
2.000%, 05/15/18

     3,200,000        3,177,386   

Royal Bank of Canada
2.100%, 10/14/20

     3,700,000        3,635,775   

Royal Bank of Scotland plc (The)
6.934%, 04/09/18 (EUR)

     1,800,000        2,190,356   

Svenska Handelsbanken AB
1.016%, 06/17/19 (a)

     4,500,000        4,458,789   

UniCredit S.p.A.
0.902%, 04/10/17 (EUR) (a)

     2,300,000        2,513,942   

Unione di Banche Italiane S.p.A
2.875%, 02/18/19 (EUR)

     3,600,000        4,105,559   

Wachovia Corp.
0.691%, 10/15/16 (a)

     8,500,000        8,484,283   

Wells Fargo & Co.
1.200%, 07/22/20 (a)

     7,800,000        7,771,530   

Westpac Banking Corp.
2.250%, 11/09/20 (144A)

     3,700,000        3,652,063   

Woori Bank
4.750%, 04/30/24 (144A)

     3,900,000        3,977,953   
   

 

 

  
      207,470,831   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-4

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Beverages—0.6%

  

Coca-Cola Femsa S.A.B. de C.V.
2.375%, 11/26/18 (b)

     4,000,000      $ 3,994,188   

Constellation Brands, Inc.
3.875%, 11/15/19 (b)

     1,700,000        1,746,750   

7.250%, 09/01/16

     2,000,000        2,070,000   

Pernod Ricard S.A.
2.125%, 09/27/24 (EUR)

     300,000        330,840   
   

 

 

  
      8,141,778   
   

 

 

  

Biotechnology—0.9%

    

Amgen, Inc.
0.978%, 05/22/19 (a)

     6,200,000        6,135,842   

Biogen, Inc.
2.900%, 09/15/20

     4,500,000        4,488,170   

Celgene Corp.
2.300%, 08/15/18 (b)

     3,000,000        3,020,892   
   

 

 

  
      13,644,904   
   

 

 

  

Chemicals—0.1%

    

Arkema S.A.
1.500%, 01/20/25 (EUR)

     1,300,000        1,357,301   
   

 

 

  

Coal—0.0%

    

Peabody Energy Corp.
10.000%, 03/15/22 (144A)

     2,000,000        380,000   
   

 

 

  

Computers—1.0%

    

Apple, Inc.
0.584%, 05/03/18 (a)

     9,000,000        8,981,154   

Dell, Inc.
3.100%, 04/01/16 (b)

     1,500,000        1,503,750   

Hewlett Packard Enterprise Co.
2.543%, 10/05/18 (144A) (a)

     4,500,000        4,511,812   
   

 

 

  
      14,996,716   
   

 

 

  

Cosmetics/Personal Care—0.1%

    

Colgate-Palmolive Co.
0.900%, 05/01/18

     2,000,000        1,980,240   
   

 

 

  

Diversified Financial Services—1.1%

    

AerCap Ireland Capital, Ltd. / AerCap Global Aviation Trust
4.250%, 07/01/20

     1,000,000        1,007,500   

Capital One Bank USA N.A.
2.300%, 06/05/19

     5,900,000        5,826,775   

Navient Corp.
5.500%, 01/15/19

     3,000,000        2,805,000   

8.450%, 06/15/18

     500,000        526,250   

Seven & Seven, Ltd.
1.539%, 09/11/19 (144A) (a)

     1,280,000        1,277,059   

Springleaf Finance Corp.
5.750%, 09/15/16

     3,000,000        3,037,500   

6.000%, 06/01/20

     1,000,000        950,000   
   

 

 

  
      15,430,084   
   

 

 

  

Electric—1.4%

    

Dominion Resources, Inc.
2.500%, 12/01/19

     1,900,000      1,892,977   

DPL, Inc.
6.500%, 10/15/16

     1,131,000        1,131,000   

Engie S.A.
1.625%, 10/10/17 (144A) (b)

     1,000,000        994,589   

Korea Western Power Co., Ltd.
3.125%, 05/10/17 (144A)

     3,100,000        3,145,716   

NRG Energy, Inc.
7.625%, 01/15/18

     1,400,000        1,459,500   

Southern Co. (The)
2.450%, 09/01/18

     3,000,000        3,023,340   

State Grid Overseas Investment, Ltd.
1.750%, 05/22/18 (144A)

     2,000,000        1,982,512   

2.750%, 05/07/19 (144A)

     1,100,000        1,111,282   

Talen Energy Supply LLC
6.200%, 05/15/16

     6,000,000        5,992,500   
   

 

 

  
      20,733,416   
   

 

 

  

Food—0.9%

    

Casino Guichard Perrachon S.A.
3.311%, 01/25/23 (EUR)

     800,000        852,688   

Kraft Foods Group, Inc.
2.250%, 06/05/17

     3,000,000        3,021,678   

Kraft Heinz Foods Co.
2.000%, 07/02/18 (144A)

     4,000,000        3,981,120   

Mondelez International, Inc.
0.849%, 02/01/19 (a)

     2,000,000        1,964,868   

Tyson Foods, Inc.
2.650%, 08/15/19

     3,400,000        3,401,884   
   

 

 

  
      13,222,238   
   

 

 

  

Forest Products & Paper—0.0%

    

Verso Paper Holdings LLC / Verso Paper, Inc.
11.750%, 01/15/19

     108,000        16,200   
   

 

 

  

Gas—0.4%

    

Sempra Energy
2.850%, 11/15/20

     5,700,000        5,696,420   
   

 

 

  

Healthcare-Products—0.5%

    

Becton Dickinson & Co.
2.675%, 12/15/19

     4,000,000        4,021,776   

Edwards Lifesciences Corp.
2.875%, 10/15/18

     1,400,000        1,416,243   

Zimmer Biomet Holdings, Inc.
2.700%, 04/01/20

     2,500,000        2,468,580   
   

 

 

  
      7,906,599   
   

 

 

  

Healthcare-Services—0.6%

    

HCA, Inc.
4.250%, 10/15/19

     800,000        816,000   

Laboratory Corp. of America Holdings
2.200%, 08/23/17

     1,000,000        1,003,521   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Healthcare-Services—(Continued)

    

Tenet Healthcare Corp.
5.500%, 03/01/19

     7,000,000      $ 6,597,500   
   

 

 

  
      8,417,021   
   

 

 

  

Holding Companies-Diversified—0.2%

    

Hutchison Whampoa International, Ltd.
1.625%, 10/31/17 (144A)

     3,200,000        3,171,754   
   

 

 

  

Home Builders—2.3%

    

Beazer Homes USA, Inc.
5.750%, 06/15/19 (b)

     16,500,000        15,180,000   

8.125%, 06/15/16

     3,000,000        3,045,000   

Centex LLC
6.500%, 05/01/16

     6,000,000        6,060,000   

DR Horton, Inc.
5.625%, 01/15/16

     3,425,000        3,425,000   

Lennar Corp.
6.950%, 06/01/18

     5,500,000        5,912,500   
   

 

 

  
      33,622,500   
   

 

 

  

Insurance—1.9%

  

Jackson National Life Global Funding
2.300%, 04/16/19 (144A)

     6,000,000        5,955,624   

Metropolitan Life Global Funding I
3.875%, 04/11/22 (144A)

     1,500,000        1,564,702   

New York Life Global Funding
2.100%, 01/02/19 (144A)

     4,000,000        4,005,224   

2.150%, 06/18/19 (144A)

     5,000,000        4,995,995   

Pricoa Global Funding I
2.550%, 11/24/20 (144A)

     3,700,000        3,682,403   

Prudential Financial, Inc.
1.142%, 08/15/18 (a)

     3,000,000        2,998,857   

TIAA Asset Management Finance Co. LLC
2.950%, 11/01/19 (144A)

     3,900,000        3,907,773   
   

 

 

  
      27,110,578   
   

 

 

  

Internet—0.3%

  

Alibaba Group Holding, Ltd.
2.500%, 11/28/19

     4,000,000        3,907,832   
   

 

 

  

Iron/Steel—0.2%

  

ArcelorMittal
5.500%, 02/25/17

     2,500,000        2,414,750   
   

 

 

  

Lodging—0.4%

  

Marriott International, Inc.
2.875%, 03/01/21

     6,000,000        5,952,852   
   

 

 

  

Media—1.7%

  

CBS Corp.
2.300%, 08/15/19

     6,000,000        5,933,400   

CSC Holdings LLC
7.625%, 07/15/18

     2,500,000        2,631,250   

Media—(Continued)

  

DIRECTV Holdings LLC / DIRECTV Financing Co., Inc.
2.400%, 03/15/17

     2,700,000      2,721,727   

DISH DBS Corp.
7.125%, 02/01/16

     2,500,000        2,507,813   

NBCUniversal Enterprise, Inc.
1.006%, 04/15/18 (144A) (a)

     3,000,000        2,994,996   

Time Warner, Inc.
2.100%, 06/01/19 (b)

     4,000,000        3,977,980   

Viacom, Inc.
2.200%, 04/01/19

     2,100,000        2,062,773   

2.750%, 12/15/19

     1,800,000        1,775,673   
   

 

 

  
      24,605,612   
   

 

 

  

Mining—0.2%

  

Freeport-McMoRan, Inc.
2.300%, 11/14/17

     3,900,000        3,324,750   
   

 

 

  

Oil & Gas—2.7%

  

BG Energy Capital plc
2.875%, 10/15/16 (144A)

     4,500,000        4,548,555   

California Resources Corp.
5.500%, 09/15/21 (b)

     529,000        166,635   

8.000%, 12/15/22 (144A) (b)

     1,416,000        745,170   

Canadian Natural Resources, Ltd.
1.750%, 01/15/18

     3,400,000        3,306,928   

Chesapeake Energy Corp.
8.000%, 12/15/22 (144A)

     1,985,000        972,650   

CNOOC Finance 2015 Australia Pty, Ltd.
2.625%, 05/05/20

     2,300,000        2,248,376   

CNOOC Nexen Finance ULC
1.625%, 04/30/17

     4,400,000        4,374,546   

CNPC HK Overseas Capital, Ltd.
3.125%, 04/28/16 (144A)

     500,000        502,612   

Energy XXI Gulf Coast, Inc.
11.000%, 03/15/20 (144A)

     2,000,000        700,000   

Ensco plc
4.700%, 03/15/21

     6,300,000        5,072,628   

Halcon Resources Corp.
9.750%, 07/15/20

     1,000,000        290,000   

13.000%, 02/15/22 (144A) (b)

     650,000        221,000   

Linn Energy LLC / Linn Energy Finance Corp.
12.000%, 12/15/20 (144A)

     750,000        375,000   

Lukoil International Finance B.V.
3.416%, 04/24/18 (144A)

     2,300,000        2,239,510   

Petrobras Global Finance B.V.
3.406%, 03/17/20 (a) (b)

     4,100,000        2,911,000   

Sanchez Energy Corp.
7.750%, 06/15/21 (b)

     1,600,000        976,000   

Sinopec Group Overseas Development, Ltd.
2.500%, 04/28/20 (144A)

     4,700,000        4,623,630   

Statoil ASA
0.804%, 11/08/18 (a)

     5,600,000        5,556,102   
   

 

 

  
      39,830,342   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Oil & Gas Services—0.4%

  

Petrofac, Ltd.
3.400%, 10/10/18 (144A)

     1,200,000      $ 1,139,779   

Weatherford International LLC
6.350%, 06/15/17

     5,000,000        4,875,000   
   

 

 

  
      6,014,779   
   

 

 

  

Packaging & Containers—0.4%

  

Owens-Illinois, Inc.
7.800%, 05/15/18

     3,000,000        3,315,000   

Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC
8.500%, 05/15/18

     2,000,000        1,977,500   

9.000%, 04/15/19

     500,000        492,500   
   

 

 

  
      5,785,000   
   

 

 

  

Pharmaceuticals—1.5%

  

AbbVie, Inc.
1.800%, 05/14/18

     5,500,000        5,474,678   

Actavis Funding SCS
2.350%, 03/12/18

     4,000,000        4,004,168   

Baxalta, Inc.
2.000%, 06/22/18 (144A)

     1,400,000        1,385,635   

Bayer U.S. Finance LLC
2.375%, 10/08/19 (144A) (b)

     6,300,000        6,303,956   

Valeant Pharmaceuticals International, Inc.
5.375%, 03/15/20 (144A)

     1,900,000        1,786,000   

Zoetis, Inc.
1.150%, 02/01/16

     1,800,000        1,799,680   

1.875%, 02/01/18

     1,200,000        1,183,962   
   

 

 

  
      21,938,079   
   

 

 

  

Pipelines—1.9%

  

Enable Midstream Partners L.P.
2.400%, 05/15/19

     4,500,000        3,998,133   

Energy Transfer Partners L.P.
4.150%, 10/01/20

     5,500,000        5,073,711   

EnLink Midstream Partners L.P.
2.700%, 04/01/19

     1,800,000        1,642,340   

Enterprise Products Operating LLC
2.550%, 10/15/19

     2,600,000        2,492,654   

Kinder Morgan Energy Partners L.P.
2.650%, 02/01/19

     600,000        554,684   

5.950%, 02/15/18

     1,500,000        1,537,945   

6.850%, 02/15/20

     5,000,000        5,171,610   

Kinder Morgan Finance Co. LLC
5.700%, 01/05/16 (b)

     500,000        500,000   

6.000%, 01/15/18 (144A)

     2,000,000        2,016,524   

Kinder Morgan, Inc.
3.050%, 12/01/19

     3,200,000        2,961,642   

Williams Partners L.P.
4.125%, 11/15/20

     2,300,000        2,053,399   
   

 

 

  
      28,002,642   
   

 

 

  

Real Estate—0.4%

  

Prologis L.P.
2.750%, 02/15/19

     6,000,000      6,062,742   
   

 

 

  

Real Estate Investment Trusts—1.4%

  

American Tower Corp.
3.400%, 02/15/19

     6,100,000        6,257,313   

Boston Properties L.P.
3.700%, 11/15/18

     3,900,000        4,040,111   

HCP, Inc.
3.750%, 02/01/19

     4,000,000        4,126,596   

Hospitality Properties Trust
5.625%, 03/15/17

     5,000,000        5,171,110   
   

 

 

  
      19,595,130   
   

 

 

  

Retail—0.8%

  

Dollar General Corp.
1.875%, 04/15/18

     4,500,000        4,456,656   

Edcon, Ltd.
9.500%, 03/01/18 (144A) (EUR)

     1,000,000        654,876   

Toys “R” Us, Inc.
7.375%, 10/15/18 (b)

     2,200,000        1,045,000   

Walgreens Boots Alliance, Inc.
1.750%, 11/17/17

     4,000,000        3,992,196   

Yum! Brands, Inc.
6.250%, 03/15/18

     1,700,000        1,791,667   
   

 

 

  
      11,940,395   
   

 

 

  

Savings & Loans—0.3%

  

Yorkshire Building Society
2.337%, 03/23/16 (GBP) (a)

     3,000,000        4,436,708   
   

 

 

  

Semiconductors—0.3%

  

Maxim Integrated Products, Inc.
2.500%, 11/15/18

     4,200,000        4,200,752   
   

 

 

  

Software—0.9%

  

Fiserv, Inc.
2.700%, 06/01/20

     6,900,000        6,842,744   

Oracle Corp.
0.901%, 01/15/19 (a)

     6,000,000        6,004,770   
   

 

 

  
      12,847,514   
   

 

 

  

Telecommunications—2.5%

  

Alcatel-Lucent USA, Inc.
4.625%, 07/01/17 (144A)

     9,000,000        9,225,000   

AT&T, Inc.
2.450%, 06/30/20

     4,700,000        4,628,673   

CenturyLink, Inc.
6.000%, 04/01/17

     1,000,000        1,035,000   

Embarq Corp.
7.082%, 06/01/16

     2,071,000        2,103,308   

Juniper Networks, Inc.
3.300%, 06/15/20

     2,800,000        2,787,828   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Telecommunications—(Continued)

  

Sprint Communications, Inc.
6.000%, 12/01/16

     1,800,000      $ 1,796,625   

9.000%, 11/15/18 (144A)

     3,000,000        3,157,500   

Telefonica Emisiones S.A.U.
3.192%, 04/27/18

     2,300,000        2,344,625   

Verizon Communications, Inc.
2.252%, 09/14/18 (a)

     7,200,000        7,372,339   

2.625%, 02/21/20

     1,395,000        1,399,850   
   

 

 

  
      35,850,748   
   

 

 

  

Trucking & Leasing—0.2%

  

Aviation Capital Group Corp.
3.875%, 09/27/16 (144A)

     3,300,000        3,324,750   
   

 

 

  

Water—0.1%

  

Veolia Environnement S.A.
4.625%, 03/30/27 (EUR)

     700,000        966,364   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $690,157,291)

       653,948,439   
   

 

 

  
Asset-Backed Securities—16.6%   

Asset-Backed - Automobile—0.0%

  

Ford Credit Auto Owner Trust
0.510%, 04/15/17

     23,445        23,440   

1.150%, 06/15/17

     336,382        336,371   
   

 

 

  
      359,811   
   

 

 

  

Asset-Backed - Credit Card—7.7%

  

American Express Credit Account Master Trust
0.601%, 01/15/20 (a)

     8,760,000        8,746,247   

1.591%, 09/15/20 (a)

     1,825,000        1,860,365   

BA Credit Card Trust
0.601%, 09/16/19 (a)

     7,010,000        7,002,067   

Capital One Multi-Asset Execution Trust
0.371%, 07/15/20 (a)

     4,850,000        4,825,870   

0.381%, 11/15/19 (a)

     6,842,000        6,822,263   

0.411%, 12/16/19 (a)

     8,400,000        8,372,581   

0.511%, 02/15/19 (a)

     2,900,000        2,899,269   

5.050%, 12/17/18

     5,240,000        5,265,161   

Chase Issuance Trust
0.381%, 04/15/19 (a)

     3,035,000        3,024,726   

0.531%, 05/15/18 (a)

     8,710,000        8,707,832   

0.581%, 04/15/19 (a)

     5,700,000        5,670,852   

0.611%, 04/15/20 (a)

     4,580,000        4,570,391   

0.701%, 04/15/21 (a)

     5,340,000        5,313,688   

0.791%, 04/15/19 (a)

     2,600,000        2,589,133   

1.590%, 02/18/20

     1,000,000        999,861   

Citibank Credit Card Issuance Trust
0.361%, 12/17/18 (a)

     4,000,000        3,990,227   

0.487%, 05/09/18 (a)

     1,600,000        1,599,852   

0.509%, 02/07/18 (a)

     7,010,000        7,009,591   

0.574%, 11/07/18 (a)

     4,600,000        4,598,024   

5.300%, 03/15/18

     1,760,000        1,775,745   

Asset-Backed - Credit Card—(Continued)

  

Discover Card Execution Note Trust
0.761%, 07/15/21 (a)

     5,610,000      5,603,274   

0.781%, 04/15/21 (a)

     4,020,000        4,016,855   

Discover Card Master Trust
0.370%, 05/15/19 (a)

     6,500,000        6,500,269   
   

 

 

  
      111,764,143   
   

 

 

  

Asset-Backed - Home Equity—0.5%

  

Argent Securities, Inc. Asset-Backed Pass-Through Certificates
0.782%, 10/25/35 (a)

     1,118,614        1,058,587   

GSAA Home Equity Trust
1.367%, 02/25/35 (a)

     2,622,000        2,467,887   

Home Loan Trust
5.480%, 06/25/34

     390,147        401,518   

MASTR Asset-Backed Securities Trust
1.517%, 09/25/34 (a)

     582,661        579,994   

Morgan Stanley ABS Capital I, Inc. Trust
1.622%, 05/25/33 (a)

     343,721        325,407   

NovaStar Mortgage Funding Trust
2.072%, 03/25/35 (a)

     800,000        789,566   

RAAC Trust
1.122%, 03/25/34 (a)

     551,807        526,983   

Wells Fargo Home Equity Trust Mortgage Pass-Through Certificates
0.792%, 04/25/34 (a)

     1,555,061        1,481,675   
   

 

 

  
      7,631,617   
   

 

 

  

Asset-Backed - Manufactured Housing—0.4%

  

Conseco Finance Securitizations Corp.
7.424%, 03/01/33 (a)

     535,000        580,889   

CountryPlace Manufactured Housing Contract Trust
4.800%, 12/15/35 (144A) (a)

     51,716        52,207   

Madison Avenue Manufactured Housing Contract Trust
3.672%, 03/25/32 (a)

     1,672,412        1,692,626   

Manufactured Housing Contract Trust Pass-Through Certificates
1.852%, 04/20/32 (a)

     3,824,833        3,551,770   

Vanderbilt Acquisition Loan Trust
7.330%, 05/07/32 (a)

     212,529        227,223   
   

 

 

  
      6,104,715   
   

 

 

  

Asset-Backed - Other—8.0%

    

American Homes 4 Rent
1.351%, 06/17/31 (144A) (a)

     2,257,875        2,212,600   

Ameriquest Mortgage Securities, Inc.
1.247%, 06/25/34 (a)

     1,492,665        1,457,402   

Apidos CLO XIV
4.850%, 04/15/25 (144A)

     1,710,000        1,656,162   

ARCap Resecuritization Trust
4.730%, 04/21/24 (144A)

     108,715        108,715   

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of December 31, 2015

Asset-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Asset-Backed - Other—(Continued)

    

Ares CLO, Ltd.
0.537%, 04/16/21 (144A) (a)

     1,751,857      $ 1,723,095   

0.581%, 10/11/21 (144A) (a)

     4,004,476        3,939,552   

0.591%, 10/11/21 (144A) (a)

     1,498,539        1,474,266   

0.687%, 04/16/21 (144A) (a)

     3,340,000        3,171,437   

Atrium X
1.437%, 07/16/25 (144A) (a)

     850,000        829,117   

Atrium XI
3.516%, 10/23/25 (144A) (a)

     3,650,000        3,557,257   

Babson CLO, Inc.
0.540%, 01/18/21 (144A) (a)

     1,565,946        1,547,292   

BlueMountain CLO, Ltd.
1.724%, 10/29/25 (144A) (a)

     740,199        732,651   

Carlyle Global Market Strategies CLO, Ltd.
1.677%, 01/20/25 (144A) (a)

     2,470,000        2,456,758   

Catamaran CLO, Ltd.
3.315%, 10/18/26 (144A) (a)

     2,384,800        2,249,558   

Cent CDO, Ltd.
1.123%, 04/25/19 (144A) (a)

     1,150,000        1,101,900   

Cent CLO, Ltd.
1.622%, 01/30/25 (144A) (a)

     4,557,000        4,513,677   

3.123%, 07/27/26 (144A) (a)

     480,000        457,783   

3.544%, 11/07/26 (144A) (a)

     2,650,000        2,627,051   

Centerline REIT, Inc.
4.760%, 09/21/45 (144A) (a)

     3,777,100        3,800,706   

5.040%, 09/21/45 (144A)

     1,780,000        1,762,200   

CIFC Funding, Ltd.
0.720%, 07/26/21 (144A) (a)

     475,000        464,161   

Colony American Homes
1.400%, 05/17/31 (144A) (a)

     3,509,586        3,437,681   

2.201%, 05/17/31 (144A) (a)

     460,000        446,460   

ColumbusNova CLO IV, Ltd.
1.571%, 10/15/21 (144A) (a)

     680,000        670,073   

Cornerstone CLO, Ltd.
1.271%, 07/15/21 (144A) (a)

     610,000        587,354   

Countrywide Asset-Backed Certificates
1.172%, 03/25/34 (a)

     428,949        409,680   

1.472%, 12/25/34 (a)

     519,112        517,380   

CT CDO IV, Ltd.
0.712%, 10/20/43 (144A) (a)

     682,101        680,621   

Eaton Vance CLO, Ltd.
2.371%, 07/15/26 (144A) (a)

     778,900        762,561   

3.321%, 07/15/26 (144A) (a)

     668,600        653,415   

Emerson Park CLO, Ltd.
5.640%, 07/15/25 (144A)

     570,000        572,799   

GSAMP Trust
1.427%, 06/25/35 (a)

     977,637        952,350   

Highbridge Loan Management, Ltd.
5.800%, 10/20/24 (144A)

     510,000        510,300   

Invitation Homes Trust
1.451%, 09/17/31 (144A) (a)

     2,887,800        2,834,342   

1.631%, 08/17/32 (144A) (a)

     2,733,327        2,681,321   

1.701%, 06/17/32 (144A) (a)

     4,553,020        4,482,742   

1.801%, 03/17/32 (144A) (a)

     1,549,975        1,531,920   

1.851%, 06/17/31 (144A) (a)

     720,000        706,188   

1.951%, 09/17/31 (144A) (a)

     2,950,000        2,890,725   

Asset-Backed - Other—(Continued)

    

Landmark IX CDO, Ltd.
1.021%, 04/15/21 (144A) (a)

     940,000      903,924   

LNR CDO, Ltd.
1.818%, 07/24/37 (144A) (a)

     2,594,768        2,579,252   

3.420%, 07/23/36 (144A) (a)

     1,031,542        1,029,469   

6.727%, 07/24/37 (144A)

     335,324        337,168   

Morgan Stanley ABS Capital I, Inc. Trust
1.157%, 01/25/35 (a)

     615,507        595,683   

N-Star REL CDO VI, Ltd.
0.848%, 06/16/41 (144A) (a)

     907,852        897,003   

Newcastle CDO V, Ltd.
0.934%, 12/24/39 (144A) (a)

     66,780        66,208   

NZCG Funding, Ltd.
1.870%, 04/27/27 (144A) (a)

     4,969,875        4,926,016   

Octagon Investment Partners, Ltd.
1.706%, 07/15/27 (144A)

     4,145,114        4,080,906   

Ownit Mortgage Loan Trust
1.352%, 03/25/36 (a)

     1,704,711        1,675,792   

Park Place Securities, Inc. Asset-Backed Pass-Through Certificates
1.359%, 10/25/34 (a)

     101,300        101,147   

1.367%, 02/25/35 (a)

     1,339,455        1,335,776   

Progress Residential Trust
1.451%, 10/17/31 (144A) (a)

     1,497,596        1,475,620   

1.760%, 02/17/32 (144A) (a)

     6,820,000        6,730,091   

2.251%, 10/17/31 (144A) (a)

     1,250,000        1,236,109   

Silver Bay Realty Trust
1.351%, 09/17/31 (144A) (a)

     891,007        868,710   

1.801%, 09/17/31 (144A) (a)

     420,000        407,278   

Structured Asset Investment Loan Trust
1.462%, 12/25/34 (a)

     1,821,206        1,791,104   

SWAY Residential Trust
1.651%, 01/17/32 (144A) (a)

     4,064,327        3,986,533   

Trade MAPS 1, Ltd.
0.993%, 12/10/18 (144A) (a)

     5,500,000        5,465,059   

Tricon American Homes Trust
1.567%, 05/17/32 (144A) (a)

     5,010,000        4,906,960   

West CLO, Ltd.
2.417%, 07/18/26 (144A) (a)

     1,230,000        1,191,230   

3.167%, 07/18/26 (144A) (a)

     3,240,000        3,035,154   
   

 

 

  
      116,793,444   
   

 

 

  

Total Asset-Backed Securities
(Cost $243,864,802)

       242,653,730   
   

 

 

  
Mortgage-Backed Securities—13.1%   

Collateralized Mortgage Obligations—5.1%

  

Adjustable Rate Mortgage Trust
2.685%, 02/25/35 (a)

     2,509,081        2,455,583   

American Home Mortgage Investment Trust
1.980%, 10/25/34 (a)

     1,732,470        1,702,170   

2.654%, 06/25/45 (a)

     1,254,456        1,229,027   

Banc of America Mortgage Trust
2.793%, 06/25/33 (a)

     953,318        955,113   

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of December 31, 2015

Mortgage-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Collateralized Mortgage Obligations—(Continued)

  

CHL Mortgage Pass-Through Trust
2.293%, 07/25/34 (a)

     1,023,800      $ 1,015,740   

2.613%, 05/25/34 (a)

     1,950,290        1,939,006   

Credit Suisse First Boston Mortgage Securities Corp.
2.562%, 04/25/34 (a)

     1,831,492        1,858,752   

5.000%, 09/25/19

     444,976        459,320   

Fannie Mae Connecticut Avenue Securities
1.372%, 05/25/24 (a)

     705,617        701,429   

First Horizon Alternative Mortgage Securities Trust 2.171%, 12/25/34 (a)

     1,464,908        1,426,851   

Freddie Mac Structured Agency Credit Risk Debt Notes
1.472%, 03/25/25 (a)

     2,110,325        2,109,755   

2.272%, 10/25/27 (a)

     4,560,000        4,497,576   

2.822%, 08/25/24 (a)

     1,991,263        2,012,468   

2.822%, 10/25/24 (a)

     6,400,000        6,418,421   

2.822%, 01/25/25 (a)

     6,850,000        6,954,807   

2.922%, 08/25/24 (a)

     4,535,000        4,574,647   

3.072%, 10/25/24 (a)

     3,610,000        3,658,502   

Impac Secured Assets CMN Owner Trust
1.187%, 02/25/35 (a)

     1,120,000        1,053,156   

MASTR Adjustable Rate Mortgages Trust
0.421%, 05/25/47 (a)

     397,289        385,483   

0.582%, 01/25/47 (a)

     142,520        142,154   

MASTR Alternative Loan Trust
5.000%, 02/25/18

     321,830        327,761   

5.000%, 08/25/18

     484,280        495,864   

5.500%, 12/25/18

     356,761        361,221   

5.500%, 04/25/19

     592,746        610,581   

5.535%, 11/25/19 (a)

     630,683        650,714   

Merrill Lynch Mortgage Investors Trust
1.162%, 03/25/28 (a)

     758,729        719,513   

1.313%, 01/25/29 (a)

     1,022,876        960,254   

2.186%, 04/25/35 (a)

     662,804        642,839   

2.434%, 10/25/36 (a)

     1,576,565        1,545,508   

New York Mortgage Trust
0.872%, 02/25/36 (a)

     606,300        560,474   

Sequoia Mortgage Trust
1.042%, 11/20/34 (a)

     567,173        534,890   

1.116%, 07/20/33 (a)

     303,758        285,323   

Structured Adjustable Rate Mortgage Loan Trust
0.862%, 08/25/35 (a)

     1,473,620        1,375,095   

2.540%, 09/25/34 (a)

     3,074,697        3,049,737   

Structured Asset Mortgage Investments II Trust
1.102%, 02/19/35 (a)

     1,065,761        999,947   

Structured Asset Mortgage Investments Trust
1.142%, 12/19/33 (a)

     454,406        436,587   

Thornburg Mortgage Securities Trust
1.062%, 09/25/43 (a)

     644,211        622,041   

2.269%, 04/25/45 (a)

     2,156,463        2,154,349   

2.376%, 09/25/37 (a)

     697,004        688,341   

WaMu Mortgage Pass-Through Certificates Trust
0.652%, 04/25/45 (a)

     2,607,715        2,427,368   

0.712%, 07/25/45 (a)

     1,499,901        1,409,373   

0.752%, 01/25/45 (a)

     2,950,374        2,671,507   

Collateralized Mortgage Obligations—(Continued)

  

Wells Fargo Mortgage-Backed Securities Trust
2.662%, 02/25/35 (a)

     1,642,034      1,643,895   

2.699%, 07/25/34 (a)

     1,008,591        1,006,224   

2.738%, 06/25/35 (a)

     1,056,765        1,045,532   

2.760%, 10/25/34 (a)

     1,521,542        1,538,236   
   

 

 

  
      74,313,134   
   

 

 

  

Commercial Mortgage-Backed Securities—8.0%

  

Banc of America Commercial Mortgage Trust
5.460%, 09/10/45 (a)

     5,250,000        5,244,594   

5.508%, 09/10/45 (a)

     1,130,000        1,130,071   

5.695%, 07/10/46 (a)

     5,224,000        5,212,649   

Bear Stearns Commercial Mortgage Securities Trust
5.177%, 10/12/42 (a)

     800,000        798,717   

5.510%, 03/11/39 (a)

     5,211,000        5,212,813   

5.540%, 09/11/41

     2,245,291        2,266,550   

5.611%, 09/11/41 (a)

     5,220,000        5,277,715   

5.722%, 06/11/40 (a)

     4,289,224        4,446,045   

5.752%, 09/11/38 (144A) (a)

     1,200,000        1,182,269   

5.752%, 09/11/38 (a)

     1,194,000        1,195,692   

CD Commercial Mortgage Trust
5.284%, 07/15/44 (a)

     2,530,000        2,524,794   

Citigroup Commercial Mortgage Trust
5.482%, 10/15/49

     1,320,000        1,299,752   

5.710%, 12/10/49 (a)

     5,000,000        5,109,164   

Colony Multifamily Mortgage Trust
2.543%, 04/20/50 (144A)

     5,354,675        5,295,012   

Commercial Mortgage Trust
5.439%, 04/10/37 (a)

     563,402        562,913   

5.475%, 03/10/39

     4,000,000        4,092,146   

5.796%, 12/10/49 (a)

     2,742,563        2,855,317   

5.826%, 07/10/38 (a)

     7,645,373        7,510,264   

Core Industrial Trust
3.040%, 02/10/34 (144A)

     3,110,000        3,090,128   

G-FORCE LLC
0.722%, 12/25/39 (144A) (a)

     432,219        413,850   

5.090%, 08/22/36 (144A)

     657,848        661,650   

Hilton USA Trust
1.269%, 11/05/30 (144A) (a)

     1,813,429        1,804,927   

1.769%, 11/05/30 (144A) (a)

     1,060,856        1,054,006   

JPMorgan Chase Commercial Mortgage Securities Trust
5.115%, 07/15/41

     50,841        50,839   

5.464%, 12/12/43

     5,000,000        5,029,901   

5.522%, 12/15/44 (a)

     6,000,000        5,986,334   

5.909%, 04/15/45 (a)

     2,280,703        2,143,782   

LB-UBS Commercial Mortgage Trust
4.766%, 10/15/36 (144A) (a)

     334,748        336,933   

5.276%, 02/15/41 (a)

     1,230,000        1,229,241   

5.720%, 03/15/39 (a)

     950,000        952,731   

5.840%, 06/15/38 (a)

     3,160,000        3,203,306   

Mach One ULC
6.067%, 05/28/40 (144A) (a)

     238,623        238,461   

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of December 31, 2015

Mortgage-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Commercial Mortgage-Backed Securities—(Continued)

  

Merrill Lynch Mortgage Trust
5.522%, 11/12/37 (a)

     4,800,000      $ 4,791,598   

ML-CFC Commercial Mortgage Trust
5.409%, 07/12/46 (a)

     2,717,513        2,752,881   

Morgan Stanley Capital I Trust
5.511%, 03/12/44 (a)

     3,100,000        3,095,942   

Morgan Stanley Capital I, Inc.
5.306%, 05/24/43 (144A)

     2,070,000        2,049,300   

Resource Capital Corp., Ltd.
1.401%, 04/15/32 (144A) (a)

     1,934,693        1,926,336   

1.731%, 08/15/32 (144A) (a)

     1,300,000        1,287,066   

Talisman-6 Finance plc
0.127%, 10/22/16 (EUR) (a)

     66,453        71,551   

Wachovia Bank Commercial Mortgage Trust
5.515%, 01/15/45 (a)

     4,440,623        4,436,561   

5.767%, 05/15/43 (a)

     6,400,000        6,428,695   

5.795%, 07/15/45 (a)

     2,400,000        2,439,412   

5.898%, 10/15/35 (144A) (a)

     566,095        594,357   
   

 

 

  
      117,286,265   
   

 

 

  

Total Mortgage-Backed Securities
(Cost $193,480,895)

       191,599,399   
   

 

 

  
U.S. Treasury & Government Agencies—12.7%   

Agency Sponsored Mortgage - Backed—3.6%

  

Fannie Mae 15 Yr. Pool
4.000%, 04/01/26

     2,460,228        2,609,464   

4.000%, 05/01/26

     2,268,722        2,386,154   

4.500%, 09/01/24

     1,073,307        1,152,154   

4.500%, 03/01/25

     2,207,521        2,356,459   

Fannie Mae ARM Pool
1.300%, 03/01/30 (a)

     34,670        35,153   

1.718%, 03/01/28 (a)

     14,780        15,347   

1.721%, 11/01/33 (a)

     4,921        5,162   

1.742%, 11/01/33 (a)

     11,608        12,085   

1.790%, 06/01/32 (a)

     10,819        10,837   

1.853%, 02/01/36 (a)

     101,244        106,587   

1.854%, 12/01/32 (a)

     423,345        447,329   

1.859%, 03/01/35 (a)

     59,184        61,620   

1.899%, 11/01/34 (a)

     15,836        16,532   

1.915%, 09/01/32 (a)

     15,658        16,079   

1.936%, 03/01/33 (a)

     20,111        20,993   

1.984%, 03/01/36 (a)

     368,264        384,575   

1.999%, 12/01/32 (a)

     58,230        61,603   

2.000%, 12/01/34 (a)

     59,304        61,997   

2.044%, 09/01/35 (a)

     28,825        30,705   

2.050%, 11/01/32 (a)

     17,341        18,109   

2.070%, 11/01/35 (a)

     185,045        193,357   

2.092%, 03/01/37 (a)

     27,787        29,132   

2.110%, 09/01/31 (a)

     29,621        30,284   

2.120%, 11/01/32 (a)

     92,871        97,716   

2.130%, 08/01/29 (a)

     8,551        8,989   

2.133%, 04/01/36 (a)

     80,078        84,171   

2.135%, 06/01/32 (a)

     5,707        5,743   

Agency Sponsored Mortgage - Backed—(Continued)

  

Fannie Mae ARM Pool
2.145%, 02/01/44 (a)

     128,196      133,042   

2.155%, 02/01/33 (a)

     40,093        40,623   

2.183%, 02/01/25 (a)

     112,552        117,825   

2.210%, 02/01/36 (a)

     44,665        46,930   

2.213%, 03/01/33 (a)

     59,742        63,658   

2.248%, 10/01/32 (a)

     31,424        33,175   

2.250%, 05/01/19 (a)

     46,443        46,793   

2.256%, 06/01/28 (a)

     2,607        2,733   

2.273%, 01/01/36 (a)

     125,056        132,450   

2.278%, 12/01/35 (a)

     142,956        147,494   

2.281%, 07/01/33 (a)

     67,484        69,879   

2.285%, 07/01/35 (a)

     51,026        53,500   

2.290%, 07/01/25 (a)

     2,719        2,833   

2.292%, 06/01/25 (a)

     100,406        102,926   

2.302%, 07/01/33 (a)

     43,235        45,362   

2.309%, 07/01/33 (a)

     86,057        91,141   

2.315%, 12/01/25 (a)

     12,982        13,115   

2.325%, 05/01/19 (a)

     1,506        1,510   

2.327%, 05/01/33 (a)

     20,786        22,024   

2.334%, 01/01/20 (a)

     98,549        100,764   

2.338%, 04/01/27 (a)

     9,770        10,269   

2.338%, 02/01/32 (a)

     82,231        82,777   

2.340%, 12/01/34 (a)

     123,720        127,483   

2.342%, 08/01/37 (a)

     42,105        44,765   

2.345%, 12/01/33 (a)

     104,844        111,591   

2.347%, 09/01/33 (a)

     9,452        10,003   

2.354%, 12/01/32 (a)

     32,094        33,892   

2.358%, 10/01/35 (a)

     29,956        30,229   

2.375%, 04/01/34 (a)

     205,955        218,582   

2.379%, 09/01/32 (a)

     150,933        151,837   

2.395%, 01/01/32 (a)

     13,631        13,752   

2.395%, 09/01/39 (a)

     34,481        36,577   

2.400%, 04/01/34 (a)

     33,645        34,289   

2.408%, 05/01/34 (a)

     45,470        48,259   

2.412%, 02/01/36 (a)

     25,093        26,530   

2.413%, 09/01/35 (a)

     6,303,621        6,666,233   

2.414%, 11/01/36 (a)

     3,775,894        3,988,723   

2.425%, 03/01/30 (a)

     1,579        1,667   

2.430%, 08/01/33 (a)

     125,435        131,464   

2.435%, 04/01/40 (a)

     8,622        9,187   

2.440%, 02/01/35 (a)

     49,477        52,129   

2.443%, 11/01/35 (a)

     4,526,743        4,777,489   

2.444%, 07/01/33 (a)

     50,806        52,584   

2.448%, 06/01/33 (a)

     46,337        47,540   

2.450%, 06/01/26 (a)

     2,693        2,694   

2.465%, 01/01/29 (a)

     14,008        14,282   

2.470%, 08/01/35 (a)

     817,215        864,275   

2.473%, 07/01/35 (a)

     71,572        76,181   

2.473%, 03/01/38 (a)

     35,163        36,993   

2.474%, 09/01/36 (a)

     1,839        1,942   

2.477%, 03/01/37 (a)

     15,752        16,767   

2.482%, 08/01/34 (a)

     24,628        26,096   

2.488%, 06/01/32 (a)

     3,872        3,900   

2.496%, 11/01/35 (a)

     29,963        31,771   

2.498%, 09/01/37 (a)

     71,677        75,920   

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of December 31, 2015

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

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage - Backed—(Continued)

  

Fannie Mae ARM Pool
2. 500%, 02/01/34 (a)

     84,643      $ 86,504   

2.503%, 01/01/32 (a)

     12,505        13,299   

2.505%, 03/01/36 (a)

     21,468        22,831   

2.525%, 06/01/35 (a)

     51,921        53,175   

2.527%, 06/01/30 (a)

     21,935        22,469   

2.530%, 07/01/32 (a)

     3,646        3,673   

2.540%, 08/01/32 (a)

     54,506        57,016   

2.547%, 09/01/37 (a)

     5,627        5,989   

2.548%, 08/01/30 (a)

     26,639        27,486   

2.550%, 09/01/32 (a)

     6,987        7,067   

2.550%, 06/01/34 (a)

     41,004        41,932   

2.554%, 04/01/36 (a)

     7,215        7,681   

2.560%, 04/01/35 (a)

     931,625        993,124   

2.565%, 06/01/34 (a)

     111,133        111,826   

2.572%, 10/01/36 (a)

     15,602        16,516   

2.576%, 10/01/33 (a)

     36,975        38,870   

2.582%, 08/01/32 (a)

     61,660        62,694   

2.606%, 09/01/33 (a)

     104,063        110,585   

2.609%, 11/01/36 (a)

     6,893        7,280   

2.614%, 11/01/34 (a)

     5,260,301        5,563,347   

2.615%, 01/01/33 (a)

     177,301        181,886   

2.619%, 09/01/33 (a)

     14,321        15,119   

2.624%, 08/01/33 (a)

     91,941        98,884   

2.635%, 07/01/28 (a)

     10,812        11,279   

2.645%, 09/01/30 (a)

     92,150        96,009   

2.650%, 08/01/32 (a)

     30,739        31,485   

2.651%, 08/01/35 (a)

     53,462        55,219   

2.667%, 11/01/35 (a)

     2,194,418        2,330,466   

2.750%, 10/01/33 (a)

     56,999        58,343   

2.750%, 05/01/34 (a)

     93,168        98,078   

2.775%, 05/01/32 (a)

     9,865        9,956   

2.825%, 02/01/25 (a)

     10,855        10,940   

3.082%, 02/01/33 (a)

     145,287        148,819   

3.629%, 05/01/34 (a)

     124,005        126,934   

5.279%, 03/01/36 (a)

     52,553        55,080   

5.800%, 03/01/36 (a)

     38,950        40,802   

Freddie Mac ARM Non-Gold Pool
1.760%, 09/01/37 (a)

     45,371        47,231   

1.875%, 09/01/22 (a)

     15,229        15,259   

1.964%, 05/01/37 (a)

     15,643        16,283   

1.971%, 02/01/37 (a)

     88,644        92,853   

2.034%, 04/01/37 (a)

     32,467        33,952   

2.140%, 03/01/38 (a)

     238,724        251,946   

2.301%, 02/01/26 (a)

     14,400        14,813   

2.356%, 05/01/28 (a)

     61,970        64,255   

2.376%, 04/01/35 (a)

     69,311        71,880   

2.431%, 09/01/27 (a)

     4,831        5,134   

2.432%, 05/01/25 (a)

     21,374        22,390   

2.434%, 10/01/22 (a)

     1,994        2,049   

2.439%, 09/01/30 (a)

     1,777        1,867   

2.443%, 12/01/33 (a)

     930        969   

2.452%, 03/01/35 (a)

     759,089        803,738   

2.461%, 01/01/35 (a)

     115,919        122,649   

2.470%, 02/01/37 (a)

     22,239        23,553   

2.483%, 03/01/34 (a)

     17,274        18,317   

Agency Sponsored Mortgage - Backed—(Continued)

  

Freddie Mac ARM Non-Gold Pool
2.483%, 05/01/38 (a)

     62,546      $ 66,313   

2.488%, 05/01/31 (a)

     33,822        35,290   

2.500%, 03/01/19 (a)

     3,251        3,266   

2.500%, 05/01/34 (a)

     185,470        195,773   

2.500%, 07/01/36 (a)

     40,994        43,429   

2.508%, 07/01/31 (a)

     14,595        15,055   

2.515%, 07/01/34 (a)

     103,335        105,669   

2.517%, 11/01/24 (a)

     111,501        114,233   

2.520%, 01/01/35 (a)

     1,180,508        1,243,945   

2.520%, 09/01/37 (a)

     359,695        379,744   

2.548%, 11/01/32 (a)

     31,960        33,778   

2.566%, 06/01/37 (a)

     380,465        403,397   

2.569%, 09/01/30 (a)

     13,093        13,606   

2.581%, 07/01/35 (a)

     244,298        259,724   

2.588%, 10/01/32 (a)

     51,629        53,815   

2.590%, 07/01/36 (a)

     126,777        132,407   

2.591%, 04/01/38 (a)

     57,420        61,132   

2.600%, 04/01/34 (a)

     904,225        961,989   

2.600%, 04/01/37 (a)

     35,214        37,535   

2.605%, 07/01/37 (a)

     470,058        500,954   

2.612%, 06/01/37 (a)

     5,048,212        5,379,452   

2.613%, 09/01/30 (a)

     35,083        36,682   

2.620%, 05/01/37 (a)

     19,328        20,611   

2.639%, 07/01/38 (a)

     56,494        59,445   

2.672%, 04/01/30 (a)

     77,125        80,869   

2.835%, 10/01/37 (a)

     13,851        14,616   

2.852%, 05/01/31 (a)

     12,627        12,990   

2.866%, 06/01/25 (a)

     13,449        13,692   

2.885%, 08/01/18 (a)

     12,118        12,125   

3.030%, 04/01/35 (a)

     82,432        85,666   

5.477%, 05/01/37 (a)

     54,059        57,075   

5.500%, 08/01/24 (a)

     5,099        5,357   

5.927%, 01/01/37 (a)

     48,834        49,899   
   

 

 

  
      52,106,119   
   

 

 

  

U.S. Treasury—9.1%

  

U.S. Treasury Inflation Indexed Notes
0.125%, 04/15/16 (c)

     3,232,560        3,219,976   

U.S. Treasury Notes
1.000%, 08/15/18

     70,000,000        69,546,120   

1.500%, 12/31/18

     20,000,000        20,090,620   

1.500%, 02/28/19

     40,000,000        40,126,560   
   

 

 

  
      132,983,276   
   

 

 

  

Total U.S. Treasury & Government Agencies
(Cost $170,960,552)

       185,089,395   
   

 

 

  
Floating Rate Loans (d)—5.1%   

Aerospace/Defense—0.2%

  

FGI Operating Co. LLC
Term Loan, 5.500%, 04/19/19

     3,697,518        2,884,064   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of December 31, 2015

Floating Rate Loans (d)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Auto Components—0.0%

  

Crowne Group LLC 1st Lien
Term Loan, 6.000%, 09/30/20

     712,225      $ 694,419   
   

 

 

  

Auto Manufacturers—0.1%

  

Navistar International Corp.
Term Loan B, 6.500%, 08/07/20

     895,334        792,371   
   

 

 

  

Auto Parts & Equipment—0.1%

  

TI Group Automotive Systems LLC
Term Loan, 4.500%, 06/30/22

     748,424        733,456   
   

 

 

  

Capital Markets—0.0%

  

Guggenheim Partners LLC
Term Loan, 4.250%, 07/22/20

    298,125        296,883   
   

 

 

  

Chemicals—0.2%

  

Chemours Co. (The)
Term Loan B, 3.750%, 05/12/22

     1,166,059        1,072,775   

Ineos U.S. Finance LLC
Term Loan, 3.750%, 05/04/18

     130,862        127,754   

Term Loan, 4.250%, 03/31/22

     197,992        191,628   

Nexeo Solutions LLC
Term Loan B, 5.000%, 09/08/17

     72,724        69,603   

Term Loan B3, 5.000%, 09/08/17

     70,974        68,002   

OCI Beaumont LLC
Term Loan B3, 6.500%, 08/20/19

     1,095,351        1,106,305   
   

 

 

  
      2,636,067   
   

 

 

  

Coal—0.2%

  

Bowie Resource Holdings LLC
1st Lien Term Loan, 6.750%, 08/14/20

     1,628,460        1,587,748   

2nd Lien Delayed Draw Term Loan,
11.750%, 02/16/21

     371,429        363,536   

Peabody Energy Corp.
Term Loan B, 4.250%, 09/24/20

     1,210,681        584,154   
   

 

 

  
      2,535,438   
   

 

 

  

Commercial Services—0.1%

  

Moneygram International, Inc.
Term Loan B, 4.250%, 03/27/20

     837,381        768,297   
   

 

 

  

Computers—0.1%

  

Sungard Availability Services Capital, Inc.
Term Loan B, 6.000%, 03/31/19

     1,962,911        1,717,547   
   

 

 

  

Distribution/Wholesale—0.1%

  

Autoparts Holdings, Ltd.
1st Lien Term Loan, 7.000%, 07/29/17

     1,782,884        1,386,192   
   

 

 

  

Diversified Financial Services—0.1%

  

First Eagle Investment Management LLC
Term Loan, 4.750%, 12/01/22

     857,839        847,830   
   

 

 

  

Electric—0.0%

  

Calpine Corp.
Term Loan B6, 01/13/23 (e)

     458,824      441,235   
   

 

 

  

Electronics—0.1%

  

Sensus USA, Inc.
1st Lien Term Loan, 4.500%, 05/09/17

     975,276        953,333   
   

 

 

  

Forest Products & Paper—0.4%

  

Appvion, Inc.
Term Loan, 5.750%, 06/28/19

     1,033,832        966,633   

Caraustar Industries, Inc.
Term Loan B, 8.000%, 05/01/19

     3,509,561        3,501,665   

Coveris Holdings S.A.
Term Loan B1, 4.500%, 05/08/19

     2,228,722        2,173,004   
   

 

 

  
      6,641,302   
   

 

 

  

Healthcare-Products—0.1%

  

Kinetic Concepts, Inc.
Term Loan E1, 4.500%, 05/04/18

     1,365,282        1,316,359   

New Millennium HoldCo, Inc.
Term Loan, 7.500%, 12/21/20 (h)

     104,270        95,418   
   

 

 

  
      1,411,777   
   

 

 

  

Healthcare-Services—0.5%

  

24 Hour Fitness Worldwide, Inc.
Term Loan B, 4.750%, 05/28/21

     447,097        419,899   

Community Health Systems, Inc.
Term Loan F, 3.657%, 12/31/18

     1,319,394        1,302,666   

Cyanco Intermediate Corp.
Term Loan B, 5.500%, 05/01/20

     2,619,646        2,475,565   

Fitness International LLC
Term Loan B, 5.500%, 07/01/20

     3,367,057        3,169,243   
   

 

 

  
      7,367,373   
   

 

 

  

Hotels, Restaurants & Leisure—0.2%

  

Aristocrat Leisure, Ltd.
Term Loan B, 4.750%, 10/20/21

     81,956        81,773   

Cannery Casino Resorts LLC
Term Loan B, 6.000%, 10/02/18

     2,361,028        2,331,515   
   

 

 

  
      2,413,288   
   

 

 

  

Industrial Conglomerates—0.1%

  

OSG Bulk Ships, Inc
Term Loan, 5.250%, 08/05/19

     951,801        916,108   

OSG International, Inc.
Term Loan B, 5.750%, 08/05/19

     1,494,175        1,453,085   
   

 

 

  
      2,369,193   
   

 

 

  

Insurance—0.1%

  

Connolly Corp.
1st Lien Term Loan, 4.500%, 05/14/21

     1,431,603        1,394,621   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of December 31, 2015

Floating Rate Loans (d)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Internet—0.1%

  

Match Group, Inc.
Term Loan B1, 5.500%, 11/16/22

     845,122      $ 838,784   

Zayo Group LLC
Term Loan B, 3.750%, 05/06/21

     754,234        743,998   
   

 

 

  
      1,582,782   
   

 

 

  

Internet Software & Services—0.3%

  

Onsite U.S. Finco LLC
Term Loan, 5.500%, 07/30/21

     1,829,752        1,665,074   

Travelport Finance (Luxembourg) S.a.r.l.
Term Loan B, 5.750%, 09/02/21

     2,247,691        2,205,080   
   

 

 

  
      3,870,154   
   

 

 

  

Lodging—0.1%

  

ROC Finance LLC
Term Loan, 5.000%, 06/20/19

     1,662,056        1,545,712   
   

 

 

  

Machinery—0.1%

  

UTEX Industries, Inc.
1st Lien Term Loan, 5.000%, 05/22/21

     2,667,617        1,833,987   
   

 

 

  

Media—0.3%

  

Cumulus Media Holdings, Inc.
Term Loan, 4.250%, 12/23/20

     284,594        216,766   

MGOC, Inc.
Term Loan B, 4.000%, 07/31/20

     152,338        150,700   

Radio One, Inc.
Term Loan, 5.110%, 04/02/18

     3,976,822        4,048,902   
   

 

 

  
      4,416,368   
   

 

 

  

Mining—0.2%

  

FMG Resources (August 2006) Pty, Ltd.
Term Loan B, 4.250%, 06/30/19

     3,190,716        2,395,251   

Novelis, Inc.
Term Loan B, 4.000%, 06/02/22

     831,281        795,692   
   

 

 

  
      3,190,943   
   

 

 

  

Oil & Gas—0.1%

  

Alfred Fueling Systems, Inc.
1st Lien Term Loan, 4.750%, 06/20/21

     351,153        342,374   

Fieldwood Energy LLC
1st Lien Term Loan, 3.875%, 09/28/18

     2,670,657        1,829,400   

McDermott Finance LLC
Term Loan B, 5.250%, 04/16/19

     133,586        130,246   
   

 

 

  
      2,302,020   
   

 

 

  

Oil & Gas Services—0.1%

  

Navios Maritime Midstream Partners L.P.
Term Loan B, 5.500%, 06/18/20

     865,740        857,083   
   

 

 

  

Pharmaceuticals—0.3%

  

Grifols Worldwide Operations USA, Inc.
Term Loan B, 3.424%, 02/27/21

     1,229,451        1,219,615   

Pharmaceuticals—(Continued)

  

Valeant Pharmaceuticals International, Inc.
Term Loan B, 3.500%, 02/13/19

     890,000      859,327   

Term Loan B F1, 4.000%, 04/01/22

     2,645,478        2,555,643   
   

 

 

  
      4,634,585   
   

 

 

  

Retail—0.4%

  

Ascena Retail Group, Inc.
Term Loan B, 5.250%, 08/21/22

     2,483,228        2,334,234   

Evergreen Acqco 1 L.P.
Term Loan, 5.000%, 07/09/19

     2,530,795        2,061,016   

Men’s Wearhouse, Inc. (The)
Term Loan B, 4.500%, 06/18/21

     560,628        499,426   

PetSmart, Inc.
Term Loan B, 03/11/22 (e)

     797,995        779,666   
   

 

 

  
      5,674,342   
   

 

 

  

Semiconductors—0.0%

  

M/A-COM Technology Solutions Holdings, Inc.
Term Loan, 4.500%, 05/07/21

     389,371        388,397   

NXP B.V.
Term Loan B, 3.750%, 12/07/20

     283,369        282,484   
   

 

 

  
      670,881   
   

 

 

  

Software—0.2%

  

BMC Software Finance, Inc.
Revolver Term Loan, 0.500%, 09/10/18 (f)

     1,825,218        1,688,327   

Term Loan, 5.000%, 09/10/20

     1,769,032        1,476,257   
   

 

 

  
      3,164,584   
   

 

 

  

Telecommunications—0.2%

  

Ciena Corp.
Term Loan B, 3.750%, 07/15/19

     174,195        172,779   

Intelsat Jackson Holdings S.A.
Term Loan B2, 3.750%, 06/30/19

     1,017,289        964,899   

Neptune Finco Corp.
Term Loan B, 5.000%, 10/09/22

     789,757        789,686   

Virgin Media Investment Holdings, Ltd.
Term Loan F, 3.500%, 06/30/23

     379,842        372,404   

Windstream Corp.
Term Loan B5, 3.500%, 08/08/19

     386,470        375,198   
   

 

 

  
      2,674,966   
   

 

 

  

Transportation—0.0%

  

Navios Partners Finance (U.S.), Inc.
Term Loan B, 5.250%, 06/27/18

     47,000        46,060   
   

 

 

  

Total Floating Rate Loans
(Cost $80,978,914)

       74,749,153   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of December 31, 2015

Foreign Government—3.9%

 

Security Description       
    
Principal
Amount*		     Value  

Banks—0.0%

    

Korea Monetary Stabilization Bond
1.960%, 02/02/17 (KRW)

     64,000,000      $ 54,771   
   

 

 

  

Sovereign—3.9%

    

Brazil Notas do Tesouro Nacional
6.000%, 08/15/18 (BRL) (c)

     600,000        411,945   

10.000%, 01/01/21 (BRL)

     8,400,000        1,649,729   

Export-Import Bank of China (The)
2.500%, 07/31/19 (144A)

     6,000,000        6,020,670   

Export-Import Bank of Korea
2.250%, 01/21/20

     7,100,000        6,991,022   

Indonesia Treasury Bond
8.250%, 07/15/21 (IDR)

     20,000,000,000        1,415,132   

Korea Treasury Bonds
2.750%, 06/10/16 (KRW)

     1,600,000,000        1,371,347   

3.000%, 12/10/16 (KRW)

     11,040,000,000        9,534,105   

Malaysia Government Bonds
3.172%, 07/15/16 (MYR)

     7,600,000        1,776,943   

4.012%, 09/15/17 (MYR)

     15,580,000        3,709,212   

4.262%, 09/15/16 (MYR)

     2,200,000        519,590   

Mexican Bonos
6.250%, 06/16/16 (MXN)

     62,287,000        3,655,668   

7.250%, 12/15/16 (MXN)

     83,849,000        5,024,815   

7.750%, 12/14/17 (MXN)

     19,000,000        1,178,577   

New Zealand Government Bond
3.000%, 04/15/20 (NZD)

     13,600,000        9,334,863   

Philippine Government Bond
7.000%, 01/27/16 (PHP)

     80,000,000        1,704,984   

Poland Government Bond
1.790%, 01/25/21 (PLN) (a)

     5,829,000        1,459,248   

Serbia International Bond
5.250%, 11/21/17 (144A)

     1,200,000        1,245,907   
   

 

 

  
      57,003,757   
   

 

 

  

Total Foreign Government
(Cost $62,374,427)

       57,058,528   
   

 

 

  
Municipals—1.5%   

Acalanes Union High School District, General Obligation Unlimited
1.427%, 08/01/18

     1,000,000        992,410   

City of Chicago, Illinois, General Obligation Unlimited
5.000%, 01/01/17

     700,000        714,805   

5.000%, 01/01/18

     570,000        591,483   

Industry Public Facilities Authority, Tax Allocation Revenue
3.389%, 01/01/20

     3,525,000        3,622,114   

State Board of Administration Finance Corp., Revenue Bonds
2.107%, 07/01/18

     2,000,000        2,010,980   

State of Arkansas, General Obligation Unlimited
3.250%, 06/15/22

     985,000        1,062,963   

State of Illinois, Refunding, General Obligation Unlimited
5.000%, 01/01/16

     2,500,000        2,500,000   

State of Minnesota, General Obligation Unlimited
2.500%, 08/01/18

     1,250,000      $ 1,280,838   

State of Rhode Island, General Obligation Unlimited
5.000%, 08/01/19

     2,250,000        2,539,417   

University of California, Revenue Bonds
0.744%, 07/01/41 (a)

     5,875,000        5,873,237   
   

 

 

  

Total Municipals
(Cost $21,283,087)

       21,188,247   
   

 

 

  
Purchased Option—0.0%   

Currency Option—0.0%

  

USD Call/CAD Put, Strike Price CAD 1.36, Expires 03/09/16 (Counterparty - JPMorgan Chase Bank N.A.)
(Cost $24,960)

     1,600,000        40,320   
   

 

 

  
Common Stock—0.0%   

Health Care Providers & Services—0.0%

  

Millennium Health LLC (h) (i) (j) (k)
(Cost $26,439)

     3,046        26,439   
   

 

 

  
Short-Term Investments—2.5%   

Discount Note—1.7%

  

Federal Home Loan Bank
0.023%, 01/04/16 (g)

     24,770,000        24,769,938   
   

 

 

  

Mutual Fund—0.7%

    

State Street Navigator Securities Lending MET Portfolio (l)

     9,889,589        9,889,589   
   

 

 

  

Repurchase Agreement—0.1%

  

Fixed Income Clearing Corp.
Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $1,683,276 on 01/04/16, collateralized by $1,715,000 U.S. Treasury Note at 1.375% due 07/31/18 with a value of $1,721,431.

     1,683,270        1,683,270   
   

 

 

  

Total Short-Term Investments
(Cost $36,342,797)

       36,342,797   
   

 

 

  

Total Investments—100.2%
(Cost $1,499,494,164)

       1,462,696,447   

Unfunded Loan Commitments—(0.1)%
(Cost $(1,825,218))

       (1,825,218 ) 

Net Investments—100.1%
(Cost $1,497,668,946) (m)

       1,460,871,229   

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

       (1,064,624 ) 
   

 

 

  
Net Assets—100.0%     $ 1,459,806,605   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-15

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of December 31, 2015

 

 

* Principal and notional amounts stated in U.S. dollars unless otherwise noted.
(a) Variable or floating rate security. The stated rate represents the rate at December 31, 2015. Maturity date shown for callable securities reflects the earliest possible call date.
(b) All or a portion of the security was held on loan. As of December 31, 2015, the market value of securities loaned was $9,745,094 and the collateral received consisted of cash in the amount of $9,889,589. The cash collateral is invested in a money market fund managed by an affiliate of the custodian.
(c) Principal amount of security is adjusted for inflation.
(d) 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.
(e) This loan will settle after December 31, 2015, at which time the interest rate will be determined.
(f) 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.
(g) The rate shown represents current yield to maturity.
(h) Security was valued in good faith under procedures approved by the Board of Trustees. As of December 31, 2015, these securities represent less than 0.05% of net assets.
(i) Illiquid security. As of December 31, 2015, these securities represent less than 0.05% of net assets.
(j) Non-income producing security.
(k) Security was acquired in connection with a restructuring of a senior loan and may be subject to restrictions on resale.
(l) Represents investment of cash collateral received from securities on loan as of December 31, 2015.
(m) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $1,507,166,471. The aggregate unrealized appreciation and depreciation of investments were $11,112,031 and $(57,407,273), respectively, resulting in net unrealized depreciation of $(46, 295, 242) for federal income tax purposes.
(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 December 31, 2015, the market value of 144A securities was $257,523,878, which is 17.6% of net assets.
(ARM)— Adjustable-Rate Mortgage
(BRL)— Brazilian Real
(CAD)— Canadian Dollar
(CDO)— Collateralized Debt Obligation
(CHF)— Swiss Franc
(CLO)— Collateralized Loan Obligation
(DKK)— Danish Krone
(EUR)— Euro
(GBP)— British Pound
(IDR)— Indonesian Rupiah
(JPY)— Japanese Yen
(KRW)— South Korean Won
(MXN)— Mexican Peso
(MYR)— Malaysian Ringgit
(NZD)— New Zealand Dollar
(PHP)— Philippine Peso
(PLN)— Polish Zloty

 

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy

     

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  
CAD     2,000,000      

Deutsche Bank AG

        01/14/16         $ 1,475,144         $ (29,723 ) 
GBP     1,400,000      

Deutsche Bank AG

        02/22/16           2,157,680           (93,603 ) 
INR     81,540,000      

Deutsche Bank AG

        01/14/16           1,206,034           24,704   
INR     45,300,000      

Deutsche Bank AG

        04/28/16           674,107           (2,410 ) 
JPY     538,000,000      

Deutsche Bank AG

        01/14/16           4,498,328           (21,259 ) 
MYR     5,034,000      

Deutsche Bank AG

        01/14/16           1,190,071           (18,411 ) 
SGD     631,300      

Deutsche Bank AG

        01/14/16           459,261           (14,177 ) 
SGD     2,139,632      

Deutsche Bank AG

        02/22/16           1,513,498           (6,866 ) 
SGD     1,629,622      

Morgan Stanley & Co. LLC

        02/22/16           1,152,450           (4,944 ) 

Contracts to Deliver

                           
AUD     400,000      

Deutsche Bank AG

        01/14/16         $ 292,680         $ 1,325   
AUD     2,301,148      

Deutsche Bank AG

        06/16/16           1,664,927           661   
AUD     2,230,000      

Deutsche Bank AG

        12/22/16           1,601,140           (707 ) 
CAD     2,000,000      

Deutsche Bank AG

        01/14/16           1,567,030           121,609   
CAD     800,000      

Deutsche Bank AG

        04/28/16           602,727           24,363   

 

See accompanying notes to financial statements.

 

MIST-16

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of December 31, 2015

Forward Foreign Currency Exchange Contracts—(Continued)

 

Contracts to Deliver

     

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  
DKK     77,538,104      

Royal Bank of Scotland plc

        02/17/16         $ 11,886,878         $ 581,454   
EUR     183,001      

Barclays Bank plc

        01/14/16           198,920           (2 ) 
EUR     13,478,307      

Deutsche Bank AG

        01/14/16           14,665,746           14,795   
EUR     87,929      

JPMorgan Chase Bank N.A.

        01/14/16           95,659           80   
EUR     2,909,965      

Citibank N.A.

        02/22/16           3,302,723           136,564   
EUR     5,012,743      

Deutsche Bank AG

        02/22/16           5,687,233           233,166   
EUR     3,500,000      

Deutsche Bank AG

        02/22/16           3,904,600           96,459   
EUR     2,736,318      

Deutsche Bank AG

        02/22/16           3,052,636           75,412   
EUR     1,600,000      

Deutsche Bank AG

        02/22/16           1,803,200           62,335   
EUR     9,213,000      

Goldman Sachs Bank USA

        02/22/16           10,453,070           428,955   
EUR     870,600      

JPMorgan Chase Bank N.A.

        02/22/16           971,886           24,638   
EUR     70,764      

Barclays Bank plc

        04/28/16           81,262           4,120   
EUR     52,102      

Citibank N.A.

        04/28/16           59,788           2,990   
EUR     8,235,310      

Deutsche Bank AG

        04/28/16           9,452,489           474,915   
EUR     1,926,085      

Deutsche Bank AG

        04/28/16           2,212,108           112,422   
EUR     1,618,079      

JPMorgan Chase Bank N.A.

        04/28/16           1,858,266           94,347   
EUR     752,020      

Deutsche Bank AG

        06/16/16           828,124           7,019   
GBP     2,053,243      

Deutsche Bank AG

        01/14/16           3,193,409           166,439   
GBP     1,030,342      

Deutsche Bank AG

        02/22/16           1,614,649           95,573   
JPY     99,997,600      

Citibank N.A.

        01/14/16           807,504           (24,645 ) 
JPY     2,270,843,000      

Deutsche Bank AG

        01/14/16           18,325,812           (571,437 ) 
JPY     149,719,000      

JPMorgan Chase Bank N.A.

        01/14/16           1,208,864           (37,051 ) 
JPY     864,695,750      

Deutsche Bank AG

        02/22/16           7,233,405           32,196   
JPY     217,458,000      

Deutsche Bank AG

        02/22/16           1,815,418           4,422   
JPY     88,300,000      

HSBC Bank plc

        02/22/16           739,011           3,646   
JPY     259,100,000      

JPMorgan Chase Bank N.A.

        02/22/16           2,168,546           10,754   
JPY     547,555,500      

Morgan Stanley & Co. LLC

        02/22/16           4,581,882           21,825   
JPY     258,876,042      

JPMorgan Chase Bank N.A.

        09/02/16           2,538,000           367,298   
JPY     102,408,333      

JPMorgan Chase Bank N.A.

        09/02/16           870,627           11,922   
MXN     5,200,000      

Deutsche Bank AG

        10/20/16           295,681           1   
MYR     9,000,000      

Deutsche Bank AG

        01/14/16           2,319,707           224,963   
NZD     13,847,779      

Deutsche Bank AG

        01/11/16           9,062,679           (405,543 ) 
NZD     1,188,662      

Deutsche Bank AG

        01/11/16           779,120           (33,610 ) 
NZD     710,000      

Deutsche Bank AG

        01/11/16           461,642           (23,810 ) 
SGD     631,300      

Deutsche Bank AG

        01/14/16           449,292           4,208   
SGD     2,139,632      

Deutsche Bank AG

        02/22/16           1,521,138           14,506   
SGD     1,629,622      

Morgan Stanley & Co. LLC

        02/22/16           1,158,859           11,353   
                   

 

 

  

Net Unrealized Appreciation

  

      $ 2,203,241   
                   

 

 

  

Futures Contracts

 

Futures Contracts—Long

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

Canada Government Bond 5 Year Futures

      03/21/16         80        CAD         9,959,504      $ 66,587   

U.S. Treasury Note 2 Year Futures

      03/31/16         679        USD         147,747,854        (245,713 ) 

Futures Contracts—Short

                    

U.S. Treasury Long Bond Futures

      03/21/16         (9 )      USD         (1,385,696 )      1,946   

U.S. Treasury Note 10 Year Futures

      03/21/16         (78 )      USD         (9,850,676 )      29,989   

U.S. Treasury Note 5 Year Futures

      03/31/16         (783 )      USD         (92,921,040 )      276,234   

U.S. Treasury Ultra Long Bond Futures

      03/21/16         (8 )      USD         (1,265,730 )      (3,770 ) 
            

 

 

  

Net Unrealized Appreciation

  

   $ 125,273   
            

 

 

  

 

See accompanying notes to financial statements.

 

MIST-17

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of December 31, 2015

 

Written Options

 

Foreign Currency Written Options

    Strike
Price		    Counterparty    Expiration
Date		      Notional
Amount		     Premiums
Received		     Market
Value		     Unrealized
Depreciation		  

USD Call/CAD Put

    CAD 1.41    JPMorgan Chase Bank N.A.      03/09/16         (1,600,000 )    $ (7,360 )    $ (13,280 )    $ (5,920 ) 
             

 

 

    

 

 

    

 

 

  

Swap Agreements

OTC Cross-Currency Swaps

 

Receive

  

Pay

   Maturity
Date(a)		     Counterparty  

Notional
Amount of
Currency Received

   Notional
Amount of
Currency
Delivered		     Market
Value		     Upfront
Premium
Paid/
(Received)		     Unrealized
Appreciation/
(Depreciation)		  

Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered

   Fixed rate equal to 2.125% based on the notional amount of currency received     10/13/17      Citibank N.A.   $2,241,399     CHF        2,000,000      $ 222,018      $ —      $ 222,018   

Floating rate equal to 3-Month USD-LIBOR based on the notional amount of currency delivered

   Fixed rate equal to 2.125% based on the notional amount of currency received     10/13/17      JPMorgan
Chase Bank N.A.		   781,250     CHF        750,000        (11,443 )      1,057        (12,500 ) 
             

 

 

    

 

 

    

 

 

  

Totals

  

   $ 210,575      $ 1,057      $ 209,518   
             

 

 

    

 

 

    

 

 

  

 

(a) At the maturity date, the notional amount of the the currency received will be exchanged back for the notional amount of the currency delivered.

Centrally Cleared Interest Rate Swaps

 

Pay/Receive Floating Rate

    Floating
Rate Index		      Fixed
Rate		      Maturity
Date		    Notional
Amount		      Unrealized
Appreciation		  

Receive

      3M LIBOR         2.250%       03/16/23      USD         26,800,000       $ 154,252   
                 

 

 

  

Centrally Cleared Credit Default Swaps on Credit Indices—Sell Protection (d)

 

Reference Obligation

    Fixed
Deal
Receive
Rate		      Maturity
Date		      Implied Credit
Spread at
December 31,
2015(b)		    Notional
Amount(c)		      Unrealized
Depreciation		  

CDX.NA.HY.24

      5.000%         06/20/20       4.036%      USD         1,584,000       $ (5,844)   

CDX.NA.HY.24

      5.000%         06/20/20       4.036%      USD         14,058,000         (53,268)   

CDX.NA.IG.25

      1.000%         12/20/20       0.885%      USD         2,400,000         (6,521)   

ITRAXX.EUR.FIN.24

      1.000%         12/20/20       0.768%      EUR         13,300,000         (56,238)   
                 

 

 

  

Net Unrealized Depreciation

  

    $ (121,871)   
                 

 

 

  

 

OTC Credit Default Swaps on Corporate Issues—Buy Protection (a)   

Reference Obligation

   Fixed Deal
(Pay) Rate		     Maturity
Date		    

Counterparty

   Implied Credit
Spread at
December 31,
2015(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
Paid/
(Received)		     Unrealized
Appreciation/
(Depreciation)		  

Alcatel-Lucent USA, Inc.
6.500%, due 01/15/28

     (5.000%)        09/20/17      Barclays Bank plc     0.340%        USD        2,000,000      $ (160,564)      $ (187,584)      $ 27,020   

Alcatel-Lucent USA, Inc.
6.500%, due 01/15/28

     (5.000%)        09/20/17      Barclays Bank plc     0.340%        USD        1,000,000        (80,229)        (95,126)        14,897   

Alcatel-Lucent USA, Inc.
6.500%, due 01/15/28

     (5.000%)        09/20/17      Barclays Bank plc     0.340%        USD        3,000,000        (240,687)        (290,025)        49,338   

 

See accompanying notes to financial statements.

 

MIST-18

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of December 31, 2015

 

OTC Credit Default Swaps on Corporate Issues—Buy Protection (a)—(Continued)

 

Reference Obligation

   Fixed Deal
(Pay) Rate		     Maturity
Date		    

Counterparty

   Implied Credit
Spread at
December 31,
2015(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
Paid/
(Received)		     Unrealized
Appreciation/
(Depreciation)		  

Alcatel-Lucent USA, Inc.
6.500%, due 01/15/28

     (5.000% )      09/20/17      Barclays Bank plc     0.340%        USD        3,000,000      $ (240,687 )    $ (289,746 )    $ 49,059   

Bank of America Corp.
5.000%, due 01/15/15

     (1.000% )      09/20/17      Credit Suisse International     0.345%        USD        2,000,000        (22,531 )      4,498        (27,029 ) 

Beazer Homes USA, Inc.
9.125%, due 05/15/19

     (5.000% )      06/20/16      Citibank N.A.     1.462%        USD        3,000,000        (50,298 )      (140,925 )      90,627   

Beazer Homes USA, Inc.
9.125%, due 05/15/19

     (5.000% )      06/20/19      Citibank N.A.     5.365%        USD        2,500,000        25,871        (129,684 )      155,555   

Beazer Homes USA, Inc.
9.125%, due 05/15/19

     (5.000% )      06/20/19      Credit Suisse International     5.365%        USD        5,000,000        56,341        (249,868 )      306,209   

Beazer Homes USA, Inc.
9.125%, due 05/15/19

     (5.000% )      06/20/19      Credit Suisse International     5.365%        USD        5,000,000        56,340        (228,025 )      284,365   

Beazer Homes USA, Inc.
9.125%, due 05/15/19

     (5.000% )      06/20/19      Credit Suisse International     5.365%        USD        2,000,000        22,536        (86,028 )      108,564   

CSC Holdings LLC
5.000%, due 09/20/18

     (5.000% )      09/20/18      Barclays Bank plc     2.261%        USD        2,500,000        (179,368 )      (146,999 )      (32,369 ) 

Centex Corp.
5.250%, due 06/15/15

     (5.000% )      06/20/16      Credit Suisse International     0.076%        USD        6,000,000        (140,730 )      (737,831 )      597,101   

Century Link
6.000%, due 04/01/17

     (5.000% )      06/20/17      Barclays Bank plc     1.352%        USD        1,000,000        (53,237 )      (97,281 )      44,044   

Constellation Brands, Inc.
7.250%, due 09/01/16

     (5.000% )      09/20/16      Barclays Bank plc     0.164%        USD        2,000,000        (70,557 )      (241,928 )      171,371   

D.R. Horton, Inc.
5.250% due 02/15/15

     (5.000% )      03/20/16      JPMorgan Chase Bank N.A.     0.135%        USD        3,425,000        (36,964 )      (394,626 )      357,662   

DPL, Inc.
7.250%, due 10/25/21

     (5.000% )      12/20/16      JPMorgan Chase Bank N.A.     1.211%        USD        1,131,000        (41,670 )      (104,572 )      62,902   

Dell, Inc.
7.100%, due 04/15/28

     (1.000% )      06/20/16      Citibank N.A.     1.098%        USD        1,500,000        700        (2,575 )      3,275   

Dish DBS Corp.
6.750%, due 06/01/21

     (5.000% )      03/20/16      Barclays Bank plc     0.623%        USD        2,500,000        (24,255 )      (162,053 )      137,798   

Embarq Corp.
7.082%, due 06/01/16

     (5.000% )      06/20/16      Credit Suisse International     0.241%        USD        2,071,000        (46,913 )      (247,588 )      200,675   

Hospitality Properties Trust
5.125%, due 02/15/15

     (5.000% )      03/20/17      Credit Suisse International     0.483%        USD        5,000,000        (271,618 )      (663,898 )      392,280   

Kinder Morgan Energy Partners L.P.
5.000%, due 03/20/18

     (5.000% )      03/20/18      Citibank N.A.     1.825%        USD        1,500,000        (102,943 )      (136,049 )      33,106   

Kinder Morgan Energy Partners L.P.
3.950%, due 09/01/22

     (5.000% )      03/20/20      Citibank N.A.     2.657%        USD        5,000,000        (452,743 )      (1,063,304 )      610,561   

Lennar Corp.
4.750%, due 12/15/17

     (5.000% )      06/20/18      Citibank N.A.     1.014%        USD        5,500,000        (533,110 )      (628,661 )      95,551   

Lennar Corp.
4.750%, due 12/15/17

     (5.000% )      09/20/19      Citibank N.A.     1.549%        USD        1,350,000        (166,005 )      (155,949 )      (10,056 ) 

Lennar Corp.
4.750%, due 12/15/17

     (5.000% )      09/20/19      Credit Suisse International     1.549%        USD        2,000,000        (245,934 )      (285,162 )      39,228   

Lennar Corp.
4.750%, due 12/15/17

     (5.000% )      12/20/19      Citibank N.A.     1.639%        USD        2,000,000        (253,868 )      (264,588 )      10,720   

NRG Energy, Inc.
6.250%, due 07/15/22

     (5.000% )      03/20/18      Barclays Bank plc     3.725%        USD        1,400,000        (37,733 )      (64,144 )      26,411   

Owens-Illinois, Inc.
7.800%, due 05/15/18

     (5.000% )      06/20/18      Citibank N.A.     0.418%        USD        2,000,000        (12,832 )      (209,855 )      197,023   

Owens-Illinois, Inc.
7.800%, due 05/15/18

     (5.000% )      06/20/18      Citibank N.A.     0.418%        USD        1,000,000        (112,358 )      (117,750 )      5,392   

 

See accompanying notes to financial statements.

 

MIST-19

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of December 31, 2015

 

OTC Credit Default Swaps on Corporate Issues—Buy Protection (a)—(Continued)

 

Reference Obligation

   Fixed Deal
(Pay) Rate		     Maturity
Date		    

Counterparty

   Implied Credit
Spread at
December 31,
2015(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
Paid/
(Received)		     Unrealized
Appreciation/
(Depreciation)		  

PPL Energy Supply LLC
5.500%, due 05/01/18

     (5.000% )      06/20/16      JPMorgan Chase Bank N.A.     1.492%        USD        3,000,000      $ (49,838 )    $ (252,981 )    $ 203,143   

PPL Energy Supply LLC
6.500%, due 05/01/18

     (5.000% )      06/20/16      JPMorgan Chase Bank N.A.     1.492%        USD        3,000,000        (49,838 )      (253,214 )      203,376   

Rite Aid Corp.
5.000%, due 12/20/20

     (5.000% )      12/20/20      JPMorgan Chase Bank N.A.     1.644%        USD        3,700,000        (578,917 )      (684,996 )      106,079   

Springleaf Finance Corp.
6.900%, due 12/15/17

     (5.000% )      09/20/16      JPMorgan Chase Bank N.A.     1.189%        USD        3,000,000        (82,924 )      (164,236 )      81,312   

Springleaf Finance Corp.
5.000%, due 06/20/20

     (5.000% )      06/20/20      Barclays Bank plc     3.286%        USD        1,000,000        (68,410 )      (92,698 )      24,288   

Sprint Communications, Inc.
8.375%, due 08/15/17

     (5.000% )      12/20/16      Barclays Bank plc     5.402%        USD        1,800,000        6,790        (91,290 )      98,080   

Tenet Healthcare Corp.
6.875%, due 11/15/31

     (5.000% )      12/05/16      Barclays Bank plc     1.104%        USD        2,500,000        (94,734 )      (230,083 )      135,349   

Tenet Healthcare Corp.
6.875%, due 11/15/31

     (5.000% )      03/20/19      Barclays Bank plc     3.751%        USD        4,500,000        (168,703 )      (362,651 )      193,948   

Tenet Healthcare Corp.
6.875%, due 11/15/31

     (5.000% )      03/20/19      Citibank N.A.     3.751%        USD        2,500,000        (93,724 )      (220,999 )      127,275   

Toys “R” Us, Inc.
7.375%, due 10/15/18

     (5.000% )      12/20/18      JPMorgan Chase Bank N.A.     26.564%        USD        2,200,000        858,776        550,000        308,776   

Weatherford International, Ltd.
4.500%, due 04/15/22

     (5.000% )      06/20/17      Credit Suisse International     5.373%        USD        5,000,000        26,180        (269,888 )      296,068   

Yum! Brands, Inc.
5.000%, due 03/20/18

     (5.000% )      03/20/18      Citibank N.A.     0.823%        USD        1,300,000        (119,215 )      (119,871 )      656   

Yum! Brands, Inc.
5.000%, due 03/20/18

     (5.000% )      03/20/18      Credit Suisse International     0.823%        USD        400,000        (36,681 )      (36,272 )      (409 ) 
             

 

 

    

 

 

    

 

 

  

Totals

  

   $ (3,867,284 )    $ (9,646,505 )    $ 5,779,221   
             

 

 

    

 

 

    

 

 

  

 

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
December 31,
2015(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
Paid/
(Received)		     Unrealized
Appreciation/
(Depreciation)		  

Anadarko Petroleum Corp.
6.950%, due 06/15/19

     1.000%        09/20/19      Barclays Bank plc     2.455%        USD        3,100,000      $ (156,952 )    $ 74,922      $ (231,874 ) 

Bank of America Corp.
5.650%, due 05/01/18

     1.000%        09/20/17      Credit Suisse International     0.345%        USD        2,000,000        22,531        (4,498 )      27,029   

Beazer Homes USA, Inc.
9.125%, due 05/15/19

     5.000%        09/20/19      Citibank N.A.     5.668%        USD        1,350,000        (29,341 )      28,152        (57,493 ) 

Beazer Homes USA, Inc.
9.125%, due 05/15/19

     5.000%        12/20/19      Citibank N.A.     5.925%        USD        2,000,000        (63,111 )      59,704        (122,815 ) 

Celanese U.S. Holdings LLC
3.246%, due 10/31/16

     1.800%        06/20/16      Credit Suisse International     0.553%        USD        500,000        2,961        —        2,961   

China Government International Bond
7.500%, due 10/28/27

     1.000%        09/20/20      Barclays Bank plc     1.049%        USD        3,000,000        (6,566 )      7,341        (13,907 ) 

Electricite de France S.A.
5.625%, due 02/21/33

     1.000%        09/20/20      Barclays Bank plc     0.817%        EUR        3,300,000        30,732        87,530        (56,798 ) 

Engie S.A.
5.125%, due 02/19/18

     1.000%        09/20/20      Barclays Bank plc     0.608%        EUR        2,300,000        46,063        75,856        (29,793 ) 

Orange S.A.
5.625%, due 05/22/18

     1.000%        09/20/20      Citibank N.A.     0.666%        EUR        3,300,000        56,160        70,842        (14,682 ) 

 

See accompanying notes to financial statements.

 

MIST-20

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of December 31, 2015

 

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
December 31,
2015(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
Paid/
(Received)		     Unrealized
Appreciation/
(Depreciation)		  

PSEG Power LLC
5.500%, due 12/01/15

     1.000%        03/20/20      JPMorgan

Chase Bank N.A.		     0.965%        USD        5,600,000      $ 7,973      $ (80,930 )    $ 88,903   

Republic of Lithuania
4.500%, due 03/05/13

     1.000%        06/20/16      Credit Suisse
International		     0.115%        USD        400,000        1,687        (18,566 )      20,253   

Tenet Healthcare Corp.
6.875%, due 11/15/31

     5.000%        12/20/18      Barclays Bank plc     3.246%        USD        2,500,000        122,952        169,065        (46,113 ) 

United Mexico States
5.950%, due 03/19/19

     1.000%        06/20/20      Citibank N.A.     1.582%        USD        1,600,000        (39,405 )      (20,033 )      (19,372 ) 

iHeartCommunications, Inc.
6.875%, due 06/15/18

     5.000%        06/20/18      Barclays Bank plc     53.157%        USD        1,600,000        (1,056,309 )      (360,000 )      (696,309 ) 
             

 

 

    

 

 

    

 

 

  

Totals

  

   $ (1,060,625 )    $ 89,385      $ (1,150,010 ) 
             

 

 

    

 

 

    

 

 

  

 

(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 of 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.

Cash in the amount of $350,000 and securities in the amount of $339,973 have been received at the custodian bank as collateral for OTC swap contracts.

 

(AUD)— Australian Dollar
(CAD)— Canadian Dollar
(DKK)— Danish Krone
(EUR)— Euro
(GBP)— British Pound
(INR)— Indian Rupee
(JPY)— Japanese Yen
(MXN)— Mexican Peso
(MYR)— Malaysian Ringgit
(NZD)— New Zealand Dollar
(SGD)— Singapore Dollar
(USD)— United States Dollar
(CDX.NA.HY)— Markit North America High Yield CDS Index
(CDX.NA.IG)— Markit North America Investment Grade CDS Index
(ITRAXX.EUR.FIN)— Markit iTraxx Europe Senior Financials Index
(LIBOR)— London Interbank Offered Rate

 

See accompanying notes to financial statements.

 

MIST-21

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2      Level 3      Total  

Total Corporate Bonds & Notes*

    $ —         $ 653,948,439       $ —         $ 653,948,439   

Total Asset-Backed Securities*

      —           242,653,730         —           242,653,730   

Total Mortgage-Backed Securities*

      —           191,599,399         —           191,599,399   

Total U.S. Treasury & Government Agencies*

      —           185,089,395         —           185,089,395   
Floating Rate Loans            

Aerospace/Defense

      —           2,884,064         —           2,884,064   

Auto Components

      —           694,419         —           694,419   

Auto Manufacturers

      —           792,371         —           792,371   

Auto Parts & Equipment

      —           733,456         —           733,456   

Capital Markets

      —           296,883         —           296,883   

Chemicals

      —           2,636,067         —           2,636,067   

Coal

      —           2,535,438         —           2,535,438   

Commercial Services

      —           768,297         —           768,297   

Computers

      —           1,717,547         —           1,717,547   

Distribution/Wholesale

      —           1,386,192         —           1,386,192   

Diversified Financial Services

      —           847,830         —           847,830   

Electric

      —           441,235         —           441,235   

Electronics

      —           953,333         —           953,333   

Forest Products & Paper

      —           6,641,302         —           6,641,302   

Healthcare-Products

      —           1,316,359         95,418         1,411,777   

Healthcare-Services

      —           7,367,373         —           7,367,373   

Hotels, Restaurants & Leisure

      —           2,413,288         —           2,413,288   

Industrial Conglomerates

      —           2,369,193         —           2,369,193   

Insurance

      —           1,394,621         —           1,394,621   

Internet

      —           1,582,782         —           1,582,782   

Internet Software & Services

      —           3,870,154         —           3,870,154   

Lodging

      —           1,545,712         —           1,545,712   

Machinery

      —           1,833,987         —           1,833,987   

Media

      —           4,416,368         —           4,416,368   

Mining

      —           3,190,943         —           3,190,943   

Oil & Gas

      —           2,302,020         —           2,302,020   

Oil & Gas Services

      —           857,083         —           857,083   

Pharmaceuticals

      —           4,634,585         —           4,634,585   

Retail

      —           5,674,342         —           5,674,342   

Semiconductors

      —           670,881         —           670,881   

Software (Less Unfunded Loan Commitments of $1,825,218)

      —           1,339,366         —           1,339,366   

 

See accompanying notes to financial statements.

 

MIST-22

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of December 31, 2015

Fair Value Hierarchy—(Continued)

 

Description    Level 1     Level 2     Level 3      Total  

Telecommunications

    $ —        $ 2,674,966      $ —         $ 2,674,966   

Transportation

      —          46,060        —           46,060   

Total Floating Rate Loans (Less Unfunded Loan Commitments)

      —          72,828,517        95,418         72,923,935   

Total Foreign Government*

      —          57,058,528        —           57,058,528   

Total Municipals

      —          21,188,247        —           21,188,247   

Total Purchased Option*

      —          40,320        —           40,320   

Total Common Stock*

      —          —          26,439         26,439   
Short-Term Investments          

Discount Note

      —          24,769,938        —           24,769,938   

Mutual Fund

      9,889,589        —          —           9,889,589   

Repurchase Agreement

      —          1,683,270        —           1,683,270   

Total Short-Term Investments

      9,889,589        26,453,208        —           36,342,797   

Total Net Investments

    $ 9,889,589      $ 1,450,859,783      $ 121,857       $ 1,460,871,229   
                                   

Collateral for Securities Loaned (Liability)

    $ —        $ (9,889,589 )    $ —         $ (9,889,589 ) 
Forward Contracts          

Forward Foreign Currency Exchange Contracts (Unrealized Appreciation)

    $ —        $ 3,491,439      $ —         $ 3,491,439   

Forward Foreign Currency Exchange Contracts (Unrealized Depreciation)

      —          (1,288,198 )      —           (1,288,198 ) 

Total Forward Contracts

    $ —        $ 2,203,241      $ —         $ 2,203,241   
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 374,756      $ —        $ —         $ 374,756   

Futures Contracts (Unrealized Depreciation)

      (249,483 )      —          —           (249,483 ) 

Total Futures Contracts

    $ 125,273      $ —        $ —         $ 125,273   

Written Options at Value

    $ —        $ (13,280 )    $ —         $ (13,280 ) 
Centrally Cleared Swap Contracts          

Centrally Cleared Swap Contracts (Unrealized Appreciation)

    $ —        $ 154,252      $ —         $ 154,252   

Centrally Cleared Swap Contracts (Unrealized Depreciation)

      —          (121,871 )      —           (121,871 ) 

Total Centrally Cleared Swap Contracts

    $ —        $ 32,381      $ —         $ 32,381   
OTC Swap Contracts          

OTC Swap Contracts at Value (Assets)

    $ —        $ 1,566,611      $ —         $ 1,566,611   

OTC Swap Contracts at Value (Liabilities)

      —          (6,283,945 )      —           (6,283,945 ) 

Total OTC Swap Contracts

    $ —        $ (4,717,334 )    $ —         $ (4,717,334 ) 

 

* 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,
2014		      Change in
Unrealized
Appreciation/
(Depreciation)		      Purchases      Balance as of
December 31,
2015		      Change in Unrealized
Appreciation/
(Depreciation) from
Investments Still Held at
December 31, 2015		  
Common Stocks               

Health Care Providers & Services

    $ —       $ 0       $ 26,439       $ 26,439       $ 0   
Floating Rate Loans               

Healthcare-Products

      —         0         95,418         95,418         0   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ —       $ 0       $ 121,857       $ 121,857       $ 0   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying notes to financial statements.

 

MIST-23

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b) (c)

    $ 1,460,871,229   

Cash denominated in foreign currencies (d)

      543,137   

Cash collateral (e)

      8,319,844   

OTC swap contracts at market value (f)

      1,566,611   

Unrealized appreciation on forward foreign currency exchange contracts

      3,491,439   

Receivable for:

   

Investments sold

      1,462,778   

Fund shares sold

      10,198   

Principal paydowns

      152,280   

Interest

      7,624,378   

Interest on OTC swap contracts

      37,600   

Prepaid expenses

      4,145   
  

 

 

  

Total Assets

      1,484,083,639   

Liabilities

   

Due to custodian

      2,038,170   

Written options at value (g)

      13,280   

OTC swap contracts at market value (h)

      6,283,945   

Unrealized depreciation on forward foreign currency exchange contracts

      1,288,198   

Collateral for securities loaned

      9,889,589   

Payables for:

   

Investments purchased

      2,653,013   

Fund shares redeemed

      721,764   

Variation margin on futures contracts

      113,954   

Variation margin on centrally cleared swap contracts

      82,736   

Interest on OTC swap contracts

      180,228   

Accrued Expenses:

   

Management fees

      586,139   

Distribution and service fees

      64,245   

Deferred trustees’ fees

      64,810   

Other expenses

      296,963   
  

 

 

  

Total Liabilities

      24,277,034   
  

 

 

  

Net Assets

    $ 1,459,806,605   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 1,519,316,846   

Undistributed net investment income

      28,233,684   

Accumulated net realized loss

      (58,122,268 ) 

Unrealized depreciation on investments, written options, futures contracts, swap contracts and foreign currency transactions

      (29,621,657 ) 
  

 

 

  

Net Assets

    $ 1,459,806,605   
  

 

 

  

Net Assets

   

Class A

    $ 1,156,047,742   

Class B

      303,758,863   

Capital Shares Outstanding*

   

Class A

      120,214,967   

Class B

      31,766,608   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 9.62   

Class B

      9.56   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,497,668,946.
(b) Investments at value is net of unfunded loan commitments of $1,825,218.
(c) Includes securities loaned at value of $9,745,094.
(d) Identified cost of cash denominated in foreign currencies was $544,080.
(e) Includes collateral of $645,389 for futures contracts, $5,145,000 for OTC swap contracts and $2,529,455 for centrally cleared swap contracts.
(f) Net premium paid on OTC swap contracts was $208,059.
(g) Premiums received on written options were $7,360.
(h) Net premium received on OTC swap contracts was $9,348,004.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Interest (a)

    $ 35,320,100   

Securities lending income

      105,575  
  

 

 

  

Total investment income

      35,425,675  

Expenses

   

Management fees

      7,526,639   

Administration fees

      37,195   

Custodian and accounting fees

      437,171   

Distribution and service fees—Class B

      796,399   

Audit and tax services

      96,850   

Legal

      26,480   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      55,451   

Insurance

      9,844   

Miscellaneous

      17,265  
  

 

 

  

Total expenses

      9,038,467  

Less management fee waiver

      (283,247 )
  

 

 

  

Net expenses

      8,755,220  
  

 

 

  

Net Investment Income

      26,670,455  
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      (11,650,132 ) 

Futures contracts

      (1,990,738 ) 

Written options

      418,937   

Swap contracts

      (874,987 ) 

Foreign currency transactions

      23,895,912  
  

 

 

  

Net realized gain

      9,798,992  
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (29,184,779 ) 

Futures contracts

      295,914   

Written options

      (113,484 ) 

Swap contracts

      1,841,581   

Foreign currency transactions

      (14,801,889 )
  

 

 

  

Net change in unrealized depreciation

      (41,962,657 )
  

 

 

  

Net realized and unrealized loss

      (32,163,665 )
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (5,493,210 )
  

 

 

  

 

(a) Net of foreign withholding taxes of $96,973.

 

See accompanying notes to financial statements.

 

MIST-24

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 26,670,455      $ 22,047,996   

Net realized gain (loss)

      9,798,992        (5,636,152 ) 

Net change in unrealized appreciation (depreciation)

      (41,962,657 )     1,382,382  
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (5,493,210 )     17,794,226  
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (40,665,155 )      (24,484,757 ) 

Class B

      (9,834,465 )     (7,133,230 )
  

 

 

    

 

 

  

Total distributions

      (50,499,620 )     (31,617,987 )
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      (58,134,540 )     236,366,758  
  

 

 

    

 

 

  

Total increase (decrease) in net assets

      (114,127,370 )      222,542,997   

Net Assets

     

Beginning of period

      1,573,933,975       1,351,390,978  
  

 

 

    

 

 

  

End of period

    $ 1,459,806,605      $ 1,573,933,975   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 28,233,684      $ 29,425,641   
  

 

 

    

 

 

  

Other Information:

Capital Shares

 

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      1,773,242      $ 17,725,091        17,789,482      $ 176,824,635   

Reinvestments

      4,179,358        40,665,155        2,470,712        24,484,757   

Redemptions

      (10,426,316 )      (101,686,294 )      (2,330,215 )      (23,267,025 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (4,473,716 )    $ (43,296,048 )      17,929,979      $ 178,042,367   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      7,053,159      $ 69,277,536        13,809,843      $ 137,911,876   

Reinvestments

      1,015,957        9,834,465        722,718        7,133,230   

Redemptions

      (9,593,409 )      (93,950,493 )      (8,722,431 )      (86,720,715 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (1,524,293 )    $ (14,838,492 )      5,810,130      $ 58,324,391   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ (58,134,540 )      $ 236,366,758   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-25

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Financial Highlights

 

Selected per share data                                   
     Class A  
     Year Ended December 31,  
     2015      2014      2013      2012      2011(a)  

Net Asset Value, Beginning of Period

    $ 9.97       $ 10.08       $ 10.12       $ 9.88       $ 10.00  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (b)

      0.18         0.15         0.16         0.17         0.09   

Net realized and unrealized gain (loss) on investments

      (0.20 )      (0.03 )      (0.02 )      0.29        (0.21 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.02 )      0.12        0.14        0.46        (0.12 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.33 )      (0.23 )      (0.18 )      (0.22 )      0.00  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.33 )      (0.23 )      (0.18 )      (0.22 )      0.00  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 9.62       $ 9.97       $ 10.08       $ 10.12       $ 9.88  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      (0.26 )      1.17 (e)      1.33        4.67        (1.20 )(d)

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      0.53         0.53         0.55         0.57         0.59  (f) 

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

      0.52         0.51         0.52         0.53         0.56  (f) 

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

      1.78         1.51         1.55         1.70         1.40  (f) 

Portfolio turnover rate (%)

      43         59         67         60         76  (d) 

Net assets, end of period (in millions)

    $ 1,156.0       $ 1,243.7       $ 1,075.7       $ 939.7       $ 809.9   
     Class B  
     Year Ended December 31,  
     2015      2014      2013      2012      2011(a)  

Net Asset Value, Beginning of Period

    $ 9.92       $ 10.03       $ 10.08       $ 9.86       $ 10.00  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (b)

      0.15         0.13         0.13         0.14         0.09   

Net realized and unrealized gain (loss) on investments

      (0.21 )      (0.02 )      (0.01 )      0.29        (0.23 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.06 )      0.11        0.12        0.43        (0.14 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.30 )      (0.22 )      (0.17 )      (0.21 )      0.00  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.30 )      (0.22 )      (0.17 )      (0.21 )      0.00  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 9.56       $ 9.92       $ 10.03       $ 10.08       $ 9.86  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      (0.62 )      1.06        1.16        4.40        (1.40 )(d)

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      0.78         0.78         0.80         0.82         0.84  (f) 

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

      0.77         0.76         0.77         0.78         0.81  (f) 

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

      1.53         1.26         1.32         1.45         1.37  (f) 

Portfolio turnover rate (%)

      43         59         67         60         76  (d) 

Net assets, end of period (in millions)

    $ 303.8       $ 330.2       $ 275.7       $ 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) 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) Generally accepted accounting principles may require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from the returns reported in the portfolio manager commentary section of this report.
(f) Computed on an annualized basis.
(g) Includes the effects of management fee waivers and expenses reimbursed by the Adviser (see Note 6 of the Notes to Financial Statements).

 

See accompanying notes to financial statements.

 

MIST-26

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946- Financial Services- Investment Companies. 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, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 and subject to general oversight by the Board. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity

 

MIST-27

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 through an independent pricing service based on the mean between closing bid and ask prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or broker-dealer. These contracts are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

Options, including swaptions, and futures contracts that are traded OTC are generally valued on the basis of quotations provided by broker-dealers or prices provided by 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, yield curves, credit curves, measures of volatility and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts (other than centrally cleared swaps) are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and other pricing services. Such quotations and prices are derived utilizing observable data, including the underlying reference securities or indices, credit spread quotations and expected default recovery rates determined by the pricing service. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or an independent pricing service when the exchange price is not available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third party prices are used to produce daily settlement prices. These securities are categorized as Level 2 within the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates, including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

Due to Custodian - Pursuant to the custodian agreement, the custodian may, in its discretion, advance funds to the Portfolio to make properly authorized payments. When such payments result in an overdraft, the Portfolio is obligated to repay the custodian at the current rate of interest charged by the custodian for secured loans (currently, the Federal Funds rate plus 2%). This obligation is payable on demand to the custodian. The custodian may avail itself of various remedies under the custodian agreement to obtain repayment of any overdraft amounts owed to it by a Portfolio. At December 31, 2015, the Portfolio had a payment due to the custodian pursuant to the foregoing arrangement of $2,038,170. Based on the short-term nature of these payments and the variable interest rate, the carrying value of the overdraft advances approximated its fair value at December 31, 2015. If measured at fair value, overdraft advances would have been considered as Level 2 in the fair value hierarchy at December 31, 2015. The Portfolio’s average overdraft advances during the year ended December 31, 2015 were not significant.

 

MIST-28

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 and paydown transactions. These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

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.

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

 

MIST-29

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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.

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 generally 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.

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, 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. The purchase of assignments will typically result in the Portfolio having a direct contractual relationship with the borrower, and the Portfolio may enforce compliance by the borrower with the terms of the loan agreement.

The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments it acquires direct rights against the borrower of the loan. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing.

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.

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 December 31, 2015, the Portfolio had open unfunded loan commitments of $1,825,218. At December 31, 2015, the Portfolio had sufficient cash and/or securities to cover these commitments.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $1,683,270, 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 December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 102% of the market value

 

MIST-30

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

The following table provides a breakdown of the collateral received and the remaining contractual maturities for securities lending transactions, which are accounted for as secured borrowings.

 

     Remaining Contractual Maturity of the Agreements
As of December 31, 2015		  
      Overnight and
Continuous		     Up to
30 Days		      31 - 90
Days		      Greater than
90 days		     Total  
Securities Lending Transactions             

Corporate Bonds & Notes

    $ (9,889,589 )    $ —       $ —       $ —      $ (9,889,589 ) 

Total Borrowings

    $ (9,889,589 )    $ —       $ —       $ —      $ (9,889,589 ) 

Gross amount of recognized liabilities for securities lending transactions

  

   $ (9,889,589 ) 

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 valuation 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 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 cash collateral on the Statement of Assets and Liabilities. Futures

 

MIST-31

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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. If futures contracts are exchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

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 investment exposure to a target asset class or to enhance return. Writing puts or buying calls tends to increase the Portfolio’s exposure to the underlying instrument and writing calls or buying puts tends 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 is worthless when it expires and the premium paid for the option is considered a realized 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 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 subsequently marked to market to reflect the current value of the option written. 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.

Options on swaps (“swaptions”) are similar to options on securities except that instead of selling or purchasing the right to buy or sell a security, the writer or purchaser of the swaptions is granting or buying the right to enter into a previously agreed upon interest rate or credit default swap agreement (interest rate risk and/or credit risk) at any time before the expiration of the option.

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 either privately negotiated in the OTC market (“OTC swaps”) or executed in a multilateral or other trade facility platform, such as a registered

 

MIST-32

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(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 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.

Centrally Cleared Swaps: Clearinghouses currently offer clearing derivative transactions which include interest rate and 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.

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 upon entering into the swap agreement 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 they are 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 be worthless when it expires 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

 

MIST-33

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 involving an entity in the index, the credit event is settled based on that entity’s 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 December 31, 2015, 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: The Portfolio may enter into currency swap agreements to gain or mitigate exposure to currency risk. 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.

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-34

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of risk exposure:

 

    

Asset Derivatives

     

Liability Derivatives

  

Risk Exposure

   

Statement of Assets &
Liabilities Location

    Fair Value     

Statement ofAssets &
Liabilities Location

    Fair Value  
Interest Rate    Unrealized appreciation on centrally cleared swap contracts (a) (b)    $ 154,252         
   Unrealized appreciation on futures contracts (a) (c)      374,756       Unrealized depreciation on futures contracts (a) (c)    $ 249,483   
Credit    OTC swap contracts at market value (d)      1,344,593       OTC swap contracts at market value (d)      6,272,502   
         Unrealized depreciation on centrally cleared swap contracts (a) (b)      121,871   
Foreign Exchange    Investments at market value (e)      40,320         
   OTC swap contracts at market value (d)      222,018       OTC swap contracts at market value (d)      11,443   
   Unrealized appreciation on forward foreign currency exchange contracts      3,491,439       Unrealized depreciation on forward foreign currency exchange contracts      1,288,198   
         Written options at value      13,280   
     

 

 

        

 

 

  
Total       $ 5,627,378          $ 7,956,777   
     

 

 

        

 

 

  

 

  (a) Financial instrument not subject to a master netting agreement.
  (b) 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.
  (c) 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.
  (d) Excludes OTC swap interest receivable of $37,600 and OTC swap interest payable of $180,228.
  (e) Represents purchased options which are part of investments as shown in the Statement of Assets and Liabilities.

The Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized 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 (“MNA”) (see Note 4), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Assets
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Received†		     Net Amount*  

Barclays Bank plc

    $ 210,657       $ (210,657 )    $ —      $ —   

Citibank N.A.

      444,303         (444,303 )      —        —   

Credit Suisse International

      188,576         (188,576 )      —        —   

Deutsche Bank AG

      1,791,493         (1,221,556 )      —        569,937   

Goldman Sachs Bank USA

      428,955         —        (350,000 )(1)      78,955   

HSBC Bank plc

      3,646         —        —        3,646   

JPMorgan Chase Bank N.A.

      1,416,108         (901,925 )      (339,973 )(1)      174,210   

Morgan Stanley & Co. LLC

      33,178         (4,944 )      —        28,234   

Royal Bank of Scotland plc

      581,454         —        —        581,454   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 5,098,370       $ (2,971,961 )    $ (689,973 )    $ 1,436,436   
  

 

 

     

 

 

    

 

 

    

 

 

  

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under an MNA, or similar agreement, and net of the related collateral pledged by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Liabilities
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Pledged†		     Net Amount**  

Barclays Bank plc

    $ 2,638,993       $ (210,657 )    $ (2,420,000 )    $ 8,336   

Citibank N.A.

      2,053,598         (444,303 )      (1,609,295 )      —   

Credit Suisse International

      764,407         (188,576 )      (575,000 )      831   

Deutsche Bank AG

      1,221,556         (1,221,556 )      —        —   

JPMorgan Chase Bank N.A.

      901,925         (901,925 )      —        —   

Morgan Stanley & Co. LLC

      4,944         (4,944 )      —        —   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 7,585,423       $ (2,971,961 )    $ (4,604,295 )    $ 9,167   
  

 

 

     

 

 

    

 

 

    

 

 

  

 

  * Net amount represents the net amount receivable from the counterparty in the event of default.
  ** Net amount represents the net amount payable due to the counterparty in the event of default.
  † In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.
  (1) Collateral was received in a segregated account in the counterparty’s name at the custodian.

 

MIST—35

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Interest Rate     Credit     Foreign
Exchange		     Total  

Investments (a)

    $ —      $ (752,729 )    $ (7,840 )    $ (760,569 ) 

Forward foreign currency transactions

      —        —        24,905,236        24,905,236   

Futures contracts

      (1,990,738 )      —        —        (1,990,738 ) 

Swap contracts

      (13,093 )      (882,725 )      20,831        (874,987 ) 

Written options

      —        409,225        9,712        418,937   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ (2,003,831 )    $ (1,226,229 )    $ 24,927,939      $ 21,697,879   
  

 

 

    

 

 

    

 

 

    

 

 

  

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

    Interest Rate     Credit     Foreign
Exchange		     Total  

Investments (a)

    $ —      $ 201,419      $ 15,360      $ 216,779   

Forward foreign currency transactions

      —        —        (15,141,476 )      (15,141,476 ) 

Futures contracts

      295,914        —        —        295,914   

Swap contracts

      154,251        1,709,897        (22,567 )      1,841,581   

Written options

      —        (107,564 )      (5,920 )      (113,484 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 450,165      $ 1,803,752      $ (15,154,603 )    $ (12,900,686 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Investments (a)

    $ 42,753,415   

Forward foreign currency transactions

      182,033,167   

Futures contracts long

      51,786,923   

Futures contracts short

      (105,400,000 ) 

Swap contracts

      168,173,644   

Written options

      (40,753,415 ) 

 

  ‡ Averages are based on activity levels during 2015.
  (a) Represents purchased options which are part of net realized gain (loss) on investments and net change in unrealized appreciation (depreciation) on investments as shown in the Statement of Operations.

Written Options

The Portfolio transactions in written options during the year ended December 31, 2015:

 

Call Options

    Notional
Amount*		      Premium
Received		  

Options outstanding December 31, 2014

      —       $ —   

Options written

      3,200,000         17,232   

Options bought back

      (1,600,000 )       (9,872 ) 
  

 

 

     

 

 

  

Options outstanding December 31, 2015

      1,600,000       $ 7,360   
  

 

 

     

 

 

  

Put Options

    Notional
Amount*		      Premium
Received		  

Options outstanding December 31, 2014

      35,500,000       $ 187,620   

Options written

      195,450,000         850,567   

Options bought back

      (142,750,000 )       (554,253 ) 

Options expired

      (88,200,000 )       (483,934 ) 
  

 

 

     

 

 

  

Options outstanding December 31, 2015

      —       $ —   
  

 

 

     

 

 

  

 

  * Amount shown is in the currency in which the transaction was denominated.

4. Certain Risks

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”).

 

MIST-36

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Market 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, 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC 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 (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to Portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may 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-37

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$129,851,998    $ 557,163,727       $ 148,454,769       $ 453,893,730   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
Metlife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$7,526,639      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

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Franklin Advisers, Inc. is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

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 May 1, 2015 to April 30, 2016, MetLife Advisers 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.

An identical agreement was in place for the period April 28, 2014 to April 30, 2015. Amounts waived for the year ended December 31, 2015 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, LLC, 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 year ended December 31, 2015 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

 

MIST-38

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital
Gain		      Total  

2015

    2014      2015      2014      2015      2014  

$50,499,620

    $ 31,617,987       $ —       $ —       $ 50,499,620       $ 31,617,987   

As of December 31, 2015, 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		     Other
Accumulated
Capital Losses		     Total  
$34,407,450    $ —       $ (45,286,823 )    $ (48,566,057 )    $ (59,445,430 ) 

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.

As of December 31, 2015, the accumulated short-term capital losses were $14,608,251 and the accumulated long-term capital losses were $33,957,806.

9. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-39

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Met/Franklin Low Duration Total Return 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 Met/Franklin Low Duration Total Return Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended and for the period from April 29, 2011 (commencement of operations) to December 31, 2011. 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 December 31, 2015, by correspondence with the custodian, brokers, and agent banks; when replies were not received from brokers or agent banks, 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 Met/Franklin Low Duration Total Return Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended and for the period from April 29, 2011 (commencement of operations) to December 31, 2011, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-40

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-41

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-42

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-43

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-44

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

Met/Franklin Low Duration Total Return Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Franklin Advisers, Inc. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the one-year, three-year, and the since-inception (beginning April 29, 2011) periods ended June 30, 2015. The Board further considered that the Portfolio underperformed its benchmark, the Barclays U.S. Government/Credit 1-3 Year Bond Index, for the one-year period ended October 31, 2015, and outperformed its benchmark for the three-year and since-inception (beginning April 29, 2011) periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees were below the Expense Group median and the Expense Universe median and were above the Sub-advised Expense Universe median. The Board also considered that the Portfolio’s total expenses (exclusive of 12b-l fees) were below the Expense Group median, Expense Universe median, and Sub-advised Expense Universe median. The Board noted that the Portfolio’s contractual management fees were above the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board further noted that the Portfolio’s contractual sub-advisory fees were above the averages of the Sub-advised Expense Group and Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-45

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Managed by Franklin Advisers, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A and B shares of the Met/Templeton International Bond Portfolio returned -3.95% and -4.16%, respectively. The Portfolio’s benchmark, the Citigroup World Government Bond Index (“WGBI”) ex-U.S.1, returned -5.54%.

MARKET ENVIRONMENT / CONDITIONS

During the period, global financial markets were broadly influenced by growth in the U.S., economic moderation in China, quantitative easing (“QE”) measures from the Bank of Japan (the “BOJ”) and the European Central Bank (the “ECB”), a sharp decline in oil prices, and a protracted depreciation of emerging market currencies. At the beginning of the period, financial markets were experiencing volatility related to the rapid decline of oil prices in 2014 and the growing concerns for global growth. We believed the market was misjudging the underlying forces behind the decline in oil prices, which, by our assessment, were driven by supply dynamics rather than a loss of demand. We held the view that the global economy would benefit from lower oil prices and that most observers were too pessimistic. Amid the heightened risk aversion, the yield on the 10-year U.S. Treasury note reached 1.64%, its lowest level during 2015, at the end of January.

Global markets began to stabilize in February as oil prices halted their decline and leveled off to a more stable range. Credit spreads tightened while bond yields increased across much of the globe. In March, the ECB launched a new QE program with the aim of increasing the size of its balance sheet to a level higher than its previous peak, stating intentions to continue its asset purchases until it sees a sustained adjustment in the path of inflation. Concurrently, the BOJ continued deploying massive levels of its own QE measures. We anticipated that the QE programs would put downward pressure on the euro and the Japanese yen during the year while keeping bond yields low in these respective markets. The euro depreciated 10.23% against the U.S. dollar over the 12-month period while the Japanese yen depreciated 0.33%.

However, global volatility returned at the end of June as economic concerns over China spread across global financial markets. Several emerging market currencies depreciated sharply against the U.S. dollar due to heightened risk aversion, while the euro and the Japanese yen appreciated at times, acting as perceived safe havens. In our assessment, the depreciations of several emerging market currencies were excessive, leading to fundamentally cheap valuations. The heightened risk volatility persisted through much of July, August and September, before markets relatively stabilized in the autumn months. Several emerging market currencies rebounded and appreciated against the U.S. dollar in October while the euro and the yen depreciated. Similar stabilizing trends continued through November until global risk aversion returned in December.

On the whole, the U.S. dollar broadly strengthened against developed and emerging market currencies during the 12-month period. Global bond yields and spread levels fluctuated, with an overall trend toward higher yields across the Americas and eurozone but lower yields in specific peripheral European markets. Across much of East Asia and in Japan yields declined during the period; however, yields increased across a number of countries in south and Southeast Asia. Credit spreads widened across a vast majority of global credit markets during the period.

PORTFOLIO REVIEW / PERIOD END POSITIONING

During the period, currency positions detracted from the Portfolio’s absolute performance. Sovereign credit exposures contributed to absolute return while interest rate strategies had a largely neutral effect. Currency positions in Asia ex-Japan and Latin America detracted from absolute performance; however, the Portfolio’s net-negative position in the euro contributed. The Portfolio’s net-negative position in the Japanese yen had a largely neutral effect on absolute return. The Portfolio maintained a defensive approach regarding interest rates in developed and emerging markets. Consequently, contributions from duration exposures were limited.

On a relative basis, currency positions and sovereign credit exposures contributed to relative performance, while interest rate strategies detracted. The Portfolio’s underweight position in the euro contributed to relative return while overweight currency positions in Asia ex-Japan and Latin America detracted. The Portfolio’s underweight position in the Japanese yen had a largely neutral effect on relative return. The Portfolio maintained a shorter duration positioning relative to its benchmark. Select underweight duration exposure in Europe detracted from relative performance.

The core of our strategy during the reporting period remained seeking to position ourselves to navigate a rising interest rate environment. Thus, we continued to maintain low portfolio duration while aiming at a negative correlation with U.S. Treasury rates. We were positioned with negative duration exposure to U.S. Treasuries, and we held select local currencies and local bond positions in specific emerging markets. We actively sought opportunities that could, in our view, potentially offer positive real yields without taking undue interest rate risk. We also held net-negative positions in the euro and the Japanese yen. Additionally, we continued to selectively invest in credit opportunities, with a particular focus on credit exposures in economies with strong growth indicators. During the period, we used

 

MIST-1

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Managed by Franklin Advisers, Inc.

Portfolio Manager Commentary*—(Continued)

 

currency forward contracts to actively manage exposure to currencies. We also used interest rate swaps to tactically manage duration exposures.

Michael Hasenstab

Christine Zhu

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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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/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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        Since Inception2  
Met/Templeton International Bond Portfolio                 

Class A

        -3.95           2.48           5.36   

Class B

        -4.16           2.21           5.10   
Citigroup World Government Bond Index (“WGBI”) ex-U.S.        -5.54           -1.30           1.22   

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 date of the Class A and Class B shares is 5/1/2009. Index since inception return is based on the Portfolio’s inception date.

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 DECEMBER 31, 2015

Top Countries

 

     % of
Net Assets		  
United States      25.2   
Mexico      17.5   
South Korea      15.0   
Malaysia      9.5   
Indonesia      4.9   
Poland      4.9   
Brazil      4.7   
Philippines      4.7   
Ukraine      3.9   
Serbia      1.9   

 

MIST-3

Met Investors Series Trust

Met/Templeton International 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A

    Actual      0.74 %     $ 1,000.00         $ 961.40         $ 3.66   
   Hypothetical*      0.74 %     $ 1,000.00         $ 1,021.48         $ 3.77   

Class B

    Actual      0.99 %     $ 1,000.00         $ 960.20         $ 4.89   
   Hypothetical*      0.99 %     $ 1,000.00         $ 1,020.22         $ 5.04   

* 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 (184 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

 

MIST-4

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Schedule of Investments as of December 31, 2015

Foreign Government—72.3% of Net Assets

 

Security Description   Principal
Amount*		     Value  

Brazil—4.7%

  

Brazil Letras do Tesouro Nacional

    

Zero Coupon, 01/01/16 (BRL)

     11,500,000      $ 2,906,793   

Zero Coupon, 07/01/16 (BRL)

     15,300,000        3,606,817   

Zero Coupon, 10/01/16 (BRL)

     760,000        172,251   

Zero Coupon, 01/01/17 (BRL)

     17,580,000        3,838,308   

Zero Coupon, 01/01/18 (BRL)

     10,440,000        1,948,747   

Brazil Notas do Tesouro Nacional

    

6.000%, 08/15/16 (BRL) (a)

     3,245,000        2,274,735   

6.000%, 08/15/18 (BRL) (a)

     4,225,000        2,900,783   

6.000%, 05/15/19 (BRL) (a)

     2,420,000        1,641,456   

6.000%, 08/15/20 (BRL) (a)

     430,000        287,716   

6.000%, 08/15/22 (BRL) (a)

     6,930,000        4,544,720   

6.000%, 05/15/23 (BRL) (a)

     1,070,000        696,056   

6.000%, 08/15/24 (BRL) (a)

     1,140,000        735,408   

6.000%, 05/15/45 (BRL) (a)

     6,400,000        3,789,383   

10.000%, 01/01/17 (BRL)

     78,680,000        17,968,224   

10.000%, 01/01/19 (BRL)

     6,700,000        1,373,208   

10.000%, 01/01/21 (BRL)

     65,665,000        12,408,348   

10.000%, 01/01/23 (BRL)

     8,090,000        1,435,750   
   

 

 

  
      62,528,703   
   

 

 

  

Hungary—1.5%

  

Hungary Government Bond

    

6.750%, 11/24/17 (HUF)

     1,329,390,000        5,008,709   

Hungary Government International Bonds

    

6.250%, 01/29/20 (b)

     9,425,000        10,539,789   

6.375%, 03/29/21

     3,808,000        4,341,120   
   

 

 

  
      19,889,618   
   

 

 

  

Iceland—0.2%

  

Iceland Government International Bond

    

5.875%, 05/11/22 (144A)

     2,740,000        3,107,952   
   

 

 

  

Indonesia—4.9%

  

Indonesia Treasury Bills

    

5.815%, 02/04/16 (IDR) (c)

     9,544,000,000        683,484   

6.016%, 01/07/16 (IDR) (c)

     15,490,000,000        1,123,123   

Indonesia Treasury Bonds

    

5.625%, 05/15/23 (IDR)

     96,437,000,000        5,748,793   

7.000%, 05/15/22 (IDR)

     80,237,000,000        5,282,720   

7.875%, 04/15/19 (IDR)

     53,373,000,000        3,764,878   

8.250%, 07/15/21 (IDR)

     35,046,000,000        2,479,736   

8.375%, 03/15/24 (IDR)

     71,991,000,000        5,077,598   

8.375%, 09/15/26 (IDR)

     13,258,000,000        936,870   

8.375%, 03/15/34 (IDR)

     49,720,000,000        3,377,497   

9.000%, 03/15/29 (IDR)

     9,426,000,000        684,074   

10.000%, 09/15/24 (IDR)

     186,070,000,000        14,311,935   

10.000%, 02/15/28 (IDR)

     34,960,000,000        2,711,714   

10.250%, 07/15/22 (IDR)

     31,077,000,000        2,398,396   

11.000%, 11/15/20 (IDR)

     28,950,000,000        2,271,163   

11.500%, 09/15/19 (IDR)

     7,238,000,000        567,111   

12.800%, 06/15/21 (IDR)

     165,808,000,000        14,008,220   

12.900%, 06/15/22 (IDR)

     1,583,000,000        136,631   
   

 

 

  
      65,563,943   
   

 

 

  

Ireland—1.1%

  

Ireland Government Bond

    

5.400%, 03/13/25 (EUR)

     9,929,440      14,765,399   
   

 

 

  

Lithuania—0.5%

  

Lithuania Government International Bonds

    

6.125%, 03/09/21 (144A)

     540,000        622,350   

7.375%, 02/11/20 (144A)

     5,340,000        6,314,550   
   

 

 

  
      6,936,900   
   

 

 

  

Malaysia—9.5%

  

Bank Negara Malaysia Monetary Notes

    

2.675%, 05/12/16 (MYR) (c)

     3,300,000        761,245   

2.925%, 10/18/16 (MYR) (c)

     5,620,000        1,281,109   

2.927%, 10/11/16 (MYR) (c)

     7,250,000        1,653,559   

2.928%, 10/06/16 (MYR) (c)

     1,870,000        426,668   

2.948%, 09/15/16 (MYR) (c)

     14,350,000        3,279,407   

2.950%, 04/19/16 (MYR) (c)

     4,067,000        939,793   

2.954%, 07/19/16 (MYR) (c)

     5,620,000        1,289,834   

2.958%, 07/05/16 (MYR) (c)

     10,040,000        2,306,712   

2.960%, 05/03/16 (MYR) (c)

     4,310,000        994,911   

2.968%, 09/22/16 (MYR) (c)

     12,560,000        2,868,808   

2.978%, 06/07/16 (MYR) (c)

     17,450,000        4,017,719   

2.980%, 03/01/16 (MYR) (c)

     12,060,000        2,796,799   

Malaysia Government Bonds

    

3.172%, 07/15/16 (MYR)

     91,288,000        21,343,893   

3.314%, 10/31/17 (MYR)

     20,220,000        4,761,300   

3.394%, 03/15/17 (MYR)

     115,930,000        27,238,298   

3.814%, 02/15/17 (MYR)

     10,980,000        2,585,291   

4.012%, 09/15/17 (MYR)

     13,560,000        3,228,300   

4.262%, 09/15/16 (MYR)

     180,173,000        42,552,763   

Malaysia Treasury Bills

    

2.591%, 03/18/16 (MYR) (c)

     6,660,000        1,542,502   

2.628%, 05/06/16 (MYR) (c)

     10,000        2,308   

2.719%, 05/27/16 (MYR) (c)

     360,000        82,948   

2.865%, 04/29/16 (MYR) (c)

     930,000        214,741   

2.894%, 03/18/16 (MYR) (c)

     510,000        118,119   

2.934%, 01/22/16 (MYR) (c)

     2,520,000        586,154   

2.946%, 08/05/16 (MYR) (c)

     4,050,000        928,340   

3.108%, 01/22/16 (MYR) (c)

     560,000        130,256   
   

 

 

  
      127,931,777   
   

 

 

  

Mexico—17.5%

  

Mexican Bonos

    

5.000%, 06/15/17 (MXN)

     178,610,000        10,511,972   

6.250%, 06/16/16 (MXN)

     124,988,000        7,335,634   

7.250%, 12/15/16 (MXN)

     311,355,000        18,658,555   

7.750%, 12/14/17 (MXN)

     950,800,000        58,978,453   

Mexican Udibonos

    

2.500%, 12/10/20 (MXN) (a)

     13,232,309        746,848   

3.500%, 12/14/17 (MXN) (a)

     24,441,297        1,461,265   

4.000%, 06/13/19 (MXN) (a)

     16,762,360        1,010,956   

5.000%, 06/16/16 (MXN) (a)

     24,435,916        1,449,750   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Schedule of Investments as of December 31, 2015

Foreign Government—(Continued)

 

Security Description   Principal
Amount*		     Value  

Mexico—(Continued)

  

Mexico Cetes

    

2.778%, 03/03/16 (MXN) (c)

     1,538,380,000      $ 8,879,571   

3.125%, 01/07/16 (MXN) (c)

     990,642,000        5,744,626   

3.200%, 03/17/16 (MXN) (c)

     263,273,000        1,516,946   

3.201%, 03/31/16 (MXN) (c)

     3,568,116,000        20,533,152   

3.206%, 04/14/16 (MXN) (c)

     502,787,000        2,889,293   

3.222%, 02/04/16 (MXN) (c)

     1,542,939,000        8,926,566   

3.225%, 03/23/16 (MXN) (c)

     438,450,000        2,524,945   

3.231%, 01/21/16 (MXN) (c)

     635,514,000        3,680,889   

3.301%, 04/28/16 (MXN) (c)

     1,818,153,000        10,432,925   

3.315%, 02/18/16 (MXN) (c)

     1,707,644,000        9,867,962   

3.354%, 05/12/16 (MXN) (c)

     247,136,000        1,415,993   

3.390%, 05/26/16 (MXN) (c)

     2,911,116,000        16,653,891   

3.407%, 06/23/16 (MXN) (c)

     4,126,081,000        23,536,940   

3.442%, 06/09/16 (MXN) (c)

     1,021,141,000        5,832,908   

3.487%, 10/13/16 (MXN) (c)

     1,293,220,000        7,295,143   

3.491%, 08/18/16 (MXN) (c)

     778,517,000        4,416,467   

3.411%, 12/08/16 (MXN) (c)

     185,172,000        1,037,788   
   

 

 

  
      235,339,438   
   

 

 

  

Peru—0.1%

  

Peru Government Bond

    

7.840%, 08/12/20 (PEN)

     5,663,000        1,751,017   
   

 

 

  

Philippines—4.7%

  

Philippine Government Bonds

    

1.625%, 04/25/16 (PHP)

     1,295,540,000        27,459,611   

7.000%, 01/27/16 (PHP)

     1,438,280,000        30,653,046   

Philippine Treasury Bills

    

1.035%, 03/09/16 (PHP) (c)

     33,000,000        699,324   

1.202%, 02/03/16 (PHP) (c)

     79,570,000        1,687,506   

1.267%, 08/03/16 (PHP) (c)

     45,240,000        949,139   

1.424%, 03/02/16 (PHP) (c)

     16,900,000        357,915   

1.432%, 05/04/16 (PHP) (c)

     2,030,000        42,744   

1.485%, 12/07/16 (PHP) (c)

     14,960,000        315,841   

1.511%, 12/07/16 (PHP) (c)

     15,090,000        316,098   
   

 

 

  
      62,481,224   
   

 

 

  

Poland—4.9%

  

Poland Government Bonds

    

Zero Coupon, 01/25/16 (PLN)

     4,547,000        1,158,110   

Zero Coupon, 07/25/16 (PLN)

     107,520,000        27,181,990   

1.790%, 01/25/17 (PLN) (d)

     28,518,000        7,276,512   

1.790%, 01/25/21 (PLN) (d)

     28,929,000        7,242,165   

4.750%, 10/25/16 (PLN)

     60,400,000        15,789,735   

4.750%, 04/25/17 (PLN)

     1,320,000        350,237   

5.000%, 04/25/16 (PLN)

     23,660,000        6,094,366   
   

 

 

  
      65,093,115   
   

 

 

  

Portugal—0.9%

  

Portugal Government International Bond

    

5.125%, 10/15/24 (144A)

     11,910,000        12,110,088   
   

 

 

  

Serbia—1.9%

  

Serbia International Bonds

    

4.875%, 02/25/20 (144A)

     3,150,000      3,224,151   

5.250%, 11/21/17 (144A)

     1,720,000        1,785,800   

7.250%, 09/28/21 (144A)

     17,560,000        19,850,737   
   

 

 

  
      24,860,688   
   

 

 

  

Slovenia—0.3%

  

Slovenia Government International Bonds

    

5.500%, 10/26/22 (144A)

     3,000,000        3,348,552   

5.850%, 05/10/23 (144A)

     850,000        968,464   
   

 

 

  
      4,317,016   
   

 

 

  

South Korea—15.0%

  

Korea Monetary Stabilization Bonds

    

Zero Coupon, 01/05/16 (KRW)

     1,095,900,000        934,589   

Zero Coupon, 01/12/16 (KRW)

     4,576,700,000        3,901,860   

Zero Coupon, 04/19/16 (KRW)

     3,466,300,000        2,942,776   

1.520%, 09/09/16 (KRW)

     2,370,700,000        2,020,608   

1.530%, 10/08/16 (KRW)

     6,485,400,000        5,527,272   

1.560%, 08/09/16 (KRW)

     10,378,600,000        8,848,935   

1.560%, 10/02/17 (KRW)

     37,369,200,000        31,822,668   

1.570%, 07/09/16 (KRW)

     10,130,600,000        8,638,930   

1.610%, 11/09/16 (KRW)

     12,475,400,000        10,638,195   

1.620%, 06/09/16 (KRW)

     817,900,000        697,637   

1.700%, 08/02/17 (KRW)

     8,336,400,000        7,115,456   

1.920%, 03/09/16 (KRW)

     521,000,000        444,613   

1.960%, 02/02/17 (KRW)

     275,400,000        235,689   

2.070%, 12/02/16 (KRW)

     9,398,300,000        8,047,022   

2.220%, 10/02/16 (KRW)

     1,595,700,000        1,366,992   

2.460%, 08/02/16 (KRW)

     9,348,700,000        8,013,300   

2.780%, 02/02/16 (KRW)

     5,175,740,000        4,418,322   

2.790%, 06/02/16 (KRW)

     7,884,300,000        6,757,260   

2.800%, 04/02/16 (KRW)

     14,113,890,000        12,073,271   

Korea Treasury Bonds

    

2.000%, 12/10/17 (KRW)

     22,392,700,000        19,223,461   

2.750%, 06/10/16 (KRW)

     21,823,000,000        18,704,315   

3.000%, 12/10/16 (KRW)

     44,860,740,000        38,741,575   

4.000%, 03/10/16 (KRW)

     1,043,200,000        893,603   
   

 

 

  
      202,008,349   
   

 

 

  

Sri Lanka—0.7%

  

Sri Lanka Government Bonds

    

6.400%, 08/01/16 (LKR)

     56,200,000        388,306   

6.400%, 10/01/16 (LKR)

     35,400,000        243,852   

7.500%, 08/15/18 (LKR)

     25,830,000        172,193   

8.000%, 06/15/17 (LKR)

     13,890,000        96,076   

8.000%, 11/15/18 (LKR)

     243,630,000        1,639,641   

8.000%, 11/01/19 (LKR)

     13,890,000        91,649   

8.250%, 03/01/17 (LKR)

     540,000        3,754   

8.500%, 04/01/18 (LKR)

     170,110,000        1,171,054   

8.500%, 06/01/18 (LKR)

     1,410,000        9,673   

8.500%, 07/15/18 (LKR)

     45,000,000        309,834   

9.000%, 05/01/21 (LKR)

     3,530,000        23,530   

9.250%, 05/01/20 (LKR)

     55,880,000        380,819   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Schedule of Investments as of December 31, 2015

Foreign Government—(Continued)

 

Security Description  

Shares/

Principal
Amount*

     Value  

Sri Lanka—(Continued)

  

Sri Lanka Government Bonds

    

10.600%, 07/01/19 (LKR)

     340,660,000      $ 2,442,215   

10.600%, 09/15/19 (LKR)

     55,760,000        398,900   

11.000%, 08/01/21 (LKR)

     219,060,000        1,579,963   

11.200%, 07/01/22 (LKR)

     26,640,000        194,566   
   

 

 

  
      9,146,025   
   

 

 

  

Ukraine—3.9%

  

Ukraine Government International Bonds

    

Zero Coupon, 05/31/40 (144A)

     12,785,000        5,050,075   

7.750%, 09/01/19 (144A)

     1,575,461        1,458,215   

7.750%, 09/01/20 (144A)

     6,753,999        6,213,679   

7.750%, 09/01/21 (144A)

     6,429,000        5,841,132   

7.750%, 09/01/22 (144A)

     6,429,000        5,823,260   

7.750%, 09/01/23 (144A)

     6,206,000        5,524,581   

7.750%, 09/01/24 (144A)

     6,206,000        5,491,751   

7.750%, 09/01/25 (144A)

     6,206,000        5,458,674   

7.750%, 09/01/26 (144A)

     6,206,000        5,399,965   

7.750%, 09/01/27 (144A)

     6,095,000        5,302,650   

Ukreximbank Via Biz Finance plc

    

9.750%, 01/22/25 (144A)

     1,330,000        1,160,691   
   

 

 

  
      52,724,673   
   

 

 

  

Total Foreign Government
(Cost $1,072,972,907)

       970,555,925   
   

 

 

  
Short-Term Investments—25.5%   

Discount Note—8.0%

  

Federal Home Loan Bank

    

0.023%, 01/04/16 (c)

     107,510,000        107,509,731   
   

 

 

  

Mutual Fund—0.3%

  

State Street Navigator Securities Lending MET Portfolio (e)

     3,105,825        3,105,825   
   

 

 

  

Repurchase Agreement—17.2%

  

Fixed Income Clearing Corp. RepurchaseAgreement dated 12/31/15 at 0.030% to be repurchased at $231,278,975 on 01/04/16, collateralized by $235,320,000 U.S. Treasury Note at 1.625% due 06/30/20 with a value of $235,908,300.

     231,278,204        231,278,204   
   

 

 

  

Total Short-Term Investments
(Cost $341,893,760)

       341,893,760   
   

 

 

  

Total Investments— 97.8%
(Cost $1,414,866,667) (f)

       1,312,449,685   

Other assets and liabilities (net)—2.2%

       30,035,353   
   

 

 

  
Net Assets—100.0%     $ 1,342,485,038   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Principal amount of security is adjusted for inflation.
(b) All or a portion of the security was held on loan. As of December 31, 2015, the market value of securities loaned was $335,484 and the collateral received consisted of cash in the amount of $3,105,825. The cash collateral is invested in a money market fund managed by an affiliate of the custodian.
(c) The rate shown represents current yield to maturity.
(d) Variable or floating rate security. The stated rate represents the rate at December 31, 2015. Maturity date shown for callable securities reflects the earliest possible call date.
(e) Represents investment of cash collateral received from securities on loan as of December 31, 2015.
(f) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $1,419,391,099. The aggregate unrealized appreciation and depreciation of investments were $9,611,463 and $(116,552,877), respectively, resulting in net unrealized depreciation of $(106,941,414) for federal income tax purposes.
(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 December 31, 2015, the market value of 144A securities was $104,057,317, which is 7.8% of net assets.
(BRL)— Brazilian Real
(EUR)— Euro
(HUF)— Hungarian Forint
(IDR)— Indonesian Rupiah
(KRW)— South Korean Won
(LKR)— Sri Lankan Rupee
(MXN)— Mexican Peso
(MYR)— Malaysian Ringgit
(PEN)— Peruvian Nuevo Sol
(PHP)— Philippine Peso
(PLN)— Polish Zloty

 

Top Industries as of
December 31, 2015 (Unaudited)

   

% of
Net Assets

  

Global Government Investment Grade

      37.1%   

Global Government High Yield

      35.2%   
  

 

 

  
     72.3%   
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Schedule of Investments as of December 31, 2015

Forward Foreign Currency Exchange Contracts

 

 

Contracts to Buy

     

Counterparty

    Settlement
Date		      In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
CLP     31,180,000      

Deutsche Bank AG

      01/06/16         USD         44,524       $ (524 ) 
CLP     36,802,000      

Deutsche Bank AG

      01/06/16         USD         52,552         (619 ) 
CLP     1,079,310,000      

Morgan Stanley & Co.

      01/11/16         USD         1,522,084         74   
CLP     635,252,500      

Morgan Stanley & Co.

      01/19/16         USD         898,163         (3,108 ) 
CLP     91,925,000      

Deutsche Bank AG

      01/21/16         USD         134,099         (4,610 ) 
CLP     986,595,000      

Morgan Stanley & Co.

      01/22/16         USD         1,427,944         (38,349 ) 
CLP     113,400,000      

Morgan Stanley & Co.

      01/25/16         USD         157,282         2,383   
CLP     141,690,000      

Deutsche Bank AG

      01/26/16         USD         203,402         (3,929 ) 
CLP     29,117,000      

Deutsche Bank AG

      01/28/16         USD         42,116         (1,135 ) 
CLP     101,783,000      

Deutsche Bank AG

      02/08/16         USD         146,577         (3,502 ) 
CLP     9,313,680,000      

JPMorgan Chase Bank N.A.

      02/08/16         USD         13,355,435         (263,338 ) 
CLP     611,090,000      

Morgan Stanley & Co.

      02/08/16         USD         876,617         (17,618 ) 
CLP     593,094,000      

Deutsche Bank AG

      02/12/16         USD         840,076         (6,744 ) 
CLP     46,326,000      

JPMorgan Chase Bank N.A.

      02/12/16         USD         65,409         (318 ) 
CLP     96,622,000      

Deutsche Bank AG

      02/16/16         USD         136,279         (580 ) 
CLP     635,252,500      

Morgan Stanley & Co.

      02/16/16         USD         895,466         (3,294 ) 
CLP     9,249,063,000      

Deutsche Bank AG

      02/17/16         USD         13,035,111         (46,831 ) 
CLP     202,610,000      

Barclays Bank plc

      02/18/16         USD         283,113         1,376   
CLP     986,595,000      

Morgan Stanley & Co.

      02/22/16         USD         1,367,422         17,266   
CLP     433,400,000      

Deutsche Bank AG

      02/23/16         USD         600,610         7,600   
CLP     1,155,000,000      

Barclays Bank plc

      02/25/16         USD         1,603,387         17,118   
CLP     246,100,000      

JPMorgan Chase Bank N.A.

      02/25/16         USD         340,223         5,064   
CLP     493,527,000      

Deutsche Bank AG

      02/29/16         USD         683,603         8,526   
CLP     108,963,000      

Deutsche Bank AG

      03/02/16         USD         151,886         891   
CLP     438,100,000      

Barclays Bank plc

      03/03/16         USD         612,856         1,337   
CLP     46,749,000      

Citibank N.A.

      03/03/16         USD         65,278         261   
CLP     96,622,000      

Deutsche Bank AG

      03/11/16         USD         136,068         (727 ) 
CLP     93,075,000      

Deutsche Bank AG

      03/16/16         USD         129,474         830   
CLP     687,600,000      

JPMorgan Chase Bank N.A.

      03/16/16         USD         956,861         5,770   
EUR     2,553,000      

Citibank N.A.

      02/09/16         USD         2,750,845         26,023   
INR     16,661,000      

Deutsche Bank AG

      01/27/16         USD         252,694         (1,751 ) 
INR     163,760,484      

Deutsche Bank AG

      01/29/16         USD         2,482,506         (16,806 ) 
INR     228,261,000      

HSBC Bank plc

      01/29/16         USD         3,461,605         (24,737 ) 
INR     69,899,500      

HSBC Bank plc

      02/05/16         USD         1,052,529         (1,270 ) 
INR     110,978,417      

Deutsche Bank AG

      02/08/16         USD         1,669,853         (1,574 ) 
INR     1,228,565,000      

HSBC Bank plc

      02/16/16         USD         18,235,326         209,775   
INR     2,900,000,000      

HSBC Bank plc

      02/17/16         USD         43,226,162         306,233   
INR     14,658,000      

JPMorgan Chase Bank N.A.

      02/23/16         USD         218,807         1,019   
KRW     2,321,000,000      

Deutsche Bank AG

      03/29/16         USD         2,091,179         (115,237 ) 
KRW     2,328,000,000      

HSBC Bank plc

      03/31/16         USD         1,946,163         35,681   
MXN     521,116,000      

Citibank N.A.

      02/16/16         USD         33,817,840         (3,671,598 ) 
MXN     16,965,000      

HSBC Bank plc

      03/11/16         USD         1,066,579         (86,819 ) 
MXN     260,397,780      

HSBC Bank plc

      10/07/16         USD         15,152,620         (331,702 ) 
MYR     306,000      

JPMorgan Chase Bank N.A.

      01/11/16         USD         82,781         (11,544 ) 
MYR     1,022,000      

JPMorgan Chase Bank N.A.

      01/11/16         USD         276,478         (38,555 ) 
MYR     10,421,193      

HSBC Bank plc

      02/29/16         USD         2,423,815         (6,027 ) 
MYR     21,469,000      

HSBC Bank plc

      04/01/16         USD         4,749,253         220,363   
MYR     54,230,000      

JPMorgan Chase Bank N.A.

      07/27/16         USD         13,851,852         (1,379,918 ) 
MYR     7,610,828      

HSBC Bank plc

      08/08/16         USD         1,898,435         (149,104 ) 
SGD     2,190,000      

JPMorgan Chase Bank N.A.

      01/25/16         USD         1,592,611         (49,170 ) 
SGD     4,796,300      

JPMorgan Chase Bank N.A.

      01/27/16         USD         3,487,711         (107,660 ) 
SGD     1,398,000      

Deutsche Bank AG

      02/24/16         USD         991,982         (7,632 ) 
SGD     2,961,000      

Deutsche Bank AG

      02/26/16         USD         2,083,157         1,598   
SGD     10,161,130      

Morgan Stanley & Co.

      02/26/16         USD         7,183,549         (29,389 ) 
SGD     4,687,000      

Deutsche Bank AG

      03/14/16         USD         3,293,746         4,450   
SGD     4,013,100      

HSBC Bank plc

      03/16/16         USD         2,832,810         (9,030 ) 
SGD     1,398,000      

HSBC Bank plc

      08/17/16         USD         993,957         (13,976 ) 

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Schedule of Investments as of December 31, 2015

Forward Foreign Currency Exchange Contracts—(Continued)

 

 

Contracts to Deliver

     

Counterparty

    Settlement
Date		      In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
AUD     23,199,000      

JPMorgan Chase Bank N.A.

      05/18/16         USD         16,424,892       $ (374,064 ) 
AUD     5,331,000      

Citibank N.A.

      05/19/16         USD         3,755,583         (104,559 ) 
AUD     16,989,000      

JPMorgan Chase Bank N.A.

      05/19/16         USD         11,960,256         (341,366 ) 
AUD     13,314,000      

Citibank N.A.

      06/14/16         USD         9,528,297         (101,641 ) 
AUD     19,754,000      

JPMorgan Chase Bank N.A.

      06/14/16         USD         14,293,105         5,153   
AUD     190,000      

Citibank N.A.

      06/17/16         USD         136,411         (998 ) 
AUD     383,100      

Citibank N.A.

      06/20/16         USD         291,447         14,424   
AUD     960,000      

JPMorgan Chase Bank N.A.

      06/20/16         USD         728,381         34,195   
AUD     29,844,000      

JPMorgan Chase Bank N.A.

      06/22/16         USD         22,630,705         1,052,043   
AUD     13,227,000      

Citibank N.A.

      09/14/16         USD         9,528,466         (3,871 ) 
AUD     13,389,000      

JPMorgan Chase Bank N.A.

      12/12/16         USD         9,528,670         (91,915 ) 
AUD     6,655,000      

JPMorgan Chase Bank N.A.

      12/14/16         USD         4,764,181         (17,427 ) 
EUR     14,641,000      

Barclays Bank plc

      01/05/16         USD         17,844,833         1,933,729   
EUR     10,266,434      

Deutsche Bank AG

      01/07/16         USD         12,313,766         1,156,135   
EUR     13,187,000      

Barclays Bank plc

      01/11/16         USD         15,691,739         1,358,509   
EUR     8,953,000      

Standard Chartered Bank

      01/13/16         USD         10,633,926         902,229   
EUR     12,261,000      

JPMorgan Chase Bank N.A.

      01/15/16         USD         14,501,072         1,173,016   
EUR     12,261,000      

Barclays Bank plc

      01/19/16         USD         14,510,562         1,181,219   
EUR     776,000      

Barclays Bank plc

      01/19/16         USD         858,466         14,850   
EUR     12,208,000      

JPMorgan Chase Bank N.A.

      01/19/16         USD         14,425,583         1,153,858   
EUR     1,218,000      

Barclays Bank plc

      01/20/16         USD         1,328,448         4,288   
EUR     913,000      

Barclays Bank plc

      01/21/16         USD         1,065,562         72,962   
EUR     670,000      

Deutsche Bank AG

      01/22/16         USD         729,496         1,064   
EUR     12,323,000      

JPMorgan Chase Bank N.A.

      01/25/16         USD         14,425,661         1,026,975   
EUR     1,858,400      

Citibank N.A.

      01/29/16         USD         2,117,312         96,496   
EUR     9,760,000      

Deutsche Bank AG

      01/29/16         USD         11,135,672         522,687   
EUR     8,440,000      

Deutsche Bank AG

      02/03/16         USD         9,590,372         411,642   
EUR     3,073,000      

Barclays Bank plc

      02/08/16         USD         3,375,506         33,124   
EUR     2,553,000      

Citibank N.A.

      02/09/16         USD         2,932,376         155,508   
EUR     6,590,000      

Goldman Sachs & Co.

      02/09/16         USD         7,575,205         407,340   
EUR     419,000      

HSBC Bank plc

      02/10/16         USD         475,875         20,122   
EUR     1,915,000      

Barclays Bank plc

      02/11/16         USD         2,176,455         93,428   
EUR     1,023,000      

Barclays Bank plc

      02/11/16         USD         1,162,640         49,879   
EUR     900,000      

Goldman Sachs & Co.

      02/12/16         USD         988,857         9,865   
EUR     446,000      

Standard Chartered Bank

      02/16/16         USD         507,336         22,143   
EUR     1,022,000      

Goldman Sachs & Co.

      02/17/16         USD         1,174,206         62,368   
EUR     1,912,000      

JPMorgan Chase Bank N.A.

      02/17/16         USD         2,195,072         114,998   
EUR     2,080,000      

Barclays Bank plc

      02/22/16         USD         2,384,034         120,910   
EUR     1,313,000      

Deutsche Bank AG

      02/22/16         USD         1,453,832         25,235   
EUR     1,120,359      

Bank of America N.A.

      02/26/16         USD         1,279,260         60,142   
EUR     4,757,839      

Barclays Bank plc

      02/26/16         USD         5,429,313         252,077   
EUR     1,673,320      

Deutsche Bank AG

      02/26/16         USD         1,906,413         85,593   
EUR     720,000      

Deutsche Bank AG

      03/02/16         USD         811,512         27,947   
EUR     1,516,100      

Deutsche Bank AG

      03/04/16         USD         1,709,403         59,373   
EUR     3,548,416      

Barclays Bank plc

      03/09/16         USD         3,953,077         90,691   
EUR     8,070,000      

Deutsche Bank AG

      03/09/16         USD         8,971,016         186,967   
EUR     714,000      

HSBC Bank plc

      03/09/16         USD         793,897         16,721   
EUR     10,839,830      

Citibank N.A.

      03/10/16         USD         11,894,545         95,251   
EUR     2,023,000      

Morgan Stanley & Co.

      03/10/16         USD         2,217,511         15,450   
EUR     651,717      

Barclays Bank plc

      03/16/16         USD         697,428         (12,095 ) 
EUR     462,068      

Citibank N.A.

      03/16/16         USD         495,106         (7,947 ) 
EUR     225,000      

JPMorgan Chase Bank N.A.

      03/16/16         USD         240,941         (4,016 ) 
EUR     281,896      

Barclays Bank plc

      03/21/16         USD         320,347         13,403   
EUR     399,325      

Barclays Bank plc

      03/23/16         USD         429,039         (5,793 ) 
EUR     3,307,000      

Deutsche Bank AG

      03/23/16         USD         3,727,981         126,935   
EUR     685,747      

Barclays Bank plc

      03/24/16         USD         766,590         19,847   
EUR     6,962,400      

Bank of America N.A.

      03/29/16         USD         7,669,223         86,456   

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Schedule of Investments as of December 31, 2015

Forward Foreign Currency Exchange Contracts—(Continued)

 

 

Contracts to Deliver

     

Counterparty

    Settlement
Date		      In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
EUR     6,928,900      

Bank of America N.A.

      03/29/16         USD         7,669,184       $ 122,902   
EUR     885,700      

Bank of America N.A.

      03/29/16         USD         981,621         17,003   
EUR     840,650      

Citibank N.A.

      03/29/16         USD         949,350         33,796   
EUR     31,188,000      

Deutsche Bank AG

      03/29/16         USD         34,337,988         371,062   
EUR     24,145,000      

Deutsche Bank AG

      03/29/16         USD         26,583,645         287,267   
EUR     9,737,000      

Deutsche Bank AG

      03/29/16         USD         10,720,437         115,847   
EUR     8,042,000      

Deutsche Bank AG

      03/29/16         USD         8,854,242         95,680   
EUR     7,170,000      

Deutsche Bank AG

      03/29/16         USD         7,894,170         85,306   
EUR     1,538,000      

Deutsche Bank AG

      03/29/16         USD         1,735,633         60,593   
EUR     1,040,000      

Deutsche Bank AG

      03/29/16         USD         1,146,184         13,517   
EUR     4,150,100      

Bank of America N.A.

      03/30/16         USD         4,601,486         81,473   
EUR     1,815,000      

Barclays Bank plc

      03/30/16         USD         2,006,092         29,315   
EUR     1,815,000      

Barclays Bank plc

      03/31/16         USD         2,039,751         62,918   
EUR     205,485      

Deutsche Bank AG

      03/31/16         USD         225,540         1,733   
EUR     1,200,000      

Goldman Sachs & Co.

      03/31/16         USD         1,318,080         11,083   
EUR     1,620,000      

HSBC Bank plc

      03/31/16         USD         1,820,661         56,215   
EUR     1,005,008      

Barclays Bank plc

      04/01/16         USD         1,097,439         2,788   
EUR     1,865,900      

Citibank N.A.

      04/08/16         USD         2,070,742         37,983   
EUR     4,186,153      

Deutsche Bank AG

      04/13/16         USD         4,532,892         (28,349 ) 
EUR     1,069,000      

JPMorgan Chase Bank N.A.

      04/13/16         USD         1,217,281         52,496   
EUR     1,911,000      

Standard Chartered Bank

      04/13/16         USD         2,050,933         (31,297 ) 
EUR     3,696,678      

HSBC Bank plc

      04/18/16         USD         3,938,810         (89,750 ) 
EUR     274,083      

JPMorgan Chase Bank N.A.

      04/21/16         USD         298,605         (114 ) 
EUR     989,372      

Barclays Bank plc

      04/22/16         USD         1,071,228         (7,109 ) 
EUR     3,529,000      

Deutsche Bank AG

      04/27/16         USD         3,907,309         60,358   
EUR     8,218,000      

Deutsche Bank AG

      04/28/16         USD         9,111,297         152,593   
EUR     692,175      

Barclays Bank plc

      04/29/16         USD         756,523         1,937   
EUR     1,370,039      

Deutsche Bank AG

      04/29/16         USD         1,518,140         24,569   
EUR     4,118,000      

Goldman Sachs & Co.

      04/29/16         USD         4,567,191         77,883   
EUR     5,010,000      

Standard Chartered Bank

      04/29/16         USD         5,517,513         55,775   
EUR     4,170,000      

Bank of America N.A.

      05/04/16         USD         4,617,024         70,290   
EUR     3,083,128      

Barclays Bank plc

      05/05/16         USD         3,467,201         105,422   
EUR     652,963      

Barclays Bank plc

      05/06/16         USD         712,268         268   
EUR     7,580,000      

Goldman Sachs & Co.

      05/09/16         USD         8,285,092         18,945   
EUR     2,440,000      

Goldman Sachs & Co.

      05/12/16         USD         2,624,098         (37,031 ) 
EUR     1,623,000      

Morgan Stanley & Co.

      05/12/16         USD         1,754,009         (16,079 ) 
EUR     17,552,000      

Standard Chartered Bank

      05/12/16         USD         18,850,146         (292,535 ) 
EUR     7,408,999      

Goldman Sachs & Co.

      05/16/16         USD         8,016,018         (65,482 ) 
EUR     2,080,000      

Barclays Bank plc

      05/18/16         USD         2,389,088         120,143   
EUR     86,267      

Deutsche Bank AG

      05/19/16         USD         92,269         (1,837 ) 
EUR     469,000      

Barclays Bank plc

      05/23/16         USD         525,995         14,309   
EUR     1,287,000      

Deutsche Bank AG

      05/23/16         USD         1,442,109         37,972   
EUR     1,154,000      

Goldman Sachs & Co.

      05/24/16         USD         1,240,342         (18,731 ) 
EUR     1,115,456      

Barclays Bank plc

      05/26/16         USD         1,299,255         82,157   
EUR     195,330      

Barclays Bank plc

      06/06/16         USD         217,290         4,085   
EUR     1,380,000      

Deutsche Bank AG

      06/06/16         USD         1,469,838         (36,448 ) 
EUR     263,000      

Standard Chartered Bank

      06/09/16         USD         285,932         (1,163 ) 
EUR     2,021,800      

Deutsche Bank AG

      06/13/16         USD         2,290,497         83,178   
EUR     1,529,000      

Bank of America N.A.

      06/15/16         USD         1,685,050         15,641   
EUR     1,546,000      

Deutsche Bank AG

      06/15/16         USD         1,761,729         73,759   
EUR     1,069,000      

JPMorgan Chase Bank N.A.

      07/13/16         USD         1,219,943         51,660   
EUR     3,870,000      

Morgan Stanley & Co.

      07/18/16         USD         4,272,480         42,247   
EUR     4,966,000      

Morgan Stanley & Co.

      07/22/16         USD         5,428,583         (502 ) 
EUR     609,000      

Deutsche Bank AG

      07/25/16         USD         671,569         5,702   
EUR     799,500      

Citibank N.A.

      07/28/16         USD         882,836         8,581   
EUR     146,322      

Barclays Bank plc

      08/05/16         USD         161,522         1,469   
EUR     5,009,000      

Citibank N.A.

      08/05/16         USD         5,540,705         61,674   

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Schedule of Investments as of December 31, 2015

Forward Foreign Currency Exchange Contracts—(Continued)

 

 

Contracts to Deliver

     

Counterparty

    Settlement
Date		      In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
EUR     5,009,000      

HSBC Bank plc

      08/05/16         USD         5,529,435       $ 50,403   
EUR     1,362,600      

JPMorgan Chase Bank N.A.

      08/05/16         USD         1,504,344         13,882   
EUR     649,410      

Citibank N.A.

      08/10/16         USD         713,279         2,794   
EUR     1,943,000      

Deutsche Bank AG

      08/11/16         USD         2,144,965         19,150   
EUR     650,000      

Morgan Stanley & Co.

      08/15/16         USD         733,892         22,625   
EUR     650,000      

Morgan Stanley & Co.

      08/17/16         USD         728,774         17,452   
EUR     2,341,000      

Barclays Bank plc

      08/18/16         USD         2,620,691         58,742   
EUR     4,440,000      

Deutsche Bank AG

      10/03/16         USD         5,033,184         165,543   
EUR     2,310,000      

JPMorgan Chase Bank N.A.

      10/07/16         USD         2,610,046         77,140   
EUR     3,012,496      

Deutsche Bank AG

      10/11/16         USD         3,416,170         112,401   
EUR     3,220,000      

Goldman Sachs & Co.

      10/11/16         USD         3,648,646         117,310   
EUR     3,821,000      

HSBC Bank plc

      10/13/16         USD         4,333,434         142,621   
EUR     1,079,000      

JPMorgan Chase Bank N.A.

      10/13/16         USD         1,234,506         51,075   
EUR     2,313,904      

Barclays Bank plc

      10/27/16         USD         2,576,011         36,598   
EUR     92,609      

Deutsche Bank AG

      11/04/16         USD         103,148         1,478   
EUR     1,618,000      

Deutsche Bank AG

      11/09/16         USD         1,778,991         2,290   
EUR     9,537,000      

Citibank N.A.

      11/14/16         USD         10,308,162         (166,572 ) 
EUR     1,525,000      

Deutsche Bank AG

      11/14/16         USD         1,660,451         (14,496 ) 
EUR     413,121      

JPMorgan Chase Bank N.A.

      11/14/16         USD         446,466         (7,275 ) 
EUR     309,733      

Deutsche Bank AG

      11/17/16         USD         336,593         (3,640 ) 
EUR     1,340,000      

JPMorgan Chase Bank N.A.

      12/15/16         USD         1,491,326         17,563   
JPY     296,207,000      

Deutsche Bank AG

      01/07/16         USD         2,486,961         22,442   
JPY     174,225,000      

Goldman Sachs & Co.

      01/08/16         USD         1,471,309         21,673   
JPY     44,450,000      

Citibank N.A.

      01/14/16         USD         374,928         5,029   
JPY     133,330,000      

Standard Chartered Bank

      01/14/16         USD         1,131,642         22,111   
JPY     554,560,000      

Barclays Bank plc

      01/15/16         USD         4,719,941         104,977   
JPY     360,500,000      

JPMorgan Chase Bank N.A.

      01/15/16         USD         3,056,743         56,716   
JPY     183,890,000      

HSBC Bank plc

      01/19/16         USD         1,497,988         (32,434 ) 
JPY     248,150,000      

Standard Chartered Bank

      01/19/16         USD         2,009,995         (55,229 ) 
JPY     55,370,000      

JPMorgan Chase Bank N.A.

      01/20/16         USD         476,553         15,728   
JPY     105,570,000      

Deutsche Bank AG

      01/22/16         USD         854,403         (24,252 ) 
JPY     359,980,000      

Goldman Sachs & Co.

      01/27/16         USD         3,077,410         81,025   
JPY     189,600,000      

JPMorgan Chase Bank N.A.

      01/27/16         USD         1,533,125         (45,059 ) 
JPY     2,961,408,150      

Deutsche Bank AG

      01/28/16         USD         25,335,000         684,495   
JPY     443,025,359      

HSBC Bank plc

      01/28/16         USD         3,785,975         98,271   
JPY     342,205,982      

Deutsche Bank AG

      01/29/16         USD         2,918,950         70,402   
JPY     109,070,000      

Citibank N.A.

      02/12/16         USD         877,544         (30,611 ) 
JPY     105,370,000      

Deutsche Bank AG

      02/12/16         USD         848,117         (29,231 ) 
JPY     133,761,000      

Goldman Sachs & Co.

      02/12/16         USD         1,135,059         21,317   
JPY     164,870,000      

HSBC Bank plc

      02/12/16         USD         1,399,587         26,821   
JPY     164,783,000      

JPMorgan Chase Bank N.A.

      02/12/16         USD         1,398,879         26,837   
JPY     218,400,000      

Citibank N.A.

      02/16/16         USD         1,837,008         18,386   
JPY     109,360,000      

JPMorgan Chase Bank N.A.

      02/16/16         USD         922,889         12,245   
JPY     156,373,020      

Goldman Sachs & Co.

      02/17/16         USD         1,325,993         23,845   
JPY     196,520,000      

JPMorgan Chase Bank N.A.

      02/17/16         USD         1,663,471         27,012   
JPY     149,920,000      

Deutsche Bank AG

      02/24/16         USD         1,218,634         (29,954 ) 
JPY     300,880,000      

HSBC Bank plc

      02/24/16         USD         2,445,284         (60,553 ) 
JPY     54,700,000      

Barclays Bank plc

      02/25/16         USD         463,473         7,902   
JPY     144,240,000      

HSBC Bank plc

      02/25/16         USD         1,222,725         21,418   
JPY     468,190,000      

Barclays Bank plc

      02/26/16         USD         3,944,480         45,067   
JPY     36,614,000      

Deutsche Bank AG

      02/29/16         USD         309,920         4,955   
JPY     488,094,000      

HSBC Bank plc

      02/29/16         USD         4,086,863         21,431   
JPY     338,400,000      

JPMorgan Chase Bank N.A.

      03/03/16         USD         2,855,756         36,986   
JPY     159,900,000      

HSBC Bank plc

      03/04/16         USD         1,345,110         13,165   
JPY     578,374,700      

Barclays Bank plc

      03/09/16         USD         4,849,452         30,969   
JPY     109,701,956      

Citibank N.A.

      03/16/16         USD         913,271         (935 ) 
JPY     465,903,000      

Citibank N.A.

      03/22/16         USD         3,873,616         (9,994 ) 

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Schedule of Investments as of December 31, 2015

Forward Foreign Currency Exchange Contracts—(Continued)

 

 

Contracts to Deliver

     

Counterparty

    Settlement
Date		      In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
JPY     200,950,000      

Morgan Stanley & Co.

      03/22/16         USD         1,670,491       $ (4,561 ) 
JPY     160,844,000      

Deutsche Bank AG

      03/24/16         USD         1,339,585         (1,269 ) 
JPY     250,376,450      

Barclays Bank plc

      03/28/16         USD         2,113,666         26,082   
JPY     109,471,259      

JPMorgan Chase Bank N.A.

      03/29/16         USD         910,780         (2,006 ) 
JPY     66,105,000      

JPMorgan Chase Bank N.A.

      03/31/16         USD         553,539         2,300   
JPY     100,800,000      

Citibank N.A.

      04/13/16         USD         843,769         2,815   
JPY     177,260,000      

Barclays Bank plc

      04/18/16         USD         1,496,939         17,852   
JPY     104,580,000      

JPMorgan Chase Bank N.A.

      04/20/16         USD         880,140         7,450   
JPY     627,180,000      

JPMorgan Chase Bank N.A.

      04/21/16         USD         5,318,781         84,972   
JPY     106,500,000      

JPMorgan Chase Bank N.A.

      04/21/16         USD         903,201         14,460   
JPY     796,134,720      

Deutsche Bank AG

      05/13/16         USD         6,687,960         39,426   
JPY     791,049,590      

Morgan Stanley & Co.

      05/13/16         USD         6,649,096         43,029   
JPY     93,849,000      

Standard Chartered Bank

      05/16/16         USD         767,794         (16,018 ) 
JPY     8,630,050      

Bank of America N.A.

      05/18/16         USD         70,508         (1,574 ) 
JPY     8,617,300      

Citibank N.A.

      05/18/16         USD         72,880         905   
JPY     8,604,125      

Bank of America N.A.

      05/19/16         USD         72,344         476   
JPY     8,627,500      

Barclays Bank plc

      05/19/16         USD         72,524         462   
JPY     379,208,000      

Citibank N.A.

      05/19/16         USD         3,093,808         (73,588 ) 
JPY     8,634,400      

HSBC Bank plc

      05/19/16         USD         72,935         815   
JPY     275,190,000      

JPMorgan Chase Bank N.A.

      05/20/16         USD         2,317,068         18,423   
JPY     79,941,000      

HSBC Bank plc

      05/25/16         USD         654,096         (13,756 ) 
JPY     427,709,000      

Barclays Bank plc

      05/26/16         USD         3,632,348         59,018   
JPY     350,622,000      

Standard Chartered Bank

      05/26/16         USD         2,957,837         28,537   
JPY     462,800,000      

Citibank N.A.

      06/08/16         USD         3,756,625         (111,528 ) 
JPY     693,100,000      

HSBC Bank plc

      06/09/16         USD         5,645,746         (147,479 ) 
JPY     596,690,000      

Barclays Bank plc

      06/10/16         USD         4,805,196         (182,358 ) 
JPY     895,640,000      

Citibank N.A.

      06/10/16         USD         7,218,537         (267,850 ) 
JPY     635,480,000      

HSBC Bank plc

      06/10/16         USD         5,126,286         (185,502 ) 
JPY     210,400,000      

Deutsche Bank AG

      06/13/16         USD         1,708,541         (50,303 ) 
JPY     588,770,000      

JPMorgan Chase Bank N.A.

      06/13/16         USD         4,776,399         (145,439 ) 
JPY     119,465,000      

Citibank N.A.

      06/16/16         USD         974,024         (24,745 ) 
JPY     930,530,000      

HSBC Bank plc

      06/16/16         USD         7,760,884         (18,673 ) 
JPY     248,300,000      

JPMorgan Chase Bank N.A.

      06/16/16         USD         2,023,511         (52,364 ) 
JPY     929,100,000      

Deutsche Bank AG

      06/17/16         USD         7,680,607         (87,250 ) 
JPY     599,020,000      

Citibank N.A.

      06/20/16         USD         4,943,674         (65,002 ) 
JPY     930,710,000      

Deutsche Bank AG

      06/22/16         USD         7,616,285         (166,312 ) 
JPY     811,652,000      

Barclays Bank plc

      06/30/16         USD         6,619,651         (169,168 ) 
JPY     353,334,000      

Citibank N.A.

      07/25/16         USD         2,872,681         (85,497 ) 
JPY     544,000,000      

JPMorgan Chase Bank N.A.

      07/25/16         USD         4,422,045         (132,423 ) 
JPY     411,460,000      

Barclays Bank plc

      07/29/16         USD         3,368,550         (76,813 ) 
JPY     408,503,000      

Citibank N.A.

      08/10/16         USD         3,306,833         (115,392 ) 
JPY     105,370,000      

Barclays Bank plc

      08/12/16         USD         854,277         (28,527 ) 
JPY     338,124,000      

Deutsche Bank AG

      08/18/16         USD         2,746,475         (87,048 ) 
JPY     639,006,000      

HSBC Bank plc

      08/22/16         USD         5,185,895         (169,904 ) 
JPY     457,974,000      

JPMorgan Chase Bank N.A.

      08/22/16         USD         3,716,220         (122,268 ) 
JPY     151,705,000      

Barclays Bank plc

      08/24/16         USD         1,237,600         (34,009 ) 
JPY     446,759,000      

JPMorgan Chase Bank N.A.

      08/26/16         USD         3,792,167         47,085   
JPY     256,658,000      

Deutsche Bank AG

      08/29/16         USD         2,157,697         5,934   
JPY     244,017,000      

JPMorgan Chase Bank N.A.

      08/29/16         USD         2,050,589         4,805   
JPY     150,260,000      

JPMorgan Chase Bank N.A.

      08/31/16         USD         1,257,390         (2,456 ) 
JPY     383,980,000      

Barclays Bank plc

      09/20/16         USD         3,178,906         (43,100 ) 
JPY     109,297,635      

Barclays Bank plc

      09/20/16         USD         916,657         (468 ) 
JPY     55,370,000      

JPMorgan Chase Bank N.A.

      10/19/16         USD         471,479         6,284   
JPY     698,590,000      

Barclays Bank plc

      10/24/16         USD         5,882,492         11,860   
JPY     94,232,353      

Citibank N.A.

      11/09/16         USD         782,921         (9,560 ) 
JPY     229,154,000      

Citibank N.A.

      11/14/16         USD         1,883,096         (44,508 ) 
JPY     8,128,806,420      

Goldman Sachs & Co.

      11/14/16         USD         66,807,532         (1,570,598 ) 

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Schedule of Investments as of December 31, 2015

Forward Foreign Currency Exchange Contracts—(Continued)

 

 

Contracts to Deliver

     

Counterparty

    Settlement
Date		      In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
JPY     157,477,000      

HSBC Bank plc

      11/14/16         USD         1,293,074       $ (31,596 ) 
JPY     92,567,000      

JPMorgan Chase Bank N.A.

      11/14/16         USD         759,487         (19,171 ) 
JPY     119,300,000      

Morgan Stanley & Co.

      11/16/16         USD         982,823         (20,802 ) 
JPY     306,357,000      

Deutsche Bank AG

      11/18/16         USD         2,522,765         (54,742 ) 
JPY     425,961,000      

Citibank N.A.

      11/21/16         USD         3,494,491         (89,798 ) 
MXN     521,116,000      

Citibank N.A.

      02/16/16         USD         31,066,889         920,648   
MXN     16,965,000      

HSBC Bank plc

      03/11/16         USD         1,010,579         30,819   
MXN     260,397,780      

HSBC Bank plc

      10/07/16         USD         15,235,959         415,041   
MYR     1,328,000      

JPMorgan Chase Bank N.A.

      01/11/16         USD         362,574         53,414   
MYR     10,421,193      

HSBC Bank plc

      02/29/16         USD         2,454,934         37,146   
MYR     54,230,000      

JPMorgan Chase Bank N.A.

      07/27/16         USD         12,647,659         175,726   
MYR     7,610,828      

HSBC Bank plc

      08/08/16         USD         1,774,086         24,754   
SGD     2,190,000      

JPMorgan Chase Bank N.A.

      01/25/16         USD         1,522,446         (20,995 ) 
SGD     4,796,300      

JPMorgan Chase Bank N.A.

      01/27/16         USD         3,334,121         (45,929 ) 
SGD     1,398,000      

Deutsche Bank AG

      02/24/16         USD         970,247         (14,103 ) 
SGD     2,961,000      

Deutsche Bank AG

      02/26/16         USD         2,103,506         18,751   
SGD     10,161,130      

Morgan Stanley & Co.

      02/26/16         USD         7,161,121         6,962   
SGD     4,687,000      

Deutsche Bank AG

      03/14/16         USD         3,328,481         30,285   
SGD     4,013,100      

HSBC Bank plc

      03/16/16         USD         2,825,808         2,028   
SGD     1,398,000      

HSBC Bank plc

      08/17/16         USD         979,499         (482 ) 

Cross Currency Contracts to Buy

                            
EUR     8,425,726      

Deutsche Bank AG

      01/21/16         PLN         35,870,000         19,236   
IDR     40,930,000,000      

JPMorgan Chase Bank N.A.

      06/23/16         AUD         3,720,909         153,890   
IDR     17,930,000,000      

JPMorgan Chase Bank N.A.

      06/24/16         AUD         1,633,415         64,676   
MYR     116,701,051      

JPMorgan Chase Bank N.A.

      01/14/16         EUR         27,329,817         (2,545,475 ) 
MYR     48,436,950      

JPMorgan Chase Bank N.A.

      04/08/16         JPY         1,326,876,964         138,937   
MYR     44,900,000      

JPMorgan Chase Bank N.A.

      04/13/16         JPY         1,262,604,164         (147,948 ) 
MYR     10,283,480      

Deutsche Bank AG

      10/17/16         EUR         2,123,633         26,307   
PLN     35,870,000      

Deutsche Bank AG

      01/21/16         EUR         8,415,842         (8,490 ) 
                

 

 

  
Net Unrealized Appreciation       $ 6,962,455   
  

 

 

  

Swap Agreements

OTC Interest Rate Swaps

 

Pay/Receive
Floating Rate

    Floating
Rate Index		    Fixed
Rate		     Maturity
Date		   

Counterparty

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

Receive

    3M LIBOR      3.018 %    08/22/23    JPMorgan Chase Bank N.A.      USD         26,870,000       $ (1,967,499 )    $ —       $ (1,967,499 ) 

Receive

    3M LIBOR      3.848 %    08/22/43    JPMorgan Chase Bank N.A.      USD         15,360,000         (3,978,356 )      —         (3,978,356 ) 
                   

 

 

    

 

 

     

 

 

  

Totals

  

    $ (5,945,855 )    $ —       $ (5,945,855 ) 
                   

 

 

    

 

 

     

 

 

  

Centrally Cleared Interest Rate Swaps

 

Pay/Receive Floating Rate

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

Receive

      3M LIBOR         0.926 %      10/17/17         USD         74,980,000       $ 228,277   

Receive

      3M LIBOR         1.817 %      02/03/25         USD         8,640,000         221,674   

Receive

      3M LIBOR         1.914 %      01/22/25         USD         35,110,000         603,172   

Receive

      3M LIBOR         1.937 %      01/29/25         USD         6,480,000         99,296   

Receive

      3M LIBOR         1.942 %      01/30/25         USD         5,480,000         81,797   

Receive

      3M LIBOR         1.970 %      01/23/25         USD         43,890,000         549,318   

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Schedule of Investments as of December 31, 2015

Centrally Cleared Interest Rate Swaps—(Continued)

 

Pay/Receive Floating Rate

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

Receive

      3M LIBOR         1.973 %      01/27/25         USD         25,900,000       $ 318,238   

Receive

      3M LIBOR         2.731 %      07/07/24         USD         14,050,000         (729,321 ) 
                

 

 

  

Net Unrealized Appreciation

                  $ 1,372,451   
                

 

 

  

Cash in the amount of $5,173,000 has been deposited in segregated accounts held by the counterparties as collateral for forward foreign exchange contracts.

 

(AUD)— Australian Dollar
(CLP)— Chilean Peso
(EUR)— Euro
(IDR)— Indonesian Rupiah
(INR)— Indian Rupee
(JPY)— Japanese Yen
(KRW)— South Korean Won
(MXN)— Mexican Peso
(MYR)— Malaysian Ringgit
(PLN)— Polish Zloty
(SGD)— Singapore Dollar
(USD)— United States Dollar
(LIBOR)— London Interbank Offered Rate

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2     Level 3      Total  

Total Foreign Government*

    $ —         $ 970,555,925      $ —         $ 970,555,925   
Short-Term Investments           

Discount Note

      —           107,509,731        —           107,509,731   

Mutual Fund

      3,105,825         —          —           3,105,825   

Repurchase Agreement

      —           231,278,204        —           231,278,204   

Total Short-Term Investments

      3,105,825         338,787,935        —           341,893,760   

Total Investments

    $ 3,105,825       $ 1,309,343,860      $ —         $ 1,312,449,685   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (3,105,825 )    $ —         $ (3,105,825 ) 
Forward Contracts           

Forward Foreign Currency Exchange Contracts (Unrealized Appreciation)

    $ —         $ 22,922,381      $ —         $ 22,922,381   

Forward Foreign Currency Exchange Contracts (Unrealized Depreciation)

      —           (15,959,926 )      —           (15,959,926 ) 

Total Forward Contracts

    $ —         $ 6,962,455      $ —         $ 6,962,455   
Centrally Cleared Swap Contracts           

Centrally Cleared Swap Contracts (Unrealized Appreciation)

    $ —         $ 2,101,772      $ —         $ 2,101,772   

Centrally Cleared Swap Contracts (Unrealized Depreciation)

      —           (729,321 )      —           (729,321 ) 

Total Centrally Cleared Swap Contracts

    $ —         $ 1,372,451      $ —         $ 1,372,451   
OTC Swap Contracts           

OTC Swap Contracts at Value (Liabilities)

    $ —         $ (5,945,855 )    $ —         $ (5,945,855 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-15

Met Investors Series Trust

Met/Templeton International Bond Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 1,081,171,481   

Repurchase Agreement

      231,278,204   

Cash denominated in foreign currencies (c)

      4,318,659   

Cash collateral (d)

      18,797,772   

Unrealized appreciation on forward foreign currency exchange contracts

      22,922,381   

Receivable for:

   

Open OTC swap contracts cash collateral

      100,000   

Fund shares sold

      6,671   

Interest

      11,888,732   

Interest on OTC swap contracts

      14,670   

Prepaid expenses

      3,832   
  

 

 

  

Total Assets

      1,370,502,402   

Liabilities

   

OTC swap contracts at market value

      5,945,855   

Unrealized depreciation on forward foreign currency exchange contracts

      15,959,926   

Collateral for securities loaned

      3,105,825   

Payables for:

   

Fund shares redeemed

      58,813   

Foreign taxes

      385,803   

Variation margin on centrally cleared swap contracts

      518,785   

Interest on OTC swap contracts

      494,591   

Accrued Expenses:

   

Management fees

      689,014   

Distribution and service fees

      12,407   

Deferred trustees’ fees

      81,937   

Other expenses

      764,408   
  

 

 

  

Total Liabilities

      28,017,364   
  

 

 

  

Net Assets

    $ 1,342,485,038   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 1,455,084,318   

Accumulated net investment loss

      (10,662,044 ) 

Accumulated net realized loss

      (1,449,603 ) 

Unrealized depreciation on investments, swap contracts and foreign currency transactions (e)

      (100,487,633 ) 
  

 

 

  

Net Assets

    $ 1,342,485,038   
  

 

 

  

Net Assets

   

Class A

    $ 1,284,525,799   

Class B

      57,959,239   

Capital Shares Outstanding*

   

Class A

      128,949,987   

Class B

      5,859,835   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 9.96   

Class B

      9.89   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding repurchase agreement, was $1,183,588,463.
(b) Includes securities loaned at value of $335,484.
(c) Identified cost of cash denominated in foreign currencies was $4,329,597.
(d) Includes collateral of $11,450,000 for forward foreign currency exchange contracts and OTC swap contracts and $7,347,772 for centrally cleared swap contracts.
(e) Includes foreign capital gains tax of $385,803.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Interest (a)

    $ 46,850,783   

Securities lending income

      175,871   
  

 

 

  

Total investment income

      47,026,654   

Expenses

   

Management fees

      8,530,448   

Administration fees

      34,329   

Custodian and accounting fees

      1,547,139   

Distribution and service fees—Class B

      155,670   

Audit and tax services

      97,679   

Legal

      26,460   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      54,489   

Insurance

      9,162   

Miscellaneous

      19,994   
  

 

 

  

Total expenses

      10,510,543   
  

 

 

  

Net Investment Income

      36,516,111   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      (75,073,500 ) 

Swap contracts

      (4,058,136 ) 

Foreign currency transactions

      106,262,170   
  

 

 

  

Net realized gain

      27,130,534   
  

 

 

  

Net change in unrealized appreciation (depreciation) on:

   

Investments (b)

      (45,351,188 ) 

Swap contracts

      870,251   

Foreign currency transactions

      (75,475,413 ) 
  

 

 

  

Net change in unrealized depreciation

      (119,956,350 ) 
  

 

 

  

Net realized and unrealized loss

      (92,825,816 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (56,309,705 ) 
  

 

 

  

 

(a) Net of foreign withholding taxes of $2,016,308.
(b) Includes change in foreign capital gains tax of $217,788.

 

See accompanying notes to financial statements.

 

MIST-16

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 36,516,111      $ 36,324,641   

Net realized gain

      27,130,534        2,240,462   

Net change in unrealized depreciation

      (119,956,350 )      (19,339,966 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (56,309,705 )      19,225,137   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (113,703,758 )      (60,444,741 ) 

Class B

      (5,086,439 )      (3,157,552 ) 

Net realized capital gains

     

Class A

      (2,445,242 )      0   

Class B

      (113,032 )      0   
  

 

 

    

 

 

  

Total distributions

      (121,348,471 )      (63,602,293 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      75,459,255        167,260,154   
  

 

 

    

 

 

  

Total increase (decrease) in net assets

      (102,198,921 )      122,882,998   

Net Assets

     

Beginning of period

      1,444,683,959        1,321,800,961   
  

 

 

    

 

 

  

End of period

    $ 1,342,485,038      $ 1,444,683,959   
  

 

 

    

 

 

  

Undistributed net investment income (loss)

     

End of period

    $ (10,662,044 )    $ 25,845,725   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      1,800,842      $ 20,326,213        13,374,366      $ 151,454,777   

Reinvestments

      11,200,482        116,149,000        5,387,232        60,444,741   

Redemptions

      (6,014,249 )      (62,576,295 )      (3,534,727 )      (40,475,497 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      6,987,075      $ 73,898,918        15,226,871      $ 171,424,021   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      576,984      $ 6,204,799        419,298      $ 4,797,172   

Reinvestments

      504,313        5,199,471        282,935        3,157,552   

Redemptions

      (929,002 )      (9,843,933 )      (1,059,442 )      (12,118,591 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      152,295      $ 1,560,337        (357,209 )    $ (4,163,867 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 75,459,255        $ 167,260,154   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-17

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Financial Highlights

 

Selected per share data       
     Class A  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 11.32       $ 11.72       $ 11.88       $ 11.54       $ 12.45   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.28         0.30         0.43         0.43         0.50   

Net realized and unrealized gain (loss) on investments

      (0.69 )       (0.14 )       (0.28 )       1.15         (0.47 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.41 )       0.16         0.15         1.58         0.03   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.93 )       (0.56 )       (0.26 )       (1.24 )       (0.92 ) 

Distributions from net realized capital gains

      (0.02 )       0.00         (0.05 )       0.00         (0.02 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.95 )       (0.56 )       (0.31 )       (1.24 )       (0.94 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 9.96       $ 11.32       $ 11.72       $ 11.88       $ 11.54   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (3.95 )       1.41         1.27         14.64         (0.06 ) 

Ratios/Supplemental Data

               

Ratio of expenses to average net assets (%)

      0.73         0.73         0.72         0.73         0.74   

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

      2.58         2.56         3.69         3.78         4.09   

Portfolio turnover rate (%)

      47         28         37         35         46   

Net assets, end of period (in millions)

    $ 1,284.5       $ 1,380.5       $ 1,251.2       $ 1,048.6       $ 926.3   
     Class B  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 11.24       $ 11.64       $ 11.80       $ 11.48       $ 12.41   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.25         0.26         0.40         0.40         0.46   

Net realized and unrealized gain (loss) on investments

      (0.68 )       (0.13 )       (0.27 )       1.14         (0.46 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.43 )       0.13         0.13         1.54         0.00   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.90 )       (0.53 )       (0.24 )       (1.22 )       (0.91 ) 

Distributions from net realized capital gains

      (0.02 )       0.00         (0.05 )       0.00         (0.02 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.92 )       (0.53 )       (0.29 )       (1.22 )       (0.93 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 9.89       $ 11.24       $ 11.64       $ 11.80       $ 11.48   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (4.16 )       1.14         1.04         14.29         (0.33 ) 

Ratios/Supplemental Data

               

Ratio of expenses to average net assets (%)

      0.98         0.98         0.97         0.98         0.99   

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

      2.33         2.31         3.44         3.53         3.81   

Portfolio turnover rate (%)

      47         28         37         35         46   

Net assets, end of period (in millions)

    $ 58.0       $ 64.2       $ 70.6       $ 76.3       $ 67.3   

 

(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.

 

See accompanying notes to financial statements.

 

MIST-18

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and 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 through an independent pricing service based on the mean between closing bid and ask prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or broker-dealer. These contracts are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

Swap contracts (other than centrally cleared swaps) are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and other pricing services. Such quotations and prices are derived utilizing observable data, including the underlying reference securities or indices, credit spread quotations and expected default recovery rates determined by the pricing service. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or an independent pricing service when the exchange price is not

 

MIST-19

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third party prices are used to produce daily settlement prices. These securities are categorized as Level 2 within the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates, including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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, distribution redesignations, net operating losses, swap transactions and premium amortization adjustments. These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

 

MIST-20

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Notes to Financial Statements—December 31, 2015—(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.

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.

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 generally 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.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $231,278,204, which is reflected as repurchase agreement on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2015.

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-21

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

The Trust has entered into a Securities Lending Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

All securities on loan are classified as Foreign Government in the Portfolio’s Schedule of Investments as of December 31, 2015, with a contractual maturity of overnight and continuous.

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 valuation 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.

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 either privately negotiated in the OTC market (“OTC swaps”) or 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 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.

Centrally Cleared Swaps: Clearinghouses currently offer clearing derivatives transactions which include interest rate and 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

 

MIST-22

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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.

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 upon entering into the swap agreement 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: (1) 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”; (2) 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 (3) 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 contract’s remaining life, to the extent that amount is positive.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of 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 swap contracts (b) (c)    $ 2,101,772      

Unrealized depreciation on centrally cleared swap contracts (b) (c)

    $ 729,321   
        

OTC swap contracts at market value (a)

      5,945,855   
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts      22,922,381       Unrealized depreciation on forward foreign currency exchange contracts      15,959,926   
     

 

 

        

 

 

  
Total       $ 25,024,153          $ 22,635,102   
     

 

 

        

 

 

  

 

  (a) Excludes OTC swap interest receivable of $14,670 and OTC swap interest payable of $494,591.
  (b) Financial instrument not subject to a master netting agreement.
  (c) 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.

 

MIST-23

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

The Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized 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 (“MNA”)(see Note 4), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Assets
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Received†		     Net
Amount*		  

Bank of America N.A.

    $ 454,383       $ (1,574 )    $ —      $ 452,809   

Barclays Bank plc

      6,083,087         (559,440 )      (4,793,000 )(1)      730,647   

Citibank N.A.

      1,480,574         (1,480,574 )      —        —   

Deutsche Bank AG

      5,319,704         (849,925 )      —        4,469,779   

Goldman Sachs & Co.

      852,654         (852,654 )      —        —   

HSBC Bank plc

      1,749,843         (1,372,794 )      —        377,049   

JPMorgan Chase Bank N.A.

      5,783,853         (5,783,853 )      —        —   

Morgan Stanley & Co.

      167,488         (133,702 )      —        33,786   

Standard Chartered Bank

      1,030,795         (396,242 )      (380,000 )(1)      254,553   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 22,922,381       $ (11,430,758 )    $ (5,173,000 )    $ 6,318,623   
  

 

 

     

 

 

    

 

 

    

 

 

  

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under an MNA, or similar agreement, and net of the related collateral pledged by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Liabilities
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Pledged†		     Net
Amount**		  

Bank of America N.A.

    $ 1,574       $ (1,574 )    $ —      $ —   

Barclays Bank plc

      559,440         (559,440 )      —        —   

Citibank N.A.

      4,986,194         (1,480,574 )      (3,505,620 )      —   

Deutsche Bank AG

      849,925         (849,925 )      —        —   

Goldman Sachs & Co.

      1,691,842         (852,654 )      (839,188 )      —   

HSBC Bank plc

      1,372,794         (1,372,794 )      —        —   

JPMorgan Chase Bank N.A.

      11,914,068         (5,783,853 )      (6,130,215 )      —   

Morgan Stanley & Co.

      133,702         (133,702 )      —        —   

Standard Chartered Bank

      396,242         (396,242 )      —        —   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 21,905,781       $ (11,430,758 )    $ (10,475,023 )    $ —   
  

 

 

     

 

 

    

 

 

    

 

 

  

 

  * Net amount represents the net amount receivable from the counterparty in the event of default.
  ** Net amount represents the net amount payable due to the counterparty in the event of default.
  † In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.
  (1)  Collateral was received into a segregated account in the counterparty’s name at the custodian.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Interest Rate     Foreign
Exchange		     Total  

Forward foreign currency transactions

    $ —      $ 110,723,990      $ 110,723,990   

Swap contracts

      (4,058,136 )      —        (4,058,136 ) 
  

 

 

    

 

 

    

 

 

  
   $ (4,058,136 )    $ 110,723,990      $ 106,665,854   
  

 

 

    

 

 

    

 

 

  

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

    Interest Rate     Foreign
Exchange		     Total  

Forward foreign currency transactions

    $ —      $ (75,816,904 )    $ (75,816,904 ) 

Swap contracts

      870,251        —        870,251   
  

 

 

    

 

 

    

 

 

  
   $ 870,251      $ (75,816,904 )    $ (74,946,653 ) 
  

 

 

    

 

 

    

 

 

  

 

MIST-24

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Forward foreign currency transactions

    $ 1,415,109,741   

Swap contracts

      256,760,000   

 

  ‡ Averages are based on activity levels during 2015.

4. Certain Risks

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”).

Market 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, 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC 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 (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the

 

MIST-25

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 351,163,052       $ 0       $ 432,301,339   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the annual rate of 0.600% of average daily net assets. Fees earned by MetLife Advisers with respect to the Portfolio for the year ended December 31, 2015 were $8,530,448.

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Franklin Advisers, Inc. is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

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, LLC, 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 year ended December 31, 2015 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 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-26

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$118,597,789    $ 63,602,293       $ 2,750,682       $ —       $ 121,348,471       $ 63,602,293   

As of December 31, 2015, 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		     Other
Accumulated
Capital Losses		      Total  
$—    $ 3,074,828       $ (115,592,173 )    $ —       $ (112,517,345 ) 

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, 2015, the Portfolio had no post-enactment accumulated capital losses and no pre-enactment accumulated capital loss carryforwards.

9. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-27

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Met/Templeton International 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 Met/Templeton International Bond Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 Met/Templeton International Bond Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-28

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-29

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-30

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-31

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

 

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

 

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-32

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

Met/Templeton International Bond Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Franklin Advisers, Inc. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the one-, three-, and five-year periods ended June 30, 2015. The Board also considered that the Portfolio outperformed its benchmark, the Citigroup World Government Bond Index (WGBI) ex-US Index, for the one-, three-, and five-year periods ended October 31, 2015.

The Board also took into account that the Portfolio’s actual management fees were below the medians of the Expense Universe and the Sub-advised Expense Universe and equal to the Expense Group median. The Board also considered that the Portfolio’s total expenses (exclusive of 12b-l fees) were above the medians of the Expense Group, the Expense Universe, and the Sub-advised Expense Universe. The Board further noted that the Portfolio’s contractual management fees were above the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also considered that the Portfolio’s contractual sub-advisory fees were above the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-33

Met Investors Series Trust

MetLife Asset Allocation 100 Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A and B shares of the MetLife Asset Allocation 100 Portfolio returned -1.67% and -2.01%, respectively. The Portfolio’s benchmark, the Dow Jones Aggressive Index1, returned -2.56%.

MARKET ENVIRONMENT / CONDITIONS

2015 marked a year of increasing uncertainty and volatility, especially in the third quarter when the volatility index, VIX, sprung to more than three times its average level. Major factors that impacted the global equity markets were concerns over China’s slowdown and a further and unexpected decline in commodity prices. China’s disappointing economic news, plummeting A-shares stock markets, surprise currency devaluation, and multiple rounds of interest rate cuts throughout the year added a tremendous amount of negative sentiment to the stock markets worldwide. Furthermore, after an approximate 40% price decline in 2014, crude oil plunged again in 2015. Prices of industrial metals fell sharply as well. The overall drop in commodity prices hurt many companies in the Energy, Materials, and Industrials sectors. Another theme in 2015 was the U.S. dollar’s continuous strengthening as a result of divergent central bank policies globally. While the Federal Reserve (the “Fed”) finally made their first move in nine years to raise interest rates in December, the European Central Bank, the Bank of Japan, and the People’s Bank of China further eased their monetary policies in 2015. As a result, the U.S. dollar strengthened against many other currencies, including those of both developed and emerging countries, leading to diminished returns for U.S. investors who invest in stocks and bonds outside the U.S.

The U.S. stock market, as measured by the S&P 500 Index, produced a modestly positive return of 1.4% in 2015. Mid cap (represented by the S&P Mid Cap 400 Index) and small cap stocks (S&P Small Cap 600) underperformed their large cap counterparts, and finished the year in negative territory with a return of -2.2% and -2.0% respectively. Stocks with a growth orientation noticeably outpaced those with a value bias. From a sector perspective, the Consumer, Health Care, and Information Technology sectors performed better than the broad market, while Energy and Materials significantly trailed as a result of falling commodity prices. Due to the risk-off sentiment dominating a big part of the year, stocks with low volatility and high quality characteristics significantly outperformed the rest. Developed markets outside U.S., in particular, Europe and Japan delivered solid performance, thanks to continuous accommodative monetary policies. The MSCI EAFE Index advanced 5.3% in local currency terms for the year. However, with currency depreciation, the return in U.S. dollar terms was slightly negative at -0.8%. Emerging markets, on the other hand, struggled and produced a loss of 5.8% in local currency terms and a woeful -14.9% return in dollar terms.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The MetLife Asset Allocation 100 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.

Over the twelve month period, the Portfolio outperformed the Dow Jones Aggressive Index due primarily to strong security selection within underlying portfolios, in addition to a greater domestic orientation relative to the Dow Jones Index.

Domestic equity portfolios in aggregate produced strong results. While most value oriented portfolios detracted from performance, as value significantly underperformed growth in 2015, positive contribution generated from portfolios with a growth style more than offset the detraction from value portfolios. Among all value portfolios, the Invesco Comstock Portfolio was the largest performance detractor. The Invesco Comstock Portfolio’s contrarian investment style was not rewarded in this market environment where uncertainty was disproportionately punished. The BlackRock Large Cap Value Portfolio was another detractor, where underperformance was largely driven by weak stock selection within the Utilities, Financials, and Consumer Discretionary sectors. On the positive side, the Jennison Growth Portfolio considerably outpaced the Russell 1000 Growth Index, aided by the portfolio’s retail industry exposure where an overweight position combined with strong stock selection significantly contributed to performance. In addition, the portfolio’s underweight to the Industrials sector also proved to be beneficial. The T. Rowe Price Large Cap Growth Portfolio produced a sizable contribution as well. Its strong relative performance was attributable to both industry positioning and strong stock selection. From an industry positioning perspective, focusing more on software and services companies and less on hardware within the Technology sector, and an overweight to retail and an underweight to media within the Consumer Discretionary sector proved to be beneficial in 2015. In terms of stock selection, the portfolio delivered its strongest results in the retail area. In particular, a sizable positon in Amazon added significantly to performance as the stock price more than doubled in the past year.

Among the equity portfolios that invest outside the U.S., the Van Eck Global Natural Resources Portfolio was by far the top detractor as a result of plunging commodity prices. The portfolio underperformed its benchmark, the S&P North American Natural Resources Sector Index, driven largely by the portfolio’s industry positioning. Within the Energy sector, an overweight to industries that are more sensitive to oil prices such as oil & gas exploration & production and an underweight to integrated oil & gas companies proved to be detrimental in last year’s environment. Within the

 

MIST-1

Met Investors Series Trust

MetLife Asset Allocation 100 Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*—(Continued)

 

Materials sector, a higher exposure to metals & mining and a lighter exposure to containers & packaging also detracted from performance. Conversely, the Met/Dimensional International Small Company Portfolio contributed positively to relative performance as small cap stocks outside the U.S. in general outpaced their large cap counterparts. The Baillie Gifford International Stock Portfolio was another positive performer on a relative basis, which was driven largely by strong stock selection, especially within the diversified financial area where a number of exchange stocks delivered strong performance. However, positive contributions from these portfolios were not substantial enough to counterbalance the negative impact from the Van Eck Portfolio.

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, 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 subject to change at any time based upon economic, market, or other conditions and the advisory 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 Asset Allocation 100 Portfolio

 


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

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year  
MetLife Asset Allocation 100 Portfolio                 

Class A

        -1.67           8.22           4.88   

Class B

        -2.01           7.97           4.61   
Dow Jones Aggressive Index        -2.56           7.89           6.33   

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.

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
T. Rowe Price Large Cap Growth Portfolio (Class A)      6.2   
Jennison Growth Portfolio (Class A)      6.1   
ClearBridge Aggressive Growth Portfolio (Class A)      6.0   
WMC Core Equity Opportunities Portfolio (Class A)      5.1   
T. Rowe Price Large Cap Value Portfolio (Class A)      5.1   
MFS Value Portfolio (Class A)      5.1   
Invesco Comstock Portfolio (Class A)      5.1   
Met/Dimensional International Small Company Portfolio (Class A)      4.6   
Harris Oakmark International Portfolio (Class A)      4.4   
BlackRock Capital Appreciation Portfolio (Class A)      4.1   

 

MIST-3

Met Investors Series Trust

MetLife Asset Allocation 100 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, July 1, 2015 through December 31, 2015.

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 Asset Allocation 100 Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual      0.76 %     $ 1,000.00         $ 945.90         $ 3.73   
   Hypothetical*      0.76 %     $ 1,000.00         $ 1,021.37         $ 3.87   

Class B(a)

    Actual      1.01 %     $ 1,000.00         $ 944.30         $ 4.95   
   Hypothetical*      1.01 %     $ 1,000.00         $ 1,020.11         $ 5.14   

* 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 (184 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 Asset Allocation 100 Portfolio

Schedule of Investments as of December 31, 2015

Mutual Funds—100.0% of Net Assets

 

Security Description   Shares     Value  

Affiliated Investment Companies—100.0%

  

Baillie Gifford International Stock Portfolio (Class A) (a)

     5,942,375      $ 57,700,459   

BlackRock Capital Appreciation Portfolio (Class A) (a)

     1,828,461        66,738,832   

BlackRock Large Cap Value Portfolio (Class A) (a)

     6,805,257        57,300,266   

Clarion Global Real Estate Portfolio (Class A) (b)

     4,254,058        50,112,809   

ClearBridge Aggressive Growth Portfolio (Class A) (b)

     6,456,153        98,779,137   

Frontier Mid Cap Growth Portfolio
(Class A) (a)

     728,016        24,526,846   

Goldman Sachs Mid Cap Value Portfolio (Class A) (b)

     2,177,805        24,369,634   

Harris Oakmark International Portfolio (Class A) (b)

     5,374,204        72,175,564   

Invesco Comstock Portfolio (Class A) (b)

     5,908,886        82,547,138   

Invesco Mid Cap Value Portfolio
(Class A) (b)

     891,024        15,690,933   

Invesco Small Cap Growth Portfolio (Class A) (b)

     2,689,238        40,204,109   

Jennison Growth Portfolio (Class A) (a)

     6,559,400        100,358,826   

JPMorgan Small Cap Value Portfolio (Class A) (b)

     1,938,805        29,372,900   

Loomis Sayles Small Cap Growth Portfolio (Class A) (a)

     2,235,311        29,215,521   

Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio) (Class A) (b)

     6,583,815        53,592,250   

Met/Artisan International Portfolio
(Class A) (b)

     5,911,290        56,866,611   

Met/Artisan Mid Cap Value Portfolio (Class A) (a)

     150,355        32,142,919   

Met/Dimensional International Small Company Portfolio (Class A) (a)

     5,827,733        75,585,697   

MetLife Small Cap Value Portfolio
(Class A) (b)

     2,325,486        29,347,629   

MFS Research International Portfolio (Class A) (b)

     4,650,804        48,647,413   

MFS Value Portfolio (Class A) (a)

     5,506,602        83,094,617   

Morgan Stanley Mid Cap Growth Portfolio (Class A) (b) (c)

     1,048,910        16,488,869   

Neuberger Berman Genesis Portfolio (Class A) (a)

     1,454,818        26,332,197   

Oppenheimer Global Equity Portfolio (Class A) (b)

     1,615,805        33,107,849   

T. Rowe Price Large Cap Growth Portfolio (Class A) (a)

     4,431,292        100,590,321   

T. Rowe Price Large Cap Value Portfolio (Class A) (b)

     2,449,821        83,514,395   

T. Rowe Price Mid Cap Growth Portfolio (Class A) (b)

     2,199,526        25,052,603   

T. Rowe Price Small Cap Growth Portfolio (Class A) (a)

     1,126,967        24,804,535   

Van Eck Global Natural Resources Portfolio (Class A) (a)

     7,007,541        53,187,239   

Affiliated Investment Companies—(Continued)

  

WMC Core Equity Opportunities Portfolio (Class A) (a)

     2,946,245      83,584,984   

WMC Large Cap Research Portfolio (Class A) (b)

     4,185,161        58,424,854   
   

 

 

  

Total Mutual Funds
(Cost $1,608,467,860)

       1,633,457,956   
   

 

 

  

Total Investments—100.0%
(Cost $1,608,467,860) (d)

       1,633,457,956   

Other assets and liabilities (net)—0.0%

       (490,543 ) 
   

 

 

  
Net Assets—100.0%     $ 1,632,967,413   
   

 

 

  

 

(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 Underlying Portfolios.)
(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 Underlying Portfolios.)
(c) Non-income producing security.
(d) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $1,632,754,594. The aggregate unrealized appreciation and depreciation of investments were $109,855,888 and $(109,152,526), respectively, resulting in net unrealized appreciation of $703,362 for federal income tax purposes.

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

MetLife Asset Allocation 100 Portfolio

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2      Level 3      Total  
Mutual Funds            

Affiliated Investment Companies

    $ 1,633,457,956       $ —         $ —         $ 1,633,457,956   

Total Investments

    $ 1,633,457,956       $ —         $ —         $ 1,633,457,956   
                                     

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

MetLife Asset Allocation 100 Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Affiliated investments at value (a)

    $ 1,633,457,956   

Receivable for:

   

Investments sold

      189,335   

Fund shares sold

      126,260   
  

 

 

  

Total Assets

      1,633,773,551   

Liabilities

   

Payables for:

   

Fund shares redeemed

      315,596   

Accrued Expenses:

   

Management fees

      101,885   

Distribution and service fees

      225,668   

Deferred trustees’ fees

      125,219   

Other expenses

      37,770   
  

 

 

  

Total Liabilities

      806,138   
  

 

 

  

Net Assets

    $ 1,632,967,413   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 1,391,196,018   

Undistributed net investment income

      37,088,387   

Accumulated net realized gain

      179,692,912   

Unrealized appreciation on affiliated investments

      24,990,096   
  

 

 

  

Net Assets

    $ 1,632,967,413   
  

 

 

  

Net Assets

   

Class A

    $ 581,575,238   

Class B

      1,051,392,175   

Capital Shares Outstanding*

   

Class A

      46,158,236   

Class B

      83,813,876   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 12.60   

Class B

      12.54   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of affiliated investments was $1,608,467,860.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends from Affiliated Underlying Portfolios

    $ 23,723,462   
  

 

 

  

Total investment income

      23,723,462   

Expenses

   

Management fees

      1,255,397   

Administration fees

      22,280   

Custodian and accounting fees

      25,715   

Distribution and service fees—Class B

      2,845,774   

Audit and tax services

      29,775   

Legal

      26,433   

Trustees’ fees and expenses

      35,173   

Miscellaneous

      7,626   
  

 

 

  

Total expenses

      4,248,173   
  

 

 

  

Net Investment Income

      19,475,289   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Affiliated investments

      55,291,489   

Capital gain distributions from Affiliated Underlying Portfolios

      176,733,942   
  

 

 

  

Net realized gain

      232,025,431   
  

 

 

  

Net change in unrealized depreciation on affiliated investments

      (279,236,778 ) 
  

 

 

  

Net realized and unrealized loss

      (47,211,347 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (27,736,058 ) 
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

MetLife Asset Allocation 100 Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 19,475,289      $ 12,618,266   

Net realized gain

      232,025,431        206,048,396   

Net change in unrealized depreciation

      (279,236,778 )      (126,655,012 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (27,736,058 )      92,011,650   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (9,604,709 )      (5,957,726 ) 

Class B

      (14,648,605 )      (8,551,799 ) 

Net realized capital gains

     

Class A

      (46,539,182 )      0   

Class B

      (85,330,126 )      0   
  

 

 

    

 

 

  

Total distributions

      (156,122,622 )      (14,509,525 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      16,170,832        (145,510,433 ) 
  

 

 

    

 

 

  

Total decrease in net assets

      (167,687,848 )      (68,008,308 ) 

Net Assets

     

Beginning of period

      1,800,655,261        1,868,663,569   
  

 

 

    

 

 

  

End of period

    $ 1,632,967,413      $ 1,800,655,261   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 37,088,387      $ 24,042,354   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      1,073,682      $ 14,644,049        1,212,369      $ 16,611,001   

Reinvestments

      4,143,461        56,143,891        451,343        5,957,726   

Redemptions

      (4,069,296 )      (55,433,590 )      (4,686,992 )      (64,293,621 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      1,147,847      $ 15,354,350        (3,023,280 )    $ (41,724,894 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      3,406,502      $ 45,889,129        5,347,753      $ 72,593,786   

Reinvestments

      7,400,350        99,978,731        649,339        8,551,799   

Redemptions

      (10,641,920 )      (145,051,378 )      (13,551,678 )      (184,931,124 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      164,932      $ 816,482        (7,554,586 )    $ (103,785,539 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ 16,170,832        $ (145,510,433 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

MetLife Asset Allocation 100 Portfolio

Financial Highlights

 

Selected per share data       
     Class A  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 14.03       $ 13.46       $ 10.48       $ 9.03       $ 9.68   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (loss) (a)

      0.17         0.12         0.02         0.09         (0.01 ) 

Net realized and unrealized gain (loss) on investments

      (0.31 )       0.58         3.07         1.44         (0.51 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.14 )       0.70         3.09         1.53         (0.52 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.22 )       (0.13 )       (0.11 )       (0.08 )       (0.13 ) 

Distributions from net realized capital gains

      (1.07 )       0.00         0.00         0.00         0.00   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (1.29 )       (0.13 )       (0.11 )       (0.08 )       (0.13 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 12.60       $ 14.03       $ 13.46       $ 10.48       $ 9.03   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (1.67 )       5.24         29.77         17.05         (5.57 ) 

Ratios/Supplemental Data

               

Ratio of expenses to average net assets (%) (c)

      0.08         0.08         0.10         0.10         0.10   

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

      1.27         0.85         0.15         0.89         (0.08 ) 

Portfolio turnover rate (%)

      11         17         13         13         23   

Net assets, end of period (in millions)

    $ 581.6       $ 631.6       $ 646.3       $ 68.5       $ 56.3   
     Class B  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 13.98       $ 13.40       $ 10.43       $ 8.99       $ 9.64   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.14         0.08         0.13         0.07         0.06   

Net realized and unrealized gain (loss) on investments

      (0.33 )       0.60         2.93         1.43         (0.60 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.19 )       0.68         3.06         1.50         (0.54 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.18 )       (0.10 )       (0.09 )       (0.06 )       (0.11 ) 

Distributions from net realized capital gains

      (1.07 )       0.00         0.00         0.00         0.00   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (1.25 )       (0.10 )       (0.09 )       (0.06 )       (0.11 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 12.54       $ 13.98       $ 13.40       $ 10.43       $ 8.99   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (2.01 )       5.09         29.51         16.74         (5.78 ) 

Ratios/Supplemental Data

               

Ratio of expenses to average net assets (%) (c)

      0.33         0.33         0.35         0.35         0.35   

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

      1.01         0.60         1.07         0.67         0.61   

Portfolio turnover rate (%)

      11         17         13         13         23   

Net assets, end of period (in millions)

    $ 1,051.4       $ 1,169.0       $ 1,222.3       $ 997.4       $ 945.4   

 

(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) The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Asset Allocation Portfolio invests.
(d) Recognition of net investment income by the Asset Allocation 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-9

Met Investors Series Trust

MetLife Asset Allocation 100 Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is MetLife Asset Allocation 100 Portfolio (the “Asset Allocation Portfolio”), which is diversified. The Asset Allocation Portfolio operates under a “fund of funds” structure, investing substantially all of its assets in other Portfolios advised by MetLife Advisers (each, an “Underlying Portfolio,” and, collectively, the “Underlying Portfolios”). Shares in the Asset Allocation 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 Asset Allocation Portfolio has registered four classes of shares: Class A, B, C and E shares. Class A and B shares are currently offered by the Asset Allocation Portfolio. Shares of each Class of the Asset Allocation Portfolio represent an equal pro rata interest in the Asset Allocation 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 Asset Allocation Portfolio, and certain Asset Allocation 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 Asset Allocation Portfolio. Each Class of shares differs in its respective distribution plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Asset Allocation Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. The following is a summary of significant accounting policies consistently followed by the Asset Allocation Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Investments in the Underlying Portfolios are valued at their closing daily net asset value on the valuation date. Investments in the Underlying Portfolios are categorized as Level 1 within the fair value hierarchy. 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 Asset Allocation 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.

 

Dividends and Distributions to Shareholders - The Asset Allocation Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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.

Income Taxes - It is the Asset Allocation 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 Asset Allocation Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Asset Allocation Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. As of December 31, 2015, the Asset Allocation Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

 

MIST-10

Met Investors Series Trust

MetLife Asset Allocation 100 Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

3. Certain Risks

In the normal course of business, the Underlying Portfolios 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”).

Market 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, 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 they believe 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 their trading partners, (ii) monitoring and/or limiting the amount of their net exposure to each individual counterparty based on the adviser’s 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 (“Master Agreements”) with counterparties (approved brokers) with whom the Underlying Portfolios undertake a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

The Asset Allocation Portfolio’s prospectus includes a discussion of the principal risks of investing in the Asset Allocation Portfolio and in the Underlying Portfolios in which it invests.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of shares of the Underlying Portfolios by the Asset Allocation Portfolio for the year ended December 31, 2015 were as follows:

 

Purchases      Sales  
U.S. Government      Non U.S. Government      U.S. Government      Non U.S. Government  
$ 0       $ 244,008,285       $ 0       $ 187,764,842   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - 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 Asset Allocation 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 Asset Allocation Portfolio’s Management Agreement, the Asset Allocation Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Asset Allocation Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31, 2015		      % per annum   Average Daily Net Assets
  $1,255,397       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 Asset Allocation 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.

 

MIST-11

Met Investors Series Trust

MetLife Asset Allocation 100 Portfolio

Notes to Financial Statements—December 31, 2015—(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 Asset Allocation Portfolio’s Class A and Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, LLC, an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Asset Allocation Portfolio, may pay annually up to 0.50% of the average daily net assets of the Asset Allocation 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 Asset Allocation Portfolio attributable to its Class B Shares. Amounts incurred by the Asset Allocation Portfolio for the year ended December 31, 2015 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 Asset Allocation 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 Underlying Portfolios

The Asset Allocation Portfolio does not invest in the Underlying Portfolios for the purpose of exercising control; however, investments by the Asset Allocation Portfolio within its principal investment strategies may represent a significant portion of the Underlying Portfolios’ net assets. Transactions in the Underlying Portfolios for the year ended December 31, 2015 were as follows:

 

Underlying Portfolio

    Number of
shares held at
December 31, 2014		      Shares
purchased		      Shares
sold		     Number of
shares held at
December 31, 2015		  

Baillie Gifford International Stock

      6,152,045         111,929         (321,599 )      5,942,375   

BlackRock Capital Appreciation

      1,800,228         333,307         (305,074 )      1,828,461   

BlackRock Large Cap Value

      6,522,492         650,900         (368,135 )      6,805,257   

Clarion Global Real Estate

      5,901,439         237,977         (1,885,358 )      4,254,058   

ClearBridge Aggressive Growth

      6,928,014         35,125         (506,986 )      6,456,153   

Frontier Mid Cap Growth

      748,078         92,823         (112,885 )      728,016   

Goldman Sachs Mid Cap Value

      1,711,574         543,206         (76,975 )      2,177,805   

Harris Oakmark International

      4,914,882         665,426         (206,104 )      5,374,204   

Invesco Comstock

      5,834,871         373,622         (299,607 )      5,908,886   

Invesco Mid Cap Value

      907,505         47,762         (64,243 )      891,024   

Invesco Small Cap Growth

      2,359,603         634,502         (304,867 )      2,689,238   

Jennison Growth

      6,765,985         1,101,172         (1,307,757 )      6,559,400   

JPMorgan Small Cap Value

      1,873,546         193,837         (128,578 )      1,938,805   

Loomis Sayles Small Cap Growth

      2,287,123         305,676         (357,488 )      2,235,311   

Met/Aberdeen Emerging Markets Equity (formerly, MFS Emerging Markets Equity)

      6,023,856         562,558         (2,599 )      6,583,815   

Met/Artisan International

      5,232,788         706,423         (27,921 )      5,911,290   

Met/Artisan Mid Cap Value

      134,537         19,950         (4,132 )      150,355   

Met/Dimensional International Small Company

      5,079,046         1,249,008         (500,321 )      5,827,733   

MetLife Small Cap Value

      1,612,268         843,927         (130,709 )      2,325,486   

MFS Research International

      4,698,191         147,545         (194,932 )      4,650,804   

MFS Value

      5,044,370         1,057,033         (594,801 )      5,506,602   

Morgan Stanley Mid Cap Growth

      1,094,549         4,460         (50,099 )      1,048,910   

Neuberger Berman Genesis

      1,630,080         6,773         (182,035 )      1,454,818   

Oppenheimer Global Equity

      1,302,141         384,951         (71,287 )      1,615,805   

T. Rowe Price Large Cap Growth

      4,457,248         860,514         (886,470 )      4,431,292   

T. Rowe Price Large Cap Value

      2,574,865         49,559         (174,603 )      2,449,821   

T. Rowe Price Mid Cap Growth

      2,231,799         355,285         (387,558 )      2,199,526   

T. Rowe Price Small Cap Growth

      1,192,106         99,690         (164,829 )      1,126,967   

Van Eck Global Natural Resources

      5,197,216         2,032,562         (222,237 )      7,007,541   

WMC Core Equity Opportunities

      2,136,755         1,160,374         (350,884 )      2,946,245   

WMC Large Cap Research

      4,473,695         363,010         (651,544 )      4,185,161   

 

MIST-12

Met Investors Series Trust

MetLife Asset Allocation 100 Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Underlying Portfolio

    Net Realized
Gain/(Loss) on sales
of Affiliated
Underlying
Portfolios		     Capital Gain
Distributions
from Affiliated
Underlying
Portfolios		      Dividend Income
from Affiliated
Underlying
Portfolios		      Ending Value
as of
December 31, 2015		  

Baillie Gifford International Stock

    $ 545,077      $ —       $ 1,041,082       $ 57,700,459   

BlackRock Capital Appreciation

      3,179,524        12,336,567         —         66,738,832   

BlackRock Large Cap Value

      787,279        4,986,561         1,114,350         57,300,266   

Clarion Global Real Estate

      4,968,846        —         2,191,022         50,112,809   

ClearBridge Aggressive Growth

      4,531,825        —         443,182         98,779,137   

Frontier Mid Cap Growth

      762,500        3,380,618         —         24,526,846   

Goldman Sachs Mid Cap Value

      162,512        6,606,622         240,420         24,369,634   

Harris Oakmark International

      1,568,330        7,175,211         2,512,515         72,175,564   

Invesco Comstock

      1,632,439        2,938,722         2,734,091         82,547,138   

Invesco Mid Cap Value

      136,357        839,975         123,299         15,690,933   

Invesco Small Cap Growth

      2,719,092        10,484,349         64,361         40,204,109   

Jennison Growth

      6,147,547        16,277,117         295,035         100,358,826   

JPMorgan Small Cap Value

      207,041        2,761,856         434,108         29,372,900   

Loomis Sayles Small Cap Growth

      1,358,678        4,227,010         —         29,215,521   

Met/Aberdeen Emerging Markets Equity (formerly, MFS Emerging Markets Equity)

      (4,115 )      —         1,213,138         53,592,250   

Met/Artisan International

      14,883        —         447,213         56,866,611   

Met/Artisan Mid Cap Value

      603,831        4,397,999         416,777         32,142,919   

Met/Dimensional International Small Company

      2,133,996        12,985,451         1,535,374         75,585,697   

MetLife Small Cap Value

      770,908        11,507,667         120,100         29,347,629   

MFS Research International

      543,018        —         1,551,324         48,647,413   

MFS Value

      4,326,310        14,008,158         2,438,114         83,094,617   

Morgan Stanley Mid Cap Growth

      208,793        —         —         16,488,869   

Neuberger Berman Genesis

      1,493,328        —         122,177         26,332,197   

Oppenheimer Global Equity

      146,000        751,562         409,078         33,107,849   

T. Rowe Price Large Cap Growth

      6,360,747        18,996,356         148,506         100,590,321   

T. Rowe Price Large Cap Value

      3,535,984        187,376         1,557,246         83,514,395   

T. Rowe Price Mid Cap Growth

      1,046,082        4,135,396         —         25,052,603   

T. Rowe Price Small Cap Growth

      775,341        2,304,494         36,699         24,804,535   

Van Eck Global Natural Resources

      422,564        —         325,344         53,187,239   

WMC Core Equity Opportunities

      3,312,955        30,934,586         1,608,099         83,584,984   

WMC Large Cap Research

      893,817        4,510,289         600,808         58,424,854   
  

 

 

    

 

 

     

 

 

     

 

 

  
   $ 55,291,489      $ 176,733,942       $ 23,723,462       $ 1,633,457,956   
  

 

 

    

 

 

     

 

 

     

 

 

  

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$24,253,314    $ 14,509,525       $ 131,869,308       $ —       $ 156,122,622       $ 14,509,525   

As of December 31, 2015, 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		      Other
Accumulated
Capital Losses		      Total  
$37,703,267    $ 203,489,985       $ 703,362       $ —       $ 241,896,614   

 

MIST-13

Met Investors Series Trust

MetLife Asset Allocation 100 Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

The Asset Allocation 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, 2015, the Asset Allocation Portfolio had no post-enactment accumulated capital losses and no pre-enactment accumulated capital loss carryforwards.

9. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-14

Met Investors Series Trust

MetLife Asset Allocation 100 Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of MetLife Asset Allocation 100 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 MetLife Asset Allocation 100 Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the transfer agent; when replies were not received from the transfer agent, 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 MetLife Asset Allocation 100 Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-15

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-16

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-17

Met Investors Series Trust

MetLife Asset Allocation 100 Portfolio

Board of Trustees’ Consideration of Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (the “Advisory Agreements” or “Agreements”) with MetLife Advisers, LLC (the “Adviser”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser that the Adviser had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser has provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its investment management activities, trading practices, financial condition, relevant personnel matters and compliance program, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff regularly review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding material information related to those reviews and assessments.

The Board further considered the provision of investment advisory services by the Adviser to the Asset Allocation Portfolios (i.e., MetLife Asset Allocation 20 Portfolio, MetLife Asset Allocation 40 Portfolio, MetLife Asset Allocation 60 Portfolio, MetLife Asset Allocation 80 Portfolio and MetLife Asset Allocation 100 Portfolio) and the American Funds of Funds (i.e., American Funds Balanced Allocation Portfolio, American Funds Growth Allocation Portfolio and American Funds Moderate Allocation Portfolio). With respect to

 

MIST-18

Met Investors Series Trust

MetLife Asset Allocation 100 Portfolio

Board of Trustees’ Consideration of Advisory Agreements—(Continued)

 

the Asset Allocation Portfolios, the Board noted that the Adviser has hired at its own expense an independent consultant to provide research and consulting services with respect to the periodic asset allocation targets for each of the Asset Allocation Portfolios and investments in other Portfolios of the Trusts (the “Underlying Portfolios”). Additionally, the Board considered that a committee, consisting of investment professionals from across the Adviser, meets periodically to review the asset allocations and discuss the performance of the Asset Allocation Portfolios and the American Funds of Funds.

The Board further considered and found that the advisory fee to be paid to the Adviser with respect to each Asset Allocation Portfolio and American Fund of Funds was based on services to be provided that were in addition to, rather than duplicative of, the services provided pursuant to the advisory agreements for the Underlying Portfolios in which the Portfolio invests.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance. The Board focused particular attention on Portfolios with less favorable performance records.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”) and a narrower group of peer funds (“Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report.

The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. In the case of the Asset Allocation Portfolios, the Board also considered the Adviser’s analysis of its profitability that was attributable to its management of the Underlying Portfolios of the Trust in which the Asset Allocation Portfolios invest. The Board further considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Portfolios, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board considered the effective fees under the Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

 

MIST-19

Met Investors Series Trust

MetLife Asset Allocation 100 Portfolio

Board of Trustees’ Consideration of Advisory Agreements—(Continued)

 

MetLife Asset Allocation 100 Portfolio. The Board also considered the following information in relation to the Agreement with the Adviser regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe for the one-, three-, and five-year periods ended June 30, 2015. The Board also considered that the Portfolio underperformed its Lipper Index for the one-year period ended June 30, 2015, and outperformed its Lipper Index for the three- and five-year periods ended June 30, 2015. The Board further considered that the Portfolio underperformed its benchmark, the MetLife AA 100 Broad Index, for the one-, three-, and five-year periods ended October 31, 2015. The Board also noted that the Portfolio outperformed its other benchmark, the Dow Jones Aggressive Index, for the one-, three-, and five-year periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-l fees) were below the Expense Group median and the Expense Universe median. The Board noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size.

 

MIST-20

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 one year period ended December 31, 2015, the Class B shares of the MetLife Balanced Plus Portfolio returned -4.09%. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned -1.21%.

MARKET ENVIRONMENT / CONDITIONS

In addition to the European Central Bank’s (the “ECB”) highly anticipated foray into quantitative easing (“QE”), the new year began with a host of global central banks embracing monetary easing. Eurozone bonds and equities rallied strongly on the announcement of QE, though economic data also improved on the margin. The U.S. Federal Reserve (the “Fed”) remained an outlier among central banks easing as officials reiterated their desire to hike rates sometime during the year, emphasizing the importance of incoming data. Some trends from 2014 continued into 2015, including generalized U.S. dollar strength, lower oil prices, and uncertainty as evidenced by the choppiness of risk assets.

The U.S. economy continued to show signs of strength, as a healthier labor market, improving outlook for corporate spending, and modest rebound in oil prices led to a sell-off in longer-dated U.S. Treasuries over the second quarter. After the U.S. dollar’s seemingly unstoppable 25% rally over the prior nine months, lingering uncertainty about the start and pace of the Fed rate hikes anchored short-dated Treasuries and led to second quarter softness in the U.S. dollar. Elsewhere in developed markets, global deflation fears gradually receded as oil prices firmed, the ECB committed to prevent deflation with QE, and the outlook for growth brightened. Although volatility in eurozone markets grabbed headlines amid concerns about Greece exiting the eurozone, modest market moves suggested the events in Greece were more noise than news for global financial markets.

In the third quarter of 2015, a cascade of negative headlines soured global risk sentiment. Rising concern over the outlook for Chinese growth sent commodity prices, inflation expectations, and emerging market assets tumbling. The subsequent rise in global financial market volatility to multi-year highs drove the Fed to hold rates steady in September and moved developed market central banks to reiterate their commitment to accommodative policies. Despite headlines and financial market turmoil, economic growth in the U.S. remained robust.

The fourth quarter brought some respite as economic fundamentals strengthened and sentiment stabilized. The improving backdrop was sufficient to give the Fed the confidence to increase interest rates for the first time in nearly a decade. While markets first responded to the long-awaited liftoff with a sense of relief, they remained on edge heading into year-end both due to oil prices and widening high yield spreads.

BASE SLEEVE PORTFOLIO REVIEW / PERIOD END POSITIONING

The Base Sleeve of the Portfolio produced a modestly negative return for investors over the twelve month period as many asset classes that are part of the Base Sleeve’s strategy allocations, including U.S. small cap and mid cap stocks, foreign stocks, high yield bonds as well as foreign bonds, retreated in 2015 as volatility spiked up in the global capital markets. On a relative basis, performance was approximately in line with expectations based on the Base Sleeve’s asset allocation goals. While a modest overweight to high yield bonds weighed on relative results, security selection and sector positioning in underlying portfolios added value.

The fixed income portfolios in aggregate contributed positively to the Base Sleeve’s relative performance. Two portfolios managed by BlackRock, the Bond Income Portfolio and the High Yield Portfolio were positive contributors. The BlackRock Bond Income Portfolio, despite a moderate high yield exposure which was not part of its benchmark, managed to outpace the benchmark index, benefiting from an overweight to Financials and an underweight to Industrials within the Investment Grade Credit space. Additionally, contributing to performance was an allocation across structured credit. The BlackRock High Yield Portfolio also outperformed its high yield benchmark, driven largely by security selection within the Independent Energy sector, as well as an underweight to the Metals & Mining sector. The Met/Templeton International Bond Portfolio was another positive contributor, which was attributable to the portfolio’s sizable underweight to euro as well as sovereign credit exposures. Conversely, the PIMCO Inflation Protected Bond Portfolio detracted from performance as inflation expectations remained muted.

Domestic equity portfolios produced mixed results. While most value oriented portfolios detracted from performance, portfolios managed with a growth style in general contributed positively as growth style significantly outpaced value in the past year. In particular, two mid cap value portfolios, the Goldman Sachs Mid Cap Value Portfolio and the Met/Artisan Mid Cap Value Portfolio were the detractors. While the Goldman Sachs Mid Cap Value Portfolio was hurt mostly by weak stock selection within the Financials and Consumer Discretionary sectors, the Met/Artisan Mid Cap Values Portfolio performance’s main detractors were stock selection in the Industrials and Energy sectors, in addition to an underweight position to the Health Care sector. On the positive side, the Jennison Growth Portfolio noticeably outpaced the Russell 1000 Growth Index, aided by the portfolio’s retail industry where an overweight position combined with strong stock selection significantly contributed to performance. In addition, the portfolio’s underweight to the Industrials sector and industry positioning within the Information Technology sector also proved to be beneficial. The T. Rowe Price Mid Cap Growth Portfolio contributed positively as well. Its strong

 

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)

 

performance was primarily attributable to solid stock selection across a number of sectors including Information Technology, Consumer Discretionary, Industrials, and Financials.

Among the equity portfolios that invest outside the U.S., the Van Eck Global Natural Resources Portfolio was the top detractor as a result of continuously plunging oil prices. The portfolio underperformed its benchmark, the S&P North American Natural Resources Index, driven largely by the portfolio’s industry positioning. Within the Energy sector, an overweight to industries that are more sensitive to oil prices such as oil & gas exploration & production and an underweight to integrated oil & gas companies proved to be detrimental in last year’s environment. Within the Materials sector, an overweight to metals & mining and an underweight to containers & packaging also detracted from performance. Conversely, a number of international portfolios, including the Met/Dimensional International Small Company Portfolio and the Baillie Gifford International Stock Portfolio generated positive contribution to the Base Sleeve. However, positive contribution was not substantial enough to offset the negative impact from the Van Eck Portfolio.

OVERLAY SLEEVE PORTFOLIO REVIEW / PERIOD END POSITIONING

Dynamic equity positioning in the MetLife Balanced Plus PIMCO-managed sleeve detracted from performance as equities were relatively choppy, producing modest returns over the year. The fixed income collateral helped to partially offset the absolute and relative losses from equities.

During muted volatility periods, the Portfolio’s Overlay Sleeve maintained a near maximum allocation to equities. Stints of volatility triggered de-risking events in the Portfolio early in the year as well as in the third and fourth quarters. As market volatility spiked during those periods, the PIMCO-managed sleeve de-risked; equities exposure was reduced to maintain a stable volatility profile for the overall Portfolio. As volatility subsided, the Portfolio gradually re-risked, eventually attaining maximum equity exposure. Overall, the Portfolio’s exposure to U.S. equities, obtained via equity futures contracts, resulted in negative absolute returns.

On the fixed income collateral front, the Portfolio outperformed its benchmark. An underweight to duration added to performance as rates rose across the curve. However, modest holdings within Investment-Grade Corporate and Agency bonds partially detracted from returns. To diversify its exposure, the Collateral Portfolio held small positions in Canadian Sovereign bonds which also added to returns as yields declined.

In regards to Portfolio positioning, equity exposure in the PIMCO-managed portion of the Balanced Plus Portfolio ended the period with an overweight exposure to equities as volatility subsided. The Collateral Portfolio ended the period with a duration underweight relative to the benchmark. The Portfolio was predominantly overweight duration in 10- to 20-year maturities, where we see attractive opportunities for risk-adjusted returns. The Portfolio held positions in Corporate, Agency, and Quasi-Sovereign bonds to diversify and enhance the return potential.

The Portfolio uses derivative instruments to adjust equity exposure within the PIMCO-managed sleeve. The derivatives positions performed in line with expectations and facilitated the Portfolio’s overall performance by providing a cost-effective and liquid approach to gaining the desired market exposure.

The Base Sleeve is managed by:

Investment Committee

MetLife Advisers, LLC

The Overlay Sleeve is managed by:

Josh Davis

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, 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 subject to change at any time based upon economic, market, or other conditions and the advisory 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        Since Inception2  
MetLife Balanced Plus Portfolio            

Class B

        -4.09           5.58   
Dow Jones Moderate Index        -1.21           4.96   

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 date of the Class B shares is 5/2/2011. Index since inception return is based on the Portfolio’s inception date.

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
BlackRock Bond Income Portfolio (Class A)      6.6   
PIMCO Total Return Portfolio (Class A)      5.6   
JPMorgan Core Bond Portfolio (Class A)      5.1   
TCW Core Fixed Income Portfolio (Class A)      5.1   
Western Asset Management U.S. Government Portfolio (Class A)      3.6   
Met/Franklin Low Duration Total Return Portfolio (Class A)      3.6   
Harris Oakmark International Portfolio (Class A)      3.4   
Western Asset Management Strategic Bond Opportunities Portfolio (Class A)      3.3   
Met/Templeton International Bond Portfolio (Class A)      2.5   
MFS Research International Portfolio (Class A)      2.5   

Top Sectors

 

     % of
Net Assets		  
Mutual Funds      70.1   
U.S. Treasury & Government Agencies      22.1   
Corporate Bonds & Notes      4.4   
Foreign Government      0.5   
Municipals      0.3   
Mortgage-Backed Securities      0.2   
Asset-Backed Securities      0.1   

 

MIST-3

Met Investors Series Trust

MetLife Balanced Plus 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class B(a)(b)

      Actual         0.91 %     $ 1,000.00         $ 962.80         $ 4.50   
     Hypothetical *       0.91 %     $ 1,000.00         $ 1,020.62         $ 4.63   

* 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 (184 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 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 December 31, 2015

Mutual Funds—70.1% of Net Assets

 

Security Description       
    
Shares		     Value  

Affiliated Investment Companies—70.1%

  

Baillie Gifford International Stock Portfolio (Class A) (a)

     26,489,149      $ 257,209,635   

BlackRock Bond Income Portfolio (Class A) (a)

     6,549,571        695,171,428   

BlackRock Capital Appreciation Portfolio (Class A) (a)

     1,450,557        52,945,319   

BlackRock High Yield Portfolio (Class A) (b)

     14,340,521        103,395,153   

Clarion Global Real Estate Portfolio (Class A) (b)

     8,178,660        96,344,616   

ClearBridge Aggressive Growth Portfolio (Class A) (b)

     3,394,384        51,934,082   

Frontier Mid Cap Growth Portfolio (Class A) (a)

     4,622,217        155,722,491   

Goldman Sachs Mid Cap Value Portfolio (Class A) (b)

     13,637,426        152,602,794   

Harris Oakmark International Portfolio (Class A) (b)

     26,392,233        354,447,695   

Invesco Comstock Portfolio (Class A) (b)

     3,723,100        52,011,700   

Invesco Small Cap Growth Portfolio (Class A) (b)

     5,159,368        77,132,556   

Jennison Growth Portfolio (Class A) (a)

     4,150,944        63,509,437   

JPMorgan Core Bond Portfolio (Class A) (b)

     51,991,162        534,469,145   

JPMorgan Small Cap Value Portfolio (Class A) (b)

     5,078,251        76,935,499   

Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio) (Class A) (b)

     16,848,573        137,147,386   

Met/Artisan International Portfolio (Class A) (b)

     21,751,883        209,253,112   

Met/Artisan Mid Cap Value Portfolio (Class A) (a)

     706,760        151,091,151   

Met/Dimensional International Small Company Portfolio (Class A) (a)

     11,584,196        150,247,028   

Met/Eaton Vance Floating Rate Portfolio (Class A) (b)

     16,111,023        158,854,691   

Met/Franklin Low Duration Total Return Portfolio (Class A) (b)

     38,890,033        374,122,113   

Met/Templeton International Bond Portfolio (Class A) (b)

     26,559,153        264,529,161   

MetLife Small Cap Value Portfolio (Class A) (b)

     8,133,674        102,646,967   

MFS Research International Portfolio (Class A) (b)

     24,685,856        258,214,049   

MFS Value Portfolio (Class A) (a)

     3,496,746        52,765,902   

Morgan Stanley Mid Cap Growth Portfolio (Class A) (b) (c)

     3,397,804        53,413,479   

Neuberger Berman Genesis Portfolio (Class A) (a)

     4,011,693        72,611,652   

Oppenheimer Global Equity Portfolio (Class A) (b)

     5,083,429        104,159,466   

PIMCO Inflation Protected Bond Portfolio (Class A) (b)

     22,720,175        211,070,430   

PIMCO Total Return Portfolio (Class A) (b)

     51,961,033        588,198,892   

T. Rowe Price Large Cap Value Portfolio (Class A) (b)

     1,555,670        53,032,787   

Affiliated Investment Companies—(Continued)

  

T. Rowe Price Mid Cap Growth Portfolio (Class A) (b)

     7,477,942      $ 85,173,754   

T. Rowe Price Small Cap Growth Portfolio (Class A) (a)

     4,775,129        105,100,579   

TCW Core Fixed Income Portfolio (Class A) (b) (c)

     53,512,158        532,445,968   

Van Eck Global Natural Resources Portfolio (Class A) (a)

     16,465,895        124,976,147   

Western Asset Management Strategic Bond Opportunities Portfolio (Class A) (a)

     27,800,820        348,344,273   

Western Asset Management U.S. Government Portfolio (Class A) (a)

     31,464,501        374,427,557   

WMC Core Equity Opportunities Portfolio (Class A) (a)

     1,874,932        53,191,816   

WMC Large Cap Research Portfolio (Class A) (b)

     3,800,467        53,054,522   
   

 

 

  

Total Mutual Funds
(Cost $7,711,071,929)

       7,341,904,432   
   

 

 

  
U.S. Treasury & Government Agencies—22.1%   

Federal Agencies—1.7%

    

Federal Home Loan Mortgage Corp.

    

1.750%, 05/30/19

     36,000,000        36,269,856   

2.375%, 01/13/22

     10,500,000        10,645,866   

6.250%, 07/15/32

     30,000,000        41,707,350   

Federal National Mortgage Association

    

6.625%, 11/15/30

     19,200,000        27,189,792   

Residual Funding Corp. Principal Strip

    

Zero Coupon, 10/15/19

     24,600,000        22,903,338   

Zero Coupon, 07/15/20

     33,405,000        30,512,996   

Zero Coupon, 04/15/30

     19,500,000        12,190,795   
   

 

 

  
      181,419,993   
   

 

 

  

U.S. Treasury—20.4%

    

U.S. Treasury Bonds

    

2.750%, 08/15/42

     17,500,000        16,726,850   

2.750%, 11/15/42

     86,700,000        82,666,456   

2.875%, 05/15/43

     126,000,000        122,850,000   

3.000%, 05/15/42

     3,000,000        3,018,516   

3.000%, 11/15/44

     96,000,000        95,651,232   

3.125%, 02/15/42

     195,900,000        202,274,390   

3.125%, 02/15/43

     89,700,000        91,935,503   

3.125%, 08/15/44

     13,100,000        13,388,095   

3.375%, 05/15/44

     99,895,000        107,207,614   

4.250%, 05/15/39

     6,000,000        7,411,638   

4.250%, 11/15/40

     177,700,000        219,688,555   

4.375%, 05/15/40

     31,300,000        39,384,195   

4.375%, 05/15/41

     93,500,000        117,996,252   

4.625%, 02/15/40

     104,000,000        135,464,056   

5.250%, 02/15/29

     91,000,000        119,217,098   

5.375%, 02/15/31

     8,000,000        10,848,440   

5.500%, 08/15/28

     59,900,000        79,706,774   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Schedule of Investments as of December 31, 2015

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

 

Security Description   Principal
Amount*		     Value  

U.S. Treasury—(Continued)

    

U.S. Treasury Bonds

    

6.125%, 11/15/27

     8,100,000      $ 11,213,122   

6.250%, 05/15/30

     74,700,000        108,312,087   

8.000%, 11/15/21 (d)

     57,700,000        77,045,252   

U.S. Treasury Coupon Strip

    

Zero Coupon, 11/15/27

     39,600,000        28,989,774   

U.S. Treasury Floating Rate Note

    

0.428%, 10/31/17 (d) (e)

     63,700,000        63,641,906   

U.S. Treasury Inflation Indexed Bonds

    

0.750%, 02/15/45 (f)

     3,636,072        3,171,051   

2.000%, 01/15/26 (f)

     4,553,654        5,059,182   

3.625%, 04/15/28 (f)

     5,882,080        7,689,290   

U.S. Treasury Notes

    

1.375%, 02/28/19 (d)

     31,000,000        30,979,416   

1.375%, 09/30/20 (d)

     170,000,000        167,064,780   

1.750%, 02/28/22

     9,900,000        9,759,232   

2.000%, 05/31/21 (d)

     137,500,000        138,429,225   

3.625%, 02/15/21

     100,000        108,699   

U.S. Treasury Principal Strips

    

Zero Coupon, 05/15/39

     6,700,000        3,343,086   

Zero Coupon, 11/15/41

     24,000,000        10,938,264   

Zero Coupon, 11/15/42

     6,600,000        2,862,955   
   

 

 

  
      2,134,042,985   
   

 

 

  

Total U.S. Treasury & Government Agencies
(Cost $2,287,783,585)

       2,315,462,978   
   

 

 

  
Corporate Bonds & Notes—4.4%   

Agriculture—0.1%

  

Philip Morris International, Inc.

    

6.375%, 05/16/38

     5,000,000        6,306,490   

Reynolds American, Inc.

    

2.300%, 06/12/18

     1,200,000        1,207,537   
   

 

 

  
      7,514,027   
   

 

 

  

Auto Manufacturers—0.2%

    

BMW U.S. Capital LLC

    

0.756%, 06/02/17 (e)

     9,000,000        8,927,721   

Ford Motor Credit Co. LLC

    

1.412%, 06/15/18 (e)

     10,000,000        9,878,180   
   

 

 

  
      18,805,901   
   

 

 

  

Banks—2.7%

    

Banco del Estado de Chile

    

2.000%, 11/09/17 (144A)

     5,000,000        4,954,955   

Banco Santander Brasil S.A.

    

4.625%, 02/13/17 (144A)

     10,200,000        10,286,700   

Bank of America Corp.

    

6.875%, 04/25/18

     5,900,000        6,509,216   

6.875%, 11/15/18

     600,000        674,154   

Bank of America N.A.

    

0.792%, 06/15/16 (e)

     2,000,000        1,999,072   

0.832%, 02/14/17 (e)

     10,000,000        9,984,010   

Banks—(Continued)

    

Bank of New York Mellon Corp. (The)

    

4.950%, 06/20/20 (e)

     6,800,000      6,664,000   

BNP Paribas S.A.

    

0.804%, 05/07/17 (e)

     15,000,000        14,983,950   

Cooperatieve Centrale Raiffeisen-Boerenleenbank BA

    

3.375%, 05/21/25

     5,000,000        4,950,540   

Credit Agricole S.A.

    

0.996%, 06/02/17 (144A) (e)

     10,000,000        9,963,500   

Credit Suisse AG

    

1.375%, 05/26/17

     10,000,000        9,952,760   

2.300%, 05/28/19

     10,700,000        10,709,202   

Goldman Sachs Group, Inc. (The)

    

1.061%, 06/04/17 (e)

     8,000,000        7,977,304   

1.712%, 09/15/20 (e)

     18,800,000        18,840,909   

HSBC Holdings plc

    

5.250%, 03/14/44

     3,000,000        3,112,872   

HSBC USA, Inc.

    

0.969%, 11/13/19 (e)

     20,000,000        19,701,340   

JPMorgan Chase & Co.

    

0.870%, 04/25/18 (e)

     20,000,000        19,860,340   

0.882%, 02/15/17 (e)

     18,100,000        18,088,162   

1.271%, 01/23/20 (e)

     20,000,000        20,016,100   

3.450%, 03/01/16

     8,400,000        8,435,045   

6.125%, 04/30/24 (e)

     3,000,000        3,033,750   

PNC Bank N.A.

    

0.834%, 06/01/18 (e)

     15,000,000        14,928,555   

2.250%, 07/02/19

     8,000,000        8,035,528   

Wells Fargo & Co.

    

5.900%, 06/15/24 (e)

     8,600,000        8,675,250   

Wells Fargo Bank N.A.

    

0.772%, 06/15/17 (e)

     21,000,000        20,922,321   

Westpac Banking Corp.

    

0.823%, 05/25/18 (e)

     15,000,000        14,905,110   
   

 

 

  
      278,164,645   
   

 

 

  

Biotechnology—0.0%

    

Amgen, Inc.

    

2.700%, 05/01/22

     3,300,000        3,202,317   
   

 

 

  

Diversified Financial Services—0.4%

  

American Express Credit Corp.

    

0.886%, 09/22/17 (e)

     2,500,000        2,482,753   

1.083%, 03/18/19 (e)

     5,000,000        4,941,625   

Charles Schwab Corp. (The)

    

1.500%, 03/10/18

     10,000,000        9,951,130   

General Electric Capital Corp.

    

0.551%, 01/14/16 (e)

     14,500,000        14,499,507   

LeasePlan Corp. NV

    

3.000%, 10/23/17 (144A) (g)

     5,100,000        5,115,422   

Navient Corp.
4.625%, 09/25/17

     1,400,000        1,379,000   

6.250%, 01/25/16

     1,296,000        1,298,300   

8.450%, 06/15/18

     5,840,000        6,146,600   
   

 

 

  
      45,814,337   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Electric—0.2%

    

Duke Energy Corp.
0.992%, 04/03/17 (e)

     4,000,000      $ 3,986,716   

Electricite de France S.A.
0.777%, 01/20/17 (144A) (e)

     10,000,000        9,984,240   

2.150%, 01/22/19 (144A)

     6,200,000        6,170,594   

Ohio Power Co.
5.375%, 10/01/21

     949,000        1,056,328   
   

 

 

  
      21,197,878   
   

 

 

  

Insurance—0.1%

    

MassMutual Global Funding II
2.500%, 10/17/22 (144A)

     4,000,000        3,836,864   

New York Life Global Funding
1.125%, 03/01/17 (144A)

     6,000,000        5,997,408   
   

 

 

  
      9,834,272   
   

 

 

  

Miscellaneous Manufacturing—0.2%

  

Siemens Financieringsmaatschappij NV
0.673%, 05/25/18 (144A) (e)

     15,000,000        14,957,415   
   

 

 

  

Oil & Gas—0.1%

    

Gazprom OAO Via Gaz Capital S.A.
9.250%, 04/23/19 (144A)

     4,200,000        4,690,350   

Statoil ASA
2.450%, 01/17/23

     5,400,000        5,118,919   
   

 

 

  
      9,809,269   
   

 

 

  

Pharmaceuticals—0.1%

    

Actavis Funding SCS
3.000%, 03/12/20

     5,000,000        4,996,025   

Baxalta, Inc.
1.366%, 06/22/18 (144A) (e)

     8,500,000        8,473,480   
   

 

 

  
      13,469,505   
   

 

 

  

Semiconductors—0.1%

    

QUALCOMM, Inc.
0.640%, 05/18/18 (e)

     10,000,000        9,911,990   
   

 

 

  

Software—0.0%

    

Microsoft Corp.
3.500%, 11/15/42

     4,500,000        3,961,616   
   

 

 

  

Telecommunications—0.2%

    

AT&T, Inc.
4.800%, 06/15/44

     3,000,000        2,748,408   

Verizon Communications, Inc.
0.877%, 06/09/17 (e)

     15,000,000        14,936,805   
   

 

 

  
      17,685,213   
   

 

 

  

Transportation—0.0%

    

Vessel Management Services, Inc.
3.432%, 08/15/36

     3,424,000        3,469,166   
   

 

 

  

Total Corporate Bonds & Notes (Cost $462,481,259)

       457,797,551   
   

 

 

  
Foreign Government—0.5%   
Security Description   Principal
Amount*		     Value  

Municipal—0.2%

    

Junta de Castilla y Leon
6.270%, 02/19/18 (EUR)

     7,500,000      9,142,261   

6.505%, 03/01/19 (EUR)

     7,500,000        9,636,670   
   

 

 

  
      18,778,931   
   

 

 

  

Provincial—0.2%

    

Province of Quebec Canada
5.750%, 12/01/36 (CAD)

     22,000,000        22,027,188   
   

 

 

  

Sovereign—0.1%

    

Export-Import Bank of Korea
1.750%, 02/27/18

     6,700,000        6,633,147   
   

 

 

  

Total Foreign Government
(Cost $57,021,786)

       47,439,266   
   

 

 

  
Municipals—0.3%                

Metropolitan Transportation Authority NY, Dedicated Tax Fund Revenue, Refunding
5.000%, 11/15/29

     4,000,000        4,712,080   

New Mexico State Hospital Equipment Loan Council Hospital Revenue
5.000%, 08/01/42

     1,000,000        1,102,130   

New York State Dormitory Authority, State Personal Income Tax Revenue, Refunding
5.000%, 02/15/42

     6,000,000        6,743,400   

Pennsylvania State Economic Development Financing Authority Unemployment Compensation Revenue, Refunding
5.000%, 07/01/22

     4,000,000        4,093,640   

University of California CA, Revenue
1.796%, 07/01/19

     8,500,000        8,505,695   

Utah County UT Hospital Revenue, Intermountain Healthcare Health Services, Inc.
5.000%, 05/15/43

     2,000,000        2,194,480   
   

 

 

  

Total Municipals
(Cost $28,077,870)

       27,351,425   
   

 

 

  
Mortgage-Backed Securities—0.2%   

Commercial Mortgage-Backed Securities—0.2%

  

CSMC Trust
3.953%, 09/15/37 (144A)

     20,000,000        20,543,260   

JPMorgan Chase Commercial Mortgage Securities Trust
4.106%, 07/15/46 (144A)

     100,000        103,735   
   

 

 

  

Total Mortgage-Backed Securities (Cost $20,700,840)

       20,646,995   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Schedule of Investments as of December 31, 2015

Asset-Backed Security—0.1%

 

Security Description   Principal
Amount*		     Value  

Asset-Backed - Credit Card—0.1%

    

Chase Issuance Trust
0.651%, 02/18/20 (e)
(Cost $13,000,000)

     13,000,000      $ 12,975,370   
   

 

 

  
Short-Term Investments—3.5%   

Repurchase Agreements—2.7%

  

Barclays Capital, Inc.
Repurchase Agreement dated 12/31/15 at 0.400% to be repurchased at $100,004,444 on 01/04/16, collateralized by $103,088,000 U.S. Treasury Note at 1.750% due 03/31/22 with a value of $101,501,373.

     100,000,000        100,000,000   

Repurchase Agreement dated 12/31/15 at 0.750% to be repurchased at $100,008,333 on 01/04/16, collateralized by $98,660,000 Government National Mortgage Association at 3.500% due 12/20/45 with a value of $103,021,460.

     100,000,000        100,000,000   

Credit Suisse Securities (USA) LLC
Repurchase Agreement dated 12/31/15 at 0.550% to be repurchased at $10,000,611 on 01/04/16, collateralized by $10,251,000 U.S. Treasury Note at 0.625% due 08/31/17 with a value of $10,185,332.

     10,000,000        10,000,000   

Deutsche Bank Securities, Inc.
Repurchase Agreement dated 12/31/15 at 0.500% to be repurchased at $70,503,917 on 01/04/16, collateralized by $69,534,000 U.S. Treasury Bond at 3.125% due 02/15/43 with a value of $71,266,926.

     70,500,000        70,500,000   

Fixed Income Clearing Corp.
Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $594,747 on 01/04/16, collateralized by $605,000 Federal Home Loan Mortgage Corp. at 1.680% due 02/25/20 with a value of $609,538.

     594,745        594,745   
   

 

 

  
      281,094,745   
   

 

 

  

U.S. Treasury—0.8%

  

U.S. Treasury Bills
0.039%, 01/07/16 (h)

     46,100,000      46,099,654   

0.143%, 01/28/16 (d) (h) (i)

     9,526,000        9,524,953   

0.188%, 01/21/16 (d) (h)

     31,200,000        31,196,620   
   

 

 

  
      86,821,227   
   

 

 

  

Total Short-Term Investments (Cost $367,915,972)

       367,915,972   
   

 

 

  

Total Investments—101.2% (Cost $10,948,053,241) (j)

       10,591,493,989   

Other assets and liabilities (net)—(1.2)%

       (121,364,415 ) 
   

 

 

  
Net Assets—100.0%     $ 10,470,129,574   
   

 

 

  

 

* 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 Underlying Portfolios.)
(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 Underlying Portfolios.)
(c) Non-income producing security.
(d) All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2015, the market value of securities pledged was $195,788,350.
(e) Variable or floating rate security. The stated rate represents the rate at December 31, 2015. Maturity date shown for callable securities reflects the earliest possible call date.
(f) Principal amount of security is adjusted for inflation.
(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 December 31, 2015, the market value of restricted securities was $5,115,422, which is 0.0% of net assets. See details shown in the Restricted Securities table that follows.
(h) The rate shown represents current yield to maturity.
(i) All or a portion of the security was pledged as collateral against open forward foreign currency exchange contracts. As of December 31, 2015, the market value of securities pledged was $310,996.
(j) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $10,987,043,704. The aggregate unrealized appreciation and depreciation of investments were $162,391,339 and $(557,941,054), respectively, resulting in net unrealized depreciation of $(395,549,715) for federal income tax purposes.
(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 December 31, 2015, the market value of 144A securities was $105,077,923, which is 1.0% of net assets.
(CAD)— Canadian Dollar
(EUR)— Euro

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Schedule of Investments as of December 31, 2015

 

 

Restricted Securities

    Acquisition
Date		    Principal
Amount		      Cost      Value  

LeasePlan Corp. NV 3.000%, 10/23/17

    10/15/12    $ 5,100,000       $ 5,098,744       $ 5,115,422   
           

 

 

  

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy     

     

Counterparty

    Settlement
Date		      In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
CAD     32,041,000      

Bank of America N.A.

      01/05/16       $ 23,070,955       $ 85,100   
JPY     4,071,600,000      

JPMorgan Chase Bank N.A.

      01/05/16         33,647,862         227,091   

Contracts to Deliver

                            
CAD     32,041,000      

JPMorgan Chase Bank N.A.

      01/05/16         24,045,389         889,334   
CAD     32,041,000      

Bank of America N.A.

      02/02/16         23,073,356         (84,070 ) 
EUR     49,085,000      

JPMorgan Chase Bank N.A.

      02/11/16         52,772,265         (619,565 ) 
JPY     4,071,600,000      

Goldman Sachs Bank USA

      01/05/16         33,332,787         (542,166 ) 
JPY     4,071,600,000      

JPMorgan Chase Bank N.A.

      02/02/16         33,666,907         (227,974 ) 
             

 

 

  

Net Unrealized Depreciation

  

    $ (272,250 ) 
             

 

 

  

Futures Contracts

 

Futures Contracts—Long

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

90 Day EuroDollar Futures

      03/14/16         160         USD         39,762,016       $ (56,016 ) 

S&P 500 E-Mini Index Futures

      03/18/16         36,649         USD         3,730,021,979         (253,249 ) 

U.S. Treasury Long Bond Futures

      03/21/16         65         USD         9,999,906         (6,155 ) 

U.S. Treasury Note 10 Year Futures

      03/21/16         736         USD         92,984,753         (317,753 ) 

U.S. Treasury Ultra Long Bond Futures

      03/21/16         252         USD         39,762,756         226,494   
              

 

 

  

Net Unrealized Depreciation

  

    $ (406,679 ) 
              

 

 

  

 

(CAD)— Canadian Dollar
(EUR)— Euro
(JPY)— Japanese Yen
(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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Schedule of Investments as of December 31, 2015

Fair Value Hierarchy—(Continued)

 

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2015:

 

Description    Level 1     Level 2     Level 3      Total  

Total Mutual Funds*

    $ 7,341,904,432      $ —        $ —         $ 7,341,904,432   

Total U.S. Treasury & Government Agencies*

      —          2,315,462,978        —           2,315,462,978   

Total Corporate Bonds & Notes*

      —          457,797,551        —           457,797,551   

Total Foreign Government*

      —          47,439,266        —           47,439,266   

Total Municipals

      —          27,351,425        —           27,351,425   

Total Mortgage-Backed Securities*

      —          20,646,995        —           20,646,995   

Total Asset-Backed Security*

      —          12,975,370        —           12,975,370   
Short-Term Investments          

Repurchase Agreements

      —          281,094,745        —           281,094,745   

U.S. Treasury

      —          86,821,227        —           86,821,227   

Total Short-Term Investments

      —          367,915,972        —           367,915,972   

Total Investments

    $ 7,341,904,432      $ 3,249,589,557      $ —         $ 10,591,493,989   
                                   
Forward Contracts          

Forward Foreign Currency Exchange Contracts (Unrealized Appreciation)

    $ —        $ 1,201,525      $ —         $ 1,201,525   

Forward Foreign Currency Exchange Contracts (Unrealized Depreciation)

      —          (1,473,775 )      —           (1,473,775 ) 

Total Forward Contracts

    $ —        $ (272,250 )    $ —         $ (272,250 ) 
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 226,494      $ —        $ —         $ 226,494   

Futures Contracts (Unrealized Depreciation)

      (633,173 )      —          —           (633,173 ) 

Total Futures Contracts

    $ (406,679 )    $ —        $ —         $ (406,679 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

MetLife Balanced Plus Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a)

    $ 3,249,589,557   

Affiliated investments at value (b)

      7,341,904,432   

Cash denominated in foreign currencies (c)

      915,574   

Unrealized appreciation on forward foreign currency exchange contracts

      1,201,525   

Receivable for:

   

Fund shares sold

      462,722   

Interest

      18,604,262   

Prepaid expenses

      8,952   
  

 

 

  

Total Assets

      10,612,687,024   

Liabilities

   

Unrealized depreciation on forward foreign currency exchange contracts

      1,473,775   

Payables for:

   

Investments purchased

      100,095,392   

Fund shares redeemed

      367,330   

Variation margin on futures contracts

      36,001,416   

Accrued Expenses:

   

Management fees

      2,108,585   

Distribution and service fees

      2,243,917   

Deferred trustees’ fees

      64,809   

Other expenses

      202,226   
  

 

 

  

Total Liabilities

      142,557,450   
  

 

 

  

Net Assets

    $ 10,470,129,574   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 10,440,277,284   

Undistributed net investment income

      307,235,076   

Accumulated net realized gain

      79,902,042   

Unrealized depreciation on investments, affiliated investments, futures contracts and foreign currency transactions

      (357,284,828 ) 
  

 

 

  

Net Assets

    $ 10,470,129,574   
  

 

 

  

Net Assets

   

Class B

    $ 10,470,129,574   

Capital Shares Outstanding*

   

Class B

      1,012,204,213   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 10.34   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding affiliated investments, was $3,236,981,312.
(b) Identified cost of affiliated investments was $7,711,071,929.
(c) Identified cost of cash denominated in foreign currencies was $948,199.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends from affiliated investments

    $ 221,562,897   

Interest

      71,028,452   
  

 

 

  

Total investment income

      292,591,349   

Expenses

   

Management fees

      26,422,673   

Administration fees

      94,983   

Custodian and accounting fees

      255,917   

Distribution and service fees—Class B

      27,606,321   

Interest expense

      77   

Audit and tax services

      40,140   

Legal

      25,848   

Trustees’ fees and expenses

      35,172   

Shareholder reporting

      62,893   

Insurance

      21,155   

Miscellaneous

      29,925   
  

 

 

  

Total expenses

      54,595,104   

Less management fee waiver

      (459,434 ) 
  

 

 

  

Net expenses

      54,135,670   
  

 

 

  

Net Investment Income

      238,455,679   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      50,220,202   

Affiliated investments

      85,512,332   

Futures contracts

      (206,925,811 ) 

Foreign currency transactions

      12,865,198   

Capital gain distributions from affiliated investments

      305,465,957   
  

 

 

  

Net realized gain

      247,137,878   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (125,242,082 ) 

Affiliated investments

      (741,092,767 ) 

Futures contracts

      (59,797,415 ) 

Foreign currency transactions

      (2,520,422 ) 
  

 

 

  

Net change in unrealized depreciation

      (928,652,686 ) 
  

 

 

  

Net realized and unrealized loss

      (681,514,808 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (443,059,129 ) 
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 238,455,679      $ 168,530,116   

Net realized gain

      247,137,878        767,921,068   

Net change in unrealized appreciation (depreciation)

      (928,652,686 )      24,693,564   
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (443,059,129 )      961,144,748   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (231,684,633 )      (183,525,044 ) 

Net realized capital gains

     

Class B

      (652,149,336 )      (813,599,504 ) 
  

 

 

    

 

 

  

Total distributions

      (883,833,969 )      (997,124,548 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      666,167,700        1,457,804,077   
  

 

 

    

 

 

  

Total increase (decrease) in net assets

      (660,725,398 )      1,421,824,277   

Net Assets

     

Beginning of period

      11,130,854,972        9,709,030,695   
  

 

 

    

 

 

  

End of period

    $ 10,470,129,574      $ 11,130,854,972   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 307,235,076      $ 228,625,323   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      39,551,121      $ 444,760,269        64,804,736      $ 753,650,852   

Reinvestments

      81,309,473        883,833,969        91,900,880        997,124,548   

Redemptions

      (60,384,942 )      (662,426,538 )      (25,495,727 )      (292,971,323 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      60,475,652      $ 666,167,700        131,209,889      $ 1,457,804,077   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 666,167,700        $ 1,457,804,077   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Financial Highlights

 

Selected per share data       
     Class B  
     Year Ended December 31,  
     2015      2014      2013      2012     2011(a)  

Net Asset Value, Beginning of Period

    $ 11.70       $ 11.83       $ 10.68       $ 9.46      $ 10.00   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (b)

      0.24         0.18         0.19         0.16        0.01   

Net realized and unrealized gain (loss) on investments

      (0.68 )       0.87         1.33         1.06        (0.54 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total from investment operations

      (0.44 )       1.05         1.52         1.22        (0.53 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.24 )       (0.22 )       (0.14 )       (0.00 )(c)      (0.01 ) 

Distributions from net realized capital gains

      (0.68 )       (0.96 )       (0.23 )       0.00        0.00   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

      (0.92 )       (1.18 )       (0.37 )       (0.00 )      (0.01 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 10.34       $ 11.70       $ 11.83       $ 10.68      $ 9.46   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Return (%) (d)

      (4.09 )       9.65         14.36         13.11        (5.28 )(e) 

Ratios/Supplemental Data

              

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

      0.49         0.50         0.50         0.51        0.54  (g) 

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

      0.49         0.50         0.50         0.51        0.54  (g) 

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

      2.16         1.60         1.70         1.55        0.17  (g) 

Portfolio turnover rate (%)

      20         13         13         13        10  (e) 

Net assets, end of period (in millions)

    $ 10,470.1       $ 11,130.9       $ 9,709.0       $ 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) 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 (see Note 6 of the Notes to Financial Statements).
(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-13

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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.

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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - Investments in the Underlying Portfolios are valued at their closing daily net asset value on the valuation date. Investments in the Underlying Portfolios are categorized as Level 1 within the fair value hierarchy. For information about the use of fair value pricing by the Underlying Portfolios, please refer to the prospectuses for such Underlying Portfolios.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 and subject to general oversight by the Board. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally categorized as Level 2 within the fair value hierarchy.

Forward foreign currency exchange contracts are valued through an independent pricing service based on the mean between closing bid and ask prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or broker-dealer. These contracts are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

 

MIST-14

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Options, including swaptions, and futures contracts that are traded over-the-counter (“OTC”) are generally valued on the basis of quotations provided by broker-dealers or prices provided by 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, yield curves, credit curves, measures of volatility 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 market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. Capital gains distributions received from the Underlying Portfolios are recorded as Net realized gains in the Statement of Operations. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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, distribution redesignations, treasury roll adjustments, premium amortization adjustments and short term dividend reclasses from Underlying Portfolios. These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

 

MIST-15

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $281,094,745, 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 December 31, 2015.

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 year ended December 31, 2015, the Portfolio entered into secured borrowing transactions involving a U.S. Treasury security. 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 as interest expense over the term of the borrowing.

For the year ended December 31, 2015, the Portfolio had an outstanding secured borrowing transaction balance for 4 days. For the year ended December 31, 2015, the Portfolio’s average amount of borrowings was $3,274,059 and the weighted average interest rate was 0.215% during the 4 day period. At December 31, 2015, the Portfolio had no outstanding borrowings.

Mortgage Dollar Rolls - The Portfolio may enter into mortgage “dollar rolls” in which a Portfolio sells to-be-announced (“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.

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.

 

MIST-16

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Notes to Financial Statements—December 31, 2015—(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 valuation 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 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 cash 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. If futures contracts are exchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

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 investment exposure to a target asset class or to enhance return. Writing puts or buying calls tends to increase the Portfolio’s exposure to the underlying instrument and writing calls or buying puts tends 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 is worthless when it expires and the premium paid for the option is considered a realized 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.

 

MIST-17

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Purchases of put and call options are recorded as investments, the value of which are marked-to-market daily. 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 subsequently marked to market to reflect the current value of the option written. 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 following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of 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) (b)    $ 226,494       Unrealized depreciation on futures contracts (a) (b)    $ 379,924   
Equity          Unrealized depreciation on futures contracts (a) (b)      253,249   
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts      1,201,525       Unrealized depreciation on forward foreign currency exchange contracts      1,473,775   
     

 

 

        

 

 

  
Total       $ 1,428,019          $ 2,106,948   
     

 

 

        

 

 

  

 

  (a) 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.
  (b) Financial instrument not subject to a master netting agreement.

The Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized 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 (“MNA”) (see Note 4), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Assets
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Received†		      Net Amount*  

Bank of America N.A.

    $ 85,100       $ (84,070 )    $ —       $ 1,030   

JPMorgan Chase Bank N.A.

      1,116,425         (847,539 )      —         268,886   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 1,201,525       $ (931,609 )    $ —       $ 269,916   
  

 

 

     

 

 

    

 

 

     

 

 

  

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under an MNA, or similar agreement, and net of the related collateral pledged by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Liabilities
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Pledged†		     Net Amount**  

Bank of America N.A.

    $ 84,070       $ (84,070 )    $ —      $ —   

Goldman Sachs Bank USA

      542,166         —        (310,996 )      231,170   

JPMorgan Chase Bank N.A.

      847,539         (847,539 )      —        —   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 1,473,775       $ (931,609 )    $ (310,996 )    $ 231,170   
  

 

 

     

 

 

    

 

 

    

 

 

  

 

  * Net amount represents the net amount receivable from the counterparty in the event of default.
  ** Net amount represents the net amount payable due to the counterparty in the event of default.
  † In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.

 

MIST-18

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Interest Rate     Equity     Foreign
Exchange		     Total  

Forward foreign currency transactions

    $ —      $ —      $ 12,789,161      $ 12,789,161   

Futures contracts

      13,607,991        (220,533,802 )      —        (206,925,811 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 13,607,991      $ (220,533,802 )    $ 12,789,161      $ (194,136,650 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

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

    Interest Rate     Equity     Foreign
Exchange		     Total  

Forward foreign currency transactions

    $ —      $ —      $ (2,566,806 )    $ (2,566,806 ) 

Futures contracts

      (6,969,845 )      (52,827,570 )      —        (59,797,415 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ (6,969,845 )    $ (52,827,570 )    $ (2,566,806 )    $ (62,364,221 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Forward foreign currency transactions

    $ 225,466,500   

Futures contracts long

      459,713,513   

 

  ‡ Averages are based on activity levels during 2015.

4. Certain Risks

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”).

Market 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, 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC 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

 

MIST-19

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to Portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may 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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$1,039,397,312    $ 1,650,935,282       $ 993,109,512       $ 1,083,188,702   

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.

 

MIST-20

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Notes to Financial Statements—December 31, 2015—(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
MetLife Advisers (Overlay
Portion managed by PIMCO)
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
of the Overlay Portion
$22,195,276      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
MetLife Advisers (Base
Portion managed by
MetLife Advisers)
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
of the Base Portion
$4,227,397      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.

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, for the period May 1, 2015 to April 30, 2016, 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
0.025%    $2.5 billion to $5 billion
0.050%    Over $5 billion

An identical agreement was in place for the period January 1, 2015 to April 30, 2015. Amounts waived for the year ended December 31, 2015 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 B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, LLC, 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 year ended December 31, 2015 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

 

MIST-21

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Notes to Financial Statements—December 31, 2015—(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 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 Underlying Portfolios

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 Portfolios’ net assets. Transactions in the Underlying Portfolios for the year ended December 31, 2015 were as follows:

 

Underlying Portfolio

    Number of
shares held at
December 31, 2014		     Shares
purchased		      Shares sold     Number of
shares held at
December 31, 2015		  

Baillie Gifford International Stock

      26,146,656        1,253,840         (911,347 )      26,489,149   

BlackRock Bond Income

      7,824,602        476,052         (1,751,083 )      6,549,571   

BlackRock Capital Appreciation

      1,414,937        258,959         (223,339 )      1,450,557   

BlackRock High Yield

      13,050,527        1,609,715         (319,721 )      14,340,521   

Clarion Global Real Estate

      12,590,425        366,999         (4,778,764 )      8,178,660   

ClearBridge Aggressive Growth

      3,584,760        58,499         (248,875 )      3,394,384   

Frontier Mid Cap Growth

      1,528,419        3,183,163         (89,365 )      4,622,217   

Goldman Sachs Mid Cap Value

      10,608,725        3,541,675         (512,974 )      13,637,426   

Harris Oakmark International

      23,365,214        3,998,426         (971,407 )      26,392,233   

Invesco Comstock

      3,568,395        257,776         (103,071 )      3,723,100   

Invesco Small Cap Growth

      5,798,528        1,250,697         (1,889,857 )      5,159,368   

Jennison Growth

      4,223,413        685,398         (757,867 )      4,150,944   

JPMorgan Core Bond

      66,892,502        3,168,840         (18,070,180 )      51,991,162   

JPMorgan Small Cap Value

      6,207,281        558,180         (1,687,210 )      5,078,251   

Met/Aberdeen Emerging Markets Equity (formerly, MFS Emerging Markets Equity)

      14,794,507        2,180,878         (126,812 )      16,848,573   

Met/Artisan International

      21,000,052        1,159,710         (407,879 )      21,751,883   

Met/Artisan Mid Cap Value

      589,452        118,507         (1,199 )      706,760   

Met/Dimensional International Small Company

      9,791,843        2,727,018         (934,665 )      11,584,196   

Met/Eaton Vance Floating Rate

      15,426,915        1,211,588         (527,480 )      16,111,023   

Met/Franklin Low Duration Total Return

      37,353,697        2,883,183         (1,346,847 )      38,890,033   

Met/Templeton International Bond

      23,104,853        3,600,058         (145,758 )      26,559,153   

MetLife Small Cap Value

      5,332,374        3,053,041         (251,741 )      8,133,674   

MFS Research International

      23,511,728        2,099,329         (925,201 )      24,685,856   

MFS Value

      3,148,265        654,895         (306,414 )      3,496,746   

Morgan Stanley Mid Cap Growth

      9,821,036        437,595         (6,860,827 )      3,397,804   

Neuberger Berman Genesis

      4,201,925        115,181         (305,413 )      4,011,693   

Oppenheimer Global Equity

      2,607,272        2,533,043         (56,886 )      5,083,429   

PIMCO Inflation Protected Bond

      21,183,295        1,882,044         (345,164 )      22,720,175   

PIMCO Total Return

      63,389,303        4,410,967         (15,839,237 )      51,961,033   

T. Rowe Price Large Cap Value

      1,602,018        32,129         (78,477 )      1,555,670   

T. Rowe Price Mid Cap Growth

      7,159,425        1,185,629         (867,112 )      7,477,942   

T. Rowe Price Small Cap Growth

      4,928,155        416,451         (569,477 )      4,775,129   

TCW Core Fixed Income

      —        54,368,131         (855,973 )      53,512,158   

Van Eck Global Natural Resources

      11,606,640        5,809,513         (950,258 )      16,465,895   

Western Asset Management Strategic Bond Opportunities

      26,005,759        2,560,440         (765,379 )      27,800,820   

Western Asset Management U.S. Government

      30,885,440        1,915,481         (1,336,420 )      31,464,501   

WMC Core Equity Opportunities

      1,285,222        727,521         (137,811 )      1,874,932   

WMC Large Cap Research

      3,844,546        324,668         (368,747 )      3,800,467   

Underlying Portfolio

    Net Realized
Gain/(Loss) on sales
of Affiliated
Underlying
Portfolios		     Capital Gain
Distributions
from Affiliated
Underlying
Portfolios		      Dividend Income
from Affiliated
Underlying
Portfolios		     Ending Value
as of
December 31, 2015		  

Baillie Gifford International Stock

    $ 2,048,975      $ —       $ 4,591,857      $ 257,209,635   

BlackRock Bond Income

      251,930        8,700,854         29,710,406        695,171,428   

BlackRock Capital Appreciation

      3,444,894        9,579,261         —        52,945,319   

BlackRock High Yield

      (103,439 )      988,488         8,923,110        103,395,153   

Clarion Global Real Estate

      15,013,118        —         4,055,277        96,344,616   

 

MIST-22

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Underlying Portfolio

    
 
 
 
 		 Net Realized
Gain/(Loss) on sales
of Affiliated
Underlying
Portfolios		  
  
  
  
  		    
 
 
 
 		 Capital Gain
Distributions
from Affiliated
Underlying
Portfolios		   
  
  
  
  		     
 
 
 		 Dividend Income
from Affiliated
Underlying
Portfolios		   
  
  
  		     
 
 		 Ending Value
as of
December 31, 2015		  
 
  

ClearBridge Aggressive Growth

   $ 2,265,394      $ —       $ 228,643       $ 51,934,082   

Frontier Mid Cap Growth

     649,398        20,671,515         —         155,722,491   

Goldman Sachs Mid Cap Value

     2,161,474        40,870,385         1,487,307         152,602,794   

Harris Oakmark International

     4,827,495        34,531,852         12,091,883         354,447,695   

Invesco Comstock

     690,261        1,818,317         1,691,704         52,011,700   

Invesco Small Cap Growth

     10,617,335        19,709,700         120,993         77,132,556   

Jennison Growth

     2,836,572        10,111,188         183,272         63,509,437   

JPMorgan Core Bond

     (2,383,195 )      —         15,997,040         534,469,145   

JPMorgan Small Cap Value

     6,721,510        7,220,534         1,134,923         76,935,499   

Met/Aberdeen Emerging Markets Equity (formerly, MFS Emerging Markets Equity)

     (170,199 )      —         3,072,929         137,147,386   

Met/Artisan International

     362,081        —         1,628,117         209,253,112   

Met/Artisan Mid Cap Value

     59,581        20,280,018         1,921,840         151,091,151   

Met/Dimensional International Small Company

     443,426        25,111,492         2,969,133         150,247,028   

Met/Eaton Vance Floating Rate

     (119,759 )      —         6,294,394         158,854,691   

Met/Franklin Low Duration Total Return

     (453,510 )      —         12,765,365         374,122,113   

Met/Templeton International Bond

     (278,221 )      488,999         22,738,464         264,529,161   

MetLife Small Cap Value

     167,109        39,850,562         415,898         102,646,967   

MFS Research International

     2,813,510        —         7,996,500         258,214,049   

MFS Value

     1,512,324        8,672,190         1,509,391         52,765,902   

Morgan Stanley Mid Cap Growth

     30,666,270        —         —         53,413,479   

Neuberger Berman Genesis

     1,923,156        —         333,259         72,611,652   

Oppenheimer Global Equity

     129,231        2,335,010         1,270,954         104,159,466   

PIMCO Inflation Protected Bond

     (615,039 )      —         11,209,649         211,070,430   

PIMCO Total Return

     (2,580,513 )      7,912,845         36,322,157         588,198,892   

T. Rowe Price Large Cap Value

     640,856        116,115         965,011         53,032,787   

T. Rowe Price Mid Cap Growth

     1,176,998        13,721,666         —         85,173,754   

T. Rowe Price Small Cap Growth

     4,972,088        9,569,212         152,390         105,100,579   

TCW Core Fixed Income

     (20,821 )      —         —         532,445,968   

Van Eck Global Natural Resources

     (3,454,726 )      —         716,484         124,976,147   

Western Asset Management Strategic Bond Opportunities

     57,874        —         18,595,660         348,344,273   

Western Asset Management U.S. Government

     136,223        —         8,938,842         374,427,557   

WMC Core Equity Opportunities

     (1,477,400 )      19,220,243         999,142         53,191,816   

WMC Large Cap Research

     580,071        3,985,511         530,903         53,054,522   
 

 

 

    

 

 

     

 

 

     

 

 

  
  $ 85,512,332      $ 305,465,957       $ 221,562,897       $ 7,341,904,432   
 

 

 

    

 

 

     

 

 

     

 

 

  

8. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$395,675,402    $ 460,081,216       $ 488,158,567       $ 537,043,332       $ 883,833,969       $ 997,124,548   

As of December 31, 2015, 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		     Other
Accumulated
Capital
Losses		      Total  
$307,027,636    $ 118,485,825       $ (395,596,361 )    $ —       $ 29,917,100   

 

MIST-23

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Notes to Financial Statements—December 31, 2015—(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.

As of December 31, 2015, the Portfolio had no accumulated capital losses.

10. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-24

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of MetLife Balanced Plus 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 MetLife Balanced Plus Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statements of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended and for the period from May 2, 2011 (commencement of operations) to December 31, 2011. 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 December 31, 2015, by correspondence with the transfer agent, custodian, and brokers, when 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 MetLife Balanced Plus Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended and for the period from May 2, 2011 (commencement of operations) to December 31, 2011, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-25

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-26

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-27

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-28

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-29

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

MetLife Balanced Plus Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Pacific Investment Management Company LLC regarding the Portfolio:

The Board considered the Adviser’s provision of investment advisory services to a portion of the Portfolio (i.e., investing in underlying Portfolios). The Board noted that a committee, consisting of investment professionals from across the Adviser, meets periodically to review the asset allocations and discuss the performance of this Portfolio’s investments in other Portfolios.

The Board considered and found that the advisory fee to be paid to the Adviser with respect to the Portfolio was based on services to be provided that were in addition to, rather than duplicative of, the services provided pursuant to the advisory agreements for the underlying portfolios in which the Portfolio invests. The Board also considered the Adviser’s analysis of its profitability that was attributable to its management of the underlying Portfolios of the Trust in which the Portfolio invests.

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the three-year and since-inception (beginning May 2, 2011) periods ended June 30, 2015 and underperformed the median of its Performance Universe and Lipper Index for the one-year period ended June 30, 2015. The Board further considered that the Portfolio underperformed its benchmark, the Dow Jones Moderate Index, for the one-year period ended October 31, 2015, and outperformed this benchmark for the three-year, and since-inception (beginning May 2, 2011) periods ended October 31, 2015. The Board also took into account that the Portfolio underperformed its other benchmark, the Balanced Plus Narrow Index, for the one-year, three-year, and since-inception (beginning May 2, 2011) periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees were above the Expense Group median, the Expense Universe median and the Sub-advised Expense Universe median. The Board also considered that the Portfolio’s total expenses (exclusive of 12b-l fees) were below the Expense Group median, Expense Universe median, and Sub-advised Expense Universe median. The Board also took into account that the Portfolio’s contractual management fees were above the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board considered that the Portfolio’s contractual sub-advisory fees were above the average of the Sub-advised Expense Group and below the average of the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-30

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Managed by MetLife Advisers, LLC and MetLife Investment Advisors, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class B shares of the MetLife Multi-Index Targeted Risk Portfolio returned -1.21%. The Portfolio’s benchmark, the Dow Jones Moderate Index1, also returned -1.21%.

MARKET ENVIRONMENT / CONDITIONS

While 2015 got off to a strong start for equities, with signs of the U.S. economy and labor market improving, the European Central Bank (the “ECB”) beginning a quantitative easing program, and resolutions of the issues in Greece having effect; the market nonetheless experienced a severe downturn in the third quarter. In August, reports of poor Chinese economic data and a drop in commodity prices spurred concerns about global economic growth and the implications of what a China slowdown could mean to world markets. As a result, market volatility rose sharply. Furthermore, investors had spent much of the year anticipating when the U.S. Federal Reserve would begin to raise the Federal Funds rate. The first hike came in December, with the target range being raised 25 basis points.

The U.S. equity market was led by large capitalization stocks, as represented by the S&P 500 Index, which outperformed mid and small capitalization stocks, as represented by the S&P 400 Index and Russell 2000 Index, respectively. International equities in developed markets, represented by the MSCI EAFE Index, did not fare as well as U.S. equities, as improvement to the European economy was below expectations and further quantitative easing from the ECB was not delivered. U.S. fixed income assets, as represented by the Barclays U.S. Aggregate Bond Index, had a modest return as interest rates fell during the period.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio is composed of two segments. The first segment (the “Base Sleeve”) is approximately 75% of the Portfolio’s assets and invests in a variety of the Metropolitan Series Fund Index Portfolios to achieve and maintain a broad asset allocation of approximately 40% fixed income and 35% equity. The Investment Committee of MetLife Advisers, LLC manages the asset allocation of the Base Sleeve. The second segment (the “Overlay Sleeve”) is approximately 25% of the Portfolio’s assets. The Overlay Sleeve invests in equity derivatives (used to keep the Portfolio’s volatility level within a desired range by changing the Portfolio’s total equity exposure), interest rate derivatives (used to increase duration exposure) and cash and money market instruments (which serve as the collateral for derivative instruments).

The Portfolio utilized a quantitative model to rebalance the Portfolio risk based on market signals driven by realized equity price volatility. The Portfolio targeted an equity contribution to volatility within an 8% to 12% band, subject to a maximum equity allocation of 70%. Realized equity volatility for most of the period was low relative to historical averages as the U.S. multi-year equity rally continued. The Portfolio remained at or near the maximum equity allocation of 70% for most of the year due to the lower-than-average volatility. When volatility increased in the third quarter, the Portfolio de-risked until the volatility subsided later in the fourth quarter; equity was decreased to as low as 45% during the de-risking period.

The Portfolio’s performance was hurt by the equity overweight relative to the benchmark, the Dow Jones Moderate Index. While being overweight equities in the first half of the year benefitted the Portfolio, that over-performance was eliminated during the market turmoil in the fourth quarter. Equity markets rallied when the Portfolio was underweight equity; additionally, into year-end, equity markets fell when the Portfolio was overweight equity. A larger exposure to interest rates relative to the benchmark index helped total performance as interest rates fell and bonds and U.S. Treasury prices rose.

Derivatives were a significant component of the Portfolio, which used both equity futures and interest rate swaps to manage total market exposures. During the period, equity futures were used to increase equity allocations and the long exposure from the equity derivatives during a period of broadly rising equity markets added to overall Portfolio performance. The Portfolio used S&P 500 e-mini and S&P 400 e-mini contracts from the Chicago Mercantile Exchange and the Russell 2000 mini and mini MSCI EAFE contracts from the Intercontinental Exchange. The futures contracts were held in proportion with the Base Sleeve equity exposure to represent a broad market exposure. Interest rate swaps were used to add additional diversification and balance the sources of risk in the Portfolio. During the period, both the equity futures and the interest rate swaps facilitated the total portfolio return by providing cost-effective and liquid access to the desired market exposures.

As of December 31, 2015, the Portfolio was allocated 68% to equity and 40% to fixed income. The equity exposure was distributed across domestic and international equity indices as follows: 32% in U.S. large cap as represented by the S&P 500 Index, 10% in U.S. mid cap as represented by the S&P 400 Index, 6% in U.S. small cap as represented by the Russell 2000 Index, and 20% in foreign equity as

 

MIST-1

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Managed by MetLife Advisers, LLC and MetLife Investment Advisors, LLC

Portfolio Manager Commentary*—(Continued)

 

represented by the MSCI EAFE Index. The fixed income exposure was invested in an index Portfolio that tracks the performance of the Barclays U.S. Aggregate Bond Index.

The Base Sleeve is managed by:

Investment Committee

MetLife Advisers, LLC

The Overlay Sleeve is managed by:

Chris Johnson

Portfolio Manager

MetLife Investment 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, 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 subject to change at any time based upon economic, market, or other conditions and the advisory 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        Since Inception2  
MetLife Multi-Index Targeted Risk Portfolio            

Class B

        -1.21           7.01   
Dow Jones Moderate Index        -1.21           6.38   

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 date of the Class B shares is 11/5/2012. Index since inception return is based on the Portfolio’s inception date.

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
Barclays Aggregate Bond Index Portfolio (Class A)      40.2   
MetLife Stock Index Portfolio (Class A)      16.3   
MSCI EAFE Index Portfolio (Class A)      10.5   
MetLife Mid Cap Stock Index Portfolio (Class A)      5.2   
Russell 2000 Index Portfolio (Class A)      2.9   

Top Sectors

 

     % of
Net Assets		  
Mutual Funds      75.1   
Cash and Cash Equivalents      25.0   

 

MIST-3

Met Investors Series Trust

MetLife Multi-Index Targeted Risk 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class B(a)

   Actual      0.66 %     $ 1,000.00         $ 970.00         $ 3.28   
   Hypothetical*      0.66 %     $ 1,000.00         $ 1,021.88         $ 3.36   

* 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 (184 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 Multi-Index Targeted Risk Portfolio

Schedule of Investments as of December 31, 2015

Mutual Funds—75.1% of Net Assets

 

Security Description   Shares/
Principal
Amount*		     Value  

Affiliated Investment Companies—75.1%

  

  

Barclays Aggregate Bond Index Portfolio (Class A) (a)

     53,564,639      $ 584,925,861   

MetLife Mid Cap Stock Index Portfolio (Class A) (a)

     4,420,159        76,159,333   

MetLife Stock Index Portfolio (Class A) (a)

     5,384,500        237,133,392   

MSCI EAFE Index Portfolio (Class A) (a)

     12,556,241        152,432,766   

Russell 2000 Index Portfolio (Class A) (a)

     2,353,596        42,317,662   
   

 

 

  

Total Mutual Funds
(Cost $1,103,898,758)

       1,092,969,014   
   

 

 

  
Short-Term Investments—25.0%           

Discount Notes—13.0%

    

Fannie Mae
0.216%, 04/13/16 (b)

     2,000,000        1,998,770   

Federal Home Loan Bank
0.087%, 01/08/16 (b)

     4,500,000        4,499,914   

0.109%, 01/07/16 (b)

     2,000,000        1,999,958   

0.109%, 01/15/16 (b)

     12,000,000        11,999,463   

0.132%, 01/04/16 (b)

     9,000,000        8,999,870   

0.142%, 01/13/16 (b)

     15,000,000        14,999,240   

0.153%, 02/03/16 (b)

     4,600,000        4,599,346   

0.175%, 03/08/16 (b)

     14,000,000        13,995,450   

0.179%, 01/20/16 (b)

     6,800,000        6,799,332   

0.191%, 01/22/16 (b)

     25,000,000        24,997,127   

0.221%, 04/06/16 (b) (c)

     13,000,000        12,992,373   

0.230%, 02/19/16 (b)

     46,000,000        45,985,510   

0.244%, 01/26/16 (b)

     2,000,000        1,999,653   

0.251%, 04/13/16 (b)

     2,000,000        1,998,569   

0.267%, 04/20/16 (b)

     3,000,000        2,997,571   

0.302%, 04/12/16 (b)

     1,000,000        999,150   

0.305%, 03/04/16 (b)

     2,500,000        2,498,666   

0.350%, 03/11/16 (b)

     2,000,000        1,998,639   

0.402%, 04/04/16 (b)

     12,000,000        11,987,467   

Discount Notes—(Continued)

    

Freddie Mac
0.244%, 04/15/16 (b) (c)

     11,000,000      10,992,211   
   

 

 

  
      189,338,279   
   

 

 

  

U.S. Treasury—12.0%

    

U.S. Treasury Bills
0.092%, 04/14/16 (b)

     40,000,000        39,989,441   

0.109%, 01/28/16 (b)

     23,000,000        22,998,086   

0.119%, 01/14/16 (b)

     24,000,000        23,998,904   

0.122%, 01/07/16 (b)

     37,000,000        36,999,132   

0.136%, 02/04/16 (b) (d)

     51,000,000        50,993,350   
   

 

 

  
      174,978,913   
   

 

 

  

Total Short-Term Investments
(Cost $364,317,192)

       364,317,192   
   

 

 

  

Total Investments—100.1%
(Cost $1,468,215,950) (e)

       1,457,286,206   

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

       (2,123,764 ) 
   

 

 

  
Net Assets—100.0%     $ 1,455,162,442   
   

 

 

  

 

(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 Underlying Portfolios.)
(b) The rate shown represents current yield to maturity.
(c) All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2015, the market value of securities pledged was $22,035,730.
(d) All or a portion of the security was pledged as collateral against open centrally cleared swap contracts. As of December 31, 2015, the market value of securities pledged was $15,298,669.
(e) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $1,468,306,963. The aggregate unrealized appreciation and depreciation of investments were $15,118,479 and $(26,139,236), respectively, resulting in net unrealized depreciation of $(11,020,757) for federal income tax purposes.

 

Futures Contracts

 

Futures Contracts—Long

    Expiration
Date		      Number of
Contracts		      Notional
Amount		      Unrealized
Appreciation		  

MSCI EAFE Mini Index Futures

      03/18/16         1,739         USD         144,843,720       $ 2,814,770   

Russell 2000 Mini Index Futures

      03/18/16         347         USD         38,784,853         478,197   

S&P 500 E-Mini Index Futures

      03/18/16         2,271         USD         227,233,739         3,885,931   

S&P Midcap 400 E-Mini Index Futures

      03/18/16         515         USD         71,081,216         684,034   
              

 

 

  

Net Unrealized Appreciation

  

    $ 7,862,932   
              

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Schedule of Investments as of December 31, 2015

 

Swap Agreements

Centrally Cleared Interest Rate Swaps

 

Pay/Receive Floating Rate

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

Pay

    3M LIBOR      2.003 %    11/19/25      USD         35,000,000       $ (541,643 ) 

Pay

    3M LIBOR      2.171 %    01/11/26      USD         57,000,000         (154,679 ) 

Pay

    3M LIBOR      2.180 %    03/18/26      USD         60,000,000         (274,055 ) 

Pay

    3M LIBOR      2.210 %    02/18/26      USD         81,000,000         (23,065 ) 

Pay

    3M LIBOR      2.297 %    12/03/25      USD         62,000,000         788,549   

Pay

    3M LIBOR      2.318 %    11/19/25      USD         45,000,000         516,233   

Pay

    3M LIBOR      2.605 %    10/13/25      USD         67,000,000         2,534,325   
                

 

 

  

Net Unrealized Appreciation

  

    $ 2,845,665   
                

 

 

  

 

(USD)— United States Dollar
(LIBOR)— London Interbank Offered Rate

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2     Level 3      Total  
Mutual Funds           

Affiliated Investment Companies

    $ 1,092,969,014       $ —        $ —         $ 1,092,969,014   
Short-Term Investments           

Discount Notes

      —           189,338,279        —           189,338,279   

U.S. Treasury

      —           174,978,913        —           174,978,913   

Total Short-Term Investments

      —           364,317,192        —           364,317,192   

Total Investments

    $ 1,092,969,014       $ 364,317,192      $ —         $ 1,457,286,206   
                                    
Futures Contracts           

Futures Contracts (Unrealized Appreciation)

    $ 7,862,932       $ —        $ —         $ 7,862,932   
Centrally Cleared Swap Contracts           

Centrally Cleared Swap Contracts (Unrealized Appreciation)

    $ —         $ 3,839,107      $ —         $ 3,839,107   

Centrally Cleared Swap Contracts (Unrealized Depreciation)

      —           (993,442 )      —           (993,442 ) 

Total Centrally Cleared Swap Contracts

    $ —         $ 2,845,665      $ —         $ 2,845,665   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a)

    $ 364,317,192   

Affiliated investments at value (b)

      1,092,969,014   

Receivable for:

   

Fund shares sold

      2,919,236   

Variation margin on centrally cleared swap contracts

      2,752,477   

Prepaid expenses

      783   
  

 

 

  

Total Assets

      1,462,958,702   

Liabilities

   

Due to custodian

      457,454   

Payables for:

   

Investments purchased

      1,472,077   

Fund shares redeemed

      37,434   

Variation margin on futures contracts

      5,205,085   

Accrued Expenses:

   

Management fees

      208,731   

Distribution and service fees

      304,639   

Deferred trustees’ fees

      52,217   

Other expenses

      58,623   
  

 

 

  

Total Liabilities

      7,796,260   
  

 

 

  

Net Assets

    $ 1,455,162,442   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 1,447,594,491   

Undistributed net investment income

      21,866,874   

Accumulated net realized loss

      (14,077,776 ) 

Unrealized depreciation on affiliated investments, futures contracts and swap contracts

      (221,147 ) 
  

 

 

  

Net Assets

    $ 1,455,162,442   
  

 

 

  

Net Assets

   

Class B

    $ 1,455,162,442   

Capital Shares Outstanding*

   

Class B

      125,265,964   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 11.62   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding affiliated investments, was $364,317,192.
(b) Identified cost of affiliated investments was $1,103,898,758.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends from Affiliated Underlying Portfolios

    $ 22,469,632   

Interest

      366,075   
  

 

 

  

Total investment income

      22,835,707   

Expenses

   

Management fees

      2,100,822   

Administration fees

      24,436   

Custodian and accounting fees

      52,241   

Distribution and service fees—Class B

      3,036,521   

Audit and tax services

      34,437   

Legal

      25,744   

Trustees’ fees and expenses

      35,172   

Shareholder reporting

      10,754   

Insurance

      1,601   

Miscellaneous

      9,293   
  

 

 

  

Total expenses

      5,331,021   
  

 

 

  

Net Investment Income

      17,504,686   
  

 

 

  

Net Realized and Unrealized Loss

   
Net realized gain (loss) on:   

Investments

      7,091   

Affiliated investments

      56,196   

Futures contracts

      (31,198,497 ) 

Swap contracts

      12,638,508   

Capital gain distributions from Affiliated Underlying Portfolios

      13,834,374   
  

 

 

  

Net realized loss

      (4,662,328 ) 
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (1,114 ) 

Affiliated investments

      (40,121,864 ) 

Futures contracts

      3,252,737   

Swap contracts

      (2,955,491 ) 
  

 

 

  

Net change in unrealized depreciation

      (39,825,732 ) 
  

 

 

  

Net realized and unrealized loss

      (44,488,060 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (26,983,374 ) 
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 17,504,686      $ 9,187,691   

Net realized gain (loss)

      (4,662,328 )      36,424,060   

Net change in unrealized appreciation (depreciation)

      (39,825,732 )      21,384,367   
  

 

 

    

 

 

  

Increase (Decrease) in net assets from operations

      (26,983,374 )      66,996,118   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (14,600,851 )      0   

Net realized capital gains

     

Class B

      (32,350,906 )      (2,295,613 ) 
  

 

 

    

 

 

  

Total distributions

      (46,951,757 )      (2,295,613 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      575,764,203        403,527,383   
  

 

 

    

 

 

  

Total increase in net assets

      501,829,072        468,227,888   

Net Assets

     

Beginning of period

      953,333,370        485,105,482   
  

 

 

    

 

 

  

End of period

    $ 1,455,162,442      $ 953,333,370   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 21,866,874      $ 14,449,199   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      46,267,060      $ 562,358,851        36,864,092      $ 428,432,388   

Reinvestments

      3,873,907        46,951,757        201,901        2,295,613   

Redemptions

      (2,771,820 )      (33,546,405 )      (2,317,131 )      (27,200,618 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      47,369,147      $ 575,764,203        34,748,862      $ 403,527,383   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 575,764,203        $ 403,527,383   
    

 

 

      

 

 

  

 

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  
     Year Ended December 31,  
     2015      2014     2013     2012(a)  

Net Asset Value, Beginning of Period

    $ 12.24       $ 11.24      $ 10.16      $ 10.00   
  

 

 

     

 

 

    

 

 

    

 

 

  

Income (Loss) from Investment Operations

          

Net investment income (loss) (b)

      0.18         0.14        0.06        (0.01 ) 

Net realized and unrealized gain (loss) on investments

      (0.31 )       0.90        1.26        0.17   
  

 

 

     

 

 

    

 

 

    

 

 

  

Total from investment operations

      (0.13 )       1.04        1.32        0.16   
  

 

 

     

 

 

    

 

 

    

 

 

  

Less Distributions

          

Distributions from net investment income

      (0.15 )       0.00        (0.03 )      0.00   

Distributions from net realized capital gains

      (0.34 )       (0.04 )      (0.21 )      0.00   
  

 

 

     

 

 

    

 

 

    

 

 

  

Total distributions

      (0.49 )       (0.04 )      (0.24 )      0.00   
  

 

 

     

 

 

    

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 11.62       $ 12.24      $ 11.24      $ 10.16   
  

 

 

     

 

 

    

 

 

    

 

 

  

Total Return (%) (c)

      (1.21 )       9.26        12.94        1.60  (d) 

Ratios/Supplemental Data

          

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

      0.44         0.47        0.54        9.45  (f) 

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

      0.44         0.47  (g)      0.54  (g)      0.60  (f)(g) 

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

      1.44         1.21        0.50        (0.57 )(f) 

Portfolio turnover rate (%)

      0  (i)       1        0  (i)      0  (d)(j) 

Net assets, end of period (in millions)

    $ 1,455.2       $ 953.3      $ 485.1      $ 23.9   

 

(a) Commencement of operations was November 5, 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) 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 expenses reimbursed by the Adviser.
(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) Rounds to less than 1%.
(j) There were no long term sale transactions during the period ended December 31, 2012.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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”), which is diversified. 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 75% of its assets (the “Base Portion”) in other Portfolios of the 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 and interest rate swaps.

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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - Investments in the Underlying Portfolios are valued at their closing daily net asset value on the valuation date. Investments in the Underlying Portfolios are categorized as Level 1 within the fair value hierarchy. For information about the use of fair value pricing by the Underlying Portfolios, please refer to the prospectuses for such Underlying Portfolios.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and 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.

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

Swap contracts (other than centrally cleared swaps) are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and other pricing services. Such quotations and prices are derived utilizing observable data, including the underlying reference securities or indices, credit spread quotations and expected default recovery rates determined by the pricing service. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or an independent pricing service when the exchange price is not available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third party prices are used to produce daily settlement prices. These

 

MIST-10

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

securities are categorized as Level 2 of the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates, including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 of the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

Due to Custodian - Pursuant to the custodian agreement, the custodian may, in its discretion, advance funds to the Portfolio to make properly authorized payments. When such payments result in an overdraft, the Portfolio is obligated to repay the custodian at the current rate of interest charged by the custodian for secured loans (currently, the Federal Funds rate plus 2%). This obligation is payable on demand to the custodian. The custodian may avail itself of various remedies under the custodian agreement to obtain repayment of any overdraft amounts owed to it by a Portfolio. At December 31, 2015, the Portfolio had a payment due to the custodian pursuant to the foregoing arrangement of $457,454. Based on the short-term nature of these payments and the variable interest rate, the carrying value of the overdraft advances approximated its fair value at December 31, 2015. If measured at fair value, overdraft advances would have been considered as Level 2 in the fair value hierarchy at December 31, 2015. The Portfolio’s average overdraft advances during the year ended December 31, 2015 were not significant.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 swap transactions, distribution redesignations and distributions received from underlying portfolios. These adjustments have no impact on net assets or the results 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 remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 102% of the repurchase price in the case of all other repurchase agreements. In

 

MIST-11

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

the event of default or failure by a party to perform an obligation in connection with any repurchase transaction, the MRA 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.

3. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts 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 cash 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. If futures contracts are exchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

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 either privately negotiated in the OTC market (“OTC swaps”) or 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 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.

Centrally Cleared Swaps: Clearinghouses currently offer clearing derivatives transactions which include interest rate and 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.

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 upon entering into the swap agreement 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

 

MIST-12

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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: (1) 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”; (2) 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 (3) 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 contract’s remaining life, to the extent that amount is positive.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of 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 swap contracts (a)    $ 3,839,107       Unrealized depreciation on centrally cleared swap contracts (a)    $ 993,442   

Equity

    Unrealized appreciation on futures contracts (b)      7,862,932         
     

 

 

        

 

 

  

Total

       $ 11,702,039          $ 993,442   
     

 

 

        

 

 

  

 

  (a) 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.
  (b) 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 tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Interest Rate     Equity     Total  

Futures contracts

    $ —      $ (31,198,497 )    $ (31,198,497 ) 

Swap contracts

      12,638,508        —        12,638,508   
  

 

 

    

 

 

    

 

 

  
   $ 12,638,508      $ (31,198,497 )    $ (18,559,989 ) 
  

 

 

    

 

 

    

 

 

  

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

    Interest Rate     Equity     Total  

Futures contracts

    $ —      $ 3,252,737      $ 3,252,737   

Swap contracts

      (2,955,491 )      —        (2,955,491 ) 
  

 

 

    

 

 

    

 

 

  
   $ (2,955,491 )    $ 3,252,737      $ 297,246   
  

 

 

    

 

 

    

 

 

  

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Futures contracts long

    $ 192,367   

Swap contracts

      341,000,000   

 

  ‡ Averages are based on activity levels during 2015.

 

MIST-13

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

4. Certain Risks

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”).

Market 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, 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC 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 (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to Portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

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-14

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 417,020,153       $ 0       $ 252,060   

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 Advisors, LLC (“MIA”) for investment subadvisory services in connection with the investment management 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
MetLife Advisers (Overlay
Portion managed by MIA)
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
of the Overlay Portion
$1,504,892      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
MetLife Advisers (Base
Portion managed by the Adviser)
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
of the Base Portion
$595,930      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 the Adviser a management fee through its investment in the Underlying Portfolios.

For providing subadvisory services to the Portfolio, the Adviser has agreed to pay MIA an investment subadvisory fee based upon annual rates applied to the Overlay Portion of the Portfolio’s average daily net assets as follows:

 

% per annum

    Average Daily Net Assets
0.200%     First $250 million
0.185%     $250 million to $500 million
0.170%     $500 million to $1 billion
0.150%     Over $1 billion

Fees earned by MIA with respect to the Portfolio for the year ended December 31, 2015 were $597,166.

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

 

MIST-15

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

MetLife Investors Group, LLC, 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 year ended December 31, 2015 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 Underlying Portfolios

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 Portfolios’ net assets. Transactions in the Underlying Portfolios for the year ended December 31, 2015 were as follows:

 

Underlying Portfolio

    Number of
shares held at
December 31, 2014		      Shares
purchased		      Shares sold     Number of
shares held at
December 31, 2015		  

Barclays Aggregate Bond Index

      34,141,090         19,423,549         —        53,564,639   

MetLife Mid Cap Stock Index

      2,506,256         1,913,903         —        4,420,159   

MetLife Stock Index

      3,289,506         2,098,715         (3,721 )      5,384,500   

MSCI EAFE Index

      8,270,143         4,291,622         (5,524 )      12,556,241   

Russell 2000 Index

      1,430,574         923,874         (852 )      2,353,596   

Underlying Portfolio

    Net Realized
Gain/(Loss) on sales
of Affiliated
Underlying
Portfolios		      Capital Gain
Distributions
from Affiliated
Underlying
Portfolios		      Dividend Income
from Affiliated
Underlying
Portfolios		     Ending Value
as of
December 31, 2015		  

Barclays Aggregate Bond Index

    $ —       $ —       $ 14,080,026      $ 584,925,861   

MetLife Mid Cap Stock Index

      —         3,834,493         705,447        76,159,333   

MetLife Stock Index

      44,408         8,065,894         3,353,190        237,133,392   

MSCI EAFE Index

      7,844         —         3,922,850        152,432,766   

Russell 2000 Index

      3,944         1,933,987         408,119        42,317,662   
  

 

 

     

 

 

     

 

 

    

 

 

  
   $ 56,196       $ 13,834,374       $ 22,469,632      $ 1,092,969,014   
  

 

 

     

 

 

     

 

 

    

 

 

  

8. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$29,829,837    $ 906,163       $ 17,121,920       $ 1,389,450       $ 46,951,757       $ 2,295,613   

 

MIST-16

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

As of December 31, 2015, 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		     Other
Accumulated
Capital Losses		     Total  
$21,919,091    $ —       $ (8,175,091 )    $ (6,123,832 )    $ 7,620,168   

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.

As of December 31, 2015, the Portfolio had short term accumulated capital losses of $2,798,004 and long term accumulated capital losses of $3,325,828.

10. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-17

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of MetLife Multi-Index Targeted Risk 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 MetLife Multi-Index Targeted Risk Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, and the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended and for the period from November 5, 2012 (commencement of operations) to December 31, 2012. 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 December 31, 2015, by correspondence with the transfer agent, custodian, and brokers; when 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 MetLife Multi-Index Targeted Risk Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended and for the period from November 5, 2012 (commencement of operations) to December 31, 2012, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-18

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-19

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-20

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser.

Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-21

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-22

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

MetLife Multi-Index Targeted Risk Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and MetLife Investment Advisors, LLC regarding the Portfolio:

The Board considered the Adviser’s provision of investment advisory services to a portion of the Portfolio (i.e., investing in underlying Portfolios). The Board noted that a committee, consisting of investment professionals from across the Adviser, meets periodically to review the asset allocations and discuss the performance of this Portfolio’s investments in other Portfolios.

The Board considered and found that the advisory fee to be paid to the Adviser with respect to the Portfolio was based on services to be provided that were in addition to, rather than duplicative of, the services provided pursuant to the advisory agreements for the underlying portfolios in which the Portfolio invests. The Board also considered the Adviser’s analysis of its profitability that was attributable to its management of the underlying Portfolios of the Trust in which the Portfolio invests.

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the one-year and since-inception (beginning November 5, 2012) periods ended June 30, 2015. The Board further considered that the Portfolio outperformed its benchmark, the Dow Jones Moderate Index, for the one-year and since-inception (beginning November 5, 2012) periods ended October 31, 2015. The Board took into account that the Portfolio underperformed its other benchmark, the MITR Blended Benchmark, for the one-year and since-inception (beginning November 5, 2012) periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees were below the Expense Group median and above the Expense Universe median and Sub-advised Expense Universe median. The Board also noted that the Portfolio’s total expenses (exclusive of 12b-l fees) were below the Expense Group median, Expense Universe median, and Sub-advised Expense Universe median. The Board took into account that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also considered that the Portfolio’s contractual sub-advisory fees were below the average of the Sub-advised Expense Group and the average of the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-23

Met Investors Series Trust

MetLife Small Cap Value Portfolio

Managed by Delaware Investments Fund Advisers and Wells Capital Management, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A and B shares of the MetLife Small Cap Value Portfolio returned -5.20% and -5.41%, respectively. The Portfolio’s benchmark, the Russell 2000 Value Index1, returned -7.47%.

MARKET ENVIRONMENT / CONDITIONS

During the first half of 2015, issues including the Greek debt crisis, expectations for interest-rate increases in the U.S., currency volatility, and geopolitical concerns in the Middle East and Europe discouraged equity investors. The accompanying investor uncertainty led to choppy stock market activity and a trivial gain for the Russell 2000 Value Index. Meanwhile, the U.S. stock market recovery entered its seventh year at the end of the first quarter of 2015. This advance, at least in part, has been attributed to the highly accommodative monetary policies of the U.S. Federal Reserve Bank (the “Fed”), which included lowering interest rates and quantitative easing. Arguably, these easy-money policies bolstered the economy and encouraged greater risk-taking among investors.

During the third quarter, global economic concerns took center stage, causing the U.S. equity market to suffer one of its worst quarters in several years. Domestic news that led to market volatility was driven by uncertainty over whether the Fed would raise interest rates in September. At the beginning of the quarter, a September liftoff was anticipated, but this expectation diminished over the next two months, and ultimately the Fed left rates unchanged. In a later speech, Fed Chair Janet Yellen made it clear that she favored a rise in rates at some point during the year, but the likelihood of it happening remained hard to predict. Internationally, China and the emerging markets got their fair share of headlines in the quarter. Slowing economic growth, a yuan devaluation, and commodity weakness all contributed to China and emerging market concerns, which further added to global market volatility.

The Russell 2000 Value Index gained nearly 3% in the final quarter of 2015 to close out a volatile year for global equity markets. Monetary policies around the world captured headlines during the quarter and throughout 2015. In a highly anticipated move, the Fed finally raised its target rate for the first time since June 2006. While the fourth quarter signaled the beginning of Fed tightening, the European Central Bank and Bank of Japan announced a continuation of their accommodative policies. As a result, the U.S. dollar continued to strengthen during the period. Hampered by the strong U.S. dollar and global growth concerns, oil prices remained weak during the quarter and came under further pressure following the Organization of Petroleum Exporting Countries’ (“OPEC”) decision to maintain current production levels. The combination of increased credit risk and lower oil prices caused high yield spreads to widen during the quarter and softened most risk appetites.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The MetLife Small Cap Value Portfolio is constructed in a multi-manager sleeve structure, with each of the two sleeves comprising roughly 50% of Portfolio assets.

The following commentary was provided by Delaware Investments Fund Advisers.

The sleeve managed by Delaware Investments outperformed the Russell 2000 Value Index during the reporting period. Outperformance was a result of stock selection in the Materials, Financials, and Consumer Discretionary sectors of the sleeve.

Within Materials, Cytec Industries, a specialty materials and chemical company agreed to be acquired by Belgian chemical group Solvay at a significant premium. Also in the sector, Berry Plastics contributed to relative performance as the company’s Versalite cup is being adopted at Dunkin’ Donuts and 7-Eleven.

Outperformance in the Financials sector was led by holdings in the insurance industry. StanCorp Financial Group, a life and health insurance company, agreed to merge with Meiji Yasuda Life Insurance Company, a Japanese company within the Mitsubishi Group. Within the real estate industry of the Financials sector, most of the sleeve’s holdings contributed to returns.

Several stocks in the Consumer Discretionary sector contributed to the sleeve’s outperformance during the reporting period. Shares of funeral home operator, Service Corporation International, outperformed as the company continued to generate strong earnings and cash flow. We favor companies that generate strong free cash flow and use that cash flow in shareholder friendly ways. Service Corporation is a good example of the type of company that we like to invest in as the company returns its cash to shareholders through dividends and share repurchases. One other contributor was Core-Mark, a distributor of products to convenience stores. Core-Mark benefited from new supply agreements with convenience store chains Murphy USA and 7-Eleven.

Within the Information Technology (“IT”) sector, CommScope was a strong contributor. CommScope provides connectivity and infrastructure solutions for wireless, business enterprise, and residential broadband networks worldwide. CommScope announced a plan to buy TE Connectivity’s Telecom, Enterprise, and Wireless business, strengthening the company’s product portfolio.

Stock selection in the Energy and Industrials sectors detracted from the sleeve’s relative returns during the reporting period. Contributing to the weakness in these sectors has been the broad decline in commodity prices, weaker global demand, and cuts in capital spending budgets for energy related projects.

The weakest performing company in the Energy sector was Helix Energy Solutions Group, a provider of specialty services to energy companies. SM Energy, an oil & gas exploration & production company with primary operations in the Eagle Ford Shale and Williston Basin areas of the U.S. also negatively impacted performance.

 

MIST-1

Met Investors Series Trust

MetLife Small Cap Value Portfolio

Managed by Delaware Investments Fund Advisers and Wells Capital Management, LLC

Portfolio Manager Commentary*—(Continued)

 

Detracting from returns in the Industrials sector were shares of H&E Equipment Services, an equipment rental company with operations concentrated around the Gulf Coast and Intermountain regions. The company’s shares declined as weak demand from the oil & gas market caused the company to report a decline in rental revenue.

The sleeve ended the review period with no companies in the Telecommunication Services sector, as we sold the sleeve’s only holding in that sector, Premiere Global Services, after the company announced it was being acquired at a premium by private equity firm Siris Capital.

The sleeve remained overweight some of the more cyclical sectors which continue to generate attractive free cash flow. The most significant overweight was to the Materials sector, followed by IT, and Industrials. The sleeve’s underweight to the Financials sector was a result of a large underweight to the Real Estate Investment Trust (“REIT”) industry. We believed that valuations for REITs and Utilities, another underweight sector, were generally less attractive relative to the available investment opportunities in other areas of the market.

Christopher S. Beck

Steven G. Catricks

Kent P. Madden

Kelly A. McKee

Portfolio Managers

Delaware Investments Fund Advisers

The following commentary was provided by Wells Capital Management, LLC.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The sleeve managed by Wells Capital outperformed the Russell 2000 Value Index over the twelve month period. Superior stock selection was the largest driver for the sleeve’s outperformance. Stock selection in the Industrials, Consumer Staples, and Materials sectors contributed the most value to performance relative to the Russell 2000 Value Index. Conversely, a meaningful underweight in the second-best performing Financials sector was the largest detractor from relative performance.

In the Industrials sector, Courier Corporation, a book manufacturer and publisher, was the largest contributor to performance in the period. Courier shares outperformed due to competing buyout offers that were meaningfully above where the stock was trading at the beginning of the year and above our purchase price. Courier and its shareholders accepted the offer of R.R. Donnelley and Sons Company. Our investment process often benefits from a pickup in M&A activity because we tend to invest in companies that are in a position to gain from either side of those transactions. We sold the sleeve’s position during the period.

In Consumer Staples, Cott Corporation was the best performer. Cott is one of the world’s largest producers of beverages including carbonated soft drinks and juices. Recently the company expanded into home and office distribution for water and coffee with the acquisition of DS Services. The acquisition closed at the end of 2014 and the company has already increased the expected synergy targets which will culminate in better than expected margins. Over the past several months, Cott has closed on several acquisitions in the water and coffee business, including Aquaterra, the leading Canadian supplier. These deals are accretive and most of them come with cost synergies as the businesses are rolled into DS Services’ existing infrastructure. Cott’s reward/risk ratio remains attractive and we continued to hold a meaningful position size in the sleeve.

Within the Materials sector, Schweitzer-Mauduit International was among the key contributors. Schweitzer-Mauduit manufactures specialty cigarette paper and reconstituted tobacco leaf for global cigarette makers. Following a volatile first half of 2015, Schweitzer-Mauduit has regained its footing. Better-than-expected third quarter results in the core tobacco paper business helped boost margins and give investors more confidence in the recovery. Management also continues to execute on the long-term strategy of allocating capital to acquisitions to further diversify and reduce reliance on tobacco-based revenue. Schweitzer-Mauduit recently announced the acquisition of Argotec, a maker of high performance films for a number of industries. We believe diversification is the correct long-term strategy and could lead to higher growth rates and multiple expansion. We will continue to monitor the sleeve’s position as Schweitzer-Mauduit integrates the new businesses.

On the negative side, Imation Corp. and Steel Excel were among the largest relative detractors for the sleeve during the period. Imation Corp. is a maker of data storage and security products, magnetic tape media, and audio and accessory products. Imation is a long-time holding within the sleeve and, while the recent performance of the stock is disappointing, the company is undergoing a transformation that will ultimately lead to a simpler, more focused company that can utilize its substantial deferred tax assets to create what we believe will be substantial shareholder value. In the first half of the year, an activist hedge fund, The Clinton Group, initiated a proxy fight for board seats at Imation. The challenge was successful with three Clinton nominees replacing incumbent Imation board members. These board members had presided over several years of capital misallocation as well as operational shortcomings. With the Clinton nominees taking control of the board, a thorough review and evaluation of Imation’s strengths and weaknesses was undertaken. The review resulted in substantial changes to Imation’s business profile. Imation will be exiting non-core and unprofitable business lines, eliminating excess overhead, dramatically reducing its workforce, selling excess real estate, and focusing on data storage and security. A large, mostly non-cash charge of $140 to $160 million is to be taken. It is our belief that while these moves are the correct long term steps for Imation, it

 

MIST-2

Met Investors Series Trust

MetLife Small Cap Value Portfolio

Managed by Delaware Investments Fund Advisers and Wells Capital Management, LLC

Portfolio Manager Commentary*—(Continued)

 

has caused some confusion given the many moving parts and has led to further pressure on the shares. We believe this is temporary and as investors begin to better understand and appreciate these recent moves, Imation’s stock price should rebound strongly. We continued to confidently hold the sleeve’s position.

Steel Excel operates as a capital pool company. It operates its business through two segments, energy and sports. The energy segment provides drilling and production services to the oil & gas industry while the sports segment provides event-based sport services and other health-related services. The company is controlled by Steel Partners Holdings, LP, a hedge fund run by Warren Lichtenstein. Steel Excel was down during the year as a result of continued downward pressure on shares of companies that are tied to the energy markets. We believe that although Steel Excel is indeed exposed to energy, it also has almost $20 per share in net cash and liquid assets that underpin the inherent value of the company which is where our focus lies. We believe that through skillful allocation of this capital over the next several years, Steel Partners will transform Steel Excel from a holding company to an operating company that should drive significant shareholder value. In addition, Steel Excel has significant deferred tax assets that add to its already robust financial flexibility. We continued to hold the stock.

Our bottom-up stock selection process led the sleeve to increase its relative overweight to the Materials and Health Care sectors during the period. We moved from a relative underweight position in Consumer Discretionary to a relative overweight position as we saw some stock-specific opportunities, especially within restaurants, which we were able to capitalize on during the period. We reduced the sleeve’s Industrials overweight as several of our stocks approached their fair value, which led us to trim or sell the entire position. The sleeve’s absolute Financials weight hardly changed during the period, but the sleeve’s underweight to Financials increased as their weight in the benchmark increased approximately 3%; from under 41% to nearly 44%.

Our relative sector positioning is driven by our bottom-up stock selection process. During the first half of 2015, we began to take advantage of the severe swings in the price of oil by upgrading the quality of the sleeve’s Energy holdings. We continued to improve the quality of the sleeve’s Energy holdings in the second half of the year by focusing on companies with only the strongest balance sheets. We eliminated Bill Barrett Corporation, Stone Energy Corporation, Frank’s International N.V., and Comstock Resources in favor of Gulfport Energy Corporation, PDC Energy, Energen Corporation, and RSP Permian. Both Gulfport and PDC Energy had issued equity earlier in the year fortifying their balance sheets and making them better positioned to weather the volatile commodity price environment. Within Financials, KeyCorp made an offer for one of the sleeve’s stocks, First Niagara Financial Group through a combination of cash and stock. We subsequently sold the sleeve’s position.

As of December 31, 2015, the sleeve was highly diversified across sectors and industries, with the goal being to own companies that present to us the best opportunity to deliver alpha over the next 3 to 5 years while at the same time ensuring relative protection of capital in times of market stress. Our continued focus on companies with strong balance sheets and stable cash flows gives us confidence that our current positioning should continue to allow us to deliver on these two primary objectives.

James Tringas

Robert Rifkin

Bryant VanCronkhite

Portfolio Managers

Wells 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, 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 subject to change at any time based upon economic, market, or other conditions and the advisory 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-3

Met Investors Series Trust

MetLife 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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year  
MetLife Small Cap Value Portfolio                 

Class A

        -5.20           6.75           5.05   

Class B

        -5.41           6.47           4.80   
Russell 2000 Value Index        -7.47           7.67           5.57   
Dow Jones U.S. Small Cap Total Stock Market Index        -4.23           10.32           8.27   

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 DECEMBER 31, 2015

 

Top Holdings

 

     % of
Net Assets		  
East West Bancorp, Inc.      1.5   
Vishay Intertechnology, Inc.      1.4   
ProAssurance Corp.      1.3   
First Citizens BancShares, Inc. - Class A      1.3   
Validus Holdings, Ltd.      1.2   
Eagle Materials, Inc.      1.2   
HB Fuller Co.      1.1   
Hancock Holding Co.      1.1   
Berry Plastics Group, Inc.      1.0   
Brown & Brown, Inc.      1.0   

Top Sectors

 

     % of
Net Assets		  
Financials      28.3   
Industrials      15.6   
Information Technology      13.9   
Consumer Discretionary      12.0   
Materials      11.3   
Health Care      7.6   
Consumer Staples      3.9   
Energy      3.8   
Utilities      2.6   

 

MIST-4

Met Investors Series Trust

MetLife Small Cap Value 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, July 1, 2015 through December 31, 2015.

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 Small Cap Value Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual      0.77 %     $ 1,000.00         $ 923.20         $ 3.73   
   Hypothetical*      0.77 %     $ 1,000.00         $ 1,021.32         $ 3.92   

Class B(a)

    Actual      1.02 %     $ 1,000.00         $ 922.50         $ 4.94   
   Hypothetical*      1.02 %     $ 1,000.00         $ 1,020.06         $ 5.19   

* 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 (184 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

MetLife Small Cap Value Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—99.0% of Net Assets

 

Security Description    Shares      Value  

Auto Components—0.7%

      

Standard Motor Products, Inc.

      79,100       $ 3,009,755   

Tenneco, Inc. (a)

      88,400         4,058,444   
     

 

 

  
        7,068,199   
     

 

 

  

Banks—13.6%

      

Associated Banc-Corp.

      269,225         5,047,969   

Bank of Hawaii Corp. (b)

      123,400         7,761,860   

BBCN Bancorp, Inc.

      151,453         2,608,021   

Boston Private Financial Holdings, Inc.

      338,300         3,836,322   

Community Bank System, Inc.

      178,400         7,125,296   

East West Bancorp, Inc.

      370,100         15,381,356   

First Citizens BancShares, Inc. - Class A

      51,082         13,187,840   

First Financial Bancorp

      276,500         4,996,355   

First Interstate BancSystem, Inc. - Class A

      110,300         3,206,421   

First Midwest Bancorp, Inc.

      256,500         4,727,295   

Great Western Bancorp, Inc.

      215,700         6,259,614   

Hancock Holding Co. (b)

      421,127         10,599,766   

Independent Bank Corp./Rockland Trust

      41,400         1,925,928   

NBT Bancorp, Inc.

      226,900         6,325,972   

Prosperity Bancshares, Inc.

      79,000         3,780,940   

S&T Bancorp, Inc.

      129,900         4,003,518   

TCF Financial Corp.

      439,850         6,210,682   

UMB Financial Corp. (b)

      181,074         8,428,995   

Valley National Bancorp (b)

      593,500         5,845,975   

Webster Financial Corp.

      259,100         9,635,929   

WesBanco, Inc. (b)

      160,600         4,821,212   
     

 

 

  
        135,717,266   
     

 

 

  

Beverages—0.5%

      

Cott Corp.

      470,463         5,170,388   
     

 

 

  

Biotechnology—0.2%

      

Myriad Genetics, Inc. (a)

      36,852         1,590,532   
     

 

 

  

Building Products—0.9%

      

Simpson Manufacturing Co., Inc.

      250,608         8,558,263   
     

 

 

  

Capital Markets—2.1%

      

Apollo Investment Corp. (b)

      406,431         2,121,570   

CIFC Corp. (b)

      135,272         754,818   

Main Street Capital Corp. (b)

      121,700         3,539,036   

New Mountain Finance Corp. (b)

      174,607         2,273,383   

Stifel Financial Corp. (a)

      122,800         5,201,808   

Westwood Holdings Group, Inc.

      136,188         7,094,033   
     

 

 

  
        20,984,648   
     

 

 

  

Chemicals—6.0%

      

A. Schulman, Inc.

      96,321         2,951,276   

Albemarle Corp. (b)

      88,800         4,973,688   

Chemtura Corp. (a)

      227,900         6,214,833   

HB Fuller Co.

      313,428         11,430,719   

Innophos Holdings, Inc.

      40,415         1,171,227   

Innospec, Inc.

      95,975         5,212,402   

Olin Corp.

      344,000         5,937,440   

Quaker Chemical Corp.

      80,545         6,222,907   

Chemicals—(Continued)

  

Scotts Miracle-Gro Co. (The) - Class A

      144,973       9,352,208   

Sensient Technologies Corp.

      94,549         5,939,568   
     

 

 

  
        59,406,268   
     

 

 

  

Commercial Services & Supplies—3.2%

  

ACCO Brands Corp. (a)

      801,295         5,713,233   

Brady Corp. - Class A

      155,164         3,565,669   

Deluxe Corp. (b)

      63,924         3,486,415   

Essendant, Inc.

      75,500         2,454,505   

Knoll, Inc.

      151,552         2,849,178   

Matthews International Corp. - Class A

      55,003         2,939,910   

Quad/Graphics, Inc.

      186,796         1,737,203   

UniFirst Corp.

      37,500         3,907,500   

Viad Corp.

      181,470         5,122,898   
     

 

 

  
        31,776,511   
     

 

 

  

Communications Equipment—2.3%

  

Aviat Networks, Inc. (a)

      659,900         506,671   

Brocade Communications Systems, Inc.

      448,500         4,117,230   

CommScope Holding Co., Inc. (a)

      233,690         6,050,234   

NETGEAR, Inc. (a)

      107,340         4,498,620   

NetScout Systems, Inc. (a)

      264,420         8,117,694   
     

 

 

  
        23,290,449   
     

 

 

  

Construction & Engineering—1.7%

      

EMCOR Group, Inc.

      99,537         4,781,757   

MasTec, Inc. (a)

      392,800         6,826,864   

Primoris Services Corp. (b)

      215,100         4,738,653   
     

 

 

  
        16,347,274   
     

 

 

  

Construction Materials—1.2%

      

Eagle Materials, Inc.

      190,900         11,536,087   
     

 

 

  

Containers & Packaging—1.3%

      

Berry Plastics Group, Inc. (a)

      273,403         9,891,720   

Silgan Holdings, Inc.

      62,930         3,380,600   
     

 

 

  
        13,272,320   
     

 

 

  

Distributors—0.4%

      

Core-Mark Holding Co., Inc. (b)

      50,612         4,147,147   
     

 

 

  

Diversified Consumer Services—0.9%

      

Liberty Tax, Inc.

      144,673         3,447,558   

Service Corp. International

      219,500         5,711,390   
     

 

 

  
        9,158,948   
     

 

 

  

Electric Utilities—1.0%

      

El Paso Electric Co.

      109,300         4,208,050   

Hawaiian Electric Industries, Inc.

      208,178         6,026,753   
     

 

 

  
        10,234,803   
     

 

 

  

Electrical Equipment—1.9%

      

EnerSys

      74,061         4,142,232   

Franklin Electric Co., Inc.

      287,763         7,778,234   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

MetLife Small Cap Value Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description    Shares      Value  

Electrical Equipment—(Continued)

  

Regal-Beloit Corp.

      70,000       $ 4,096,400   

Thermon Group Holdings, Inc. (a)

      164,900         2,790,108   
     

 

 

  
        18,806,974   
     

 

 

  

Electronic Equipment, Instruments & Components—4.6%

  

AVX Corp.

      315,899         3,835,014   

Belden, Inc.

      48,241         2,300,131   

Coherent, Inc. (a)

      77,442         5,042,249   

GSI Group, Inc. (a)

      646,708         8,808,163   

Orbotech, Ltd. (a)

      228,508         5,056,882   

Tech Data Corp. (a)

      98,400         6,531,792   

Vishay Intertechnology, Inc. (b)

      1,184,407         14,272,104   
     

 

 

  
        45,846,335   
     

 

 

  

Energy Equipment & Services—2.0%

      

Atwood Oceanics, Inc. (b)

      163,013         1,667,623   

CARBO Ceramics, Inc. (b)

      118,717         2,041,932   

Dril-Quip, Inc. (a)

      50,300         2,979,269   

Helix Energy Solutions Group, Inc. (a)

      375,700         1,976,182   

Patterson-UTI Energy, Inc.

      474,645         7,157,647   

Steel Excel, Inc. (a)

      241,883         3,558,099   
     

 

 

  
        19,380,752   
     

 

 

  

Food & Staples Retailing—0.3%

      

SUPERVALU, Inc. (a)

      428,360         2,904,281   
     

 

 

  

Food Products—1.7%

      

J&J Snack Foods Corp.

      40,859         4,767,020   

Pinnacle Foods, Inc.

      96,100         4,080,406   

TreeHouse Foods, Inc. (a)

      106,650         8,367,759   
     

 

 

  
        17,215,185   
     

 

 

  

Gas Utilities—0.6%

      

Southwest Gas Corp.

      114,200         6,299,272   
     

 

 

  

Health Care Equipment & Supplies—3.6%

  

Analogic Corp.

      77,690         6,417,194   

CryoLife, Inc.

      168,840         1,820,095   

Haemonetics Corp. (a)

      229,910         7,412,298   

Halyard Health, Inc. (a) (b)

      102,978         3,440,495   

Meridian Bioscience, Inc. (b)

      114,597         2,351,531   

STERIS plc (b)

      125,451         9,451,478   

Teleflex, Inc. (b)

      37,100         4,876,795   
     

 

 

  
        35,769,886   
     

 

 

  

Health Care Providers & Services—2.3%

  

Owens & Minor, Inc. (b)

      236,340         8,503,513   

Patterson Cos., Inc. (b)

      135,285         6,116,235   

VCA, Inc. (a)

      103,500         5,692,500   

WellCare Health Plans, Inc. (a)

      37,518         2,934,283   
     

 

 

  
        23,246,531   
     

 

 

  

Health Care Technology—0.3%

      

HMS Holdings Corp. (a)

      267,032         3,295,175   
     

 

 

  

Hotels, Restaurants & Leisure—4.4%

     

Brinker International, Inc.

     63,500       3,044,825   

Cheesecake Factory, Inc. (The) (b)

     110,700         5,104,377   

Denny’s Corp. (a) (b)

     387,212         3,806,294   

DineEquity, Inc. (b)

     99,068         8,388,088   

International Speedway Corp. - Class A

     108,100         3,645,132   

Krispy Kreme Doughnuts, Inc. (a)

     456,715         6,882,695   

Ruby Tuesday, Inc. (a)

     416,320         2,293,923   

Texas Roadhouse, Inc.

     103,500         3,702,195   

Wendy’s Co. (The) (b)

     620,609         6,683,959   
    

 

 

  
       43,551,488   
    

 

 

  

Household Durables—1.6%

     

Dixie Group, Inc. (The) (a)

     302,994         1,584,658   

Helen of Troy, Ltd. (a) (b)

     58,751         5,537,282   

Meritage Homes Corp. (a)

     176,300         5,992,437   

Tupperware Brands Corp. (b)

     55,109         3,066,816   
    

 

 

  
       16,181,193   
    

 

 

  

Household Products—1.3%

     

Central Garden and Pet Co. (a)

     255,235         3,450,777   

Spectrum Brands Holdings, Inc.

     52,206         5,314,571   

WD-40 Co.

     45,750         4,513,238   
    

 

 

  
       13,278,586   
    

 

 

  

Insurance—6.9%

     

Allied World Assurance Co. Holdings AG

     76,269         2,836,444   

American Equity Investment Life Holding Co.

     218,100         5,240,943   

Brown & Brown, Inc.

     303,577         9,744,822   

Endurance Specialty Holdings, Ltd.

     72,226         4,621,742   

Infinity Property & Casualty Corp.

     54,000         4,440,420   

ProAssurance Corp.

     273,337         13,265,045   

RenaissanceRe Holdings, Ltd.

     32,475         3,675,845   

Selective Insurance Group, Inc.

     261,400         8,777,812   

Stewart Information Services Corp.

     103,253         3,854,434   

Validus Holdings, Ltd.

     268,833         12,444,279   
    

 

 

  
       68,901,786   
    

 

 

  

IT Services—1.5%

     

DST Systems, Inc.

     49,951         5,697,411   

Sykes Enterprises, Inc. (a)

     194,407         5,983,847   

Teradata Corp. (a) (b)

     133,059         3,515,419   
    

 

 

  
       15,196,677   
    

 

 

  

Life Sciences Tools & Services—0.9%

     

Bio-Rad Laboratories, Inc. - Class A (a)

     32,585         4,518,236   

VWR Corp. (a)

     162,365         4,596,553   
    

 

 

  
       9,114,789   
    

 

 

  

Machinery—5.6%

     

Altra Industrial Motion Corp.

     157,900         3,960,132   

Barnes Group, Inc.

     94,200         3,333,738   

Briggs & Stratton Corp. (b)

     146,279         2,530,627   

CIRCOR International, Inc.

     41,800         1,761,870   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

MetLife Small Cap Value Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description    Shares      Value  

Machinery—(Continued)

      

Douglas Dynamics, Inc.

      348,006       $ 7,332,486   

EnPro Industries, Inc.

      57,300         2,512,032   

ESCO Technologies, Inc.

      160,907         5,815,179   

Hillenbrand, Inc.

      188,986         5,599,655   

ITT Corp.

      201,900         7,333,008   

Kadant, Inc.

      181,466         7,369,334   

Mueller Industries, Inc.

      302,136         8,187,886   
     

 

 

  
        55,735,947   
     

 

 

  

Marine—0.7%

      

Kirby Corp. (a)

      50,600         2,662,572   

Matson, Inc.

      96,400         4,109,532   
     

 

 

  
        6,772,104   
     

 

 

  

Media—1.5%

      

AH Belo Corp. - Class A

      666,652         3,333,260   

Cinemark Holdings, Inc.

      104,200         3,483,406   

Meredith Corp.

      64,400         2,785,300   

New Media Investment Group, Inc. (b)

      158,732         3,088,925   

Time, Inc.

      153,092         2,398,951   
     

 

 

  
        15,089,842   
     

 

 

  

Metals & Mining—1.0%

      

Kaiser Aluminum Corp.

      64,300         5,379,338   

Royal Gold, Inc. (b)

      67,280         2,453,702   

Ryerson Holding Corp. (a) (b)

      174,800         816,316   

TimkenSteel Corp.

      198,322         1,661,938   
     

 

 

  
        10,311,294   
     

 

 

  

Multi-Utilities—0.9%

      

Black Hills Corp. (b)

      81,900         3,802,617   

NorthWestern Corp.

      99,700         5,408,725   
     

 

 

  
        9,211,342   
     

 

 

  

Oil, Gas & Consumable Fuels—1.9%

      

Bonanza Creek Energy, Inc. (a) (b)

      179,400         945,438   

Energen Corp.

      62,099         2,545,438   

Gulfport Energy Corp. (a)

      158,554         3,895,672   

Jones Energy, Inc. - Class A (a) (b)

      95,000         365,750   

Oasis Petroleum, Inc. (a) (b)

      348,200         2,566,234   

PDC Energy, Inc. (a) (b)

      41,611         2,221,195   

RSP Permian, Inc. (a)

      83,491         2,036,345   

SM Energy Co. (b)

      148,200         2,913,612   

Whiting Petroleum Corp. (a)

      148,800         1,404,672   
     

 

 

  
        18,894,356   
     

 

 

  

Paper & Forest Products—1.8%

      

Clearwater Paper Corp. (a)

      77,000         3,505,810   

Neenah Paper, Inc.

      87,143         5,440,337   

PH Glatfelter Co.

      144,900         2,671,956   

Schweitzer-Mauduit International, Inc.

      147,611         6,198,186   
     

 

 

  
        17,816,289   
     

 

 

  

Pharmaceuticals—0.3%

      

Theravance, Inc. (b)

      310,341       3,270,994   
     

 

 

  

Professional Services—0.5%

      

Korn/Ferry International

      161,119         5,345,928   
     

 

 

  

Real Estate Investment Trusts—5.3%

  

Apollo Commercial Real Estate Finance, Inc. (b)

      147,031         2,533,344   

Brandywine Realty Trust

      420,500         5,744,030   

Education Realty Trust, Inc.

      100,267         3,798,114   

Gramercy Property Trust, Inc. (b)

      524,798         4,051,441   

Hatteras Financial Corp.

      464,623         6,109,792   

Healthcare Realty Trust, Inc.

      170,400         4,825,728   

Highwoods Properties, Inc.

      138,500         6,038,600   

LaSalle Hotel Properties (b)

      159,954         4,024,443   

Lexington Realty Trust (b)

      519,400         4,155,200   

Ramco-Gershenson Properties Trust

      212,800         3,534,608   

Summit Hotel Properties, Inc.

      272,200         3,252,790   

Washington Real Estate Investment Trust (b)

      162,500         4,397,250   
     

 

 

  
        52,465,340   
     

 

 

  

Real Estate Management & Development—0.4%

  

Alexander & Baldwin, Inc.

      110,100         3,887,631   
     

 

 

  

Road & Rail—0.6%

      

Saia, Inc. (a)

      72,300         1,608,675   

Werner Enterprises, Inc. (b)

      197,100         4,610,169   
     

 

 

  
        6,218,844   
     

 

 

  

Semiconductors & Semiconductor Equipment—1.9%

  

Cirrus Logic, Inc. (a)

      119,300         3,522,929   

DSP Group, Inc. (a)

      273,200         2,579,008   

Exar Corp. (a)

      264,320         1,620,282   

ON Semiconductor Corp. (a)

      600,900         5,888,820   

Teradyne, Inc.

      251,700         5,202,639   
     

 

 

  
        18,813,678   
     

 

 

  

Software—2.3%

      

ACI Worldwide, Inc. (a)

      191,908         4,106,831   

Progress Software Corp. (a)

      212,780         5,106,720   

PTC, Inc. (a)

      153,300         5,308,779   

Synopsys, Inc. (a)

      185,900         8,478,899   
     

 

 

  
        23,001,229   
     

 

 

  

Specialty Retail—1.6%

  

Asbury Automotive Group, Inc. (a)

      36,600         2,468,304   

Buckle, Inc. (The) (b)

      141,808         4,364,850   

Cato Corp. (The) - Class A

      60,754         2,236,962   

Christopher & Banks Corp. (a) (b)

      447,352         738,131   

Finish Line, Inc. (The) - Class A

      83,200         1,504,256   

Genesco, Inc. (a)

      30,600         1,738,998   

Guess?, Inc. (b)

      88,105         1,663,423   

Stage Stores, Inc. (b)

      75,611         688,816   
     

 

 

  
        15,403,740   
     

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

MetLife Small Cap Value Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description    Shares/
Principal
Amount*		      Value  

Technology Hardware, Storage & Peripherals—1.3%

  

Electronics For Imaging, Inc. (a)

      142,400       $ 6,655,776   

Imation Corp. (a) (b)

      1,423,110         1,949,661   

Super Micro Computer, Inc. (a) (b)

      152,500         3,737,775   
     

 

 

  
        12,343,212   
     

 

 

  

Textiles, Apparel & Luxury Goods—0.9%

  

Delta Apparel, Inc. (a)

      212,907         2,989,214   

Steven Madden, Ltd. (a)

      105,500         3,188,210   

Wolverine World Wide, Inc.

      145,600         2,432,976   
     

 

 

  
        8,610,400   
     

 

 

  

Trading Companies & Distributors—0.6%

  

H&E Equipment Services, Inc.

      241,600         4,223,168   

WESCO International, Inc. (a)

      40,100         1,751,568   
     

 

 

  
        5,974,736   
     

 

 

  

Total Common Stocks
(Cost $1,066,465,696)

         986,414,919   
     

 

 

  
Short-Term Investments—14.2%   

Mutual Fund—13.2%

  

State Street Navigator Securities Lending MET Portfolio (c)

      132,068,148         132,068,148   
     

 

 

  

Repurchase Agreement—1.0%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $9,696,404 on 01/04/16, collateralized by $10,020,000 U.S. Treasury Note at 0.625% due 04/30/18 with a value of $9,894,750.

      9,696,372         9,696,372   
     

 

 

  

Total Short-Term Investments
(Cost $141,764,520)

         141,764,520   
     

 

 

  

Total Investments—113.2%
(Cost $1,208,230,216) (d)

         1,128,179,439   

Other assets and liabilities (net)—(13.2)%

         (131,651,669 ) 
     

 

 

  
Net Assets—100.0%       $ 996,527,770   
     

 

 

  

 

* 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 December 31, 2015, the market value of securities loaned was $128,611,380 and the collateral received consisted of cash in the amount of $132,068,148 and non-cash collateral with a value of $1,131,041. 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 on loan as of December 31, 2015.
(d) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $1,209,974,761. The aggregate unrealized appreciation and depreciation of investments were $55,582,253 and $(137,377,575), respectively, resulting in net unrealized depreciation of $(81,795,322) for federal income tax purposes.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

MetLife Small Cap Value Portfolio

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2     Level 3      Total  

Total Common Stocks*

    $ 986,414,919       $ —        $ —         $ 986,414,919   
Short-Term Investments           

Mutual Fund

      132,068,148         —          —           132,068,148   

Repurchase Agreement

      —           9,696,372        —           9,696,372   

Total Short-Term Investments

      132,068,148         9,696,372        —           141,764,520   

Total Investments

    $ 1,118,483,067       $ 9,696,372      $ —         $ 1,128,179,439   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (132,068,148 )    $ —         $ (132,068,148 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

MetLife Small Cap Value Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 1,128,179,439   

Receivable for:

   

Investments sold

      73,985   

Fund shares sold

      43,979   

Dividends and interest

      1,875,952   

Prepaid expenses

      2,972   
  

 

 

  

Total Assets

      1,130,176,327   

Liabilities

   

Due to custodian

      207,860   

Collateral for securities loaned

      132,068,148   

Payables for:

   

Investments purchased

      176,899   

Fund shares redeemed

      222,287   

Accrued Expenses:

   

Management fees

      645,240   

Distribution and service fees

      93,669   

Deferred trustees’ fees

      81,937   

Other expenses

      152,517   
  

 

 

  

Total Liabilities

      133,648,557   
  

 

 

  

Net Assets

    $ 996,527,770   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 1,040,837,475   

Undistributed net investment income

      11,399,349   

Accumulated net realized gain

      24,343,134   

Unrealized depreciation on investments and foreign currency transactions

      (80,052,188 ) 
  

 

 

  

Net Assets

    $ 996,527,770   
  

 

 

  

Net Assets

   

Class A

    $ 564,541,390   

Class B

      431,986,380   

Capital Shares Outstanding*

   

Class A

      44,729,117   

Class B

      34,559,024   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 12.62   

Class B

      12.50   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,208,230,216.
(b) Includes securities loaned at value of $128,611,380.

 

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends (a)

    $ 20,927,810   

Interest

      179   

Securities lending income

      843,080   
  

 

 

  

Total investment income

      21,771,069   

Expenses

   

Management fees

      8,228,580   

Administration fees

      26,808   

Custodian and accounting fees

      121,287   

Distribution and service fees—Class B

      1,219,592   

Audit and tax services

      40,454   

Legal

      23,659   

Trustees’ fees and expenses

      35,270   

Shareholder reporting

      47,042   

Insurance

      7,374   

Miscellaneous

      23,555   
  

 

 

  

Total expenses

      9,773,621   

Less management fee waiver

      (52,626 ) 

Less broker commission recapture

      (10,389 ) 
  

 

 

  

Net expenses

      9,710,606   
  

 

 

  

Net Investment Income

      12,060,463   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   

Net realized gain on investments

      24,138,531   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (91,616,628 ) 

Foreign currency transactions

      (3,049 ) 
  

 

 

  

Net change in unrealized depreciation

      (91,619,677 ) 
  

 

 

  

Net realized and unrealized loss

      (67,481,146 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (55,420,683 ) 
  

 

 

  

 

(a) Net of foreign withholding taxes of $18,492.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

MetLife Small Cap Value Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 12,060,463      $ 3,741,288   

Net realized gain

      24,138,531        400,249,529   

Net change in unrealized depreciation

      (91,619,677 )     (385,939,187 )
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (55,420,683 )     18,051,630  
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (2,312,124 )      (2,575,767 ) 

Class B

      (459,152 )      (222,441 ) 

Net realized capital gains

     

Class A

      (221,543,482 )      (37,064,844 ) 

Class B

      (178,296,033 )     (23,606,559 )
  

 

 

    

 

 

  

Total distributions

      (402,610,791 )     (63,469,611 )
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      275,975,277       (312,928,539 )
  

 

 

    

 

 

  

Total decrease in net assets

      (182,056,197 )      (358,346,520 ) 

Net Assets

     

Beginning of period

      1,178,583,967       1,536,930,487  
  

 

 

    

 

 

  

End of period

    $ 996,527,770      $ 1,178,583,967   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 11,399,349      $ 3,074,494   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      231,356      $ 4,069,773        986,687      $ 19,594,172   

Reinvestments

      16,233,184        223,855,606        2,008,136        39,640,611   

Redemptions

      (3,267,195 )      (56,357,129 )      (15,863,510 )      (316,021,684 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      13,197,345      $ 171,568,250        (12,868,687 )    $ (256,786,901 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      886,331      $ 14,104,596        1,501,902      $ 30,143,517   

Reinvestments

      13,066,900        178,755,185        1,213,289        23,829,000   

Redemptions

      (5,510,943 )      (88,452,754 )      (5,455,549 )      (110,114,155 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      8,442,288      $ 104,407,027        (2,740,358 )    $ (56,141,638 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ 275,975,277        $ (312,928,539 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

MetLife Small Cap Value Portfolio

Financial Highlights

 

Selected per share data                                   
     Class A  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 20.51       $ 21.04       $ 16.05       $ 13.57       $ 15.04   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.19         0.08         0.07         0.19         0.03   

Net realized and unrealized gain (loss) on investments

      (0.62 )      0.30        5.14        2.29        (1.31 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.43 )      0.38        5.21        2.48        (1.28 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.08 )       (0.06 )       (0.22 )       0.00         (0.19 ) 

Distributions from net realized capital gains

      (7.38 )      (0.85 )      0.00        0.00        0.00  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (7.46 )      (0.91 )      (0.22 )      0.00        (0.19 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 12.62       $ 20.51       $ 21.04       $ 16.05       $ 13.57   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (5.20 )      1.96        32.81        18.28        (8.70 )

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      0.77         0.77         0.76         0.77         0.77   

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

      0.77         0.76         0.74         0.76         0.77   

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

      1.21         0.38         0.37         1.29         0.17   

Portfolio turnover rate (%)

      35         135         46         46         48   

Net assets, end of period (in millions)

    $ 564.5       $ 646.7       $ 934.0       $ 892.7       $ 755.1   
     Class B  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 20.36       $ 20.89       $ 15.94       $ 13.51       $ 14.99   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (loss) (a)

      0.15         0.03         0.02         0.14         (0.02 ) 

Net realized and unrealized gain (loss) on investments

      (0.61 )      0.30        5.11        2.29        (1.30 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.46 )      0.33        5.13        2.43        (1.32 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.02 )       (0.01 )       (0.18 )       0.00         (0.16 ) 

Distributions from net realized capital gains

      (7.38 )      (0.85 )      0.00        0.00        0.00  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (7.40 )      (0.86 )      (0.18 )      0.00        (0.16 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 12.50       $ 20.36       $ 20.89       $ 15.94       $ 13.51   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (5.41 )      1.72        32.45        17.99        (8.98 )

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      1.02         1.02         1.01         1.02         1.02   

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

      1.02         1.01         0.99         1.01         1.02   

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

      0.95         0.16         0.12         0.96         (0.11 ) 

Portfolio turnover rate (%)

      35         135         46         46         48   

Net assets, end of period (in millions)

    $ 432.0       $ 531.9       $ 602.9       $ 517.8       $ 531.6   

 

(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) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

MetLife Small Cap Value Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is MetLife 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally categorized as Level 2 within the fair value hierarchy.

 

 

MIST-14

Met Investors Series Trust

MetLife Small Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

Due to Custodian - Pursuant to the custodian agreement, the custodian may, in its discretion, advance funds to the Portfolio to make properly authorized payments. When such payments result in an overdraft, the Portfolio is obligated to repay the custodian at the current rate of interest charged by the custodian for secured loans (currently, the Federal Funds rate plus 2%). This obligation is payable on demand to the custodian. The custodian may avail itself of various remedies under the custodian agreement to obtain repayment of any overdraft amounts owed to it by a Portfolio. At December 31, 2015, the Portfolio had a payment due to the custodian pursuant to the foregoing arrangement of $207,860. Based on the short-term nature of these payments and the variable interest rate, the carrying value of the overdraft advances approximated its fair value at December 31, 2015. If measured at fair value, overdraft advances would have been considered as Level 2 in the fair value hierarchy at December 31, 2015. The Portfolio’s average overdraft advances during the year ended December 31, 2015 were not significant.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 commission recapture, adjustments to prior period accumulated balances and real estate investment trust (REIT) adjustments. These adjustments have no impact on net assets or the results of operations.

 

MIST-15

Met Investors Series Trust

MetLife Small Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

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.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $9,696,372, 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 December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2015, with a contractual maturity of overnight and continuous.

 

MIST-16

Met Investors Series Trust

MetLife Small Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

3. Certain Risks

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”).

Market 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, 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to Portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 376,717,167       $ 0       $ 437,184,354   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$8,228,580      0.750 %    First $1 billion
     0.700 %    Over $1 billion

 

MIST-17

Met Investors Series Trust

MetLife Small Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

MetLife Advisers has entered into investment subadvisory agreements with respect to managing the Portfolio. Delaware Investments Fund Advisers and Wells Capital Management Incorporated are compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, for the period May 1, 2015 to April 30, 2016, 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   

An identical agreement was in place for the period April 28, 2014 to April 30, 2015. Amounts waived for the year ended December 31, 2015 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, LLC, 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 year ended December 31, 2015 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 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$43,284,610    $ 2,798,208       $ 359,326,181       $ 60,671,403       $ 402,610,791       $ 63,469,611   

 

MIST-18

Met Investors Series Trust

MetLife Small Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

As of December 31, 2015, 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		     Other
Accumulated
Capital Losses		      Total  
$37,568,963    $  —       $ (81,796,733 )    $  —       $ (44,227,770 ) 

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, 2015, the Portfolio had no post-enactment accumulated capital losses and no pre-enactment accumulated capital loss carryforwards.

8. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-19

Met Investors Series Trust

MetLife Small Cap Value Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of MetLife Small Cap Value 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 MetLife Small Cap Value Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 MetLife Small Cap Value Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-20

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-21

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-22

Met Investors Series Trust

MetLife Small Cap Value Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-23

Met Investors Series Trust

MetLife Small Cap Value Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-24

Met Investors Series Trust

MetLife Small Cap Value Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

MetLife Small Cap Value Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Delaware Investments Fund Advisers and Wells Capital Management Incorporated regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio underperformed the median of its Performance Universe and its Lipper Index for the one-, three-, and five-year periods ended June 30, 2015. The Board further considered that the Portfolio outperformed its benchmark, the Russell 2000 Value Index, for the one- and three-year periods ended October 31, 2015, and underperformed its benchmark for the five-year period ended October 31, 2015. The Board further noted that the Sub-Advisers assumed portfolio management responsibilities for the Portfolio effective December 1, 2014 and that performance prior to that date represents that of the previous sub-adviser.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-l fees) were below the Expense Group median, the Expense Universe median and Sub-advised Expense Universe median. The Board noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also noted that the Portfolio’s contractual sub-advisory fees were above the average of the Sub-advised Expense Group and Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-25

Met Investors Series Trust

Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio)

Managed by Aberdeen Asset Managers Limited

Portfolio Manager Commentary*

 

Massachusetts Financial Services Company (“MFS”), the Portfolio’s subadviser prior to January 1, 2016, prepared this commentary, which addresses the Portfolio’s performance for the one year period ended December 31, 2015. On January 1, 2016, Aberdeen Asset Managers Limited (“Aberdeen”) succeeded MFS as the subadviser to the Portfolio and the name of the Portfolio was changed from the MFS Emerging Markets Equity Portfolio to the Met/Aberdeen Emerging Markets Equity Portfolio. This commentary and performance does not reflect the management of Aberdeen.

PERFORMANCE

For the one year period ended December 31, 2015, the Class A and B shares of the Met/Aberdeen Emerging Markets Equity Portfolio returned -13.66% and -13.81%, respectively. The Portfolio’s benchmark, the MSCI Emerging Markets Index1, returned -14.92%.

MARKET ENVIRONMENT / CONDITIONS

Sluggish global growth weighed on both developed and emerging market (“EM”) economies during the reporting period. EM economies have been particularly lackluster. While the U.S. Federal Reserve Bank (the “Fed”) began its anticipated monetary policy tightening cycle at the end of the period, other large developed economies continued to embrace accommodative monetary policies, particularly the European Central Bank and the Bank of Japan. Focus remained on China after policy missteps by the Chinese government roiled global markets over the summer, beginning with the uncoordinated response to the stock market’s boom and bust and then the confusing decision to devalue the renminbi in August. China subsequently ramped up a wide range of monetary and fiscal measures to stimulate the economy and bolster sentiment. Its economy appeared to stabilize late in the period. Also at the end of the period, the Chinese renminbi was granted reserve currency status by the International Monetary Fund (“IMF”), which announced its inclusion in the IMF’s Special Drawing Rights currency basket effective October 1, 2016.

During the second half of the reporting period, the U.S. faced an earnings recession caused primarily by the sharp decline in the prices of oil and other commodities. Earnings contractions were concentrated primarily in the Energy, Materials, and Industrials sectors. An additional headwind for earnings was the sharp rise in the U.S. dollar over the period. Exports were crimped by the dollar’s strength and falling demand in emerging markets. Consumer spending held up well during the second half of the period amid a modest increase in real wages and a tailwind from falling gasoline prices. Demand for autos reached near-record territory late in the period. In emerging markets, two key factors weighed on economies and asset prices: weaker Chinese growth, and the resulting decline in commodity prices, in addition to prospects for higher U.S. interest rates. Structural factors like floating exchange rates and fiscal buffers partially offset these cyclical headwinds.

PORTFOLIO REVIEW / PERIOD END POSITIONING

A combination of strong security selection and an overweight allocation in the Consumer Discretionary sector supported Portfolio performance relative to the MSCI Emerging Markets Index during the reporting period. Within Consumer Discretionary, holding electrical and electronic products manufacturer Techtronic Industries (Hong Kong) and an overweight position in South African multinational media company Naspers lifted relative returns.

Within the Financials sector, security selection was a positive factor that benefited relative performance with an overweight position in financial services company Housing Development Finance Corp. (India) contributing positively to relative returns.

The Portfolio’s overweight allocation to the Consumer Staples sector further added to relative results. Within this sector, an overweight position in household goods and cosmetics producer LG Household & Health Care (South Korea) and holding beverage producer SAB Miller (United Kingdom) boosted relative returns.

Stocks in other sectors that contributed to relative performance included holdings of Information Technology (“IT”) company Cognizant Technology (U.S.) and software engineering solutions provider EPAM Systems (U.S.). Additionally, overweighting the largest contract semiconductor manufacturer in the world, Taiwan Semiconductor Manufacturing (Taiwan), petrochemical manufacturer LG Chem (South Korea), and piped gas distribution company China Resources Gas (China) raised relative results.

During the reporting period, the Portfolio’s relative currency exposure resulting primarily from differences between the Portfolio’s and the benchmark’s exposures to holdings of securities denominated in foreign currencies was another contributor to relative performance.

Weak stock selection in the Health Care sector was a primary factor that weighed on relative results. Within this sector, overweight positions in insurance and healthcare provider Qualicorp (Brazil) and over-the-counter pharmaceutical and personal care products manufacturer Genomma Lab Internacional (Mexico) hurt relative returns.

Poor security selection in the Industrials and Energy sectors further subtracted from relative performance. Within the Industrials sector, holding Brazilian specialty engineering company Mills Estruturas e Servicos held back relative results as shares declined during the reporting period. Within the Energy sector, an overweight position in Chinese coal producer China Shenhua Energy and holding Canadian oil & gas production company Gran Tierra Energy hindered relative returns.

Stocks in other sectors that detracted from relative performance included not holding internet software service provider Tencent

 

MIST-1

Met Investors Series Trust

Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio)

Managed by Aberdeen Asset Managers Limited

Portfolio Manager Commentary*—(Continued)

 

Holdings (China) and overweight positions in integrated circuits manufacturer MediaTek (Taiwan), banking group Kasikornbank (Thailand), Brazilian educational services provider Estacio Participacoes, and Chinese food producer Want Want China Holdings.

We had been increasing the Portfolio’s China exposure steadily over the last 2 years as the market’s expectation on growth finally moderated. We had largely focused on opportunities in domestic consumer sectors, export manufacturing sectors, and internet sector. We were not finding many ideas in banking, real estate, heavy industrials, healthcare, and material stocks. In particular, we remained cautious on the Chinese banks given our concerns on balance sheets and credit quality. We had however, been increasing the Portfolio’s exposure to insurance companies as this is an underpenetrated market with significant upside potential.

After having been underweight Consumer Staples for a number of periods, we continued to add to the Portfolio’s exposure during 2015. We found ourselves in an environment of multiple contractions and were provided with a window to purchase select opportunities which we had historically admired from afar because of rich valuations. We believe these are structural long term winners that had come back to reasonable valuations and our overweight position benefited the Portfolio. We continued to favor companies with exposure to the growth of domestic consumption.

We believed that Health Care remained an expensive sector and unlike Consumer Staples we have yet to be provided with an opportunity to buy quality names.

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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio)

 

A $10,000 INVESTMENT COMPARED TO THE MSCI EMERGING MARKETS INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        Since Inception2  
Met/Aberdeen Emerging Markets Equity Portfolio                 

Class A

        -13.66           -5.62           0.18   

Class B

        -13.81           -5.84           -0.07   
MSCI Emerging Markets Index        -14.92           -4.81           1.80   

1 The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.

2 Inception dates of the Class A and Class B shares is 5/1/2006. Index since inception return is based on the Portfolio’s inception date.

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
Samsung Electronics Co., Ltd.      4.2   
Taiwan Semiconductor Manufacturing Co., Ltd.      3.6   
Housing Development Finance Corp., Ltd.      3.5   
AIA Group, Ltd.      3.4   
China Mobile, Ltd.      3.4   
Fomento Economico Mexicano S.A.B. de C.V. (ADR)      3.3   
Astra International Tbk PT      3.1   
Grupo Financiero Banorte S.A.B. de C.V. - Class O      3.1   
Infosys, Ltd.      2.8   
Swire Pacific, Ltd. - Class B      2.6   

Top Countries

 

     % of
Net Assets		  
India      17.2   
Hong Kong      11.7   
Mexico      7.9   
Brazil      7.9   
South Korea      5.5   
Turkey      5.2   
Taiwan      4.7   
China      4.7   
Thailand      4.3   
Indonesia      3.7   

 

MIST-3

Met Investors Series Trust

Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity 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, July 1, 2015 through December 31, 2015.

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/Aberdeen Emerging Markets Equity Portfolio
(formerly MFS Emerging Markets Equity Portfolio)

         Annualized
Expense
Ratio		      Beginning
Account Value
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual      1.01 %     $ 1,000.00         $ 858.60         $ 4.73   
   Hypothetical*      1.01 %     $ 1,000.00         $ 1,020.11         $ 5.14   

Class B(a)

    Actual      1.26 %     $ 1,000.00         $ 858.50         $ 5.90   
   Hypothetical*      1.26 %     $ 1,000.00         $ 1,018.85         $ 6.41   

* 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 (184 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

Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio)

Schedule of Investments as of December 31, 2015

Common Stocks—93.9% of Net Assets

 

Security Description   Shares     Value  

Australia—0.7%

  

BHP Billiton plc

     761,000      $ 8,598,259   
   

 

 

  

Brazil—7.9%

    

Banco Bradesco S.A. (ADR)

     5,509,000        26,498,290   

BRF S.A.

     900,000        12,570,845   

Lojas Renner S.A.

     3,278,000        14,105,424   

Multiplan Empreendimentos Imobiliarios S.A.

     1,151,000        11,011,319   

Ultrapar Participacoes S.A.

     1,758,000        26,843,065   

Vale S.A. (ADR)

     3,673,077        12,084,423   
   

 

 

  
      103,113,366   
   

 

 

  

Chile—1.2%

    

Banco Santander Chile (ADR)

     892,000        15,734,880   
   

 

 

  

China—4.7%

    

China Mobile, Ltd.

     3,889,000        43,585,717   

PetroChina Co., Ltd. - Class H

     25,853,000        17,038,375   
   

 

 

  
      60,624,092   
   

 

 

  

Hong Kong—11.7%

    

AIA Group, Ltd.

     7,338,000        43,716,561   

Global Brands Group Holding, Ltd. (a)

     78,564,000        14,840,158   

Hang Lung Group, Ltd.

     6,621,000        21,425,827   

Hang Lung Properties, Ltd.

     5,238,000        11,880,177   

Hong Kong Exchanges and Clearing, Ltd.

     508,000        12,908,846   

Stella International Holdings, Ltd.

     5,686,000        14,067,219   

Swire Pacific, Ltd. - Class B

     16,529,000        33,648,265   
   

 

 

  
      152,487,053   
   

 

 

  

Hungary—1.1%

    

Richter Gedeon Nyrt

     735,000        13,913,736   
   

 

 

  

India—17.2%

    

CESC, Ltd.

     196,054        1,518,233   

Dabur India, Ltd.

     2,115,611        8,802,232   

Hero MotoCorp, Ltd.

     509,000        20,609,420   

Hindustan Unilever, Ltd.

     1,686,000        21,925,750   

Housing Development Finance Corp., Ltd.

     2,389,000        45,378,643   

ICICI Bank, Ltd.

     6,916,000        27,094,237   

Infosys, Ltd.

     2,169,000        36,105,211   

ITC, Ltd.

     6,658,000        32,967,254   

Kotak Mahindra Bank, Ltd.

     64,876        699,089   

Shriram Transport Finance Co., Ltd.

     188,234        2,438,269   

UltraTech Cement, Ltd.

     613,063        25,626,896   
   

 

 

  
      223,165,234   
   

 

 

  

Indonesia—3.7%

    

Astra International Tbk PT

     94,150,000        40,460,404   

Indocement Tunggal Prakarsa Tbk PT

     4,706,400        7,508,641   
   

 

 

  
      47,969,045   
   

 

 

  

Luxembourg—1.5%

    

Tenaris S.A. (ADR)

     815,000        19,397,000   
   

 

 

  

Malaysia—2.1%

    

CIMB Group Holdings Bhd

     8,991,000      9,477,218   

Public Bank Bhd

     4,115,000        17,731,633   
   

 

 

  
      27,208,851   
   

 

 

  

Mexico—7.9%

    

Fomento Economico Mexicano S.A.B. de C.V. (ADR)

     467,000        43,127,450   

Grupo Aeroportuario del Sureste S.A.B. de C.V. (ADR)

     133,000        18,709,110   

Grupo Financiero Banorte S.A.B. de C.V. - Class O

     7,325,708        40,295,751   

Prologis Property Mexico S.A. de C.V. (REIT) (a)

     757,077        1,146,520   
   

 

 

  
      103,278,831   
   

 

 

  

Philippines—3.2%

    

Ayala Land, Inc.

     40,368,800        29,474,555   

Bank of the Philippine Islands

     6,906,370        12,290,734   
   

 

 

  
      41,765,289   
   

 

 

  

Poland—1.9%

    

Bank Pekao S.A.

     667,000        24,321,485   
   

 

 

  

Portugal—1.2%

    

Jeronimo Martins SGPS S.A.

     1,201,000        15,604,471   
   

 

 

  

Russia—3.4%

    

Lukoil PJSC (ADR)

     682,343        21,861,411   

Magnit PJSC (a)

     149,000        22,854,151   
   

 

 

  
      44,715,562   
   

 

 

  

South Africa—3.6%

    

Massmart Holdings, Ltd.

     2,007,000        12,926,118   

MTN Group, Ltd.

     1,615,000        13,845,088   

Truworths International, Ltd.

     3,443,000        20,251,527   
   

 

 

  
      47,022,733   
   

 

 

  

South Korea—1.3%

    

E-Mart, Inc.

     88,000        14,120,739   

TK Corp.

     342,961        2,709,845   
   

 

 

  
      16,830,584   
   

 

 

  

Taiwan—4.7%

    

Taiwan Mobile Co., Ltd.

     4,493,000        13,651,514   

Taiwan Semiconductor Manufacturing Co., Ltd.

     10,947,000        47,237,140   
   

 

 

  
      60,888,654   
   

 

 

  

Thailand—4.3%

    

Siam Cement PCL (The)

     2,373,000        29,982,723   

Siam Commercial Bank PCL (The)

     8,070,000        26,631,803   
   

 

 

  
      56,614,526   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio)

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description       
Shares		     Value  

Turkey—5.2%

    

Akbank TAS

     10,480,000      $ 24,071,875   

BIM Birlesik Magazalar A/S

     1,091,000        19,208,169   

Turkiye Garanti Bankasi A/S

     9,944,000        24,272,767   
   

 

 

  
      67,552,811   
   

 

 

  

United Arab Emirates—0.3%

    

Lamprell plc (a)

     2,725,853        3,995,061   
   

 

 

  

United Kingdom—3.5%

    

SABMiller plc

     453,000        27,473,266   

Standard Chartered plc (Hong Kong Exchange)

     863,256        7,251,199   

Standard Chartered plc (London Exchange)

     1,319,301        10,945,355   
   

 

 

  
      45,669,820   
   

 

 

  

United States—1.6%

    

Yum! Brands, Inc.

     283,000        20,673,150   
   

 

 

  

Total Common Stocks
(Cost $1,287,129,566)

       1,221,144,493   
   

 

 

  
Preferred Stock—4.2%                

South Korea—4.2%

Samsung Electronics Co., Ltd.
(Cost $56,026,120)

     59,173        54,764,049   
   

 

 

  
Warrant—0.3%                

United Arab Emirates—0.3%

    

Union National Bank PJSC, Expires 05/15/17 (a)
(Cost $5,388,480)

     2,967,161        3,780,757   
   

 

 

  
Short-Term Investment—1.2%   
Security Description   Principal
Amount*		     Value  

Repurchase Agreement—1.2%

    

Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $15,174,269 on 01/04/16, collateralized by $15,420,000 U.S. Treasury Note at 1.500% due 12/31/18 with a value of $15,477,825.

     15,174,218      $ 15,174,218   
   

 

 

  

Total Short-Term Investments
(Cost $15,174,218)

       15,174,218   
   

 

 

  

Total Investments—99.6%
(Cost $1,363,718,384) (b)

       1,294,863,517   

Other assets and liabilities (net)—0.4%

       5,526,758   
   

 

 

  
Net Assets—100.0%     $ 1,300,390,275   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Non-income producing security.
(b) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $1,382,707,627. The aggregate unrealized appreciation and depreciation of investments were $29,486,561 and $(117,330,671), respectively, resulting in net unrealized depreciation of $(87,844,110) for federal income tax purposes.
(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.
(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
December 31, 2015 (Unaudited)

   

% of
Net Assets

  

Banks

      20.6   

Real Estate Management & Development

      8.3   

Food & Staples Retailing

      6.5   

Wireless Telecommunication Services

      5.5   

Beverages

      5.4   

Oil, Gas & Consumable Fuels

      5.1   

Construction Materials

      4.8   

Automobiles

      4.7   

Technology Hardware, Storage & Peripherals

      4.2   

Semiconductors & Semiconductor Equipment

      3.6   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio)

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2      Level 3      Total  
Common Stocks            

Australia

    $ —         $ 8,598,259       $ —         $ 8,598,259   

Brazil

      38,582,713         64,530,653         —           103,113,366   

Chile

      15,734,880         —           —           15,734,880   

China

      —           60,624,092         —           60,624,092   

Hong Kong

      —           152,487,053         —           152,487,053   

Hungary

      —           13,913,736         —           13,913,736   

India

      —           223,165,234         —           223,165,234   

Indonesia

      —           47,969,045         —           47,969,045   

Luxembourg

      19,397,000         —           —           19,397,000   

Malaysia

      —           27,208,851         —           27,208,851   

Mexico

      103,278,831         —           —           103,278,831   

Philippines

      —           41,765,289         —           41,765,289   

Poland

      —           24,321,485         —           24,321,485   

Portugal

      —           15,604,471         —           15,604,471   

Russia

      22,854,151         21,861,411         —           44,715,562   

South Africa

      —           47,022,733         —           47,022,733   

South Korea

      —           16,830,584         —           16,830,584   

Taiwan

      —           60,888,654         —           60,888,654   

Thailand

      —           56,614,526         —           56,614,526   

Turkey

      —           67,552,811         —           67,552,811   

United Arab Emirates

      —           3,995,061         —           3,995,061   

United Kingdom

      —           45,669,820         —           45,669,820   

United States

      20,673,150         —           —           20,673,150   

Total Common Stocks

      220,520,725         1,000,623,768         —           1,221,144,493   

Total Preferred Stock*

      —           54,764,049         —           54,764,049   

Total Warrant*

      3,780,757         —           —           3,780,757   

Total Short-Term Investment*

      —           15,174,218         —           15,174,218   

Total Investments

    $ 224,301,482       $ 1,070,562,035       $ —         $ 1,294,863,517   
                                     

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio)

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a)

    $ 1,294,863,517   

Cash denominated in foreign currencies (b)

      5,426,520   

Receivable for:

   

Investments sold

      144,847   

Fund shares sold

      71,182   

Dividends and interest

      2,218,040   

Prepaid expenses

      3,986   
  

 

 

  

Total Assets

      1,302,728,092   

Liabilities

   

Payables for:

   

Fund shares redeemed

      114,166   

Foreign taxes

      205,413   

Accrued Expenses:

   

Management fees

      978,503   

Distribution and service fees

      110,438   

Deferred trustees’ fees

      81,937   

Other expenses

      847,360   
  

 

 

  

Total Liabilities

      2,337,817   
  

 

 

  

Net Assets

    $ 1,300,390,275   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 1,677,163,618   

Undistributed net investment income

      5,059,409   

Accumulated net realized loss

      (312,821,688 ) 

Unrealized depreciation on investments and foreign currency transactions (c)

      (69,011,064 ) 
  

 

 

  

Net Assets

    $ 1,300,390,275   
  

 

 

  

Net Assets

   

Class A

    $ 789,191,123   

Class B

      511,199,152   

Capital Shares Outstanding*

   

Class A

      96,942,452   

Class B

      63,374,350   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 8.14   

Class B

      8.07   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,363,718,384.
(b) Identified cost of cash denominated in foreign currencies was $5,420,284.
(c) Includes foreign capital gains tax of $162,591.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends (a)

    $ 32,556,054   

Interest

      13,682   

Securities lending income

      486,553   
  

 

 

  

Total investment income

      33,056,289   

Expenses

   

Management fees

      12,699,180   

Administration fees

      34,811   

Custodian and accounting fees

      1,656,555   

Distribution and service fees—Class B

      1,442,481   

Audit and tax services

      57,543   

Legal

      26,305   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      85,409   

Insurance

      9,945   

Miscellaneous

      104,323   
  

 

 

  

Total expenses

      16,151,725   

Less management fee waiver

      (250,000 ) 

Less broker commission recapture

      (765 ) 
  

 

 

  

Net expenses

      15,900,960   
  

 

 

  

Net Investment Income

      17,155,329   
  

 

 

  

Net Realized and Unrealized Loss

   
Net realized loss on:   

Investments (b)

      (190,868,965 ) 

Foreign currency transactions

      (2,305,055 ) 
  

 

 

  

Net realized loss

      (193,174,020 ) 
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments (c)

      (28,595,523 ) 

Foreign currency transactions

      19,178   
  

 

 

  

Net change in unrealized depreciation

      (28,576,345 ) 
  

 

 

  

Net realized and unrealized loss

      (221,750,365 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (204,595,036 ) 
  

 

 

  

 

(a) Net of foreign withholding taxes of $3,557,582.
(b) Net of foreign capital gains tax of $1,718,317.
(c) Includes change in foreign capital gains tax of $2,727,206.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio)

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 17,155,329      $ 19,769,741   

Net realized loss

      (193,174,020 )      (27,758,692 ) 

Net change in unrealized depreciation

      (28,576,345 )      (87,267,948 )
  

 

 

    

 

 

  

Decrease in net assets from operations

      (204,595,036 )      (95,256,899 )
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (17,919,529 )      (11,867,740 ) 

Class B

      (10,358,294 )      (5,331,917 )
  

 

 

    

 

 

  

Total distributions

      (28,277,823 )      (17,199,657 )
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      62,318,263        (137,354,849 )
  

 

 

    

 

 

  

Total decrease in net assets

      (170,554,596 )      (249,811,405 ) 

Net Assets

     

Beginning of period

      1,470,944,871        1,720,756,276  
  

 

 

    

 

 

  

End of period

    $ 1,300,390,275      $ 1,470,944,871   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 5,059,409      $ 16,479,336   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      5,535,860      $ 51,252,008        8,738,255      $ 85,695,667   

Reinvestments

      1,884,283        17,919,529        1,173,862        11,867,740   

Redemptions

      (1,313,479 )      (12,519,983 )      (22,600,851 )      (233,331,033 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      6,106,664      $ 56,651,554        (12,688,734 )    $ (135,767,626 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      7,112,375      $ 63,536,100        10,307,746      $ 103,639,530   

Reinvestments

      1,098,440        10,358,294        531,067        5,331,917   

Redemptions

      (7,482,771 )      (68,227,685 )      (10,809,579 )      (110,558,670 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      728,044      $ 5,666,709        29,234      $ (1,587,223 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ 62,318,263        $ (137,354,849 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio)

Financial Highlights

 

Selected per share data                                   
     Class A  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 9.62       $ 10.39      $ 11.04       $ 9.36       $ 11.65  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.12         0.13         0.13         0.15         0.16   

Net realized and unrealized gain (loss) on investments

      (1.41 )      (0.79 )      (0.64 )      1.63        (2.28 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (1.29 )      (0.66 )      (0.51 )      1.78        (2.12 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.19 )      (0.11 )      (0.14 )      (0.10 )      (0.17 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.19 )      (0.11 )      (0.14 )      (0.10 )      (0.17 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 8.14       $ 9.62      $ 10.39       $ 11.04       $ 9.36  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (13.66 )      (6.41 )      (4.61 )      19.10        (18.42 )

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      1.02         1.01         1.02         1.07         1.09   

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

      1.00         0.99         1.01         1.07         1.09   

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

      1.29         1.30         1.28         1.50         1.50   

Portfolio turnover rate (%)

      116         49         33         29         40   

Net assets, end of period (in millions)

    $ 789.2       $ 873.8       $ 1,075.9       $ 578.1       $ 473.5   
     Class B  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 9.53       $ 10.30      $ 10.94       $ 9.27       $ 11.56  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.09         0.11         0.10         0.13         0.14   

Net realized and unrealized gain (loss) on investments

      (1.38 )      (0.80 )      (0.62 )      1.62        (2.28 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (1.29 )      (0.69 )      (0.52 )      1.75        (2.14 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.17 )      (0.08 )      (0.12 )      (0.08 )      (0.15 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.17 )      (0.08 )      (0.12 )      (0.08 )      (0.15 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 8.07       $ 9.53      $ 10.30       $ 10.94       $ 9.27  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (13.81 )      (6.70 )      (4.80 )      18.90        (18.70 )

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      1.27         1.26         1.27         1.32         1.34   

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

      1.25         1.24         1.26         1.32         1.34   

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

      1.03         1.05         0.95         1.25         1.30   

Portfolio turnover rate (%)

      116         49         33         29         40   

Net assets, end of period (in millions)

    $ 511.2       $ 597.1       $ 644.8       $ 641.3       $ 544.3   

 

(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) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio)

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Met/Aberdeen Emerging Markets Equity Portfolio (formerly, 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally categorized as Level 2 within the fair value hierarchy.

 

 

MIST-11

Met Investors Series Trust

Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio)

Notes to Financial Statements—December 31, 2015—(Continued)

 

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

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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, broker commission recapture, foreign capital gain tax and passive foreign investment companies (PFICs). These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

 

 

MIST-12

Met Investors Series Trust

Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio)

Notes to Financial Statements—December 31, 2015—(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.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $15,174,218, 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 December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. There were no outstanding securities loaned by the Portfolio at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

3. Certain Risks

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”).

Market 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, 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

 

MIST-13

Met Investors Series Trust

Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio)

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may 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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 1,697,467,161       $ 0       $ 1,643,343,713   

The Portfolio engaged in security transactions with other accounts managed by Massachusetts Financial Services Company that amounted to $523,411 in purchases and $862,996 in sales of investments, which are included above.

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended

December 31, 2015

    % per annum     Average Daily Net Assets
$12,699,180      1.050 %    First $250 million
     1.000 %    $250 million to $500 million
     0.850 %    $500 million to $1 billion
     0.750 %    Over $1 billion

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Massachusetts Financial Services Company was compensated by MetLife Advisers to provide subadvisory services for the Portfolio during the year ended December 31, 2015.

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, for the period May 1, 2015 to April 30, 2016, 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   

 

 

MIST-14

Met Investors Series Trust

Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio)

Notes to Financial Statements—December 31, 2015—(Continued)

 

An identical agreement was in place for the period April 28, 2014 to April 30, 2015. Amounts waived for the year ended December 31, 2015 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, LLC, 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 year ended December 31, 2015 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 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$28,277,823    $ 17,199,657       $ —       $ —       $ 28,277,823       $ 17,199,657   

As of December 31, 2015, 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     Other
Accumulated
Capital Losses		     Total  
$15,409,056    $ —       $ (88,000,306 )    $ (78,185,166 )    $ (225,914,990 )    $ (376,691,406 ) 

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.

 

 

MIST-15

Met Investors Series Trust

Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio)

Notes to Financial Statements—December 31, 2015—(Continued)

 

As of December 31, 2015, the Portfolio had short term post-enactment accumulated capital losses of $61,044,388, long term post-enactment accumulated capital losses of $164,870,602, and the pre-enactment accumulated capital loss carryforwards expiring on December 31, 2017 were $78,185,166.

 

8. Subsequent Events

On January 1, 2016, Aberdeen Asset Managers Limited succeeded Massachusetts Financial Services Company as the subadviser to the Portfolio and the name of the Portfolio was changed from the MFS Emerging Markets Equity Portfolio to the Met/Aberdeen Emerging Markets Equity Portfolio.

 

MIST-16

Met Investors Series Trust

Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio)

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Met/Aberdeen Emerging Markets Equity 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 Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio), one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 Met/Aberdeen Emerging Markets Equity Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-17

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-18

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-19

Met Investors Series Trust

Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio)

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-20

Met Investors Series Trust

Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio)

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-21

Met Investors Series Trust

Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio)

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

Met/Aberdeen Emerging Markets Equity Portfolio (formerly, MFS Emerging Markets Equity Portfolio). At the November Meeting, the Board approved a new sub-adviser for the Portfolio, replacing Massachusetts Financial Services Company (“MFS”) with Aberdeen Asset Managers Limited (“Aberdeen”), under a new sub-advisory agreement between the Adviser and Aberdeen. Aberdeen commenced serving as sub-adviser on January 1, 2016.

The Board also considered the following information in relation to the Agreements with the Adviser and Aberdeen regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio underperformed the median of its Performance Universe and its Lipper Index for the one-, three-, and five-year periods ended June 30, 2015. The Board further considered that the Portfolio outperformed its benchmark, the MSCI Emerging Markets Index, for the one-year period ended October 31, 2015, and underperformed its benchmark for the three- and five-year periods ended October 31, 2015. The Board noted that Aberdeen will assume portfolio management responsibilities for the Portfolio effective January 1, 2016, and that performance prior to that date represents that of MFS.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-l fees) were below the Expense Group median, Expense Universe median, and Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also took into account that the Portfolio’s contractual sub-advisory fees were above the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size. In addition, the Board considered that the Adviser had negotiated reductions to the Portfolio’s sub-advisory fee schedule as a result of the change of the sub-adviser and that the Adviser agreed to waive a portion of its advisory fee in order for contractholders to benefit from the lower sub-advisory fee effective January 1, 2016.

 

MIST-22

Met Investors Series Trust

MFS Research International Portfolio

Managed by Massachusetts Financial Services Company

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A, B, and E shares of the MFS Research International Portfolio returned -1.50%, -1.77%, and -1.76%, respectively. The Portfolio’s benchmarks, the MSCI EAFE Index1 and the MSCI All Country World ex-U.S. Index2, returned -0.81% and -5.66%, respectively.

MARKET ENVIRONMENT / CONDITIONS

Sluggish global growth weighed on both developed and emerging market (“EM”) economies during the reporting period. EM economies have been particularly lackluster. While the U.S. Federal Reserve Bank (the “Fed”) began its anticipated monetary policy tightening cycle at the end of the period, other large developed economies continued to embrace accommodative monetary policies, particularly the European Central Bank and the Bank of Japan. Focus remained on China after policy missteps by the Chinese government roiled global markets over the summer, beginning with the uncoordinated response to the stock market’s boom and bust and then the confusing decision to devalue the renminbi in August. China subsequently ramped up a wide range of monetary and fiscal measures to stimulate the economy and bolster sentiment. Its economy appeared to stabilize late in the period. Also at the end of the period, the Chinese renminbi was granted reserve currency status by the International Monetary Fund (“IMF”), which announced its inclusion in the IMF’s Special Drawing Rights currency basket effective October 1, 2016.

During the second half of the reporting period, the U.S. faced an earnings recession caused primarily by the sharp decline in the prices of oil and other commodities. Earnings contractions were concentrated primarily in the Energy, Materials, and Industrials sectors. An additional headwind for earnings was the sharp rise in the U.S. dollar over the period. Exports were crimped by the dollar’s strength and falling demand in emerging markets. Consumer spending held up well during the second half of the period amid a modest increase in real wages and a tailwind from falling gasoline prices. Demand for autos reached near-record territory late in the period. In emerging markets, two key factors weighed on economies and asset prices: weaker Chinese growth, and the resulting decline in commodity prices, in addition to prospects for higher U.S. interest rates. Structural factors like floating exchange rates and fiscal buffers partially offset these cyclical headwinds.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio underperformed its benchmark during the reporting period. Weak stock selection in the Health Care sector detracted from performance relative to the MSCI EAFE Index, led by the Portfolio’s holdings of pharmaceutical company Valeant Pharmaceuticals (Canada), and not owning shares of pharmaceutical company Novo Nordisk (Denmark).

An overweight position in the Materials sector further hurt relative returns. Within this sector, overweight positions in mining operator Rio Tinto (Australia) and industrial gas supplier Linde (Germany), and holdings of steel producer Gerdau (Brazil), dampened relative results as all three stocks lagged the index during the period.

Weak stock selection in the Industrials sector also weakened relative returns. Here, an overweight position in the electrical distribution equipment manufacturer Schneider Electric (France) hurt relative performance.

Elsewhere, the Portfolio’s holdings of integrated circuits manufacturer MediaTek (Taiwan) and food producer M. Dias Branco SA Industria e Comercio de Alimentos (Brazil), and overweight positions in financial services firms Barclays (United Kingdom) and Royal Bank of Scotland (United Kingdom), also hampered relative returns.

Stock selection within the Financials sector contributed to relative performance. Not owning shares of financial services firm Banco Santander (Spain) and an overweight position in investment management and banking firm UBS (Switzerland) aided relative results.

Elsewhere, overweight positions in pharmaceutical company Santen Pharmaceutical (Japan), tobacco company Japan Tobacco (Japan), telecommunications company KDDI (Japan), and semiconductor and system solutions provider Infineon Technologies (Germany), and the Portfolio’s holdings of food and drug store operator Sundrug (Japan) boosted relative performance. Additionally, not owning shares of multinational commodity trading and mining company Glencore (United Kingdom), the timing of Portfolio’s ownership in paint and chemicals manufacturer Nippon Paint (Japan), and an underweight position in mining giant BHP Billiton (Australia) also aided relative results.

During the reporting period, the Portfolio’s relative currency exposure resulting primarily from differences between the Portfolio’s and the benchmark’s exposure to holdings of securities denominated in foreign currencies was another contributor to relative performance.

In Capital Goods, we continued to add to the Portfolio’s slight mining overweight as we believe the industry looks cheap given our fundamentally based long term commodity price assumptions and is discounting an environment that is far worse than what we are likely to see. We did however, lower the Portfolio’s exposure to mining capital expenditure (“capex”) plays as their primary end markets remain tough, valuations remain high, and mining capex plays are also later cycle.

In Consumer Cyclicals, concerns about China and emerging markets lingered. We continued to pick stocks on a bottom up basis focusing on sustainability of franchise, growth prospects, and valuation. That said, we increased the Portfolio’s exposure to EM retailers due to their attractive and scalable business models along with reasonable valuations. These businesses have already suffered from rapid currency devaluation in 2015, which should reduce downside risk.

 

MIST-1

Met Investors Series Trust

MFS Research International Portfolio

Managed by Massachusetts Financial Services Company

Portfolio Manager Commentary*—(Continued)

 

Additionally, valuations in EM Consumer Staples have become more attractive relative to history and developed market peers. This, in concert with negative currency movements in many of the emerging markets, lowered the risk of starting a position in a high quality Latin American brewer. Elsewhere, the Portfolio’s positions in European Consumer Staples names also have important exposure to EM growth. Our preference has been for those companies more exposed to Asia because we have more confidence in their continued shift towards consumption-driven economies.

Throughout the year, the trend in oil prices has continued to be inexorably downwards. Brent prices are now hovering over a support level which defined the whole post 2004 ‘stimulus’ period for commodities. A break of this level could mean further pain, and from a fundamental standpoint, supply remains worryingly high with inventory levels also very high. Only robust demand appears to be standing in the way of further oil price falls, and the hope is that this remains the case into 2016. This indicates to us that it is probably too soon to turn optimistic on energy prices, and our preference is for companies which match commodity sensitivity with a strong balance sheet to weather the downturn.

In Financials, our preference has been for U.K. and core European banks because loan books have been scrubbed, there has been little lending in the last five years, capital positions have been bolstered and we are getting closer to resumption of lending growth and/or capital returns. That said, we continued to pick stocks on a bottom up basis rather than try to pick which economies may grow faster or slower.

In Health Care, we remained focused on companies with long duration cash flows and good capital allocation. The Portfolio’s performance was hurt late in the period by the increased focus and political scrutiny of U.S. drug pricing and because of the Portfolio’s position in Valeant. Nevertheless, strong performance from Japanese healthcare names managed to offset some of the losses.

The software/services subsector of Information Technology (“IT”) continued to enjoy the best secular growth outlook due to superior business models, generally featuring low capital intensity and high flexibility/rapid evolution of service offering. Companies like Cognizant or Nomura Research, while not cloud businesses themselves, benefit by helping other firms transition their infrastructure to the cloud and generally to more advanced IT infrastructure.

In Telecom, we remained underweight Europe as we find that market to be pricey with valuations feeling a bit stretched. We preferred the U.K. market where the regulatory environment is fairly benign and valuations are reasonable. Although EM valuations are very cheap and we like the local fundamentals, we have not added to the Portfolio’s positions. We were overweight Japan due to the attractive regulatory and competitive environment and our largest position is KDDI which continued to have strong fundamentals at an attractive valuation.

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, 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 subject to change at any time based upon economic, market, or other conditions and the advisory 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year  
MFS Research International Portfolio                 

Class A

        -1.50           2.85           3.51   

Class B

        -1.77           2.58           3.24   

Class E

        -1.76           2.67           3.35   
MSCI EAFE Index        -0.81           3.60           3.03   
MSCI AC World (ex-U.S.) Index        -5.66           1.06           2.92   

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
Roche Holding AG      3.7   
Nestle S.A.      3.4   
Novartis AG      3.3   
HSBC Holdings plc      2.1   
Bayer AG      1.9   
Danone S.A.      1.9   
Mitsubishi UFJ Financial Group, Inc.      1.8   
Westpac Banking Corp.      1.8   
UBS Group AG      1.7   
Schneider Electric SE      1.7   

Top Countries

 

     % of
Net Assets		  
Japan      20.3   
United Kingdom      19.8   
Switzerland      15.1   
France      9.1   
Germany      6.6   
Australia      5.2   
Netherlands      4.0   
Hong Kong      3.4   
United States      3.3   
Taiwan      2.2   

 

MIST-3

Met Investors Series Trust

MFS Research International 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual      0.70 %     $ 1,000.00         $ 918.30         $ 3.38   
   Hypothetical*      0.70 %     $ 1,000.00         $ 1,021.68         $ 3.57   

Class B(a)

    Actual      0.95 %     $ 1,000.00         $ 916.80         $ 4.59   
   Hypothetical*      0.95 %     $ 1,000.00         $ 1,020.42         $ 4.84   

Class E(a)

    Actual      0.85 %     $ 1,000.00         $ 917.20         $ 4.11   
   Hypothetical*      0.85 %     $ 1,000.00         $ 1,020.92         $ 4.33   

* 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 (184 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

MFS Research International Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—99.1% of Net Assets

 

Security Description   Shares     Value  

Australia—5.2%

    

APA Group

     1,919,136      $ 12,056,662   

BHP Billiton plc

     965,541        10,840,259   

Brambles, Ltd.

     1,447,083        12,109,291   

Iluka Resources, Ltd.

     1,832,313        8,107,836   

Oil Search, Ltd.

     1,881,523        9,211,695   

Orica, Ltd. (a)

     1,052,074        11,768,642   

Westpac Banking Corp.

     1,436,471        34,819,231   
   

 

 

  
    98,913,616   
   

 

 

  

Belgium—0.9%

    

KBC Groep NV

     274,817        17,183,144   
   

 

 

  

Brazil—0.6%

    

Ambev S.A. (ADR)

     1,774,492        7,914,234   

Gerdau S.A. (ADR) (a)

     2,215,664        2,658,797   

M Dias Branco S.A.

     59,039        989,229   
   

 

 

  
    11,562,260   
   

 

 

  

Canada—1.4%

    

Element Financial Corp.

     710,529        8,575,439   

Enbridge, Inc.

     251,478        8,360,185   

Valeant Pharmaceuticals International, Inc. (b)

     96,628        9,822,236   
   

 

 

  
    26,757,860   
   

 

 

  

China—1.3%

    

Alibaba Group Holding, Ltd. (ADR) (b)

     144,269        11,724,741   

China Resources Gas Group, Ltd.

     4,106,424        12,192,836   
   

 

 

  
    23,917,577   
   

 

 

  

Denmark—0.3%

    

TDC A/S

     1,228,018        6,091,810   
   

 

 

  

France—9.1%

    

BNP Paribas S.A.

     435,594        24,656,362   

Danone S.A.

     528,303        35,653,784   

Dassault Systemes S.A.

     95,042        7,604,180   

Engie S.A.

     967,501        17,122,549   

L’Oreal S.A.

     154,489        25,991,324   

Legrand S.A.

     117,772        6,647,151   

LVMH Moet Hennessy Louis Vuitton SE

     124,094        19,399,200   

Schneider Electric SE

     554,627        31,578,172   

Technip S.A.

     98,002        4,840,910   
   

 

 

  
    173,493,632   
   

 

 

  

Germany—6.6%

    

Bayer AG

     292,933        36,751,753   

Brenntag AG

     123,028        6,421,114   

Deutsche Wohnen AG

     260,112        7,240,379   

GEA Group AG

     234,729        9,458,725   

Infineon Technologies AG

     1,152,694        16,868,314   

LEG Immobilien AG (b)

     124,785        10,241,939   

Linde AG

     166,943        24,232,330   

Symrise AG

     205,057        13,602,752   
   

 

 

  
    124,817,306   
   

 

 

  

Greece—0.3%

    

Hellenic Telecommunications Organization S.A.

     624,065      6,254,020   
   

 

 

  

Hong Kong—3.4%

    

AIA Group, Ltd.

     5,224,428        31,124,833   

BOC Hong Kong Holdings, Ltd.

     2,903,500        8,791,447   

CK Hutchison Holdings, Ltd.

     1,401,514        18,775,129   

Esprit Holdings, Ltd. (a)

     4,815,897        5,284,427   

Global Brands Group Holding, Ltd. (b)

     8,928,920        1,686,607   
   

 

 

  
    65,662,443   
   

 

 

  

India—0.7%

    

HDFC Bank, Ltd. (ADR)

     206,352        12,711,283   
   

 

 

  

Italy—1.9%

    

Enel S.p.A.

     2,695,345        11,274,031   

Intesa Sanpaolo S.p.A.

     7,529,589        25,093,082   
   

 

 

  
    36,367,113   
   

 

 

  

Japan—20.3%

    

ABC-Mart, Inc.

     122,600        6,725,133   

AEON Financial Service Co., Ltd.

     454,299        10,163,547   

Daikin Industries, Ltd.

     271,900        19,788,246   

Denso Corp.

     611,370        29,149,743   

Inpex Corp.

     900,586        8,887,544   

Japan Tobacco, Inc.

     748,031        27,465,560   

KDDI Corp.

     1,085,900        28,110,658   

Kubota Corp.

     1,604,000        24,725,784   

Mitsubishi Corp.

     589,554        9,794,518   

Mitsubishi UFJ Financial Group, Inc.

     5,662,074        35,041,981   

Nippon Paint Holdings Co., Ltd. (a)

     977,700        23,649,687   

Nomura Research Institute, Ltd.

     221,300        8,505,648   

Santen Pharmaceutical Co., Ltd.

     1,571,400        25,842,372   

SoftBank Group Corp.

     266,000        13,404,897   

Sony Financial Holdings, Inc.

     673,744        12,035,050   

Sumitomo Mitsui Financial Group, Inc.

     633,082        23,881,306   

Sundrug Co., Ltd.

     247,070        15,890,103   

Terumo Corp.

     479,800        14,850,952   

Tokyo Gas Co., Ltd.

     2,543,963        11,949,854   

USS Co., Ltd.

     626,200        9,421,593   

Yamato Holdings Co., Ltd.

     1,305,066        27,660,226   
   

 

 

  
    386,944,402   
   

 

 

  

Netherlands—4.0%

    

ABN AMRO Group NV (b)

     846,849        19,022,869   

Akzo Nobel NV

     435,931        29,117,360   

RELX NV

     1,680,684        28,262,205   
   

 

 

  
    76,402,434   
   

 

 

  

Philippines—0.2%

    

Philippine Long Distance Telephone Co.

     84,585        3,673,048   
   

 

 

  

Portugal—0.6%

    

Galp Energia SGPS S.A.

     1,010,045        11,708,335   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

MFS Research International Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description       
    
Shares		     Value  

Russia—0.4%

    

Magnit PJSC

     28,768      $ 4,412,538   

Mobile TeleSystems PJSC

     824,410        2,379,496   
   

 

 

  
    6,792,034   
   

 

 

  

Singapore—0.4%

    

DBS Group Holdings, Ltd.

     663,579        7,768,848   
   

 

 

  

Spain—0.5%

    

Amadeus IT Holding S.A. - A Shares

     210,866        9,285,119   
   

 

 

  

Sweden—1.2%

    

Hennes & Mauritz AB - B Shares

     327,012        11,644,688   

Telefonaktiebolaget LM Ericsson - B Shares

     1,108,695        10,739,600   
   

 

 

  
    22,384,288   
   

 

 

  

Switzerland—15.1%

    

Julius Baer Group, Ltd. (b)

     263,953        12,654,884   

Nestle S.A.

     878,209        65,096,065   

Novartis AG

     728,548        62,273,802   

Roche Holding AG

     255,085        70,298,398   

Schindler Holding AG (Participation Certificate)

     118,325        19,813,125   

UBS Group AG

     1,725,695        33,209,105   

Zurich Insurance Group AG (b)

     95,134        24,274,336   
   

 

 

  
    287,619,715   
   

 

 

  

Taiwan—2.2%

    

MediaTek, Inc.

     1,820,845        13,760,776   

Taiwan Semiconductor Manufacturing Co., Ltd.

     6,358,468        27,437,274   
   

 

 

  
    41,198,050   
   

 

 

  

Thailand—0.2%

    

Kasikornbank PCL

     1,080,642        4,467,605   
   

 

 

  

United Kingdom—19.8%

    

Barclays plc

     8,080,915        26,155,323   

BG Group plc

     1,455,165        21,101,800   

BT Group plc

     1,877,270        12,974,205   

Burberry Group plc

     371,378        6,532,127   

Cairn Energy plc (b)

     2,056,462        4,774,851   

Centrica plc

     2,852,051        9,160,839   

Compass Group plc

     876,459        15,169,578   

Croda International plc

     442,537        19,724,745   

GKN plc

     6,810,707        30,919,984   

Hiscox, Ltd.

     663,312        10,300,918   

HSBC Holdings plc

     5,040,148        39,774,003   

Lloyds Banking Group plc

     28,743,084        30,936,737   

Reckitt Benckiser Group plc

     339,273        31,229,719   

Rio Tinto plc

     1,056,986        30,803,379   

Royal Dutch Shell plc - A Shares

     699,723        15,720,331   

Stagecoach Group plc

     979,962        4,266,439   

Vodafone Group plc

     6,123,107        19,805,340   

United Kingdom—(Continued)

  

Whitbread plc

     371,692      $ 24,020,337   

WPP plc

     1,041,628        23,975,894   
   

 

 

  
    377,346,549   
   

 

 

  

United States—2.5%

    

Cognizant Technology Solutions Corp. - Class A (b)

     355,826        21,356,676   

MasterCard, Inc. - Class A

     146,724        14,285,049   

Pricesmart, Inc. (a)

     52,515        4,358,220   

Yum! Brands, Inc.

     93,899        6,859,322   
   

 

 

  
    46,859,267   
   

 

 

  

Total Common Stocks
(Cost $1,862,459,932)

       1,886,181,758   
   

 

 

  
Short-Term Investments—2.3%   

Mutual Fund—1.5%

  

State Street Navigator Securities Lending MET Portfolio (c)

     28,234,405        28,234,405   
   

 

 

  

Repurchase Agreement—0.8%

  

Fixed Income Clearing Corp.
Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $15,815,395 on 01/04/16, collateralized by $16,015,000 U.S. Treasury Note at 1.625% due 08/31/19 with a value of $16,135,113.

     15,815,343        15,815,343   
   

 

 

  

Total Short-Term Investments
(Cost $44,049,748)

       44,049,748   
   

 

 

  

Total Investments—101.4%
(Cost $1,906,509,680) (d)

       1,930,231,506   

Other assets and liabilities (net)—(1.4)%

       (26,025,575 ) 
   

 

 

  
Net Assets—100.0%     $ 1,904,205,931   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of December 31, 2015, the market value of securities loaned was $29,273,997 and the collateral received consisted of cash in the amount of $28,234,405 and non-cash collateral with a value of $2,854,975. 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 on loan as of December 31, 2015.

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

MFS Research International Portfolio

Schedule of Investments as of December 31, 2015

 

(d) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $1,925,800,387. The aggregate unrealized appreciation and depreciation of investments were $218,554,863 and $(214,123,744), respectively, resulting in net unrealized appreciation of $4,431,119 for federal income tax purposes.
(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
December 31, 2015 (Unaudited)

   

% of
Net Assets

  

Banks

      16.3   

Pharmaceuticals

      10.8   

Chemicals

      6.4   

Food Products

      5.3   

Oil, Gas & Consumable Fuels

      4.2   

Insurance

      4.1   

Wireless Telecommunication Services

      3.5   

Auto Components

      3.2   

Semiconductors & Semiconductor Equipment

      3.1   

Machinery

      2.8   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

MFS Research International Portfolio

Schedule of Investments as of December 31, 2015

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2     Level 3      Total  
Common Stocks           

Australia

    $ —         $ 98,913,616      $ —         $ 98,913,616   

Belgium

      —           17,183,144        —           17,183,144   

Brazil

      10,573,031         989,229        —           11,562,260   

Canada

      26,757,860         —          —           26,757,860   

China

      11,724,741         12,192,836        —           23,917,577   

Denmark

      —           6,091,810        —           6,091,810   

France

      —           173,493,632        —           173,493,632   

Germany

      —           124,817,306        —           124,817,306   

Greece

      —           6,254,020        —           6,254,020   

Hong Kong

      —           65,662,443        —           65,662,443   

India

      12,711,283         —          —           12,711,283   

Italy

      —           36,367,113        —           36,367,113   

Japan

      —           386,944,402        —           386,944,402   

Netherlands

      19,022,869         57,379,565        —           76,402,434   

Philippines

      —           3,673,048        —           3,673,048   

Portugal

      —           11,708,335        —           11,708,335   

Russia

      6,792,034         —          —           6,792,034   

Singapore

      —           7,768,848        —           7,768,848   

Spain

      —           9,285,119        —           9,285,119   

Sweden

      —           22,384,288        —           22,384,288   

Switzerland

      —           287,619,715        —           287,619,715   

Taiwan

      —           41,198,050        —           41,198,050   

Thailand

      —           4,467,605        —           4,467,605   

United Kingdom

      —           377,346,549        —           377,346,549   

United States

      46,859,267         —          —           46,859,267   

Total Common Stocks

      134,441,085         1,751,740,673        —           1,886,181,758   
Short-Term Investments           

Mutual Fund

      28,234,405         —          —           28,234,405   

Repurchase Agreement

      —           15,815,343        —           15,815,343   

Total Short-Term Investments

      28,234,405         15,815,343        —           44,049,748   

Total Investments

    $ 162,675,490       $ 1,767,556,016      $ —         $ 1,930,231,506   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (28,234,405 )    $ —         $ (28,234,405 ) 

Transfers from Level 2 to Level 1 in the amount of $2,462,191 were due to the discontinuation of a systematic fair valuation model factor. Transfers from Level 1 to Level 2 in the amount of $35,688,258 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 Research International Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 1,930,231,506   

Cash denominated in foreign currencies (c)

      50,448   

Receivable for:

   

Investments sold

      197,071   

Fund shares sold

      239,291   

Dividends and interest

      3,902,537   

Prepaid expenses

      5,629   
  

 

 

  

Total Assets

      1,934,626,482   

Liabilities

   

Collateral for securities loaned

      28,234,405   

Payables for:

   

Investments purchased

      187,486   

Fund shares redeemed

      154,776   

Accrued Expenses:

   

Management fees

      1,027,033   

Distribution and service fees

      140,866   

Deferred trustees’ fees

      81,937   

Other expenses

      594,048   
  

 

 

  

Total Liabilities

      30,420,551   
  

 

 

  

Net Assets

    $ 1,904,205,931   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 2,021,313,855   

Undistributed net investment income

      38,169,871   

Accumulated net realized loss

      (178,732,042 ) 

Unrealized appreciation on investments and foreign currency transactions

      23,454,247   
  

 

 

  

Net Assets

    $ 1,904,205,931   
  

 

 

  

Net Assets

   

Class A

    $ 1,241,186,703   

Class B

      654,630,292   

Class E

      8,388,936   

Capital Shares Outstanding*

   

Class A

      118,700,711   

Class B

      63,200,332   

Class E

      805,580   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 10.46   

Class B

      10.36   

Class E

      10.41   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,906,509,680.
(b) Includes securities loaned at value of $29,273,997.
(c) Identified cost of cash denominated in foreign currencies was $50,690.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends (a)

    $ 53,322,884   

Interest

      231   

Securities lending income

      1,356,888   
  

 

 

  

Total investment income

      54,680,003   

Expenses

   

Management fees

      14,253,051   

Administration fees

      49,424   

Custodian and accounting fees

      973,869   

Distribution and service fees—Class B

      1,776,503   

Distribution and service fees—Class E

      13,878   

Audit and tax services

      52,462   

Legal

      26,460   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      120,723   

Insurance

      13,874   

Miscellaneous

      63,925   
  

 

 

  

Total expenses

      17,379,342   

Less management fee waiver

      (1,176,394 ) 

Less broker commission recapture

      (6,646 ) 
  

 

 

  

Net expenses

      16,196,302   
  

 

 

  

Net Investment Income

      38,483,701   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments (b)

      60,880,774   

Foreign currency transactions

      (659,691 ) 
  

 

 

  

Net realized gain

      60,221,083   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments (c)

      (119,804,345 ) 

Foreign currency transactions

      16,677   
  

 

 

  

Net change in unrealized depreciation

      (119,787,668 ) 
  

 

 

  

Net realized and unrealized loss

      (59,566,585 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (21,082,884 ) 
  

 

 

  

 

(a) Net of foreign withholding taxes of $4,950,393.
(b) Net of foreign capital gains tax of $7,379.
(c) Includes change in foreign capital gains tax of $126,095.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

MFS Research International Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 38,483,701      $ 64,163,301   

Net realized gain

      60,221,083        143,655,024   

Net change in unrealized depreciation

      (119,787,668 )      (356,364,499 ) 
  

 

 

    

 

 

  

Decrease in net assets from operations

      (21,082,884 )      (148,546,174 ) 
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (39,305,196 )      (41,393,345 ) 

Class B

      (19,247,124 )      (17,466,175 ) 

Class E

      (258,498 )      (246,156 ) 
  

 

 

    

 

 

  

Total distributions

      (58,810,818 )      (59,105,676 ) 
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (66,353,024 )      (311,458,219 ) 
  

 

 

    

 

 

  

Total decrease in net assets

      (146,246,726 )      (519,110,069 ) 

Net Assets

     

Beginning of period

      2,050,452,657        2,569,562,726   
  

 

 

    

 

 

  

End of period

    $ 1,904,205,931      $ 2,050,452,657   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 38,169,871      $ 56,307,391   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      3,063,653      $ 34,262,043        5,502,504      $ 63,699,228   

Reinvestments

      3,397,165        39,305,196        3,590,056        41,393,345   

Redemptions

      (9,608,203 )      (113,333,774 )      (31,596,854 )      (370,025,452 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (3,147,385 )    $ (39,766,535 )      (22,504,294 )    $ (264,932,879 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      4,317,377      $ 47,532,717        3,741,072      $ 42,962,189   

Reinvestments

      1,676,579        19,247,124        1,525,430        17,466,175   

Redemptions

      (8,242,289 )      (92,736,513 )      (9,125,413 )      (105,690,150 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (2,248,333 )    $ (25,956,672 )      (3,858,911 )    $ (45,261,786 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      35,257      $ 389,246        37,680      $ 437,242   

Reinvestments

      22,420        258,498        21,405        246,156   

Redemptions

      (113,643 )      (1,277,561 )      (167,780 )      (1,946,952 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (55,966 )    $ (629,817 )      (108,695 )    $ (1,263,554 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (66,353,024 )      $ (311,458,219 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

MFS Research International Portfolio

Financial Highlights

 

Selected per share data                                   
     Class A  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 10.93       $ 12.01       $ 10.34       $ 9.03       $ 10.28   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.22         0.34         0.23         0.25         0.22   

Net realized and unrealized gain (loss) on investments

      (0.35 )       (1.13 )       1.75         1.27         (1.26 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.13 )       (0.79 )       1.98         1.52         (1.04 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.34 )       (0.29 )       (0.31 )       (0.21 )       (0.21 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.34 )       (0.29 )       (0.31 )       (0.21 )       (0.21 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.46       $ 10.93       $ 12.01       $ 10.34       $ 9.03   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (1.50 )       (6.74 )       19.58         16.97         (10.44 ) 

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      0.76         0.76         0.75         0.75         0.77   

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

      0.70         0.70         0.70         0.70         0.73   

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

      1.95         2.89         2.08         2.59         2.24   

Portfolio turnover rate (%)

      35         28         34         36         39   

Net assets, end of period (in millions)

    $ 1,241.2       $ 1,332.2       $ 1,733.3       $ 1,800.5       $ 1,804.3   
     Class B  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 10.83       $ 11.90       $ 10.25       $ 8.95       $ 10.20   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.19         0.30         0.20         0.22         0.20   

Net realized and unrealized gain (loss) on investments

      (0.35 )       (1.11 )       1.73         1.26         (1.26 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.16 )       (0.81 )       1.93         1.48         (1.06 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.31 )       (0.26 )       (0.28 )       (0.18 )       (0.19 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.31 )       (0.26 )       (0.28 )       (0.18 )       (0.19 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.36       $ 10.83       $ 11.90       $ 10.25       $ 8.95   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (1.77 )       (6.95 )       19.26         16.71         (10.71 ) 

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      1.01         1.01         1.00         1.00         1.02   

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

      0.95         0.95         0.95         0.95         0.98   

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

      1.70         2.56         1.81         2.29         2.02   

Portfolio turnover rate (%)

      35         28         34         36         39   

Net assets, end of period (in millions)

    $ 654.6       $ 708.9       $ 824.6       $ 774.5       $ 720.7   

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  
     Year Ended December 31,  
     2015     2014     2013     2012     2011  

Net Asset Value, Beginning of Period

    $ 10.89      $ 11.96      $ 10.30      $ 8.99      $ 10.24   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (Loss) from Investment Operations

           

Net investment income (a)

      0.20        0.31        0.21        0.23        0.21   

Net realized and unrealized gain (loss) on investments

      (0.36 )      (1.11 )      1.74        1.27        (1.27 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      (0.16 )      (0.80 )      1.95        1.50        (1.06 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less Distributions

           

Distributions from net investment income

      (0.32 )      (0.27 )      (0.29 )      (0.19 )      (0.19 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.32 )      (0.27 )      (0.29 )      (0.19 )      (0.19 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 10.41      $ 10.89      $ 11.96      $ 10.30      $ 8.99   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return (%) (b)

      (1.76 )      (6.83 )      19.36        16.83        (10.62 ) 

Ratios/Supplemental Data

           

Gross ratio of expenses to average net assets (%)

      0.91        0.91        0.90        0.90        0.92   

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

      0.85        0.85        0.85        0.85        0.88   

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

      1.80        2.67        1.92        2.42        2.14   

Portfolio turnover rate (%)

      35        28        34        36        39   

Net assets, end of period (in millions)

    $ 8.4      $ 9.4      $ 11.6      $ 11.6      $ 12.3   

 

(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) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

MFS Research International Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally categorized as Level 2 within the fair value hierarchy.

 

MIST-13

Met Investors Series Trust

MFS Research International Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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, broker commission recapture, foreign capital gain tax and passive foreign investment companies (PFICs). These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

 

MIST-14

Met Investors Series Trust

MFS Research International Portfolio

Notes to Financial Statements—December 31, 2015—(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.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $15,815,343, 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 December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2015, with a contractual maturity of overnight and continuous.

3. Certain Risks

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”).

Market 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, interest rate, and price fluctuations.

 

MIST-15

Met Investors Series Trust

MFS Research International Portfolio

Notes to Financial Statements—December 31, 2015—(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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may 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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 704,600,419       $ 0       $ 787,020,506   

The Portfolio engaged in security transactions with other accounts managed by Massachusetts Financial Services Company that amounted to $2,615,024 in purchases and $23,112,650 in sales of investments, which are included above.

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$14,253,051      0.800 %    First $200 million
     0.750 %    $200 million to $500 million
     0.700 %    $500 million to $1 billion
     0.650 %    Over $1 billion

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Massachusetts Financial Services Company is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

 

MIST-16

Met Investors Series Trust

MFS Research International Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, for the period December 1, 2015 to April 30, 2016, 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 $250 million
0.100%    $250 million to$500 million
0.050%    $500 million to $2 billion
0.100%    Over $2 billion

For the period January 1, 2015 to November 30, 2015, MetLife Advisers had agreed to reduce its advisory fees 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 $1 billion
0.100%    Over $1.5 billion

Amounts waived for the year ended December 31, 2015 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, LLC, 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 year ended December 31, 2015 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 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-17

Met Investors Series Trust

MFS Research International Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

7. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital
Gain		      Total  

2015

    2014      2015      2014      2015      2014  
$58,810,818    $ 59,105,676       $ —       $ —       $ 58,810,818       $ 59,105,676   

As of December 31, 2015, 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  
$39,516,263    $ —       $ 4,163,352       $ (160,705,604 )    $ —       $ (117,025,989 ) 

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.

During the year ended December 31, 2015, the Portfolio utilized capital loss carryforwards $52,086,603.

As of December 31, 2015, the Portfolio had no post-enactment accumulated capital losses. The pre-enactment accumulated capital loss carryforwards and expiration dates were as follows:

 

Expiring
12/31/17		      Expiring
12/31/18		      Total  
$ 138,525,793       $ 22,179,811       $ 160,705,604   

8. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-18

Met Investors Series Trust

MFS Research International Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of MFS Research International 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 MFS Research International Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 MFS Research International Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-19

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-20

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-21

Met Investors Series Trust

MFS Research International Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-22

Met Investors Series Trust

MFS Research International Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-23

Met Investors Series Trust

MFS Research International Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

MFS Research International Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Massachusetts Financial Services Company regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the one-year and five-year periods ended June 30, 2015, and underperformed the median of its Performance Universe and its Lipper Index for the three-year period ended June 30, 2015. The Board noted that the Portfolio underperformed its benchmark, the MSCI EAFE Index, for the one-, three-, and five-year periods ended October 31, 2015. The Board further noted that the Portfolio outperformed its other benchmark, the MSCI All Country World (ex.-U.S.) Index, for the one-, three-, and five-year periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, Expense Universe median, and Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also considered that the Portfolio’s contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size. In addition, the Board considered that the Adviser had negotiated reductions to the Portfolio’s sub-advisory fee schedule and that the Adviser agreed to waive a portion of its advisory fee in order for contractholders to benefit from the lower sub-advisory fee effective December 1, 2015.

 

MIST-24

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Managed by Morgan Stanley Investment Management Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A, B, and E shares of the Morgan Stanley Mid Cap Growth Portfolio returned -4.78%, -5.02%, and -4.96%, respectively. The Portfolio’s benchmark, the Russell Midcap Growth Index1, returned -0.20%.

MARKET ENVIRONMENT / CONDITIONS

The broad stock market ended the 12-month period at nearly the same level where it started, masking the considerable gyrations stock prices endured in between. The anticipation of the U.S. Federal Reserve’s (the “Fed”) first rate increase, the persistent slide in commodity prices, and global economic weakness, especially in China, weighed on the market throughout the period. Although U.S. economic data was mixed throughout the period, the economy’s slow recovery continued, sufficiently that the Fed decided in December to raise its main policy interest rate, after keeping it near zero since December 2008 to stimulate growth.

Slowing corporate earnings growth and a record year for merger and acquisition deals dominated the business headlines. Falling oil and raw materials prices caused considerable tumult for share prices in the Energy, Materials, and Industrials sectors. Although expectations were that consumer-oriented companies would benefit from consumers spending less at the gas pump, the boost to discretionary spending disappointed as consumers tended to pocket the savings. The U.S. dollar’s strength relative to other major currencies, propelled by the Fed’s move to a tightening stance while other global central banks were easing, also hurt the profits of U.S. multinational companies. Their foreign sales are worth less when translated back into U.S. dollars, and overseas demand is crimped when U.S. products become more expensive.

In this environment, mid-cap growth stocks, as represented by the Russell Midcap Growth Index, fell 0.20% for the 12-month period. Consumer Staples was the best-performing sector in the Index for the period, while Energy was the worst-performing sector.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio’s underperformance during the period was driven by stock selection, with most of the relative losses occurring in the Information Technology (“IT”), Consumer Staples, and Health Care sectors. Global communications platform Twitter was the largest detractor in both the IT sector and the overall Portfolio for this period. Twitter’s shares have been plagued for some time by concerns around user growth, which has generally disappointed Wall Street expectations. While we continue to monitor the situation, we believe the reach of Twitter’s global platform is far greater than its registered user base, and accordingly that the company has a sizeable opportunity to monetize user engagement via various advertising solutions. In the Consumer Staples sector, relative results were hurt by Keurig Green Mountain, a leading single-serve coffee provider. The company’s poor execution around the launch of its 2.0 coffee brewer resulted in weaker-than-expected fundamentals, and both the price point and timeline to launch its new cold beverage system had also disappointed investors. Although the shares spiked in early December on news that the company agreed to be acquired by privately held JAB Holding Company at an 80% premium, the stock detracted from performance for the period overall.

However, the Portfolio’s relative underperformance was partially offset by relative gains from stock selection and an underweight position in the Industrials sector. Verisk Analytics was the sector’s top contributor to performance, as its share price rose on the company’s strong execution.

The Portfolio also benefited from a lack of exposure to the Energy sector, which was, by far, the worst-performing sector in the Index in this reporting period.

Stock selection in Financials added value as well. MSCI, a global provider of performance, risk management, and corporate governance products was the Portfolio’s largest contributor to performance during the period. The company’s shares advanced on news that a large activist shareholder is pushing for changes at the company to create value. At year end, we remained attracted to the company as its indices and products have become the de facto standard in several areas of the financial services industry.

Our team continues to focus on bottom-up stock selection and the long-term outlook for companies owned in the Portfolio;

 

MIST-1

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Managed by Morgan Stanley Investment Management Inc.

Portfolio Manager Commentary*—(Continued)

 

accordingly, we have had very little turnover in the Portfolio to date, as our ongoing work reaffirms our assessment of quality and competitive advantage in the names we own. At the end of the period, the Portfolio’s largest sector weights were in IT, Health Care, and Consumer Discretionary, while maintaining no exposure to the Energy, Materials, Telecommunication Services, or Utilities sectors.

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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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

Morgan Stanley Mid Cap Growth Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE RUSSELL MIDCAP GROWTH INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year        Since Inception2  
Morgan Stanley Mid Cap Growth Portfolio                      

Class A

        -4.78           6.56           7.49           —   

Class B

        -5.02           6.29           7.22           —   

Class E

        -4.96           6.38           —           9.10   
Russell Midcap Growth Index        -0.20           11.54           8.16           —   

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 dates of the Class A, Class B and Class E shares are 5/1/2001, 2/12/2001 and 4/27/2010, respectively.

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
Illumina, Inc.      5.3   
Tesla Motors, Inc.      4.5   
Intuitive Surgical, Inc.      4.4   
athenahealth, Inc.      4.2   
LinkedIn Corp. - Class A      4.2   
Zoetis, Inc.      3.3   
Twitter, Inc.      3.3   
Monster Beverage Corp.      3.3   
ServiceNow, Inc.      3.1   
Splunk, Inc.      3.1   

Top Sectors

 

     % of
Net Assets		  
Information Technology      33.7   
Health Care      20.5   
Consumer Discretionary      18.3   
Consumer Staples      8.3   
Financials      7.5   
Industrials      5.8   

 

MIST-3

Met Investors Series Trust

Morgan Stanley Mid Cap 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual      0.67 %     $ 1,000.00         $ 926.90         $ 3.25   
   Hypothetical*      0.67 %     $ 1,000.00         $ 1,021.83         $ 3.41   

Class B(a)

    Actual      0.92 %     $ 1,000.00         $ 925.90         $ 4.47   
   Hypothetical*      0.92 %     $ 1,000.00         $ 1,020.57         $ 4.69   

Class E(a)

    Actual      0.82 %     $ 1,000.00         $ 926.30         $ 3.98   
   Hypothetical*      0.82 %     $ 1,000.00         $ 1,021.07         $ 4.18   

* 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 (184 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

Morgan Stanley Mid Cap Growth Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—90.8% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—1.2%

  

TransDigm Group, Inc. (a)

     50,661      $ 11,573,505   
   

 

 

  

Air Freight & Logistics—0.5%

  

XPO Logistics, Inc. (a) (b)

     180,996        4,932,141   
   

 

 

  

Automobiles—4.5%

  

Tesla Motors, Inc. (a) (b)

     190,011        45,604,540   
   

 

 

  

Beverages—3.3%

  

Monster Beverage Corp. (a)

     220,056        32,779,542   
   

 

 

  

Biotechnology—1.3%

  

Alnylam Pharmaceuticals, Inc. (a) (b)

     58,204        5,479,324   

Intrexon Corp. (a) (b)

     131,879        3,976,152   

Seattle Genetics, Inc. (a)

     73,393        3,293,878   
   

 

 

  
    12,749,354   
   

 

 

  

Communications Equipment—0.9%

  

Palo Alto Networks, Inc. (a)

     53,461        9,416,621   
   

 

 

  

Consumer Finance—1.9%

  

LendingClub Corp. (a) (b)

     1,774,320        19,606,236   
   

 

 

  

Diversified Financial Services—5.6%

  

McGraw Hill Financial, Inc.

     314,687        31,021,844   

MSCI, Inc.

     352,305        25,411,760   
   

 

 

  
    56,433,604   
   

 

 

  

Electrical Equipment—0.5%

  

SolarCity Corp. (a) (b)

     104,326        5,322,713   
   

 

 

  

Food Products—5.0%

  

Keurig Green Mountain, Inc.

     242,698        21,837,966   

Mead Johnson Nutrition Co. (b)

     364,224        28,755,485   
   

 

 

  
    50,593,451   
   

 

 

  

Health Care Equipment & Supplies—5.4%

  

DexCom, Inc. (a)

     124,912        10,230,293   

Intuitive Surgical, Inc. (a)

     81,225        44,361,846   
   

 

 

  
    54,592,139   
   

 

 

  

Health Care Technology—4.2%

  

athenahealth, Inc. (a) (b)

     262,642        42,277,483   
   

 

 

  

Hotels, Restaurants & Leisure—5.5%

  

Chipotle Mexican Grill, Inc. (a)

     16,236        7,790,845   

Dunkin’ Brands Group, Inc. (b)

     605,138        25,772,827   

Marriott International, Inc. - Class A (b)

     330,065        22,127,558   
   

 

 

  
    55,691,230   
   

 

 

  

Internet & Catalog Retail—1.6%

  

TripAdvisor, Inc. (a)

     70,632        6,021,378   

Vipshop Holdings, Ltd. (ADR) (a)

     43,196        659,603   

Zalando SE (a)

     225,626        8,913,132   
   

 

 

  
    15,594,113   
   

 

 

  

Internet Software & Services—14.3%

  

Autohome, Inc. (ADR) (a)

     329,097      11,492,067   

Dropbox, Inc. (a) (c) (d)

     460,161        4,325,513   

LinkedIn Corp. - Class A (a)

     185,980        41,860,378   

MercadoLibre, Inc.

     97,073        11,099,327   

Pandora Media, Inc. (a)

     511,651        6,861,240   

SurveyMonkey, Inc. (a) (c) (d)

     303,799        4,444,579   

Twitter, Inc. (a) (b)

     1,429,226        33,072,290   

Yelp, Inc. (a)

     179,580        5,171,904   

Zillow Group, Inc. - Class A (a) (b)

     353,539        9,206,156   

Zillow Group, Inc. - Class C (a) (b)

     707,078        16,602,192   
   

 

 

  
    144,135,646   
   

 

 

  

IT Services—3.4%

  

FleetCor Technologies, Inc. (a)

     168,224        24,044,257   

Gartner, Inc. (a)

     108,656        9,855,099   
   

 

 

  
    33,899,356   
   

 

 

  

Life Sciences Tools & Services—5.3%

  

Illumina, Inc. (a)

     276,519        53,076,439   
   

 

 

  

Pharmaceuticals—4.3%

  

Endo International plc (a)

     164,225        10,053,854   

Zoetis, Inc.

     694,464        33,278,715   
   

 

 

  
    43,332,569   
   

 

 

  

Professional Services—3.6%

  

IHS, Inc. - Class A (a)

     83,804        9,924,908   

Verisk Analytics, Inc. (a)

     345,269        26,544,280   
   

 

 

  
    36,469,188   
   

 

 

  

Software—12.5%

  

Atlassian Corp. plc - Class A (a)

     149,598        4,499,908   

FireEye, Inc. (a)

     272,555        5,652,791   

Mobileye NV (a)

     108,975        4,607,463   

NetSuite, Inc. (a) (b)

     96,004        8,123,858   

ServiceNow, Inc. (a)

     364,403        31,542,724   

Splunk, Inc. (a)

     530,655        31,207,820   

Tableau Software, Inc. - Class A (a)

     111,920        10,545,102   

Workday, Inc. - Class A (a)

     375,045        29,883,586   
   

 

 

  
    126,063,252   
   

 

 

  

Specialty Retail—2.7%

  

Ulta Salon Cosmetics & Fragrance, Inc. (a)

     148,780        27,524,300   
   

 

 

  

Technology Hardware, Storage & Peripherals—0.3%

  

3D Systems Corp. (a) (b)

     146,928        1,276,804   

Stratasys, Ltd. (a) (b)

     52,231        1,226,384   
   

 

 

  
    2,503,188   
   

 

 

  

Textiles, Apparel & Luxury Goods—3.0%

  

lululemon athletica, Inc. (a) (b)

     187,502        9,838,230   

Michael Kors Holdings, Ltd. (a)

     348,423        13,957,825   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description  

Shares/

Notional
Amount*

     Value  

Textiles, Apparel & Luxury Goods—(Continued)

  

Under Armour, Inc. - Class A (a) (b)

     78,395      $ 6,319,421   
   

 

 

  
    30,115,476   
   

 

 

  

Total Common Stocks
(Cost $833,487,285)

   

     914,286,086   
   

 

 

  
Preferred Stocks—1.7%   

Internet & Catalog Retail—1.0%

  

Flipkart Online Pvt., Ltd. - Series D (a) (c) (d)

     98,557        10,246,971   
   

 

 

  

Internet Software & Services—0.1%

  

Dropbox, Inc. - Series A (a) (c) (d)

     51,888        487,747   

Peixe Urbano, Inc. - Series C (a) (c) (d)

     71,709        30,835   
   

 

 

  
    518,582   
   

 

 

  

Software—0.6%

    

Palantir Technologies, Inc. -
Series G (a) (c) (d)

     541,563        4,170,036   

Palantir Technologies, Inc. -
Series H (a) (c) (d)

     174,289        1,342,025   

Palantir Technologies, Inc. -
Series H-1 (a) (c) (d)

     174,289        1,342,025   
   

 

 

  
    6,854,086   
   

 

 

  

Total Preferred Stocks
(Cost $7,854,830)

   

     17,619,639   
   

 

 

  
Convertible Preferred Stock—1.6%   

Internet Software & Services—1.6%

  

Airbnb, Inc. - Series D (a) (c) (d)
(Cost $7,659,587)

     188,136        15,737,577   
   

 

 

  
Purchased Option—0.3%   

Currency Option—0.3%

  

USD Call/CNY Put, Strike Price CNY 6.70 Expires 06/06/16 (Counterparty - Royal Bank of Scotland plc) (e)
(Cost $579,072)

     148,743,056        2,565,818   
   

 

 

  
Short-Term Investments—20.5%   

Mutual Fund—15.1%

  

State Street Navigator Securities Lending MET Portfolio (f)

     152,385,817        152,385,817   
   

 

 

  
Security Description  

Principal
Amount*

     Value  

Repurchase Agreement—5.4%

  

Fixed Income Clearing Corp.
Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $54,289,957 on 01/04/16, collateralized by $54,795,000 U.S. Treasury Note at 1.625% due 03/31/19 with a value of
$55,378,402.

     54,289,776      $ 54,289,776   
   

 

 

  

Total Short-Term Investments
(Cost $206,675,593)

   

     206,675,593   
   

 

 

  

Total Investments—114.9%
(Cost $1,056,256,367) (g)

   

     1,156,884,713   

Other assets and liabilities (net)—(14.9)%

  

     (149,584,922 ) 
   

 

 

  
Net Assets—100.0%      $ 1,007,299,791   
   

 

 

  

 

* Principal and notional amounts 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 December 31, 2015, the market value of securities loaned was $178,399,502 and the collateral received consisted of cash in the amount of $152,385,817 and non-cash collateral with a value of $29,859,559. 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 December 31, 2015, these securities represent 4.2% 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 December 31, 2015, the market value of restricted securities was $42,127,308, which is 4.2% of net assets. See details shown in the Restricted Securities table that follows.
(e) Illiquid security. As of December 31, 2015, these securities represent 0.3% of net assets.
(f) Represents investment of cash collateral received from securities on loan as of December 31, 2015.
(g) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $1,056,592,669. The aggregate unrealized appreciation and depreciation of investments were $216,545,098 and $(116,253,054), respectively, resulting in net unrealized appreciation of $100,292,044 for federal income tax purposes.
(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.
(CNY)— Chinese Yuan

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Schedule of Investments as of December 31, 2015

 

Restricted Securities

    Acquisition
Date		      Shares      Cost      Value  

Airbnb, Inc. - Series D

      04/16/14         188,136       $ 7,659,587       $ 15,737,577   

Dropbox, Inc.

      05/01/12         460,161         4,165,241         4,325,513   

Dropbox, Inc. - Series A

      05/25/12         51,888         470,125         487,747   

Flipkart Online Pvt., Ltd. - Series D

      10/04/13         98,557         2,264,087         10,246,971   

Palantir Technologies, Inc. - Series G

      07/19/12         541,563         1,657,183         4,170,035   

Palantir Technologies, Inc. - Series H

      10/25/13         174,289         611,754         1,342,026   

Palantir Technologies, Inc. - Series H-1

      10/25/13         174,289         611,754         1,342,025   

Peixe Urbano, Inc. - Series C

      12/02/11         71,709         2,239,927         30,835   

SurveyMonkey, Inc.

      11/25/14         303,799         4,997,494         4,444,579   
           

 

 

  
            $ 42,127,308   
           

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2     Level 3      Total  
Common Stocks           

Aerospace & Defense

    $ 11,573,505       $ —        $ —         $ 11,573,505   

Air Freight & Logistics

      4,932,141         —          —           4,932,141   

Automobiles

      45,604,540         —          —           45,604,540   

Beverages

      32,779,542         —          —           32,779,542   

Biotechnology

      12,749,354         —          —           12,749,354   

Communications Equipment

      9,416,621         —          —           9,416,621   

Consumer Finance

      19,606,236         —          —           19,606,236   

Diversified Financial Services

      56,433,604         —          —           56,433,604   

Electrical Equipment

      5,322,713         —          —           5,322,713   

Food Products

      50,593,451         —          —           50,593,451   

Health Care Equipment & Supplies

      54,592,139         —          —           54,592,139   

Health Care Technology

      42,277,483         —          —           42,277,483   

Hotels, Restaurants & Leisure

      55,691,230         —          —           55,691,230   

Internet & Catalog Retail

      6,680,981         8,913,132        —           15,594,113   

Internet Software & Services

      135,365,554         —          8,770,092         144,135,646   

IT Services

      33,899,356         —          —           33,899,356   

Life Sciences Tools & Services

      53,076,439         —          —           53,076,439   

Pharmaceuticals

      43,332,569         —          —           43,332,569   

Professional Services

      36,469,188         —          —           36,469,188   

Software

      126,063,252         —          —           126,063,252   

Specialty Retail

      27,524,300         —          —           27,524,300   

Technology Hardware, Storage & Peripherals

      2,503,188         —          —           2,503,188   

Textiles, Apparel & Luxury Goods

      30,115,476         —          —           30,115,476   

Total Common Stocks

      896,602,862         8,913,132        8,770,092         914,286,086   

Total Preferred Stocks*

      —           —          17,619,639         17,619,639   

Total Convertible Preferred Stock*

      —           —          15,737,577         15,737,577   

Total Purchased Option*

      —           2,565,818        —           2,565,818   
Short-Term Investments           

Mutual Fund

      152,385,817         —          —           152,385,817   

Repurchase Agreement

      —           54,289,776        —           54,289,776   

Total Short-Term Investments

      152,385,817         54,289,776        —           206,675,593   

Total Investments

    $ 1,048,988,679       $ 65,768,726      $ 42,127,308       $ 1,156,884,713   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (152,385,817 )    $ —         $ (152,385,817 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Schedule of Investments as of December 31, 2015

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,
2014		      Change in
Unrealized
Appreciation/
(Depreciation)		     Balance as of
December 31,
2015		      Change in Unrealized
Appreciation/
(Depreciation) from
Investments Still Held at
December 31,  2015		  
Common Stocks           

Internet Software & Services

    $ 13,787,121       $ (5,017,029 )    $ 8,770,092       $ (5,017,029 ) 
Preferred Stocks           

Internet & Catalog Retail

      11,803,186         (1,556,215 )      10,246,971         (1,556,215 ) 

Internet Software & Services

      1,021,958         (503,376 )      518,582         (503,376 ) 

Software

      7,138,931         (284,845 )      6,854,086         (284,845 ) 
Convertible Preferred Stocks           

Internet Software & Services

      9,483,936         6,253,641        15,737,577         6,253,641   
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

    $ 43,235,132       $ (1,107,824 )    $ 42,127,308       $ (1,107,824 ) 
  

 

 

     

 

 

    

 

 

     

 

 

  

 

    Fair Value at
December 31,
2015		    

Valuation Technique(s)

  

Unobservable Input

   Range   Weighted
Average		   Relationship
Between Fair
Value and
Input; if
input value
increases
then Fair Value:
Common Stock              

Internet Software & Services

   $ 4,325,513      M&A Transaction   Strategic Asset Value   $6.8 Billion   $6.8 Billion   $6.8 Billion   Increase
    Comparable Company
Analysis		   Forward Price/Sales   5.4x   5.4x   5.4x   Increase
    4,444,579      Discounted Cash Flow   Weighted Average
Cost of Capital		   16.50%   18.50%   17.50%   Decrease
      Perpetual Growth Rate   3.00%   4.00%   3.50%   Increase
    Comparable Company Analysis   Enterprise Value/Revenue   10.2x   10.2x   10.2x   Increase
      Discount for Lack of Marketability   20.00%   20.00%   20.00%   Decrease
Preferred Stocks              

Internet & Catalog Retail

     10,246,971      Discounted Cash Flow   Weighted Average Cost of Capital   17.00%   19.00%   18.00%   Decrease
      Perpetual Growth Rate   3.50%   4.50%   4.00%   Increase
    Comparable Company Analysis   Enterprise Value/Revenue   3.1x   3.1x   3.1x   Increase
      Discount for Lack of Marketability   20.00%   20.00%   20.00%   Decrease

Internet Software & Services

     487,747      M&A Transaction   Strategic Asset Value   $6.8 Billion   $6.8 Billion   $6.8 Billion   Increase
    Comparable Company Analysis   Forward Price/Sales   5.4x   5.4x   5.4x   Increase
    30,835      Merger & Acquisition
Transaction		   Sale / Merger Scenerio   $0.86   $0.86   $0.86   Increase
      Discount for Lack of Marketability   50.00%   50.00%   50.00%   Decrease

Software

     6,854,086      Market Transaction Method   Precedent Transaction   $11.38   $11.38   $11.38   Increase
    Discounted Cash Flow   Weighted Average Cost of Capital   16.00%   18.00%   17.00%   Decrease
      Perpetual Growth Rate   2.50%   3.50%   3.00%   Increase
    Comparable Company Analysis   Enterprise Value/Revenue   11.2x   11.2x   11.2x   Increase
      Discount for Lack of Marketability   20.00%   20.00%   20.00%   Decrease
Convertible Preferred Stocks               

Internet Software & Services

     15,737,577      Market Transaction Method   Precedent Transaction   $93.09   $93.09   $93.09   Increase
    Discounted Cash Flow   Weighted Average Cost of Capital   16.00%   18.00%   17.00%   Decrease
      Perpetual Growth Rate   3.00%   4.00%   3.50%   Increase
    Comparable Company Analysis   Enterprise Value/Revenue   17.9x   17.9x   17.9x   Increase
      Discount for Lack of Marketability   20.00%   20.00%   20.00%   Decrease

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 1,156,884,713   

Receivable for:

   

Investments sold

      6,059,602   

Open purchased option contracts cash collateral

      260,000   

Fund shares sold

      114,106   

Dividends and interest

      160,286   

Prepaid expenses

      2,932   
  

 

 

  

Total Assets

      1,163,481,639   

Liabilities

   

Cash collateral for purchased option contracts

      2,660,000   

Collateral for securities loaned

      152,385,817   

Payables for:

   

Fund shares redeemed

      209,432   

Accrued Expenses:

   

Management fees

      544,696   

Distribution and service fees

      78,889   

Deferred trustees’ fees

      86,333   

Other expenses

      216,681   
  

 

 

  

Total Liabilities

      156,181,848   
  

 

 

  

Net Assets

    $ 1,007,299,791   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 985,995,121   

Accumulated net investment loss

      (86,332 ) 

Accumulated net realized loss

      (79,237,344 ) 

Unrealized appreciation on investments

      100,628,346   
  

 

 

  

Net Assets

    $ 1,007,299,791   
  

 

 

  

Net Assets

   

Class A

    $ 629,899,647   

Class B

      364,145,037   

Class E

      13,255,107   

Capital Shares Outstanding*

   

Class A

      40,068,071   

Class B

      24,071,180   

Class E

      863,981   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 15.72   

Class B

      15.13   

Class E

      15.34   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,056,256,367.
(b) Includes securities loaned at value of $178,399,502.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends

    $ 2,676,300   

Interest

      715   

Securities lending income

      2,145,811   
  

 

 

  

Total investment income

      4,822,826   

Expenses

   

Management fees

      7,253,050   

Administration fees

      27,259   

Custodian and accounting fees

      78,951   

Distribution and service fees—Class B

      977,563   

Distribution and service fees—Class E

      21,836   

Audit and tax services

      40,064   

Legal

      26,460   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      168,038   

Insurance

      7,208   

Miscellaneous

      18,618   
  

 

 

  

Total expenses

      8,654,220   

Less management fee waiver

      (100,000 ) 
  

 

 

  

Net expenses

      8,554,220   
  

 

 

  

Net Investment Loss

      (3,731,394 ) 
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      50,932,749   

Futures contracts

      (1,547,231 ) 

Foreign currency transactions

      (955 ) 
  

 

 

  

Net realized gain

      49,384,563   
  

 

 

  
Net change in unrealized depreciation on investments      (91,632,652 ) 
  

 

 

  

Net realized and unrealized loss

      (42,248,089 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (45,979,483 ) 
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment loss

    $ (3,731,394 )    $ (1,595,175 ) 

Net realized gain

      49,384,563        167,659,435   

Net change in unrealized depreciation

      (91,632,652 )      (155,151,399 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (45,979,483 )      10,912,861   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      0        (498,712 ) 
  

 

 

    

 

 

  

Total distributions

      0        (498,712 ) 
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (183,435,551 )      (143,562,820 ) 
  

 

 

    

 

 

  

Total decrease in net assets

      (229,415,034 )      (133,148,671 ) 

Net Assets

     

Beginning of period

      1,236,714,825        1,369,863,496   
  

 

 

    

 

 

  

End of period

    $ 1,007,299,791      $ 1,236,714,825   
  

 

 

    

 

 

  

Accumulated net investment loss

     

End of period

    $ (86,332 )    $ (72,102 ) 
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      1,158,658      $ 18,690,253        5,479,308      $ 84,543,464   

Reinvestments

      0        0        32,405        498,712   

Redemptions

      (10,533,242 )      (178,695,905 )      (13,099,294 )      (204,382,117 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (9,374,584 )    $ (160,005,652 )      (7,587,581 )    $ (119,339,941 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      1,341,112      $ 21,078,366        2,310,455      $ 35,991,855   

Redemptions

      (2,671,153 )      (42,885,411 )      (3,669,759 )      (58,016,482 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (1,330,041 )    $ (21,807,045 )      (1,359,304 )    $ (22,024,627 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      30,711      $ 485,725        77,398      $ 1,252,314   

Redemptions

      (129,667 )      (2,108,579 )      (217,001 )      (3,450,566 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (98,956 )    $ (1,622,854 )      (139,603 )    $ (2,198,252 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (183,435,551 )      $ (143,562,820 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Financial Highlights

 

Selected per share data       
     Class A  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 16.51       $ 16.31       $ 11.81       $ 10.78         $11.91   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (loss) (a)

      (0.04 )       (0.01 )       0.02         0.12         0.03   

Net realized and unrealized gain (loss) on investments

      (0.75 )       0.22         4.59         0.91         (0.75 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.79 )       0.21         4.61         1.03         (0.72 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      0.00         (0.01 )       (0.11 )       0.00         (0.09 ) 

Distributions from net realized capital gains

      0.00         0.00         0.00         0.00         (0.32 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      0.00         (0.01 )       (0.11 )       0.00         (0.41 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 15.72       $ 16.51       $ 16.31       $ 11.81         $10.78   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (4.78 )       1.29         39.30         9.55         (6.67 ) 

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      0.68         0.69         0.69         0.72         0.72   

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

      0.67         0.68         0.68         0.71         0.71   

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

      (0.25 )       (0.04 )       0.17         1.07         0.22   

Portfolio turnover rate (%)

      23         42         56         36         34   

Net assets, end of period (in millions)

    $ 629.9       $ 816.5       $ 930.3       $ 649.3         $539.5   
     Class B  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 15.93       $ 15.77       $ 11.42       $ 10.45         $11.57   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (loss) (a)

      (0.08 )       (0.05 )       (0.01 )       0.09         (0.00 )(d) 

Net realized and unrealized gain (loss) on investments

      (0.72 )       0.21         4.44         0.88         (0.73 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.80 )       0.16         4.43         0.97         (0.73 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      0.00         0.00         (0.08 )       0.00         (0.07 ) 

Distributions from net realized capital gains

      0.00         0.00         0.00         0.00         (0.32 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      0.00         0.00         (0.08 )       0.00         (0.39 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 15.13       $ 15.93       $ 15.77       $ 11.42         $10.45   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (5.02 )       1.01         39.02         9.28         (6.92 ) 

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      0.93         0.94         0.94         0.97         0.97   

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

      0.92         0.93         0.93         0.96         0.96   

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

      (0.49 )       (0.29 )       (0.08 )       0.80         (0.03 ) 

Portfolio turnover rate (%)

      23         42         56         36         34   

Net assets, end of period (in millions)

    $ 364.1       $ 404.7       $ 421.9       $ 315.3         $251.4   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Financial Highlights

 

 

Selected per share data       
     Class E  
     Year Ended December 31,  
     2015      2014      2013     2012      2011  

Net Asset Value, Beginning of Period

    $ 16.14       $ 15.96       $ 11.56      $ 10.56       $ 11.69   
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (loss) (a)

      (0.06 )       (0.03 )       0.00  (d)      0.10         0.01   

Net realized and unrealized gain (loss) on investments

      (0.74 )       0.21         4.49        0.90         (0.74 ) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total from investment operations

      (0.80 )       0.18         4.49        1.00         (0.73 ) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Less Distributions

              

Distributions from net investment income

      0.00         0.00         (0.09 )      0.00         (0.08 ) 

Distributions from net realized capital gains

      0.00         0.00         0.00        0.00         (0.32 ) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total distributions

      0.00         0.00         (0.09 )      0.00         (0.40 ) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 15.34       $ 16.14       $ 15.96      $ 11.56       $ 10.56   
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total Return (%) (b)

      (4.96 )       1.13         39.06        9.47         (6.87 ) 

Ratios/Supplemental Data

              

Gross ratio of expenses to average net assets (%)

      0.83         0.84         0.84        0.87         0.87   

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

      0.82         0.83         0.83        0.86         0.86   

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

      (0.39 )       (0.18 )       0.03        0.87         0.06   

Portfolio turnover rate (%)

      23         42         56        36         34   

Net assets, end of period (in millions)

    $ 13.3       $ 15.5       $ 17.6      $ 15.5       $ 16.0   

 

(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) Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).
(d) Net investment income (loss) was less than $0.01.

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally categorized as Level 2 within the fair value hierarchy.

 

MIST-14

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Forward foreign currency exchange contracts are valued through an independent pricing service based on the mean between closing bid and ask prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or broker-dealer. These contracts are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

Options, including swaptions, and futures contracts that are traded OTC are generally valued on the basis of quotations provided by broker-dealers or prices provided by 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, yield curves, credit curves, measures of volatility 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 market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 net operating losses. These adjustments have no impact on net assets or the results of operations.

 

MIST-15

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $54,289,776, 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 December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2015, with a contractual maturity of overnight and continuous.

3. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts 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

 

MIST-16

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 cash 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. If futures contracts are exchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

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 investment exposure to a target asset class or to enhance return. Writing puts or buying calls tends to increase the Portfolio’s exposure to the underlying instrument and writing calls or buying puts tends 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 is worthless when it expires and the premium paid for the option is considered a realized 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 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 subsequently marked to market to reflect the current value of the option written. 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 following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of risk exposure:

 

    

Asset Derivatives

  

Risk Exposure

   

Statement of Assets &
Liabilities Location

    Fair Value  

Foreign Exchange

    Investments at market value (a)    $ 2,565,818   
     

 

 

  

 

  (a) Represents purchased options which are part of investments as shown in the Statement of Assets and Liabilities.

 

MIST-17

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

The Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized 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 (“MNA”) (see Note 4), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Assets
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		      Collateral
Received†		     Net Amount*  

Royal Bank of Scotland plc

    $ 2,565,818       $ —       $ (2,400,000 )    $ 165,818   
  

 

 

     

 

 

     

 

 

    

 

 

  

 

  * Net amount represents the net amount receivable from the counterparty in the event of default.
  † In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Equity     Foreign
Exchange		     Total  

Investments (a)

    $ —      $ (1,277,599 )    $ (1,277,599 ) 

Futures contracts

      (1,547,231 )      —        (1,547,231 ) 
  

 

 

    

 

 

    

 

 

  
   $ (1,547,231 )    $ (1,277,599 )    $ (2,824,830 ) 
  

 

 

    

 

 

    

 

 

  

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

    Equity     Foreign
Exchange		     Total  

Investments (a)

      $—      $ 1,879,999      $ 1,879,999   
  

 

 

    

 

 

    

 

 

  

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Investments (a)

    $ 345,225,865   

Futures contracts long (b)

      54,150   

 

  ‡ Averages are based on activity levels during 2015.
  (a) Represents purchased options which are part of net realized gain (loss) on investments and net change in unrealized appreciation (depreciation) on investments as shown in the Statement of Operations.
  (b) Average notional amount reflects activity from April 28, 2015 to April 30, 2015.

4. Certain Risks

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”).

Market 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, 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant

 

MIST-18

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC 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 (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to Portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 240,598,264       $ 0       $ 420,784,853   

The Portfolio engaged in security transactions with other accounts managed by Morgan Stanley Investment Management Inc. that amounted to $2,202,434 in sales of investments, which are included above.

During the year ended December 31, 2015, the Portfolio engaged in security transactions with other affiliated Portfolios. These amounted to $10,189,545 in sales of investments, which are included above.

 

MIST-19

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
Metlife Advisers
for the year ended

December 31, 2015

    % per annum     Average Daily Net Assets
$7,253,050      0.700 %    First $200 million
     0.650 %    $200 million to $500 million
     0.625 %    Over $500 million

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Morgan Stanley Investment Management Inc. is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, for the period May 1, 2015 to April 30, 2016, 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 28, 2014 to April 30, 2015. Amounts waived for the year ended December 31, 2015 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, LLC, 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 year ended December 31, 2015 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 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

Morgan Stanley Mid Cap Growth Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$—    $ 498,712       $ —       $ —       $ —       $ 498,712   

As of December 31, 2015, 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  
$—    $ —       $ 100,292,041       $ (78,901,039 )    $ —       $ 21,391,002   

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.

During the year ended December 31, 2015, the Portfolio utilized capital loss carryforwards of $49,524,635.

As of December 31, 2015, the Portfolio had no post-enactment accumulated capital losses and the pre-enactment accumulated capital loss carryforwards expiring on December 31, 2016 are $78,901,039.*

 

  * The Portfolio acquired capital losses in the merger with FI Mid Cap Opportunities Portfolio, a series of Metropolitan Series Fund, on April 30, 2010.

9. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-21

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Morgan Stanley Mid Cap 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 Morgan Stanley Mid Cap Growth Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 Morgan Stanley Mid Cap Growth Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-22

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-23

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-24

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-25

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-26

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

Morgan Stanley Mid Cap Growth Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Morgan Stanley Investment Management Inc. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio underperformed the median of its Performance Universe and its Lipper Index for the one-, three-, and five-year periods ended June 30, 2015. The Board also noted that the Portfolio underperformed its benchmark, the Russell Midcap Growth Index, for the one-, three-, and five-year periods ended October 31, 2015. The Board took into account management’s discussion of the Portfolio’s performance, including prevailing market conditions.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, Expense Universe median, and Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also took into account that the Portfolio’s contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-27

Met Investors Series Trust

Oppenheimer Global Equity Portfolio

Managed by OppenheimerFunds, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A, B, and E shares of the Oppenheimer Global Equity Portfolio returned 4.10%, 3.86%, and 3.94%, respectively. The Portfolio’s benchmark, the MSCI All Country World Index1, returned -2.36%.

MARKET ENVIRONMENT / CONDITIONS

2015 will go down as a year in which volatility returned to the financial markets following a multi-year hiatus. Global growth struggled to gain traction as many of the world’s largest economies expanded below their long-term trends. China’s industrial production slowed for the fifth consecutive year and weighed on the world’s exporters—especially commodity producers. In the U.S., a strong dollar impaired the competitiveness of many American companies and proved to be a drag on corporate earnings.

The generally disappointing performance of global equity markets was marked by pockets of significant weakness in the Energy sector and many emerging markets. U.S. equities once again outperformed their counterparts in other regions, though with tempered results and only after a market correction in August that tested investors’ nerves. Interest rates globally remained low, even as investors spent most of the year contemplating the first interest-rate hike by the U.S. Federal Reserve Bank (the “Fed”) in almost a decade. The Fed did not raise interest rates until late in the year at its December 16th meeting, when the benchmark federal funds rate was increased by 0.25%.

PORTFOLIO REVIEW / PERIOD END POSITIONING

In 2015 top contributors to performance included Information Technology (“IT”) stocks Alphabet (United States), Altera (United States), Murata Manufacturing (Japan) and Adobe Systems (United States). Airbus Group SE (Industrials) (France) also contributed positively to performance. Alphabet is the new holding company vehicle for what was previously known as Google, now a mere division. The company reorganized its structure in a way which makes it easier for investors to see the value in its core businesses and more easily assess the progress of their developing ones. The Portfolio initiated a position in Alphabet several years ago due to its dominance in a variety of fast growing areas in e-commerce and mobility. Given its obvious strengths and their durability, the stock was unusually cheap, valued at essentially a market multiple. The valuation is a bit higher now but the business remains one of significant structural opportunity. Altera is a key player in the programmable logic device (“PLD”) niche of the semiconductor industry. In contrast to application-specific integrated circuits, PLDs can be reconfigured to address the unique needs of respective users. Recognizing the value of Altera’s intellectual property, Intel, the largest chip maker, announced plans to acquire the company. The acquisition was completed late in the year. Murata Manufacturing is a Japan-based smartphone ceramic capacitor manufacturer. The company has exceeded earnings expectations due to robust global sales of high-end smartphones. As a component manufacturer with both Apple and Samsung as customers, it does not matter which company wins the next product refresh. Adobe performed well and reported a sharp increase in quarterly sales and profits for its fiscal fourth quarter. After declining in 2014 on fears of Europe and oil prices potentially reducing new orders, Airbus performed positively in 2015.

The most significant detractors from performance in the period included SunEdison (IT) (United States), ICICI Bank (Financials) (India), Tiffany (Consumer Discretionary) (United States), bluebird bio (Health Care) (United States), and LM Ericsson (IT) (Sweden). SunEdison is a position the Portfolio initiated during 2015, in a period of sharp decline in its share price. The company is a developer of technologies in the field of solar power. During the year, concerns emerged about the durability of their finances. Accelerating the share decline may have the involvement of hedge funds that appear to have exhibited stop loss behaviors, needing a quick out as the share price dropped. Shares of Tiffany fell early in the year as it experienced a soft holiday sales season due to some promotional missteps. Also, in contrast to its European luxury counterparts, it was negatively impacted by the sharp rise in the U.S. dollar. Tiffany continues to improve its product offering and continues to have a strong global brand, in our view. Bluebird bio is a clinical-stage biotechnology company that experienced declines during the reporting period. LM Ericsson, a mobile network operator, underperformed for a few reasons: slower U.S. recovery, 4G peaking in China, and no resolution of a patent dispute with Apple. We viewed these as transient factors and remained comfortable with the Portfolio’s position in Ericsson at the end of 2015.

 

MIST-1

Met Investors Series Trust

Oppenheimer Global Equity Portfolio

Managed by OppenheimerFunds, Inc.

Portfolio Manager Commentary*—(Continued)

 

At the end of the year, the Portfolio had its largest overweight positions in IT, Health Care, Consumer Discretionary, and Industrials. The Portfolio had its most significant underweight positions in Energy, Consumer Staples, Materials, and Utilities. On a country basis, the Portfolio had its largest overweight positions in Germany, Japan, and France, with its most significant underweight positions in the United States, Canada, Australia, and the United Kingdom. Despite being underweight the United States relative to the Index, the Portfolio had its largest allocation to that country on an absolute basis at period end.

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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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

A $10,000 INVESTMENT COMPARED TO THE MSCI ACWI (ALL COUNTRY WORLD INDEX)

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year  
Oppenheimer Global Equity Portfolio                 

Class A

        4.10           8.62           6.21   

Class B

        3.86           8.36           5.93   

Class E

        3.94           8.46           6.05   
MSCI ACWI (All Country World Index)        -2.36           6.09           4.76   

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.

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
McGraw Hill Financial, Inc.      2.7   
Aetna, Inc.      2.4   
Airbus Group SE      2.3   
Alphabet, Inc.- Class C      2.3   
Alphabet, Inc.- Class A      2.3   
Murata Manufacturing Co., Ltd.      2.3   
Adobe Systems, Inc.      2.3   
Citigroup, Inc.      2.2   
Colgate-Palmolive Co.      2.2   
Maxim Integrated Products, Inc.      2.0   

Top Countries

 

     % of
Net Assets		  
United States      47.6   
Japan      12.5   
Germany      9.5   
Switzerland      5.2   
United Kingdom      5.0   
France      4.7   
Spain      3.2   
Sweden      3.2   
Netherlands      2.3   
China      1.7   

 

MIST-3

Met Investors Series Trust

Oppenheimer Global Equity 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, July 1, 2015 through December 31, 2015.

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

         Annualized
Expense
Ratio		      Beginning
Account Value
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual      0.64 %     $ 1,000.00         $ 939.90         $ 3.13   
   Hypothetical*      0.64 %     $ 1,000.00         $ 1,021.98         $ 3.26   

Class B(a)

    Actual      0.89 %     $ 1,000.00         $ 938.70         $ 4.35   
   Hypothetical*      0.89 %     $ 1,000.00         $ 1,020.72         $ 4.53   

Class E(a)

    Actual      0.79 %     $ 1,000.00         $ 939.30         $ 3.86   
   Hypothetical*      0.79 %     $ 1,000.00         $ 1,021.22         $ 4.02   

* 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 (184 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

Oppenheimer Global Equity Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—96.4% of Net Assets

 

Security Description   Shares     Value  

Brazil—0.8%

  

Embraer S.A. (ADR)

     350,720      $ 10,360,269   
   

 

 

  

China—1.7%

  

JD.com, Inc. (ADR) (a) (b)

     511,079        16,489,964   

Qihoo 360 Technology Co., Ltd. (ADR) (a) (b)

     80,060        5,829,169   
   

 

 

  
    22,319,133   
   

 

 

  

Denmark—0.3%

  

FLSmidth & Co. A/S (a)

     101,110        3,502,331   
   

 

 

  

France—4.7%

  

Kering

     92,169        15,710,559   

LVMH Moet Hennessy Louis Vuitton SE

     146,705        22,933,902   

Societe Generale S.A.

     262,790        12,121,841   

Technip S.A.

     186,400        9,207,421   
   

 

 

  
    59,973,723   
   

 

 

  

Germany—7.6%

  

Allianz SE

     133,759        23,696,164   

Bayer AG

     152,259        19,102,611   

Deutsche Bank AG

     472,909        11,607,139   

Linde AG

     71,421        10,366,995   

SAP SE

     324,249        25,826,823   

Siemens AG

     65,689        6,373,217   
   

 

 

  
    96,972,949   
   

 

 

  

India—1.3%

  

ICICI Bank, Ltd. (ADR)

     2,080,700        16,291,881   
   

 

 

  

Ireland—0.7%

  

Shire plc

     121,645        8,336,797   
   

 

 

  

Italy—1.5%

  

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

     3,352,069        4,427,132   

Brunello Cucinelli S.p.A. (a)

     220,025        3,878,342   

Prysmian S.p.A.

     247,965        5,423,953   

Tod’s S.p.A. (a)

     69,947        5,524,123   
   

 

 

  
    19,253,550   
   

 

 

  

Japan—12.5%

  

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

     1,069,300        17,742,642   

FANUC Corp.

     52,100        8,981,584   

KDDI Corp.

     766,800        19,850,127   

Keyence Corp.

     39,200        21,514,743   

Kyocera Corp.

     310,800        14,405,333   

Murata Manufacturing Co., Ltd.

     201,400        28,906,278   

Nidec Corp.

     270,900        19,608,386   

Nintendo Co., Ltd.

     21,700        2,987,262   

Nomura Holdings, Inc.

     1,047,500        5,821,683   

Sumitomo Mitsui Financial Group, Inc.

     370,600        13,979,883   

Suzuki Motor Corp.

     217,900        6,615,097   
   

 

 

  
    160,413,018   
   

 

 

  

Mexico—0.5%

    

Fomento Economico Mexicano S.A.B. de C.V. (ADR)

     75,474        6,970,024   
   

 

 

  

Netherlands—2.3%

    

Airbus Group SE

     444,671      29,856,755   
   

 

 

  

Spain—3.2%

    

Banco Bilbao Vizcaya Argentaria S.A.

     1,402,609        10,228,643   

Industria de Diseno Textil S.A.

     723,276        24,820,125   

Repsol S.A.

     548,261        5,968,926   
   

 

 

  
    41,017,694   
   

 

 

  

Sweden—3.2%

    

Assa Abloy AB - Class B

     1,061,880        22,240,739   

Telefonaktiebolaget LM Ericsson - B Shares

     1,896,352        18,369,399   
   

 

 

  
    40,610,138   
   

 

 

  

Switzerland—5.2%

    

Credit Suisse Group AG (b)

     718,448        15,528,061   

Nestle S.A.

     179,516        13,306,383   

Roche Holding AG

     44,406        12,237,766   

UBS Group AG

     1,295,347        24,927,530   
   

 

 

  
    65,999,740   
   

 

 

  

United Kingdom—5.0%

    

Circassia Pharmaceuticals plc (a) (b)

     2,109,064        9,924,301   

Earthport plc (b)

     4,937,005        1,801,418   

International Game Technology plc

     393,181        6,361,669   

Prudential plc

     1,016,680        22,761,337   

Unilever plc

     546,655        23,406,549   
   

 

 

  
    64,255,274   
   

 

 

  

United States—45.9%

    

3M Co.

     120,990        18,225,934   

ACADIA Pharmaceuticals, Inc. (a) (b)

     236,900        8,445,485   

Adobe Systems, Inc. (b)

     307,190        28,857,429   

Aetna, Inc.

     286,930        31,022,871   

Alphabet, Inc. - Class A (b)

     37,860        29,455,458   

Alphabet, Inc. - Class C (b)

     39,268        29,799,700   

Anthem, Inc.

     154,500        21,543,480   

Biogen, Inc. (b)

     45,370        13,899,099   

BioMarin Pharmaceutical, Inc. (b)

     101,450        10,627,902   

Bluebird Bio, Inc. (a) (b)

     91,040        5,846,589   

Celldex Therapeutics, Inc. (a) (b)

     627,790        9,843,747   

Cigna Corp.

     23,300        3,409,489   

Citigroup, Inc.

     542,220        28,059,885   

Clovis Oncology, Inc. (a) (b)

     87,570        3,064,950   

Colgate-Palmolive Co.

     413,700        27,560,694   

eBay, Inc. (b)

     511,390        14,052,997   

Emerson Electric Co.

     182,950        8,750,498   

Facebook, Inc. - Class A (b)

     221,300        23,161,258   

FNF Group

     287,530        9,968,665   

Gilead Sciences, Inc.

     174,370        17,644,500   

Goldman Sachs Group, Inc. (The)

     107,500        19,374,725   

Humana, Inc.

     6,660        1,188,877   

Intuit, Inc.

     249,540        24,080,610   

Ionis Pharmaceuticals, Inc. (a) (b)

     87,220        5,401,535   

MacroGenics, Inc. (a) (b)

     198,320        6,141,970   

Maxim Integrated Products, Inc.

     684,580        26,014,040   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Oppenheimer Global Equity Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares/
Principal
Amount*		     Value  

United States—(Continued)

    

McDonald’s Corp.

     71,360      $ 8,430,470   

McGraw Hill Financial, Inc.

     351,560        34,656,785   

Medivation, Inc. (b)

     76,880        3,716,379   

PayPal Holdings, Inc. (b)

     511,390        18,512,318   

St. Jude Medical, Inc.

     130,210        8,043,072   

SunEdison, Inc. (a) (b)

     1,997,720        10,168,395   

Theravance Biopharma, Inc. (a) (b)

     78,125        1,280,469   

Tiffany & Co. (a)

     197,100        15,036,759   

United Parcel Service, Inc. - Class B

     172,830        16,631,431   

Vertex Pharmaceuticals, Inc. (b)

     49,860        6,273,884   

Walt Disney Co. (The)

     234,660        24,658,073   

Zimmer Biomet Holdings, Inc.

     136,310        13,984,043   
   

 

 

  
    586,834,465   
   

 

 

  

Total Common Stocks
(Cost $1,002,167,792)

       1,232,967,741   
   

 

 

  
Preferred Stock—1.9%   

Germany—1.9%

    

Bayerische Motoren Werke (BMW) AG
(Cost $18,026,002)

     286,014        23,957,840   
   

 

 

  
Rights—0.0%   

Spain—0.0%

    

Repsol S.A., Expires 01/14/16 (a) (b)
(Cost $277,743)

     548,261        273,483   
   

 

 

  
Short - Term Investments—7.6%   

Mutual Fund—5.9%

    

State Street Navigator Securities Lending MET Portfolio (c)

     74,937,630        74,937,630   
   

 

 

  

Repurchase Agreement—1.7%

    

Fixed Income Clearing Corp.
Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $21,872,566 on 01/04/16, collateralized by $22,255,000 U.S. Treasury Note at 1.625% due 06/30/20 with a value of $22,310,638.

     21,872,493        21,872,493   
   

 

 

  

Total Short-Term Investments
(Cost $96,810,123)

       96,810,123   
   

 

 

  

Total Investments—105.9%
(Cost $1,117,281,660) (d)

       1,354,009,187   

Other assets and liabilities (net)—(5.9)%

       (75,467,515 ) 
   

 

 

  
Net Assets—100.0%     $ 1,278,541,672   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of December 31, 2015, the market value of securities loaned was $73,306,626 and the collateral received consisted of cash in the amount of $74,937,630 and non-cash collateral with a value of $706,611. 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 on loan as of December 31, 2015.
(d) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $1,123,096,377. The aggregate unrealized appreciation and depreciation of investments were $290,756,793 and $(59,843,983), respectively, resulting in net unrealized appreciation of $230,912,810 for federal income tax purposes.
(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
December 31, 2015 (Unaudited)

   

% of
Net Assets

  

Internet Software & Services

      8.0   

Biotechnology

      7.9   

Banks

      6.6   

Software

      6.4   

Capital Markets

      6.0   

Insurance

      5.8   

Electronic Equipment, Instruments & Components

      5.1   

Health Care Providers & Services

      4.5   

Textiles, Apparel & Luxury Goods

      3.8   

Pharmaceuticals

      3.2   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Oppenheimer Global Equity Portfolio

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2     Level 3      Total  
Common Stocks           

Brazil

    $ 10,360,269       $ —        $ —         $ 10,360,269   

China

      22,319,133         —          —           22,319,133   

Denmark

      —           3,502,331        —           3,502,331   

France

      —           59,973,723        —           59,973,723   

Germany

      —           96,972,949        —           96,972,949   

India

      16,291,881         —          —           16,291,881   

Ireland

      —           8,336,797        —           8,336,797   

Italy

      —           19,253,550        —           19,253,550   

Japan

      —           160,413,018        —           160,413,018   

Mexico

      6,970,024         —          —           6,970,024   

Netherlands

      —           29,856,755        —           29,856,755   

Spain

      —           41,017,694        —           41,017,694   

Sweden

      —           40,610,138        —           40,610,138   

Switzerland

      —           65,999,740        —           65,999,740   

United Kingdom

      6,361,669         57,893,605        —           64,255,274   

United States

      586,834,465         —          —           586,834,465   

Total Common Stocks

      649,137,441         583,830,300        —           1,232,967,741   

Total Preferred Stock*

      —           23,957,840        —           23,957,840   

Total Rights*

      273,483         —          —           273,483   

Short-Term Investments

           

Mutual Fund

      74,937,630         —          —           74,937,630   

Repurchase Agreement

      —           21,872,493        —           21,872,493   

Total Short-Term Investments

      74,937,630         21,872,493        —           96,810,123   

Total Investments

    $ 724,348,554       $ 629,660,633      $ —         $ 1,354,009,187   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (74,937,630 )    $ —         $ (74,937,630 ) 

 

* See Schedule of Investments for additional detailed categorizations.

Transfers from Level 1 to Level 2 in the amount of $22,038,726 were due to the application of a systematic fair valuation model factor.

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Oppenheimer Global Equity Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 1,354,009,187   

Receivable for:

   

Fund shares sold

      114,890   

Dividends and interest

      799,163   

Prepaid expenses

      3,715   
  

 

 

  

Total Assets

      1,354,926,955   

Liabilities

   

Collateral for securities loaned

      74,937,630   

Payables for:

   

Fund shares redeemed

      299,300   

Accrued Expenses:

   

Management fees

      653,039   

Distribution and service fees

      86,164   

Deferred trustees’ fees

      108,612   

Other expenses

      300,538   
  

 

 

  

Total Liabilities

      76,385,283   
  

 

 

  

Net Assets

    $ 1,278,541,672   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 969,876,192   

Undistributed net investment income

      10,782,641   

Accumulated net realized gain

      61,196,761   

Unrealized appreciation on investments and foreign currency transactions

      236,686,078   
  

 

 

  

Net Assets

    $ 1,278,541,672   
  

 

 

  

Net Assets

   

Class A

    $ 864,787,548   

Class B

      388,396,547   

Class E

      25,357,577   

Capital Shares Outstanding*

   

Class A

      42,200,143   

Class B

      19,056,390   

Class E

      1,242,176   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 20.49   

Class B

      20.38   

Class E

      20.41   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,117,281,660.
(b) Includes securities loaned at value of $73,306,626.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends (a)

    $ 22,113,656   

Interest

      308   

Securities lending income

      1,425,032   
  

 

 

  

Total investment income

      23,538,996   

Expenses

   

Management fees

      8,714,976   

Administration fees

      31,820   

Custodian and accounting fees

      363,712   

Distribution and service fees—Class B

      1,031,976   

Distribution and service fees—Class E

      42,378   

Audit and tax services

      52,955   

Legal

      27,982   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      106,610   

Insurance

      8,526   

Miscellaneous

      49,054   
  

 

 

  

Total expenses

      10,465,162   

Less management fee waiver

      (869,429 ) 
  

 

 

  

Net expenses

      9,595,733   
  

 

 

  

Net Investment Income

      13,943,263   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      63,471,343   

Foreign currency transactions

      (65,242 ) 
  

 

 

  

Net realized gain

      63,406,101   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (29,986,711 ) 

Foreign currency transactions

      (12,773 ) 
  

 

 

  

Net change in unrealized depreciation

      (29,999,484 ) 
  

 

 

  

Net realized and unrealized gain

      33,406,617   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 47,349,880   
  

 

 

  

 

(a) Net of foreign withholding taxes of $1,692,661.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Oppenheimer Global Equity Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 13,943,263      $ 15,684,920   

Net realized gain

      63,406,101        51,300,868   

Net change in unrealized depreciation

      (29,999,484 )      (38,632,217 ) 
  

 

 

    

 

 

  

Increase in net assets from operations

      47,349,880        28,353,571   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (10,878,277 )      (4,844,037 ) 

Class B

      (3,845,329 )      (3,553,255 ) 

Class E

      (287,989 )      (302,590 ) 

Net realized capital gains

     

Class A

      (19,985,671 )      (14,077,273 ) 

Class B

      (9,023,198 )      (13,014,584 ) 

Class E

      (617,678 )      (996,293 ) 
  

 

 

    

 

 

  

Total distributions

      (44,638,142 )      (36,788,032 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      61,100,082        255,528,948   
  

 

 

    

 

 

  

Total increase in net assets

      63,811,820        247,094,487   

Net Assets

     

Beginning of period

      1,214,729,852        967,635,365   
  

 

 

    

 

 

  

End of period

    $ 1,278,541,672      $ 1,214,729,852   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 10,782,641      $ 12,147,807   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
        
     Shares     Value     Shares     Value  
        

Class A

         

Sales

      7,000,175      $ 153,664,334        16,952,467      $ 337,033,874   

Reinvestments

      1,407,385        30,863,948        969,329        18,921,310   

Redemptions

      (4,310,277 )      (92,991,677 )      (3,181,917 )      (65,105,126 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      4,097,283      $ 91,536,605        14,739,879      $ 290,850,058   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      1,539,031      $ 32,455,723        1,416,455      $ 28,710,970   

Reinvestments

      589,218        12,868,527        851,817        16,567,839   

Redemptions

      (3,342,616 )      (71,157,639 )      (3,737,349 )      (76,107,889 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (1,214,367 )    $ (25,833,389 )      (1,469,077 )    $ (30,829,080 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      89,999      $ 1,926,865        99,035      $ 2,017,044   

Reinvestments

      41,412        905,667        66,746        1,298,883   

Redemptions

      (351,122 )      (7,435,666 )      (381,587 )      (7,807,957 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (219,711 )    $ (4,603,134 )      (215,806 )    $ (4,492,030 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 61,100,082        $ 255,528,948   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Oppenheimer Global Equity Portfolio

Financial Highlights

 

Selected per share data                                   
     Class A  
     Year Ended December 31,  
     2015      2014      2013(a)      2012      2011  

Net Asset Value, Beginning of Period

    $ 20.34       $ 20.73       $ 16.63       $ 13.91       $ 15.44   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (b)

      0.24         0.30         0.24         0.26         0.25   

Net realized and unrealized gain (loss) on investments

      0.64         0.14         4.24         2.71         (1.48 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.88         0.44         4.48         2.97         (1.23 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.26 )       (0.21 )       (0.38 )       (0.25 )       (0.30 ) 

Distributions from net realized capital gains

      (0.47 )       (0.62 )       0.00         0.00         0.00   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.73 )       (0.83 )       (0.38 )       (0.25 )       (0.30 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 20.49       $ 20.34       $ 20.73       $ 16.63       $ 13.91   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      4.10         2.30         27.32         21.52         (8.24 ) 

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      0.71         0.74         0.71         0.62         0.62   

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

      0.65         0.70         0.69         0.62         0.62   

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

      1.14         1.48         1.27         1.74         1.65   

Portfolio turnover rate (%)

      19         22         11         13         12   

Net assets, end of period (in millions)

    $ 864.8       $ 775.0       $ 484.4       $ 411.0       $ 378.6   
     Class B  
     Year Ended December 31,  
     2015      2014      2013(a)      2012      2011  

Net Asset Value, Beginning of Period

    $ 20.23       $ 20.63       $ 16.54       $ 13.83       $ 15.36   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (b)

      0.19         0.24         0.18         0.22         0.21   

Net realized and unrealized gain (loss) on investments

      0.63         0.15         4.23         2.70         (1.47 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.82         0.39         4.41         2.92         (1.26 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.20 )       (0.17 )       (0.32 )       (0.21 )       (0.27 ) 

Distributions from net realized capital gains

      (0.47 )       (0.62 )       0.00         0.00         0.00   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.67 )       (0.79 )       (0.32 )       (0.21 )       (0.27 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 20.38       $ 20.23       $ 20.63       $ 16.54       $ 13.83   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      3.86         2.03         27.01         21.17         (8.40 ) 

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      0.96         0.99         0.96         0.87         0.87   

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

      0.90         0.95         0.94         0.87         0.87   

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

      0.90         1.18         0.99         1.49         1.40   

Portfolio turnover rate (%)

      19         22         11         13         12   

Net assets, end of period (in millions)

    $ 388.4       $ 410.1       $ 448.6       $ 250.9       $ 236.1   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Oppenheimer Global Equity Portfolio

Financial Highlights

 

Selected per share data                                  
     Class E  
     Year Ended December 31,  
     2015      2014      2013(a)      2012     2011  

Net Asset Value, Beginning of Period

    $ 20.26       $ 20.66       $ 16.56       $ 13.85      $ 15.38   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (b)

      0.21         0.26         0.20         0.24        0.23   

Net realized and unrealized gain (loss) on investments

      0.63         0.15         4.25         2.69        (1.48 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total from investment operations

      0.84         0.41         4.45         2.93        (1.25 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.22 )       (0.19 )       (0.35 )       (0.22 )      (0.28 ) 

Distributions from net realized capital gains

      (0.47 )       (0.62 )       0.00         0.00        0.00   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

      (0.69 )       (0.81 )       (0.35 )       (0.22 )      (0.28 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 20.41       $ 20.26       $ 20.66       $ 16.56      $ 13.85   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Return (%) (c)

      3.94         2.13         27.19         21.35        (8.39 ) 

Ratios/Supplemental Data

              

Gross ratio of expenses to average net assets (%)

      0.86         0.89         0.86         0.77        0.77   

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

      0.80         0.85         0.84         0.77        0.77   

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

      1.01         1.28         1.07         1.60        1.51   

Portfolio turnover rate (%)

      19         22         11         13        12   

Net assets, end of period (in millions)

    $ 25.4       $ 29.6       $ 34.7       $ 11.3      $ 11.0   

 

(a) At the close of business on April 26, 2013, the Portfolio 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.
(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) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Oppenheimer Global Equity Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Oppenheimer Global 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, 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of

 

MIST-12

Met Investors Series Trust

Oppenheimer Global Equity Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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, adjustments to prior period accumulated balances and passive foreign investment companies (PFICs). These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under

 

MIST-13

Met Investors Series Trust

Oppenheimer Global Equity Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $21,872,493, 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 December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2015, with a contractual maturity of overnight and continuous.

3. Certain Risks

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”).

Market 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, 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

 

MIST-14

Met Investors Series Trust

Oppenheimer Global Equity Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may 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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 267,750,859       $ 0       $ 239,532,951   

The Portfolio engaged in security transactions with other accounts managed by OppenheimerFunds, Inc. that amounted to $248,930 in purchases and $665,780 in sales of investments, which are included above.

During the year ended December 31, 2015, the Portfolio engaged in security transactions with other affiliated Portfolios. These amounted to $3,379,320 in purchases of investments, which are included above.

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31,  2015

    % per annum     Average Daily Net Assets
$8,714,976      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

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. OppenheimerFunds, Inc. is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

 

MIST-15

Met Investors Series Trust

Oppenheimer Global Equity Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, for the period May 1, 2015 to April 30, 2016, 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
0.070%    $350 million to $500 million
0.060%    $500 million to $600 million
0.070%    $600 million to $800 million
0.110%    Over $800 million

Prior to May 1, 2015 the Adviser had agreed, for the period January 1, 2015 to April 30, 2015, 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
0.070%    $350 million to $500 million
0.060%    $500 million to $600 million
0.070%    $600 million to $750 million
0.060%    $750 million to $800 million
0.110%    Over $800 million

Amounts waived for the year ended December 31, 2015 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, LLC, 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 year ended December 31, 2015 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 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

Oppenheimer Global Equity Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

7. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$15,011,595    $ 8,699,882       $ 29,626,547       $ 28,088,150       $ 44,638,142       $ 36,788,032   

As of December 31, 2015, 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		      Other
Accumulated
Capital Losses		      Total  
$17,132,738    $ 60,769,991       $ 230,871,361       $ —       $ 308,774,090   

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, 2015, the Portfolio had no post-enactment accumulated capital losses and no pre-enactment accumulated capital loss carryforwards.

8. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-17

Met Investors Series Trust

Oppenheimer Global Equity Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Oppenheimer Global Equity 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 Oppenheimer Global Equity Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Fund”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 Oppenheimer Global Equity Portfolio of the Met Investors Series Trust, as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-18

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-19

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-20

Met Investors Series Trust

Oppenheimer Global Equity Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-21

Met Investors Series Trust

Oppenheimer Global Equity Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-22

Met Investors Series Trust

Oppenheimer Global Equity Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

Oppenheimer Global Equity Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and OppenheimerFunds, Inc. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the one-, three-, and five-year periods ended June 30, 2015. The Board further considered that the Portfolio outperformed its benchmark, the MSCI All Country World Index, for the one-, three-, and five-year periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-l fees) were below the Expense Group median and the Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were above the asset-weighted average of the Expense Group at the Portfolio’s current size. In addition, the Board considered that the Adviser had negotiated reductions to the Portfolio’s sub-advisory fee schedule on two separate occasions and that the Adviser agreed to waive a portion of its advisory fee, in both instances, in order for contractholders to benefit from the lower sub-advisory fee effective January 1, 2015 and January 1, 2016, respectively.

 

MIST-23

Met Investors Series Trust

PanAgora Global Diversified Risk Portfolio

Managed by PanAgora Asset Management, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class B shares of the PanAgora Global Diversified Risk Portfolio returned -5.48%. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned -1.21%.

MARKET ENVIRONMENT / CONDITIONS

After starting out 2015 with strong performance in the first half of the year, the second half of the year proved to be turbulent for equities markets. This period was marked by heightened volatility; most notably in the third quarter after China announced a sudden devaluation of its currency while also allowing the yuan to float more freely. The fourth quarter began with equities regaining some of the losses from the summer as markets showed signs of stabilization in October and November. In December, the U.S. Federal Reserve (the “Fed”) raised short-term rates, putting its target rate at 25-to-50 basis points. U.S. equity markets received the anticipated move well, which provided a moderate boost to performance. Nevertheless, U.S. equity markets ended the year on a down note as a strong U.S. dollar cut into profit margins and triggered a slowdown in manufacturing. Small cap stocks suffered the most towards the end of the year amid increased risk aversion. In the U.S. markets, large cap equities outperformed small cap equities for the year as the S&P 500 Index gained 1.4% while the Russell 2000 Index declined by -4.4%. International equity markets underperformed the U.S. in 2015 as the MSCI World ex-U.S. fell by -3.0%. Buoyed at times by increasing hints from European Central Bank (the “ECB”) president Mario Draghi that the central bank would extend quantitative easing, Eurozone equities posted mixed returns towards the end the year. Ultimately, the eventual announcement by the ECB disappointed investors who were looking for a more significant cut to interest rates and an increase to the amount of the monthly bond purchase program. The performance of emerging markets equities was generally positive to begin the year and then turned dour amid low growth, commodity market declines, and currency concerns. The MSCI Emerging Markets Index notably finished the year down in double digit territory with the index falling by approximately -15%.

Bonds finished 2015 with lackluster performance across several key segments of the market. Most of the price fluctuation in U.S. Treasuries observed throughout the year was driven by anticipation of the eventual rate hike by the Fed. While there was a general consensus among investors that the Fed would finally raise rates at their last meeting of 2015, uncertainty loomed around how much the increase would be and the frequency of additional rate hikes going forward. While the 25 basis point increase in short-term rates was modest, it finally put to rest a highly speculated subject and represented the confidence that the central bank has in a strengthening U.S. economy. While yields increased across the U.S. term structure, short- and intermediate-term Treasury yields rose even higher indicating a bond investor sell-off ahead of the rate hike by the Fed. Non-U.S. developed markets reflected a further divergence in policy as the ECB cut interest rates and extended its quantitative easing in order to further stimulate a slumping economy in the Eurozone. The U.S. dollar also posted strong gains versus the basket of major currencies in 2015, against the Euro in particular. The Citigroup U.S. Treasury Index rose by 0.8% in 2015 while the Citigroup World Government Bond Index ex-U.S. (Hedged) Index gained 1.5%. The increase in yields pushed down the price of inflation-linked bonds as the Barclays Capital World Government Inflation-Linked Bond Index (Hedged) declined by -1.1% for the year. After beginning 2015 on a positive note, the performance of investment grade credit turned negative by mid-year and declined further in the fourth quarter as the Barclays U.S. Credit Index fell by -0.8% in 2015.

The commodities markets delivered a consecutive year of massive declines with the S&P Goldman Sachs Commodity Index plunging -33% in 2015. The Organization of Petroleum Exporting Countries’ resolve to maintain market share coupled with Iran re-entering the world oil market after sanctions are lifted contributed to declining oil prices. The strengthening of the U.S. dollar during the year also was a headwind for commodity prices in general as commodity contracts are typically priced in U.S. dollars.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The PanAgora Global Diversified Risk Portfolio’s investment philosophy is centered on the belief that risk diversification is the key to generating better risk-adjusted returns and that avoiding risk concentration within a portfolio is the best way to achieve true diversification. PanAgora seeks to accomplish this by evaluating risk across and within asset classes using proprietary risk assessment and management techniques, including an approach to tactical risk management called Dynamic Risk Allocation. The Portfolio targets a neutral risk allocation of 40% equities, 40% nominal fixed income, and 20% inflation protection.

Exposure to inflation-protected investments negatively impacted Portfolio performance for 2015 as both commodities and inflation-linked bonds detracted. Portfolio exposure to global equities was also a driver of negative performance for the year as U.S. small cap, non-U.S., and emerging markets equities detracted while U.S large cap equities contributed slightly. Exposure to nominal fixed income contributed positively helping to offset negative Portfolio performance for the year.

While the uptick in inflation towards the end of 2015 and gains by the U.S. dollar against the other major currencies helped to mitigate losses for the inflation-linked bond exposure, commodities were very negative for the year dragging down the performance of the inflation protected asset class. The Energy sector was the most meaningful detractor within commodities exposure. The dilemma of a lack of demand coupled with a world market oversupply weighed down heavily on crude oil prices which declined by approximately 30% in 2015. Although equities detracted from performance for the year, largely due to the very volatile third quarter and broad sell-off amidst

 

MIST-1

Met Investors Series Trust

PanAgora Global Diversified Risk Portfolio

Managed by PanAgora Asset Management, Inc.

Portfolio Manager Commentary*—(Continued)

 

global growth fears, the asset class managed to rally in the fourth quarter. More specifically, gains in the developed markets provided a boost to aggregate Portfolio equity exposure in October and November. U.S. large cap equities ultimately contributed to Portfolio performance for the year while exposure to U.S. small cap, non-U.S., and emerging markets equities detracted. Nominal fixed income contributed positively to Portfolio performance for the year, exposure to U.S. and non-U.S. government debt in particular. Bond prices rose as the yield on the 10-year U.S. Treasury note declined by approximately 25 basis points since mid-June and across the Atlantic, government bond yields also declined since June as Eurozone government debt rallied towards the end of the year contributing to Portfolio performance. However, exposure to investment grade credit detracted from Portfolio performance as the asset class was hampered by oversupply with companies scrambling to issue new debt and lock in lower rates ahead of the rate hike by the Fed.

On average, the Portfolio maintained an overweight position in equities and an underweight position in nominal fixed income and inflation-protected investments relative to the Portfolio’s strategic (neutral) risk targets. The Portfolio’s active positioning relative to the strategic risk targets slightly contributed to overall performance for the year.

The Portfolio invests in derivatives, such as exchange-traded futures within the equity, fixed income, and commodities asset classes, and swaps on futures within fixed income and commodities. The Portfolio invests in derivatives in order to gain exposure to certain asset classes and to enhance returns. All derivatives used during the one year period ending December 31, 2015 performed as expected.

As of December 31, 2015, the Portfolio maintained an overweight position in equities and an underweight position in inflation-protected investments while nominal fixed income was in line with the Portfolio’s strategic (neutral) risk targets. Within equities, the Portfolio was overweight U.S. large cap, U.S. small cap, and non-U.S. equities and underweight emerging markets equities. Within inflation protected investments, the Portfolio was underweight both inflation-linked bonds and commodities. Within nominal fixed income, the Portfolio was overweight non-U.S. government debt and underweight U.S. government debt and investment grade credit.

Edward Qian

Bryan Belton

Portfolio Managers

PanAgora Asset 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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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

PanAgora Global Diversified Risk Portfolio

 

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

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        Since Inception2  
PanAgora Global Diversified Risk Portfolio            

Class B

        -5.48           -0.22   
Dow Jones Moderate Index        -1.21           1.92   

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 date of Class B shares is 4/14/2014. Index since inception return is based on the Portfolio’s inception date.

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 DECEMBER 31, 2015

Exposures by Asset Class*

 

     % of
Net Assets		  
Global Developed Bonds      168.7   
Global Developed Equities      40.9   
Commodities - Production Weighted      13.2   
Global Inflation-Linked Bonds      12.5   
Global Emerging Equities      5.6   

 

  * 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

PanAgora Global Diversified Risk 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, July 1, 2015 through December 31, 2015.

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.

 

PanAgora Global Diversified Risk Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class B(a)

    Actual      1.30 %     $ 1,000.00         $ 960.10         $ 6.42   
   Hypothetical*      1.30 %     $ 1,000.00         $ 1,018.65         $ 6.61   

* 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 (184 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

PanAgora Global Diversified Risk Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Foreign Government—12.0% of Net Assets

 

 

Security Description  

Shares/

Principal
Amount*

     Value  

Sovereign—12.0%

    

Deutsche Bundesrepublik Inflation Linked Bonds
0.100%, 04/15/23 (EUR) (a)

     1,109,301      $ 1,262,083   

France Government Bond OAT 0.250%, 07/25/24 (EUR) (a)

     1,322,230        1,509,676   

Italy Buoni Poliennali Del Tesoro 2.350%, 09/15/24 (144A) (EUR) (a)

     804,968        1,008,711   

United Kingdom Gilt Inflation Linked 0.625%, 03/22/40 (GBP) (a)

     1,378,275        2,721,322   
   

 

 

  

Total Foreign Government
(Cost $6,765,575)

       6,501,792   
   

 

 

  
Mutual Fund—7.5%                

Investment Company Security—7.5%

  

iShares iBoxx $ Investment Grade Corporate Bond ETF
(Cost $4,273,537)

     35,971        4,101,054   
   

 

 

  
U.S. Treasury & Government Agencies—6.8%   

U.S. Treasury—6.8%

    

U.S. Treasury Inflation Indexed Bonds 3.875%, 04/15/29 (a)

     824,665        1,120,309   

U.S. Treasury Inflation Indexed Notes

    

0.125%, 04/15/18 (a)

     668,785        667,496   

0.125%, 01/15/23 (a)

     803,720        770,598   

0.250%, 01/15/25 (a)

     1,184,921        1,130,997   
   

 

 

  

Total U.S. Treasury & Government Agencies
(Cost $3,785,986)

       3,689,400   
   

 

 

  
Short-Term Investments—60.0%   

Mutual Funds—31.2%

    

BlackRock Liquidity Funds T-Fund Portfolio, Institutional Class, 0.100% (b)

     7,000,000        7,000,000   

BofA Government Plus Reserves Fund, Institutional Class, 0.131% (b)

     1,500,000        1,500,000   

UBS Select Treasury Institutional Fund, Institutional Class, 0.090% (b)

     8,500,000        8,500,000   
   

 

 

  
      17,000,000   
   

 

 

  

Repurchase Agreement—23.4%

    

Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $12,720,717 on 01/04/16, collateralized by $13,140,000 U.S. Treasury Note at 0.625% due 04/30/18 with a value of $12,975,750.

     12,720,675      12,720,675   
   

 

 

  

U.S. Treasury—5.4%

    

U.S. Treasury Bills

    

0.119%, 01/14/16 (c) (d)

     425,000        424,987   

0.122%, 01/14/16 (c) (d)

     2,500,000        2,499,892   
   

 

 

  
      2,924,879   
   

 

 

  

Total Short-Term Investments
(Cost $32,645,549)

       32,645,554   
   

 

 

  

Total Investments—86.3%
(Cost $47,470,647) (e)

       46,937,800   

Other assets and liabilities (net)—13.7%

       7,473,872   
   

 

 

  
Net Assets—100.0%     $ 54,411,672   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Principal amount of security is adjusted for inflation.
(b) The rate shown represents the annualized seven-day yield as of December 31, 2015.
(c) The rate shown represents current yield to maturity.
(d) All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2015, the market value of securities pledged was $2,924,802.
(e) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $47,505,223. The aggregate and net unrealized depreciation of investments was $(567,423).
(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 December 31, 2015, the market value of 144A securities was $1,008,711, which is 1.9% of net assets.
(ETF)— Exchange-Traded Fund
(EUR)— Euro
(GBP)— British Pound

Forward Foreign Currency Exchange Contracts

 

Contracts to Deliver

       

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation		  
EUR     3,490,000        

Northern Trust Co.

        01/29/16         $ 3,810,755         $ 15,743   
GBP     1,850,000        

Northern Trust Co.

        01/29/16           2,760,947           33,491   
                     

 

 

  

Net Unrealized Appreciation

  

      $ 49,234   
                     

 

 

  

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-5

Met Investors Series Trust

PanAgora Global Diversified Risk Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Futures Contracts

 

 

Futures Contracts—Long

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

Amsterdam Index Futures

      01/15/16         5         EUR         436,570       $ 5,738   

Australian 10 Year Treasury Bond Futures

      03/15/16         104         AUD         13,135,078         44,979   

Bloomberg Commodity Index Futures

      03/16/16         35         USD         276,959         (1,509 ) 

Brent Crude Oil Futures

      01/29/16         5         USD         191,514         (3,164 ) 

Canada Government Bond 10 Year Futures

      03/21/16         99         CAD         13,684,280         197,825   

Cattle Feeder Futures

      03/24/16         4         USD         332,953         (5,653 ) 

Cocoa Futures

      05/13/16         12         USD         378,864         5,976   

Copper E-Mini Futures

      02/25/16         12         USD         318,640         1,610   

Corn Futures

      03/14/16         9         USD         174,053         (12,615 ) 

Cotton No. 2 Futures

      03/08/16         12         USD         377,034         2,646   

DAX Index Futures

      03/18/16         4         EUR         1,056,409         22,595   

Euro-BTP Futures

      03/08/16         33         EUR         4,611,943         (65,839 ) 

Euro-Bobl Futures

      03/08/16         15         EUR         1,965,140         (5,532 ) 

Euro-Bund Futures

      03/08/16         15         EUR         2,373,417         (5,017 ) 

Euro-Buxl 30 Year Bond Futures

      03/08/16         8         EUR         1,215,193         (4,339 ) 

FTSE 100 Index Futures

      03/18/16         7         GBP         421,835         17,728   

Gasoline RBOB Futures

      02/29/16         4         USD         215,409         2,689   

Gold Mini Futures

      02/25/16         29         USD         999,060         (10,582 ) 

Hang Seng Index Futures

      01/28/16         11         HKD         12,160,773         (14,229 ) 

IBEX 35 Index Futures

      01/15/16         6         EUR         583,774         (13,254 ) 

Interest Rate Swap 10 Year Futures

      03/14/16         57         USD         5,827,939         (5,923 ) 

Interest Rate Swap 5 Year Futures

      03/14/16         124         USD         12,555,291         (50,666 ) 

Japanese Government 10 Year Bond Mini Futures

      03/11/16         134         JPY         1,991,390,348         50,032   

Lean Hogs Futures

      04/14/16         33         USD         812,399         58,141   

Live Cattle Futures

      04/29/16         6         USD         331,980         (840 ) 

Low Sulphur Gas Oil Futures

      02/11/16         4         USD         139,411         (5,711 ) 

MSCI Emerging Markets Mini Index Futures

      03/18/16         78         USD         3,005,119         66,131   

New York Harbor ULSD Futures

      02/29/16         2         USD         119,456         (22,948 ) 

Nickel Futures

      03/14/16         4         USD         213,546         (2,010 ) 

OMX Stockholm 30 Index Futures

      01/15/16         47         SEK         6,754,078         6,103   

Primary Aluminum Futures

      03/14/16         9         USD         333,828         5,415   

Russell 2000 Mini Index Futures

      03/18/16         52         USD         5,758,605         125,195   

S&P 500 E-Mini Index Futures

      03/18/16         64         USD         6,431,520         81,760   

S&P TSX 60 Index Futures

      03/17/16         10         CAD         1,497,923         17,256   

SPI 200 Index Futures

      03/17/16         13         AUD         1,586,705         88,770   

Silver Mini Futures

      03/29/16         43         USD         606,609         (13,080 ) 

Soybean Futures

      03/14/16         6         USD         275,369         (16,094 ) 

Soybean Meal Futures

      03/14/16         10         USD         308,971         (43,471 ) 

Soybean Oil Futures

      03/14/16         17         USD         297,095         16,555   

Sugar No. 11 Futures

      06/30/16         4         USD         65,333         254   

TOPIX Index Futures

      03/10/16         18         JPY         285,894,000         (61,101 ) 

U.S. Treasury Long Bond Futures

      03/21/16         35         USD         5,377,041         4,209   

U.S. Treasury Note 2 Year Futures

      03/31/16         13         USD         2,828,928         (4,881 ) 

United Kingdom Long Gilt Bond Futures

      03/29/16         51         GBP         5,988,471         (48,945 ) 

Wheat Futures

      03/14/16         7         USD         179,072         (14,572 ) 

Zinc Futures

      03/14/16         7         USD         271,063         10,514   
              

 

 

  

Net Unrealized Appreciation

  

    $ 400,146   
              

 

 

  

Swap Agreements

Centrally Cleared Interest Rate Swaps

 

Pay/Receive Floating Rate

    Floating
Rate Index		    Fixed
Rate		     Maturity
Date		    Notional
Amount		      Unrealized
Depreciation		  

Pay

    3M LIBOR      1.500 %    03/16/18      USD         26,221,000       $ (43,042 ) 
                

 

 

  

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-6

Met Investors Series Trust

PanAgora Global Diversified Risk Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

 

 

 

(AUD)— Australian Dollar
(CAD)— Canadian Dollar
(EUR)— Euro
(GBP)— British Pound
(HKD)— Hong Kong Dollar
(JPY)— Japanese Yen
(SEK)— Swedish Krona
(USD)— United States Dollar
(LIBOR)— London Interbank Offered Rate

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1     Level 2     Level 3      Total  

Total Foreign Government*

    $ —        $ 6,501,792      $ —         $ 6,501,792   

Total Mutual Fund*

      4,101,054        —          —           4,101,054   

Total U.S. Treasury & Government Agencies*

      —          3,689,400        —           3,689,400   
Short-Term Investments          

Mutual Funds

      17,000,000        —          —           17,000,000   

Repurchase Agreement

      —          12,720,675        —           12,720,675   

U.S. Treasury

      —          2,924,879        —           2,924,879   

Total Short-Term Investments

      17,000,000        15,645,554        —           32,645,554   

Total Investments

    $ 21,101,054      $ 25,836,746      $ —         $ 46,937,800   
                                   
Forward Contracts          

Forward Foreign Currency Exchange Contracts (Unrealized Appreciation)

    $ —        $ 49,234      $ —         $ 49,234   
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 832,121      $ —        $ —         $ 832,121   

Futures Contracts (Unrealized Depreciation)

      (431,975 )      —          —           (431,975 ) 

Total Futures Contracts

    $ 400,146      $ —        $ —         $ 400,146   
Centrally Cleared Swap Contracts          

Centrally Cleared Swap Contracts (Unrealized Depreciation)

    $ —        $ (43,042 )    $ —         $ (43,042 ) 

 

* 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-7

Met Investors Series Trust

PanAgora Global Diversified Risk Portfolio

 

Consolidated§ Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a)

    $ 34,217,125   

Repurchase Agreement

      12,720,675   

Cash

      7,218,683   

Cash denominated in foreign currencies (b)

      28,625   

Cash collateral for futures contracts

      293,172   

Unrealized appreciation on forward foreign currency exchange contracts

      49,234   

Receivable for:

   

Fund shares sold

      81,319   

Interest

      20,886   

Variation margin on centrally cleared swap contracts

      10,227   

Due from investment adviser

      14,283   

Prepaid expenses

      118  
  

 

 

  

Total Assets

      54,654,347  

Liabilities

   

Payables for:

   

Fund shares redeemed

      27,182   

Variation margin on futures contracts

      61,717   

Accrued Expenses:

   

Management fees

      29,497   

Distribution and service fees

      11,345   

Deferred trustees’ fees

      28,671   

Other expenses

      84,263  
  

 

 

  

Total Liabilities

      242,675  
  

 

 

  

Net Assets

    $ 54,411,672  
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 55,797,707   

Accumulated net investment loss

      (166,743 ) 

Accumulated net realized loss

      (1,091,869 ) 

Unrealized depreciation on investments, futures contracts, swap contracts and foreign currency transactions

      (127,423 )
  

 

 

  

Net Assets

    $ 54,411,672  
  

 

 

  

Net Assets

   

Class B

    $ 54,411,672   

Capital Shares Outstanding*

   

Class B

      5,655,012   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 9.62   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding repurchase agreement, was $34,749,972.
(b) Identified cost of cash denominated in foreign currencies was $28,796.

Consolidated§ Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends

    $ 118,403   

Interest

      103,212  
  

 

 

  

Total investment income

      221,615  

Expenses

   

Management fees

      270,238   

Administration fees

      36,678   

Custodian and accounting fees

      20,320   

Distribution and service fees—Class B

      103,938   

Audit and tax services

      96,179   

Legal

      31,310   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      23,739   

Insurance

      181   

Miscellaneous

      7,884  
  

 

 

  

Total expenses

      625,640  

Less expenses reimbursed by the Adviser

      (85,165 )
  

 

 

  

Net expenses

      540,475  
  

 

 

  

Net Investment Loss

      (318,860 )
  

 

 

  

Net Realized and Unrealized Loss

   
Net realized gain (loss) on:   

Investments

      (211,865 ) 

Futures contracts

      (2,251,791 ) 

Swap contracts

      (22,165 ) 

Foreign currency transactions

      114,141  
  

 

 

  

Net realized loss

      (2,371,680 )
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (491,344 ) 

Futures contracts

      (17,619 ) 

Swap contracts

      (43,042 ) 

Foreign currency transactions

      68,312  
  

 

 

  

Net change in unrealized depreciation

      (483,693 )
  

 

 

  

Net realized and unrealized loss

      (2,855,373 )
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (3,174,233 )
  

 

 

  

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-8

Met Investors Series Trust

PanAgora Global Diversified Risk Portfolio

Consolidated§ Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Period Ended
December 31,
2014(a)		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment loss

    $ (318,860 )    $ (74,514 ) 

Net realized gain (loss)

      (2,371,680 )      114,622   

Net change in unrealized appreciation (depreciation)

      (483,693 )     356,270  
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (3,174,233 )     396,378  
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (235,596 )      (59,437 ) 

Net realized capital gains

     

Class B

      (305,862 )     (430,917 )
  

 

 

    

 

 

  

Total distributions

      (541,458 )     (490,354 )
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      35,722,827       22,498,512  
  

 

 

    

 

 

  

Total increase in net assets

      32,007,136        22,404,536   

Net Assets

     

Beginning of period

      22,404,536       0  
  

 

 

    

 

 

  

End of period

    $ 54,411,672      $ 22,404,536   
  

 

 

    

 

 

  

Accumulated undistributed net investment income (loss)

     

End of period

    $ (166,743 )    $ 195,616   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Period Ended
December 31, 2014(a)		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      4,044,884      $ 41,431,923        2,305,033      $ 23,893,592   

Reinvestments

      53,876        541,458        47,377        490,354   

Redemptions

      (617,371 )      (6,250,554 )      (178,787 )      (1,885,434 )
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      3,481,389      $ 35,722,827        2,173,623      $ 22,498,512  
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 35,722,827        $ 22,498,512  
    

 

 

      

 

 

  

 

(a) Commencement of operations was April 14, 2014.

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-9

Met Investors Series Trust

PanAgora Global Diversified Risk Portfolio

Consolidated§ Financial Highlights

 

Selected per share data       
     Class B  
     Year Ended December 31,  
     2015      2014(a)  

Net Asset Value, Beginning of Period

    $ 10.31       $ 10.00  
  

 

 

     

 

 

  

Income (Loss) from Investment Operations

      

Net investment loss (b)

      (0.08 )       (0.06 ) 

Net realized and unrealized gain (loss) on investments

      (0.48 )      0.60  
  

 

 

     

 

 

  

Total from investment operations

      (0.56 )      0.54  
  

 

 

     

 

 

  

Less Distributions

      

Distributions from net investment income

      (0.06 )       (0.03 ) 

Distributions from net realized capital gains

      (0.07 )      (0.20 )
  

 

 

     

 

 

  

Total distributions

      (0.13 )      (0.23 )
  

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 9.62       $ 10.31  
  

 

 

     

 

 

  

Total Return (%) (c)

      (5.48 )      5.40  (d)

Ratios/Supplemental Data

      

Gross ratio of expenses to average net assets (%)

      1.50         3.66  (e) 

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

      1.30         1.30  (e) 

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

      (0.77 )       (0.74 )(e) 

Portfolio turnover rate (%)

      68         9  (d) 

Net assets, end of period (in millions)

    $ 54.4       $ 22.4   

 

(a) Commencement of operations was April 14, 2014.
(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 (see Note 7 of the Notes to Consolidated Financial Statements).

 

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

 

See accompanying notes to consolidated financial statements.

 

MIST-10

Met Investors Series Trust

PanAgora Global Diversified Risk Portfolio

Notes to Consolidated Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is PanAgora Global Diversified Risk Portfolio (the “Portfolio”) (commenced operations on April 14, 2014), 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 one class of shares: Class B shares. Class B shares are currently offered by the Portfolio.

2. Consolidation of Subsidiary—PanAgora Global Diversified Risk Portfolio, Ltd.

The Portfolio may invest up to 25% of its total assets in the PanAgora Global Risk Diversified Risk 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 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 the PanAgora Asset 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 include 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
December 31, 2015		      % of
Total Assets at
December 31, 2015		  

PanAgora Global Risk Diversified Risk Portfolio, Ltd

      4/14/2014       $ 7,654,359         14.0 % 

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 December 31, 2015 through the date the consolidated financial statements were issued.

 

MIST-11

Met Investors Series Trust

PanAgora Global Diversified Risk Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946- Financial Services- Investment Companies. 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, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 and subject to general oversight by the Board. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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 through an independent pricing service based on the mean between closing bid and ask prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or broker-dealer. These contracts are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

Options, including swaptions, and futures contracts that are traded OTC are generally valued on the basis of quotations provided by broker-dealers or prices provided by 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, yield curves, credit curves, measures of volatility and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts (other than centrally cleared swaps) are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and other pricing services. Such quotations and prices are derived utilizing observable data, including the underlying reference securities or indices, credit spread quotations and expected default recovery rates determined by the pricing service. These contracts are generally categorized as Level 2 within the fair value hierarchy.

 

 

MIST-12

Met Investors Series Trust

PanAgora Global Diversified Risk Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or an independent pricing service when the exchange price is not available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third party prices are used to produce daily settlement prices. These securities are categorized as Level 2 within the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates, including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

 

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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, TIPs sell adjustments, premium amortization adjustments, controlled foreign corporation adjustments and return of capital distributions. These adjustments have no impact on net assets or the results 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 remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

 

MIST-13

Met Investors Series Trust

PanAgora Global Diversified Risk Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $12,720,675, which is reflected as repurchase agreement on the Consolidated Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2015.

4. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts 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 cash 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. If futures contracts are exchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

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.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of 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 centrally cleared swap contracts (a) (b)    $ 43,042   
   Unrealized appreciation on futures contracts (a) (c)    $ 297,046       Unrealized depreciation on futures contracts (a) (c)      191,143   

Equity

    Unrealized appreciation on futures contracts (a) (c)      431,276       Unrealized depreciation on futures contracts (a) (c)      88,583   

Commodity

    Unrealized appreciation on futures contracts (a) (c)      103,799       Unrealized depreciation on futures contracts (a) (c)      152,249   

Foreign Exchange

    Unrealized appreciation on forward foreign currency exchange contracts      49,234         
     

 

 

        

 

 

  
Total       $ 881,355         $ 475,017  
     

 

 

        

 

 

  

 

  (a) Financial instrument not subject to a master netting agreement.
  (b) 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.
  (c) 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.

 

MIST-14

Met Investors Series Trust

PanAgora Global Diversified Risk Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

The Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized 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 (“MNA”) (see Note 5), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Assets
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		      Collateral
Received†		      Net Amount*  

Northern Trust Co.

    $ 49,234       $ —       $ —       $ 49,234   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

  * Net amount represents the net amount receivable from the counterparty in the event of default.
  † In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

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

    Interest Rate     Equity     Commodity     Foreign Exchange      Total  

Forward foreign currency transactions

    $ —      $ —      $ —      $ 117,324       $ 117,324   

Futures contracts

      1,043,466        (1,227,921 )      (2,067,336 )      —         (2,251,791 ) 

Swap contracts

      (22,165 )      —        —        —         (22,165 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  
   $ 1,021,301      $ (1,227,921 )    $ (2,067,336 )    $ 117,324       $ (2,156,632 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

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

    Interest Rate     Equity     Commodity     Foreign Exchange      Total  

Forward foreign currency transactions

    $ —      $ —      $ —      $ 49,234       $ 49,234   

Futures contracts

      (303,605 )      19,999        265,987        —         (17,619 ) 

Swap contracts

      (43,042 )      —        —        —         (43,042 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  
   $ (346,647 )    $ 19,999      $ 265,987      $ 49,234       $ (11,427 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Forward foreign currency transactions

    $ 5,734,210   

Futures contracts long

      65,973,583   

Futures contracts short

      (108 ) 

Swap contracts

      26,555,250   

 

  ‡ Averages are based on activity levels during 2015.

5. Certain Risks

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”).

Market 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, interest rate, and price fluctuations.

Commodities Risk: 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 factors affecting a particular industry or commodity.

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

 

MIST-15

Met Investors Series Trust

PanAgora Global Diversified Risk Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC 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 (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to Portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$7,054,880    $ 9,247,576       $ 7,265,479       $ 241,571   

 

MIST-16

Met Investors Series Trust

PanAgora Global Diversified Risk Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

7. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$270,238      0.650 %    First $250 million
     0.640 %   $250 million to $750 million
     0.630 %   $750 million to $1 billion
     0.600 %    Over $1 billion

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. The Subadviser is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

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 30, 2016. 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

    Expenses Deferred in 2014
Subject to repayment until
December 31, 2017		      Expenses Deferred in 2015
Subject to repayment until
December 31, 2018
1.30%    $ 231,931       $85,165

Amounts waived for the year ended December 31, 2015 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 three years after the end of the fiscal year in which such expense was incurred. As of December 31, 2015, there was $317,096 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, LLC, 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 year ended December 31, 2015 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-17

Met Investors Series Trust

PanAgora Global Diversified Risk Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(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 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Return of Capital      Total  

2015

    2014      2015      2014      2015      2014      2015      2014  
$317,260    $ 231,379       $ 162,502       $ 258,975       $ 61,696       $ —       $ 541,458       $ 490,354   

As of December 31, 2015, 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		     Late Year Ordinary and
Post October
Capital Loss
Deferrals		     Other
Accumulated
Capital Losses		     Total  
$—    $ —       $ (337,708 )    $ (780,681 )    $ (238,975 )    $ (1,357,364 ) 

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.

As of December 31, 2015, the Portfolio had accumulated short-term capital losses of $238,975.

10. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-18

Met Investors Series Trust

PanAgora Global Diversified Risk Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of PanAgora Global Diversified 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 schedule of investments, of PanAgora Global Diversified Risk Portfolio and subsidiary, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related consolidated statement of operations for the year then ended, and the consolidated statements of changes in net assets and the consolidated financial highlights for the year ended December 31, 2015 and for the period April 28, 2014 (commencement of operations) to December 31, 2014. These consolidated financial statements and consolidated financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these consolidated financial statements and consolidated 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 consolidated financial highlights referred to above present fairly, in all material respects, the financial position of PanAgora Global Diversified Risk Portfolio and subsidiary of the Met Investors Series Trust as of December 31, 2015, the results of their operations, and the changes in their net assets and the consolidated financial highlights for the year ended December 31, 2015 and for the period April 14, 2014 (commencement of operations) to December 31, 2015, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-19

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-20

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-21

Met Investors Series Trust

PanAgora Global Diversified Risk Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-22

Met Investors Series Trust

PanAgora Global Diversified Risk Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those

 

MIST-23

Met Investors Series Trust

PanAgora Global Diversified Risk Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

PanAgora Global Diversified Risk Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and PanAgora Asset Management, Inc. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio underperformed the median of its Performance Universe for the one-year period ended June 30, 2015, and outperformed its Performance Universe for the since-inception (beginning April 14, 2014) period ended June 30, 2015. The Board also considered that the Portfolio underperformed its Lipper Index for the one-year and since-inception (beginning April 14, 2014) periods ended June 30, 2015. The Board further considered that the Portfolio underperformed its benchmark, the Dow Jones Moderate Index, for the one-year and since-inception periods ended October 31, 2015, and underperformed its blended benchmark for the same periods. The Board also noted that the Portfolio commenced operations on April 14, 2014.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-l fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were above the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also took into account that the Portfolio’s contractual sub-advisory fees were equal to the average of the Sub-advised Expense Group and below the average of the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-24

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Managed by Pacific Investment Management Company LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A, B, and E shares of the PIMCO Inflation Protected Bond Portfolio returned -2.91%, -3.11%, and -3.01%, respectively. The Portfolio’s benchmark, the Barclays U.S. TIPS Index1, returned -1.44%.

MARKET ENVIRONMENT / CONDITIONS

In addition to the European Central Bank’s (the “ECB”) highly anticipated foray into quantitative easing (“QE”), the New Year began with a host of global central banks embracing monetary easing. Eurozone bonds and equities rallied strongly on the announcement of QE, though economic data also improved on the margin. The U.S. Federal Reserve (the “Fed”) remained an outlier among easing central banks as officials reiterated their desire to hike rates sometime this year, emphasizing the importance of incoming data. Some trends from 2014 continued into 2015, including generalized U.S. dollar strength, lower oil prices, and uncertainty as evidenced in the choppiness of risk assets.

The U.S. economy continued to show signs of strength, as a healthier labor market, improving outlook for spending, and modest rebound in oil prices led to a sell-off in longer-dated U.S. Treasuries over the second quarter. After the U.S. dollar’s seemingly unstoppable 25% rally over the prior nine months, lingering uncertainty about the start and pace of the Fed rate hikes anchored short-dated Treasuries and led to second quarter softness in the U.S. dollar. Elsewhere in developed markets, global deflation fears gradually receded as oil prices firmed, the ECB committed to prevent deflation with QE, and the outlook for growth brightened. Although volatility in eurozone markets grabbed headlines amid Greek concerns, modest market moves suggested the events in Greece were more noise than news for global financial markets.

In the third quarter of 2015, a cascade of negative headlines soured global risk sentiment. Rising concern over the outlook for Chinese growth sent commodity prices, inflation expectations, and emerging market assets tumbling. The subsequent rise in global financial market volatility to multi-year highs drove the Fed to hold rates steady in September and moved developed market central banks to reiterate their commitment to accommodative policies. Despite headlines and financial market turmoil, economic growth in the U.S. remained robust.

The fourth quarter brought some respite as economic fundamentals strengthened and sentiment stabilized. The improving backdrop was sufficient to give the Fed the confidence to lift policy rates for the first time in nearly a decade. While markets first responded to the long-awaited liftoff with a sense of relief, they remained on edge heading into year-end both due to oil prices and widening high yield spreads which generated fears of reduced market liquidity following a distressed debt mutual fund closure.

PORTFOLIO REVIEW / PERIOD END POSITIONING

Exposure to Treasury Inflation-Protected Securities (“TIPS”), through cash bonds and interest rate swaps was negative for the Portfolio’s absolute performance as the real yield curve steepened during the calendar year. In addition, exposure to longer-dated U.S. break-evens, facilitated partially through the use of pay-fix interest rate swaps, detracted from relative performance as break-evens fell alongside oil prices. A tactical allocation to Italian inflation-linked bonds (“ILBs”) was positive for relative performance as real yields fell amid an improving political situation and policy support from the ECB. A defensive position to longer-dated inflation expectations in the U.K. detracted from performance as continued pension buying in these longer-dated issues pushed inflation expectations higher. Tactical positions in Mexican ILBs, as well as exposure to Brazilian nominal rates, were negative as real and nominal yields rose in the region. Through the use of currency forwards, the Portfolio was long the U.S. dollar versus the euro and a basket of emerging market currencies, which contributed to performance as those currencies depreciated relative to the U.S dollar. An allocation to German nominal bonds, through the use of futures, was negative for returns as rates rose amid a sell-off in core European interest rates. An allocation to non-Agency mortgages contributed to performance, as prices continued to appreciate in-line with the ongoing housing recovery and strong demand.

As of year-end, PIMCO maintained full exposure to ILBs and inflation protection while tactically managing Portfolio duration, curve and country selection. The Portfolio remained underweight U.S. interest rate risk (duration) and focused on opportunities across both real and nominal yield curves. We concentrated duration exposure further out on the real yield curve, specifically in the 10+ year maturities. We also found attractive opportunities for carry and roll-down in the belly of the U.S. real yield curve. The Portfolio maintained

 

MIST-1

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Managed by Pacific Investment Management Company LLC

Portfolio Manager Commentary*—(Continued)

 

long position in break-evens in the U.S. (long TIPS vs. short nominal) given underpriced inflation risk. We also continued to seek opportunities outside the U.S., where business cycles may anchor rates for a considerable period. Given a building technical tailwind from the scale and scope of the ECB’s QE purchases, we saw opportunities in sovereign debt in peripheral countries like Italy and Spain. Outside of the eurozone, we held New Zealand ILBs that offer attractive real yields and policy maneuverability. With continued divergence in economic growth and central bank policies, we maintained our long-dollar bias against the euro and Japanese yen, in particular.

Mihir P. Worah

Jeremie Banet

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, 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 subject to change at any time based upon economic, market, or other conditions and the advisory 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year        Since Inception2  
PIMCO Inflation Protected Bond Portfolio                      

Class A

        -2.91           2.13           4.02           —   

Class B

        -3.11           1.87           3.75           —   

Class E

        -3.01           1.98           —           4.13   
Barclays U.S. TIPS Index        -1.44           2.55           3.93           —   

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 dates of Class A, Class B and Class E shares are 5/1/2003, 5/1/2003 and 5/1/2006, respectively.

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 DECEMBER 31, 2015

TOP SECTORS

 

     % of
Net Assets		  
U.S. Treasury & Government Agencies      107.6   
Corporate Bonds & Notes      10.5   
Foreign Government      9.2   
Asset-Backed Securities      3.4   
Mortgage-Backed Securities      3.3   
Purchased Options      0.1   

 

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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual      0.62 %     $ 1,000.00         $ 968.70         $ 3.08   
   Hypothetical*      0.62 %     $ 1,000.00         $ 1,022.08         $ 3.16   

Class B(a)

    Actual      0.87 %     $ 1,000.00         $ 967.50         $ 4.31   
   Hypothetical*      0.87 %     $ 1,000.00         $ 1,020.82         $ 4.43   

Class E(a)

    Actual      0.77 %     $ 1,000.00         $ 968.60         $ 3.82   
   Hypothetical*      0.77 %     $ 1,000.00         $ 1,021.32         $ 3.92   

* 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 (184 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

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of December 31, 2015

U.S. Treasury & Government Agencies—107.6% of Net Assets

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage - Backed—0.8%

  

Fannie Mae ARM Pool
1.443%, 07/01/44 (a)

     20,708      $ 21,210   

1.443%, 09/01/44 (a)

     37,721        38,640   

2.488%, 11/01/34 (a)

     876,717        927,224   

Fannie Mae REMICS (CMO)
0.281%, 12/25/36 (a)

     74,520        74,377   

0.482%, 07/25/37 (a)

     818,244        768,611   

0.572%, 08/25/34 (a)

     98,924        98,299   

0.772%, 07/25/37 (a)

     27,161        27,288   

0.802%, 07/25/37 (a)

     188,558        189,755   

1.102%, 02/25/41 (a)

     2,684,252        2,713,299   

2.326%, 05/25/35 (a)

     511,578        537,968   

Fannie Mae Whole Loan (CMO)
0.772%, 05/25/42 (a)

     67,878        67,920   

Freddie Mac ARM Non-Gold Pool
2.372%, 01/01/34 (a)

     94,275        99,922   

Freddie Mac REMICS (CMO)
0.481%, 10/15/20 (a)

     279,135        278,624   

0.561%, 02/15/19 (a)

     527,902        526,965   

0.781%, 08/15/33 (a)

     1,912,804        1,916,680   

Freddie Mac Strips (CMO)
0.781%, 09/15/42 (a)

     9,386,357        9,308,563   

Freddie Mac Structured Pass-Through Securities (CMO)
0.682%, 08/25/31 (a)

     53,433        52,365   

1.443%, 10/25/44 (a)

     3,179,030        3,232,325   

1.443%, 02/25/45 (a)

     959,872        976,172   
   

 

 

  
      21,856,207   
   

 

 

  

U.S. Treasury—106.8%

  

U.S. Treasury Bonds
2.500%, 02/15/45 (b)

     8,110,000        7,276,511   

3.000%, 11/15/44 (b)

     2,000,000        1,992,734   

3.000%, 05/15/45 (b)

     20,800,000        20,704,944   

U.S. Treasury Inflation Indexed Bonds
0.625%, 02/15/43 (b) (c)

     24,931,209        21,098,036   

0.750%, 02/15/42 (b) (c)

     35,366,688        31,070,201   

0.750%, 02/15/45 (b) (c)

     76,489,415        66,707,107   

1.375%, 02/15/44 (b) (c)

     112,671,409        114,666,594   

1.750%, 01/15/28 (b) (c)

     146,835,356        160,440,533   

2.000%, 01/15/26 (b) (c)

     81,482,382        90,528,230   

2.125%, 02/15/40 (b) (c)

     36,643,653        43,142,661   

2.125%, 02/15/41 (b) (c) (d)

     7,168,128        8,487,135   

2.375%, 01/15/25 (b) (c) (d) (e)

     216,565,046        246,201,756   

2.375%, 01/15/27 (b) (c)

     101,661,612        117,523,772   

2.500%, 01/15/29 (b) (c)

     43,458,602        51,483,711   

3.625%, 04/15/28 (b) (c)

     38,027,647        49,711,262   

3.875%, 04/15/29 (b) (c)

     91,245,174        123,956,843   

U.S. Treasury Inflation Indexed Notes
0.125%, 04/15/16 (b) (c)

     48,902,156        48,711,780   

0.125%, 04/15/17 (b) (c) (d) (f) (g)

     20,733,768        20,692,466   

0.125%, 04/15/18 (b) (c) (d) (f) (g)

     12,861,250        12,836,466   

0.125%, 04/15/19 (b) (c) (d)

     135,036,872        134,243,935   

0.125%, 04/15/20 (b) (c)

     50,941,172        50,291,825   

0.125%, 01/15/22 (b) (c)

     56,725,380        54,969,673   

U.S. Treasury—(Continued)

  

U.S. Treasury Inflation Indexed Notes
0.125%, 07/15/22 (b) (c)

     312,568,109      303,068,851   

0.125%, 01/15/23 (b) (c)

     259,005,560        248,331,682   

0.125%, 07/15/24 (b) (c)

     59,658,050        56,658,861   

0.250%, 01/15/25 (b) (c)

     22,292,574        21,278,084   

0.375%, 07/15/23 (b) (c) (g)

     120,845,118        118,053,717   

0.375%, 07/15/25 (b) (c) (d)

     3,510,290        3,398,582   

0.625%, 07/15/21 (b) (c)

     278,105,918        279,930,849   

0.625%, 01/15/24 (b) (c)

     82,728,996        81,790,766   

1.125%, 01/15/21 (b) (c) (g)

     23,809,816        24,546,754   

1.250%, 07/15/20 (b) (c)

     129,933,960        135,119,494   

1.375%, 01/15/20 (b) (c)

     29,421,255        30,583,542   

1.625%, 01/15/18 (b) (c)

     22,694,647        23,404,740   

1.875%, 07/15/19 (b) (c) (d) (f) (g)

     15,929,056        16,890,613   

2.000%, 01/15/16 (b) (c) (d) (e) (g)

     9,586,640        9,585,144   

2.375%, 01/15/17 (b) (c) (d) (g)

     11,375,217        11,656,196   

2.500%, 07/15/16 (b) (c)

     54,532,536        55,410,892   

U.S. Treasury Notes
2.125%, 05/15/25 (b)

     26,700,000        26,351,645   
   

 

 

  
      2,922,798,587   
   

 

 

  

Total U.S. Treasury & Government Agencies
(Cost $3,148,475,147)

       2,944,654,794   
   

 

 

  
Corporate Bonds & Notes—10.5%   

Banks—8.6%

  

Banca Monte dei Paschi di Siena S.p.A.
4.875%, 09/15/16 (EUR)

     1,000,000        1,119,099   

Banco Santander S.A.
6.250%, 09/11/21 (EUR) (a)

     700,000        711,278   

Bank of America Corp.
3.300%, 01/11/23

     4,000,000        3,937,300   

Bank of America N.A.
1.750%, 06/05/18

     15,200,000        15,102,279   

Bank of New York Mellon Corp. (The)
1.234%, 08/17/20 (a)

     4,500,000        4,508,478   

Bankia S.A.
3.500%, 01/17/19 (EUR)

  

 

3,100,000

  

  

 

3,544,412

  

Barclays Bank plc
2.010%, 12/21/20 (MXN) (h)

     12,500,000        696,278   

6.500%, 09/15/19 (EUR) (a)

     2,900,000        3,190,181   

7.625%, 11/21/22

     15,718,000        17,898,873   

7.750%, 04/10/23 (a)

     7,954,000        8,490,895   

8.000%, 12/15/20 (EUR) (a)

     800,000        942,212   

BBVA Bancomer S.A.
6.500%, 03/10/21 (144A)

     5,000,000        5,300,000   

BPCE S.A.
0.934%, 11/18/16 (a)

     13,300,000        13,302,939   

BPE Financiaciones S.A.
2.500%, 02/01/17 (EUR)

     2,700,000        2,982,592   

2.875%, 05/19/16 (EUR)

     5,600,000        6,134,351   

Citigroup, Inc.
0.849%, 05/01/17 (a)

     33,800,000        33,645,534   

2.650%, 10/26/20

     3,700,000        3,670,093   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Banks—(Continued)

  

Cooperatieve Centrale Raiffeisen-Boerenleenbank BA
0.653%, 04/28/17 (a)

     33,700,000      $ 33,661,447   

Credit Agricole S.A.
7.875%, 01/23/24 (a)

     200,000        204,500   

Credit Suisse Group Funding Guernsey, Ltd.
3.750%, 03/26/25 (144A)

     2,800,000        2,708,395   

3.800%, 09/15/22 (144A)

     2,600,000        2,597,949   

Depfa ACS Bank
3.875%, 11/14/16 (EUR)

     600,000        672,247   

Eksportfinans ASA
2.375%, 05/25/16

     4,100,000        4,102,870   

Goldman Sachs Group, Inc. (The)
1.712%, 09/15/20 (a)

     11,900,000        11,925,894   

3.500%, 01/23/25

     800,000        786,250   

3.750%, 05/22/25

     2,100,000        2,114,003   

Intesa Sanpaolo S.p.A.

    

3.125%, 01/15/16

     3,200,000        3,201,597   

JPMorgan Chase & Co.

    

0.870%, 04/25/18 (a)

     33,700,000        33,464,673   

7.900%, 04/30/18 (a)

     900,000        916,200   

Lloyds Bank plc

    

1.750%, 05/14/18

     6,350,000        6,336,290   

3.500%, 05/14/25

     1,250,000        1,254,104   

Lloyds Banking Group plc

    

7.625%, 06/27/23 (GBP) (a)

     2,500,000        3,858,719   

7.875%, 06/27/29 (GBP) (a)

     200,000        311,793   

Royal Bank of Scotland Group plc

    

8.000%, 08/10/25 (a)

     500,000        528,750   

Turkiye Garanti Bankasi A/S

    

2.817%, 04/20/16 (144A) (a)

     1,600,000        1,596,448   
   

 

 

  
      235,418,923   
   

 

 

  

Computers—0.2%

    

Hewlett Packard Enterprise Co.

    

2.450%, 10/05/17 (144A)

     3,400,000        3,397,117   

2.850%, 10/05/18 (144A)

     3,400,000        3,398,103   
   

 

 

  
      6,795,220   
   

 

 

  

Diversified Financial Services—0.6%

  

Ally Financial, Inc.

    

3.250%, 02/13/18

     15,200,000        15,124,000   
   

 

 

  

Media—0.0%

    

CCO Safari LLC

    

4.464%, 07/23/22 (144A)

     400,000        398,604   

Univision Communications, Inc.

    

5.125%, 02/15/25 (144A)

     900,000        855,000   
   

 

 

  
      1,253,604   
   

 

 

  

Oil & Gas—0.4%

    

California Resources Corp.

    

5.500%, 09/15/21

     1,493,000        470,295   

8.000%, 12/15/22 (144A)

     4,005,000        2,107,631   

Oil & Gas—(Continued)

    

Chesapeake Energy Corp.

    

3.571%, 04/15/19 (a)

     2,900,000      812,000   

Petrobras Global Finance B.V.

    

1.990%, 05/20/16 (a)

     700,000        682,500   

2.461%, 01/15/19 (a)

     100,000        76,000   

2.750%, 01/15/18 (EUR)

     1,000,000        878,946   

2.886%, 03/17/17 (a)

     500,000        458,125   

3.000%, 01/15/19

     200,000        152,000   

4.250%, 10/02/23 (EUR)

     600,000        402,967   

4.375%, 05/20/23

     300,000        198,000   

5.375%, 01/27/21

     5,100,000        3,799,500   

6.250%, 12/14/26 (GBP)

     300,000        280,563   
   

 

 

  
      10,318,527   
   

 

 

  

Pharmaceuticals—0.6%

    

AbbVie, Inc.

    

1.800%, 05/14/18

     7,900,000        7,863,628   

2.500%, 05/14/20

     3,700,000        3,662,800   

3.200%, 11/06/22

     800,000        787,466   

3.600%, 05/14/25

     2,900,000        2,862,112   
   

 

 

  
      15,176,006   
   

 

 

  

Transportation—0.1%

  

Hellenic Railways Organization S.A.
4.028%, 03/17/17 (EUR) (h)

     3,900,000        3,899,258   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $301,855,225)

       287,985,538   
   

 

 

  
Foreign Government—9.2%                

Sovereign—9.2%

    

Brazil Letras do Tesouro Nacional

    

Zero Coupon, 10/01/16 (BRL)

     99,660,000        22,587,560   

Zero Coupon, 01/01/17 (BRL)

     245,400,000        53,579,109   

Zero Coupon, 01/01/18 (BRL)

     9,600,000        1,791,951   

Zero Coupon, 01/01/19 (BRL)

     42,700,000        6,819,977   

Brazil Notas do Tesouro Nacional
10.000%, 01/01/21 (BRL)

     8,025,000        1,516,440   

Bundesrepublik Deutschland Bundesobligation Inflation Linked Bonds
0.750%, 04/15/18 (EUR) (b) (c)

     8,302,620        9,243,200   

Colombian TES
3.000%, 03/25/33 (COP) (c)

     7,920,913,480        2,116,584   

France Government Bond OAT
0.250%, 07/25/18 (EUR) (c)

     416,504        465,855   

Hellenic Republic Government Bonds
3.000%, 02/24/23 (EUR) (i)

     300,000        242,236   

3.000%, 02/24/24 (EUR) (i)

     300,000        234,575   

3.000%, 02/24/25 (EUR) (i)

     300,000        229,359   

3.000%, 02/24/26 (EUR) (i)

     300,000        221,697   

3.000%, 02/24/27 (EUR) (i)

     300,000        216,187   

3.000%, 02/24/28 (EUR) (i)

     300,000        211,561   

3.000%, 02/24/29 (EUR) (i)

     500,000        349,243   

3.000%, 02/24/30 (EUR) (i)

     500,000        339,555   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of December 31, 2015

Foreign Government—(Continued)

 

Security Description   Principal
Amount*		     Value  

Sovereign—(Continued)

    

Hellenic Republic Government Bonds
3.000%, 02/24/31 (EUR) (i)

     500,000      $ 329,475   

3.000%, 02/24/32 (EUR) (i)

     500,000        325,666   

3.000%, 02/24/33 (EUR) (i)

     500,000        319,195   

3.000%, 02/24/34 (EUR) (i)

     500,000        317,076   

3.000%, 02/24/35 (EUR) (i)

     500,000        309,235   

3.000%, 02/24/36 (EUR) (i)

     750,000        459,279   

3.000%, 02/24/37 (EUR) (i)

     750,000        456,435   

3.000%, 02/24/38 (EUR) (i)

     750,000        454,373   

3.000%, 02/24/39 (EUR) (i)

     750,000        464,251   

3.000%, 02/24/40 (EUR) (i)

     750,000        463,819   

3.000%, 02/24/41 (EUR) (i)

     750,000        464,357   

3.000%, 02/24/42 (EUR) (i)

     750,000        463,607   

Hellenic Republic Government International Bonds
3.800%, 08/08/17 (JPY)

     150,000,000        1,135,954   

4.500%, 07/03/17 (JPY)

     300,000,000        2,246,350   

Italy Buoni Poliennali Del Tesoro
1.700%, 09/15/18 (EUR) (c)

     6,680,652        7,653,308   

2.350%, 09/15/19 (EUR) (c)

     2,660,088        3,164,614   

2.350%, 09/15/24 (144A) (EUR) (c)

     20,828,547        26,100,404   

2.550%, 09/15/41 (EUR) (c)

     97,906        133,374   

3.100%, 09/15/26 (EUR) (c)

     637,092        862,006   

Mexican Bonos
4.750%, 06/14/18 (MXN)

     65,252,000        3,804,228   

Mexican Udibonos
4.000%, 11/08/46 (MXN) (c)

     96,575,410        5,673,139   

4.500%, 12/04/25 (MXN) (c)

     138,899,427        8,857,157   

New Zealand Government Bonds
2.500%, 09/20/35 (NZD) (c)

     1,509,300        1,028,738   

3.000%, 09/20/30 (NZD) (c) (h)

     11,600,000        8,709,685   

Slovenia Government International Bond
4.700%, 11/01/16 (144A) (EUR)

     4,800,000        5,414,466   

Spain Government Bond
2.150%, 10/31/25 (144A) (EUR)

     700,000        786,258   

Spain Government Inflation Linked Bond
1.000%, 11/30/30 (144A) (EUR) (c)

     4,699,295        5,007,342   

United Kingdom Gilt Inflation Linked
0.125%, 03/22/24 (GBP) (b) (c)

     28,491,316        44,532,093   

0.125%, 03/22/44 (GBP) (c)

     1,070,460        1,964,053   

0.125%, 03/22/46 (GBP) (c)

     6,724,422        12,465,579   

0.125%, 03/22/58 (GBP) (b) (c)

     385,654        817,679   

0.125%, 03/22/68 (GBP) (b) (c)

     769,615        1,827,650   

0.375%, 03/22/62 (GBP) (b) (c)

     1,563,690        3,813,824   
   

 

 

  

Total Foreign Government
(Cost $275,846,502)

       250,989,758   
   

 

 

  
Asset-Backed Securities—3.4%   

Asset-Backed - Home Equity—0.7%

  

Asset-Backed Funding Certificates Trust
1.122%, 06/25/34 (a)

     514,218        478,711   

Bear Stearns Asset-Backed Securities I Trust
1.422%, 10/25/37 (a)

     2,372,271        2,189,138   

Bear Stearns Asset-Backed Securities Trust
1.082%, 10/25/32 (a)

     13,937        13,250   
Security Description   Principal
Amount*		     Value  

Asset-Backed - Home Equity—(Continued)

  

First NLC Trust
0.492%, 08/25/37 (144A) (a)

     1,329,829      670,863   

0.812%, 02/25/36 (a)

     1,200,000        1,034,775   

HSI Asset Securitization Corp. Trust
0.472%, 10/25/36 (a)

     7,370        3,807   

Merrill Lynch Mortgage Investors Trust
0.812%, 08/25/36 (a)

     13,185,000        11,384,276   

Nomura Home Equity Loan, Inc
0.712%, 03/25/36 (a)

     3,000,000        2,226,418   

NovaStar Mortgage Funding Trust
0.892%, 01/25/36 (a)

     2,000,000        1,595,128   

Soundview Home Loan Trust
0.482%, 11/25/36 (144A) (a)

     56,322        20,561   
   

 

 

  
      19,616,927   
   

 

 

  

Asset-Backed - Other—2.2%

  

Amortizing Residential Collateral Trust
1.547%, 08/25/32 (a)

     1,570,322        1,448,557   

Aquilae CLO II plc
0.289%, 01/17/23 (EUR) (a)

     506,285        548,443   

Babson CLO, Ltd.
1.602%, 05/15/23 (144A) (a)

     1,150,000        1,147,973   

Countrywide Asset-Backed Certificates
0.602%, 07/25/36 (a)

     2,311,098        2,268,096   

0.622%, 04/25/36 (a)

     520,786        501,466   

0.672%, 04/25/36 (a)

     65,194        64,874   

Credit-Based Asset Servicing and Securitization LLC
0.317%, 07/25/37 (144A) (a)

     142,461        89,663   

CSAB Mortgage-Backed Trust
5.720%, 09/25/36

     803,537        535,469   

CWABS Asset-Backed Certificates Trust
1.427%, 01/25/35 (a)

     7,338,287        7,337,908   

Dryden XI-Leveraged Loan CDO
0.571%, 04/12/20 (144A) (a)

     3,278,662        3,254,219   

Elm CLO, Ltd.
1.715%, 01/17/23 (144A) (a)

     294,029        293,499   

Equity One Mortgage Pass-Through Trust
1.022%, 04/25/34 (a)

     111,978        93,489   

GSAMP Trust
1.157%, 09/25/35 (a)

     441,942        390,354   

Hillmark Funding, Ltd.
0.628%, 05/21/21 (144A) (a)

     7,466,563        7,328,737   

JPMorgan Mortgage Acquisition Trust
0.542%, 01/25/37 (a)

     5,761,445        5,632,838   

Long Beach Mortgage Loan Trust
1.157%, 08/25/35 (a)

     823,014        703,508   

Morgan Stanley IXIS Real Estate Capital Trust
0.472%, 11/25/36 (a)

     772        339   

Nautique Funding, Ltd.
0.571%, 04/15/20 (144A) (a)

     259,320        257,114   

NYLIM Flatiron CLO, Ltd.
0.564%, 08/08/20 (144A) (a)

     101,551        101,006   

OneMain Financial Issuance Trust
2.470%, 09/18/24 (144A)

     14,800,000        14,770,844   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of December 31, 2015

Asset-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Asset-Backed - Other—(Continued)

  

Park Place Securities, Inc. Asset-Backed Pass-Through Certificates
0.912%, 09/25/35 (a)

     200,000      $ 160,105   

1.442%, 12/25/34 (a)

     147,827        147,915   

1.472%, 10/25/34 (a)

     4,000,000        3,399,978   

Penta CLO S.A.
0.172%, 06/04/24 (EUR) (a)

     1,649,576        1,772,091   

RAAC Trust
0.762%, 08/25/36 (a)

     764,000        672,532   

Small Business Administration Participation Certificates
5.510%, 11/01/27

     2,533,092        2,818,606   

Structured Asset Securities Corp. Mortgage Loan Trust
0.562%, 05/25/47 (a)

     2,486,930        2,408,630   

1.744%, 04/25/35 (a)

     389,636        370,226   

Symphony CLO III, Ltd.
0.602%, 05/15/19 (144A) (a)

     2,024,255        2,005,492   

Wood Street CLO II B.V.
0.280%, 03/29/21 (144A) (EUR) (a)

     66,368        71,942   
   

 

 

  
      60,595,913   
   

 

 

  

Asset-Backed - Student Loan—0.5%

  

College Loan Corp. Trust
0.570%, 01/25/24 (a)

     900,000        873,547   

SLM Student Loan Trust
0.820%, 10/25/17 (a)

     25,575        25,572   

1.820%, 04/25/23 (a)

     11,618,342        11,626,266   
   

 

 

  
      12,525,385   
   

 

 

  

Total Asset-Backed Securities
(Cost $91,680,665)

       92,738,225   
   

 

 

  
Mortgage-Backed Securities—3.3%   

Collateralized Mortgage Obligations—2.3%

  

Banc of America Funding Trust
2.801%, 02/20/36 (a)

     1,226,444        1,216,528   

Banc of America Mortgage Trust
2.538%, 11/25/34 (a)

     77,268        73,474   

2.791%, 06/25/35 (a)

     293,541        280,149   

2.848%, 09/25/35 (a)

     177,798        162,970   

6.500%, 09/25/33

     45,064        45,308   

BCAP LLC Trust
5.283%, 03/26/37 (144A) (a)

     1,955,600        1,889,698   

Bear Stearns Adjustable Rate Mortgage Trust
2.320%, 08/25/35 (a)

     129,006        130,162   

2.680%, 03/25/35 (a)

     561,414        562,530   

2.686%, 03/25/35 (a)

     492,760        479,606   

2.924%, 03/25/35 (a)

     4,974        5,028   

3.106%, 01/25/35 (a)

     1,909,025        1,929,563   

Bear Stearns ALT-A Trust
0.582%, 02/25/34 (a)

     225,007        204,883   

2.726%, 09/25/35 (a)

     1,673,402        1,410,579   

Collateralized Mortgage Obligations—(Continued)

  

Chase Mortgage Finance Trust
2.630%, 02/25/37 (a)

     116,387      115,251   

Citigroup Mortgage Loan Trust, Inc.
2.420%, 09/25/35 (a)

     183,964        184,709   

2.430%, 09/25/35 (a)

     189,627        189,598   

2.660%, 05/25/35 (a)

     48,218        47,590   

2.730%, 10/25/35 (a)

     3,127,306        3,096,492   

Countrywide Alternative Loan Trust
0.582%, 02/20/47 (a)

     1,253,711        936,803   

0.602%, 05/25/47 (a)

     422,587        346,170   

0.702%, 12/25/35 (a)

     37,010        32,283   

5.500%, 06/25/35

     814,070        815,071   

Countrywide Home Loan Mortgage Pass-Through Trust
0.712%, 04/25/35 (a)

     962,735        839,968   

2.606%, 11/20/34 (a)

     395,657        371,635   

2.621%, 11/19/33 (a)

     28,814        28,329   

2.766%, 08/25/34 (a)

     212,342        187,372   

Countrywide Home Reperforming Loan REMIC Trust
0.762%, 06/25/35 (144A) (a)

     129,023        112,225   

Deutsche ALT-B Securities Mortgage Loan Trust
0.522%, 10/25/36 (a)

     35,603        22,649   

5.869%, 10/25/36

     628,372        519,764   

5.886%, 10/25/36

     628,372        520,139   

First Horizon Alternative Mortgage Securities Trust 2.345%, 06/25/34 (a)

     296,576        291,469   

GreenPoint Mortgage Funding Trust
0.692%, 11/25/45 (a)

     200,922        173,524   

GreenPoint MTA Trust
0.862%, 06/25/45 (a)

     398,174        350,311   

GSR Mortgage Loan Trust
2.678%, 05/25/35 (a)

     624,936        579,077   

2.740%, 12/25/34 (a)

     2,133,026        2,095,593   

2.806%, 09/25/35 (a)

     417,088        426,123   

2.824%, 11/25/35 (a)

     788,741        710,836   

2.970%, 01/25/35 (a)

     343,292        327,959   

HarborView Mortgage Loan Trust
0.622%, 05/19/35 (a)

     106,827        88,707   

0.682%, 02/19/36 (a)

     220,128        162,422   

IndyMac INDA Mortgage Loan Trust
2.889%, 11/25/35 (a)

     886,159        801,601   

JPMorgan Mortgage Trust
2.048%, 07/27/37 (144A) (a)

     1,070,237        992,861   

2.683%, 07/25/35 (a)

     295,942        295,704   

2.710%, 02/25/35 (a)

     498,210        496,945   

2.712%, 06/25/35 (a)

     925,250        914,697   

2.737%, 09/25/35 (a)

     158,334        141,683   

2.749%, 08/25/35 (a)

     541,669        512,197   

2.766%, 07/25/35 (a)

     303,418        303,065   

2.778%, 08/25/35 (a)

     430,145        424,179   

Lehman XS Trust
0.692%, 12/25/35 (a)

     211,842        181,907   

Marche Mutui S.r.l.
0.339%, 10/27/65 (EUR) (a)

     323,367        351,116   

0.342%, 02/25/55 (EUR) (a)

     916,466        981,878   

2.189%, 01/27/64 (EUR) (a)

     1,880,153        2,071,886   

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of December 31, 2015

Mortgage-Backed Securities—(Continued)

 

Security Description  

Principal
Amount*

     Value  

Collateralized Mortgage Obligations—(Continued)

  

Master Adjustable Rate Mortgages Trust
2.258%, 12/25/33 (a)

     184,496      $ 179,998   

2.772%, 11/21/34 (a)

     291,970        298,291   

Mellon Residential Funding Corp. Mortgage Pass-Through Trust
0.771%, 12/15/30 (a)

     43,324        41,318   

1.031%, 11/15/31 (a)

     309,945        290,025   

Merrill Lynch Mortgage Investors Trust
0.672%, 11/25/35 (a)

     144,323        134,965   

1.244%, 10/25/35 (a)

     235,059        222,634   

1.904%, 10/25/35 (a)

     969,882        940,396   

2.286%, 12/25/35 (a)

     240,652        220,207   

National Credit Union Administration Guaranteed Notes
0.726%, 10/07/20 (a)

     2,680,440        2,693,069   

0.829%, 12/08/20 (a)

     4,480,965        4,509,797   

RBSSP Resecuritization Trust
2.109%, 07/26/45 (144A) (a)

     6,636,138        6,606,282   

Residential Accredit Loans, Inc.
0.722%, 08/25/35 (a)

     164,502        127,055   

1.617%, 09/25/45 (a)

     175,572        143,396   

Sequoia Mortgage Trust
0.602%, 07/20/36 (a)

     1,465,859        1,327,010   

1.102%, 10/19/26 (a)

     85,603        83,543   

Structured Adjustable Rate Mortgage Loan Trust
1.657%, 01/25/35 (a)

     148,469        118,949   

2.586%, 02/25/34 (a)

     193,460        192,271   

2.761%, 12/25/34 (a)

     394,254        385,084   

Structured Asset Mortgage Investments II Trust
0.612%, 06/25/36 (a)

     108,969        90,337   

0.632%, 05/25/46 (a)

     50,373        39,347   

0.652%, 07/19/35 (a)

     256,687        221,952   

1.062%, 10/19/34 (a)

     116,068        110,987   

Swan Trust
3.370%, 04/25/41 (AUD) (a)

     203,636        149,957   

TBW Mortgage-Backed Trust
6.015%, 07/25/37

     315,682        235,426   

Thornburg Mortgage Securities Trust
6.071%, 09/25/37 (a)

     886,405        916,941   

WaMu Mortgage Pass-Through Certificates Trust
0.682%, 11/25/45 (a)

     191,054        178,768   

0.712%, 10/25/45 (a)

     1,122,535        1,033,936   

1.027%, 05/25/47 (a)

     493,202        410,702   

1.053%, 12/25/46 (a)

     112,780        102,199   

1.257%, 02/25/46 (a)

     202,548        185,353   

1.257%, 08/25/46 (a)

     8,035,284        6,661,511   

1.457%, 11/25/42 (a)

     24,273        22,682   

2.149%, 07/25/46 (a)

     737,632        660,401   

2.151%, 11/25/46 (a)

     249,277        223,025   

2.580%, 08/25/35 (a)

     114,492        108,278   

2.598%, 12/25/35 (a)

     230,717        211,479   

Wells Fargo Mortgage-Backed Securities Trust
2.735%, 10/25/35 (a)

     17,473        17,545   

2.744%, 09/25/34 (a)

     362,982        370,918   

2.744%, 04/25/36 (a)

     851,662        830,676   

2.754%, 11/25/34 (a)

     208,208        208,274   

Collateralized Mortgage Obligations—(Continued)

  

Wells Fargo Mortgage-Backed Securities Trust
2.801%, 03/25/36 (a)

     152,709      148,127   

5.788%, 04/25/36 (a)

     334,922        323,304   
   

 

 

  
      62,408,681   
   

 

 

  

Commercial Mortgage-Backed Securities—1.0%

  

Banc of America Commercial Mortgage Trust
5.558%, 06/10/49 (a)

     936,500        962,530   

5.742%, 02/10/51 (a)

     755,808        786,362   

Banc of America Re-REMIC Trust
5.588%, 06/24/50 (144A) (a)

     1,412,685        1,449,881   

5.651%, 02/17/51 (144A) (a)

     868,262        884,672   

Credit Suisse Commercial Mortgage Trust
5.383%, 02/15/40 (144A)

     1,103,293        1,117,324   

5.467%, 09/18/39 (144A) (a)

     1,410,301        1,419,788   

GS Mortgage Securities Trust
4.592%, 08/10/43 (144A)

     25,000        26,836   

JPMorgan Chase Commercial Mortgage Securities Trust
5.794%, 02/12/51 (a)

     1,325,466        1,377,813   

ML-CFC Commercial Mortgage Trust
5.700%, 09/12/49

     5,249,386        5,460,498   

Morgan Stanley Capital I Trust
5.809%, 12/12/49

     3,570,016        3,729,233   

RBSCF Trust
6.044%, 12/16/49 (144A) (a)

     1,816,538        1,861,034   

Vornado DP LLC Trust
4.004%, 09/13/28 (144A)

     7,000,000        7,382,800   
   

 

 

  
      26,458,771   
   

 

 

  

Total Mortgage-Backed Securities
(Cost $84,124,059)

       88,867,452   
   

 

 

  
Purchased Options—0.1%   

Interest Rate Swaptions—0.1%

  

Put - OTC - 1-Year Interest Rate Swap, Exercise Rate 0.950%, Expires 01/05/16 (Counterparty - Goldman Sachs Bank USA)

     185,700,000        19   

Put - OTC - 1-Year Interest Rate Swap, Exercise Rate 1.000%, Expires 06/23/16 (Counterparty - Morgan Stanley Capital Services LLC) (h)

     214,900,000        476,627   

Put - OTC - 1-Year Interest Rate Swap, Exercise Rate 1.000%, Expires 06/24/16 (Counterparty - Morgan Stanley Capital Services LLC) (h)

     213,200,000        476,246   

Put - OTC - 1-Year Interest Rate Swap, Exercise Rate 1.500%, Expires 04/06/16 (Counterparty - Morgan Stanley Capital Services LLC) (h)

     168,000,000        3,074   

Put - OTC - 1-Year Interest Rate Swap, Exercise Rate 1.500%, Expires 04/11/16 (Counterparty - Citibank N.A.) (h)

     445,000,000        10,680   

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of December 31, 2015

Purchased Options—(Continued)

 

Security Description  

Shares/

Principal/
Notional
Amount*

     Value  

Interest Rate Swaptions—(Continued)

  

Put - OTC - 1-Year Interest Rate Swap, Exercise Rate 1.500%, Expires 04/29/16 (Counterparty - Goldman Sachs Bank USA) (h)

     173,800,000      $ 11,697   

Put - OTC - 1-Year Interest Rate Swap, Exercise Rate 1.500%, Expires 04/29/16 (Counterparty - Morgan Stanley Capital Services LLC) (h)

     746,200,000        50,219   

Put - OTC - 30-Year Interest Rate Swap, Exercise Rate 2.683%, Expires 12/11/17 (Counterparty - Morgan Stanley Capital Services LLC) (h)

     19,000,000        1,927,341   

Put - OTC - 5-Year Interest Rate Swap, Exercise Rate 3.400%, Expires 12/05/16 (Counterparty - Credit Suisse International) (h)

     54,900,000        221,269   
   

 

 

  

Total Purchased Options
(Cost $5,416,877)

       3,177,172   
   

 

 

  
Convertible Preferred Stock—0.1%   

Banks—0.1%

  

Wells Fargo & Co.,
Series L 7.500%, 12/31/49
(Cost $900,000)

     900        1,044,900   
   

 

 

  
Municipals—0.0%   

Tobacco Settlement Financing Authority
7.467%, 06/01/47
(Cost $703,263)

     735,000        635,150   
   

 

 

  
Floating Rate Loan (j)—0.0%   

Pharmaceuticals—0.0%

  

Valeant Pharmaceuticals International, Inc.
Term Loan B F1, 4.000%, 04/01/22 (Cost $93,415)

     99,749        96,362   
   

 

 

  
Short-Term Investments—0.9%   

Commercial Paper—0.5%

  

Banco Bilbao Vizcaya Argentaria S.A.
1.212%, 05/16/16 (k)

     14,000,000        14,000,000   
   

 

 

  

Discount Note—0.1%

  

Federal Home Loan Bank
0.120%, 01/14/16 (k)

     3,600,000        3,599,844   
   

 

 

  

U.S. Treasury—0.1%

  

U.S. Treasury Bills
0.146%, 01/07/16 (d) (k)

     3,424,000        3,423,904   
   

 

 

  
Security Description  

Principal
Amount*

     Value  

Repurchase Agreement—0.2%

  

Fixed Income Clearing Corp.
Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $4,433,589 on 01/04/16, collateralized by $4,565,000 U.S. Treasury Note at 1.375% due 02/29/20 with a value of $4,525,056.

     4,433,574      4,433,574   
   

 

 

  

Total Short-Term Investments
(Cost $25,457,322)

       25,457,322   
   

 

 

  

Total Investments—135.1%
(Cost $3,934,552,475) (l)

       3,695,646,673   

Other assets and liabilities (net)—(35.1)%

       (959,871,977 ) 
   

 

 

  
Net Assets—100.0%     $ 2,735,774,696   
   

 

 

  

 

* Principal and notional amounts stated in U.S. dollars unless otherwise noted.
(a) Variable or floating rate security. The stated rate represents the rate at December 31, 2015. Maturity date shown for callable securities reflects the earliest possible call date.
(b) All or a portion of this security has been transferred in a secured-borrowing transaction. (See Note 2 of the Notes to Financial Statements)
(c) Principal amount of security is adjusted for inflation.
(d) All or a portion of the security was pledged as collateral against open swap contracts and open forward foreign currency exchange contracts. As of December 31, 2015, the market value of securities pledged was $23,353,544.
(e) All or a portion of the security was pledged as collateral against open reverse repurchase agreements. As of December 31, 2015, the value of securities pledged amounted to $144,489,338.
(f) All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2015, the market value of securities pledged was $3,481,218.
(g) All or a portion of the security was pledged as collateral against open centrally cleared swap contracts. As of December 31, 2015, the market value of securities pledged was $24,496,139.
(h) Illiquid security. As of December 31, 2015, these securities represent 0.6% of net assets.
(i) Security is a “step-up” bond where coupon increases or steps up at a predetermined date. Rate shown is current coupon rate.
(j) 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.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of December 31, 2015

 

(k) The rate shown represents current yield to maturity.
(l) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $4,053,270,109. The aggregate unrealized appreciation and depreciation of investments were $43,861,534 and $(401,484,970), respectively, resulting in net unrealized depreciation of $(357,623,436) for federal income tax purposes.
(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 December 31, 2015, the market value of 144A securities was $113,423,031, which is 4.1% of net assets.
(ARM)— Adjustable-Rate Mortgage
(AUD)— Australian Dollar
(BRL)— Brazilian Real
(CDO)— Collateralized Debt Obligation
(CLO)— Collateralized Loan Obligation
(CMO)— Collateralized Mortgage Obligation
(COP)— Colombian Peso
(EUR)— Euro
(GBP)— British Pound
(IRS)— Interest Rate Swap
(JPY)— Japanese Yen
(MXN)— Mexican Peso
(NZD)— New Zealand Dollar
(REMIC)— Real Estate Mortgage Investment Conduit

 

 

Reverse Repurchase Agreement

 

Counterparty

    Interest
Rate		     Settlement
Date		      Maturity
Date		      Principal
Amount		      Net Closing
Amount		  

JPMorgan Securities LLC

      0.400 %      12/10/15         04/25/16         USD        145,375,000       $ 145,375,000   
               

 

 

  

Securities pledged as collateral against open reverse repurchase agreements are noted in the Schedule of Investments.

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy

     

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  
AUD     385,000      

Deutsche Bank AG

        02/11/16         $ 277,773         $ 2,266   
BRL     25,353,862      

BNP Paribas S.A.

        01/05/16           6,492,999           (84,440 ) 
BRL     27,610,520      

Citibank N.A.

        01/05/16           7,070,918           (91,955 ) 
BRL     27,610,520      

Citibank N.A.

        01/05/16           7,070,918           (91,955 ) 
BRL     28,561,960      

Credit Suisse International

        01/05/16           7,158,386           61,067   
BRL     51,342,293      

Deutsche Bank AG

        01/05/16           13,593,406           (615,891 ) 
BRL     745,505      

Goldman Sachs Bank USA

        01/05/16           190,920           (2,483 ) 
BRL     3,208,098      

JPMorgan Chase Bank N.A.

        01/05/16           821,578           (10,684 ) 
BRL     22,986,269      

Deutsche Bank AG

        02/02/16           5,808,867           (55,882 ) 
EUR     12,795,000      

Citibank N.A.

        01/05/16           13,926,832           (21,868 ) 
EUR     1,496,000      

JPMorgan Chase Bank N.A.

        01/05/16           1,635,988           (10,211 ) 
EUR     10,928,000      

JPMorgan Chase Bank N.A.

        01/05/16           11,986,418           (110,416 ) 
EUR     8,317,000      

UBS AG Stamford

        01/05/16           9,128,440           (89,942 ) 
EUR     105,671,195      

UBS AG Stamford

        01/05/16           115,424,647           (586,496 ) 
GBP     17,496,000      

Citibank N.A.

        01/05/16           25,964,872           (172,269 ) 
GBP     7,165,000      

JPMorgan Chase Bank N.A.

        01/05/16           10,778,416           (215,773 ) 
GBP     1,751,000      

UBS AG Stamford

        01/05/16           2,645,456           (64,132 ) 
GBP     7,299,000      

UBS AG Stamford

        01/05/16           11,002,717           (242,531 ) 
INR     1,514,316,414      

UBS AG Stamford

        01/21/16           22,787,781           42,687   
INR     728,735,913      

Citibank N.A.

        02/26/16           10,778,921           144,786   
JPY     3,108,400,000      

JPMorgan Chase Bank N.A.

        01/05/16           25,687,940           173,369   
JPY     2,389,200,000      

JPMorgan Chase Bank N.A.

        02/12/16           19,415,798           477,529   
MXN     3,179,000      

JPMorgan Chase Bank N.A.

        03/14/16           186,152           (2,599 ) 
MYR     506,797      

Goldman Sachs Bank USA

        01/19/16           115,641           2,273   
NZD     13,264,000      

BNP Paribas S.A.

        01/05/16           9,110,657           (38,743 ) 
PLN     16,494,754      

Goldman Sachs Bank USA

        05/12/16           4,075,993           119,537   

Contracts to Deliver

  
AUD     4,312,000      

JPMorgan Chase Bank N.A.

        02/11/16           3,028,794           (107,637 ) 
BRL     25,353,862      

BNP Paribas S.A.

        01/05/16           6,419,000           10,441   
BRL     23,031,284      

Citibank N.A.

        01/05/16           6,895,181           1,073,688   
BRL     4,579,236      

Citibank N.A.

        01/05/16           1,373,867           216,398   
BRL     28,561,960      

Credit Suisse International

        01/05/16           7,314,577           95,124   

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of December 31, 2015

Forward Foreign Currency Exchange Contracts—(Continued)

 

Contracts to Deliver

     

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  
BRL     28,356,025      

Deutsche Bank AG

        01/05/16         $ 7,261,838         $ 94,438   
BRL     22,986,269      

Deutsche Bank AG

        01/05/16           5,866,089           55,973   
BRL     745,505      

Goldman Sachs Bank USA

        01/05/16           196,755           8,318   
BRL     3,208,098      

JPMorgan Chase Bank N.A.

        01/05/16           813,000           2,106   
BRL     28,561,960      

Credit Suisse International

        02/02/16           7,085,753           (62,712 ) 
BRL     60,412,080      

JPMorgan Chase Bank N.A.

        04/04/16           18,120,000           3,306,551   
BRL     14,900,000      

BNP Paribas S.A.

        10/04/16           3,590,188           150,811   
BRL     35,160,000      

Citibank N.A.

        10/04/16           8,502,612           386,604   
BRL     12,700,000      

Citibank N.A.

        10/04/16           3,076,998           145,448   
BRL     22,000,000      

JPMorgan Chase Bank N.A.

        10/04/16           5,558,363           480,087   
BRL     14,900,000      

JPMorgan Chase Bank N.A.

        10/04/16           3,599,034           159,656   
BRL     32,800,000      

BNP Paribas S.A.

        01/04/17           7,553,079           168,951   
BRL     32,800,000      

Deutsche Bank AG

        01/04/17           7,536,261           152,133   
BRL     7,400,000      

Deutsche Bank AG

        01/04/17           1,754,484           88,553   
BRL     87,900,000      

Goldman Sachs Bank USA

        01/04/17           20,564,290           775,727   
BRL     84,500,000      

JPMorgan Chase Bank N.A.

        01/04/17           19,877,676           854,541   
CNY     44,962,400      

JPMorgan Chase Bank N.A.

        01/29/16           6,944,000           30,211   
CNY     57,493,860      

JPMorgan Chase Bank N.A.

        10/24/16           8,795,817           71,967   
COP     5,070,964,788      

Credit Suisse International

        02/12/16           1,727,021           135,855   
EUR     58,445,846      

Citibank N.A.

        01/05/16           61,942,153           (1,573,859 ) 
EUR     78,981,349      

UBS AG Stamford

        01/05/16           83,934,664           (1,898,301 ) 
EUR     1,005,000      

UBS AG Stamford

        01/05/16           1,064,035           (28,149 ) 
EUR     775,000      

UBS AG Stamford

        01/05/16           841,908           (323 ) 
EUR     105,671,195      

UBS AG Stamford

        02/02/16           115,506,014           588,481   
EUR     1,185,000      

Citibank N.A.

        02/11/16           1,302,242           13,268   
GBP     4,079,000      

BNP Paribas S.A.

        01/05/16           6,234,894           221,632   
GBP     19,307,000      

Deutsche Bank AG

        01/05/16           29,105,399           643,019   
GBP     10,325,000      

Deutsche Bank AG

        01/05/16           15,416,722           195,607   
GBP     17,496,000      

Citibank N.A.

        02/02/16           25,965,656           170,997   
HUF     13,065,623      

Goldman Sachs Bank USA

        05/12/16           44,506           (437 ) 
JPY     3,108,400,000      

Goldman Sachs Bank USA

        01/05/16           25,447,401           (413,908 ) 
JPY     3,108,400,000      

JPMorgan Chase Bank N.A.

        02/02/16           25,702,479           (174,044 ) 
JPY     34,182,426      

JPMorgan Chase Bank N.A.

        02/12/16           278,000           (6,615 ) 
KRW     133,457,500      

Deutsche Bank AG

        01/21/16           115,000           1,232   
KRW     14,927,085,300      

JPMorgan Chase Bank N.A.

        01/21/16           12,690,941           (33,876 ) 
KRW     7,925,395,950      

JPMorgan Chase Bank N.A.

        01/21/16           6,829,000           72,878   
MXN     350,040,863      

Goldman Sachs Bank USA

        03/14/16           20,413,403           202,421   
NZD     13,264,000      

JPMorgan Chase Bank N.A.

        01/05/16           8,637,779           (434,135 ) 
NZD     13,264,000      

BNP Paribas S.A.

        02/02/16           9,095,231           38,600   
PLN     16,857,409      

BNP Paribas S.A.

        05/12/16           4,166,850           (120,924 ) 
SGD     20,073,619      

Deutsche Bank AG

        02/26/16           14,161,283           28,024   
TWD     453,498,530      

JPMorgan Chase Bank N.A.

        02/26/16           13,908,865           96,098   
                   

 

 

  

Net Unrealized Appreciation

  

      $ 4,396,162   
                   

 

 

  

Futures Contracts

 

Futures Contracts—Long

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

Euro-BTP Futures

      03/08/16         35         EUR        4,878,503         (55,754 ) 

Put Options on 90 Day Sterling Futures, Strike GBP 98.875

      03/11/16         830         GBP        81,073       $ 71,668   

Put Options on 90 Day Sterling Futures, Strike GBP 98.500

      12/21/16         2,817         GBP        218,574         (114,581 ) 

U.S. Treasury Note 10 Year Futures

      03/21/16         132         USD        16,665,452         (45,827 ) 

U.S. Treasury Note 5 Year Futures

      03/31/16         2,370         USD        281,063,348         (644,206 ) 

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of December 31, 2015

Futures Contracts—(Continued)

 

Futures Contracts—Short

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

Call Options on 90 Day Sterling Futures, Strike GBP 99.250

      03/11/16         (830 )      GBP        (46,065 )    $ 60,262   

Euro-Bund Futures

      03/08/16         (544 )      EUR        (87,205,983 )      1,410,061   

Put Options on 90 Day Sterling Futures, Strike GBP 98.000

      12/21/16         (2,817 )      GBP        (42,070 )      23,086   

Put Options on 90 Day Sterling Futures, Strike GBP 98.625

      03/11/16         (830 )      GBP        (22,765 )      (23,795 ) 

U.S. Treasury Long Bond Futures

      03/21/16         (535 )      USD        (82,372,741 )      116,491   
           

 

 

  

Net Unrealized Appreciation

  

   $ 797,405   
           

 

 

  

Written Options

 

Foreign Currency Written Options

    Strike
Price		      Counterparty      Expiration
Date		      Notional
Amount		     Premiums
Received		     Market
Value		     Unrealized
Appreciation/
(Depreciation)		  

USD Call/BRL Put

      BRL        4.000         Credit Suisse International         03/17/16         (6,400,000 )    $ (271,360 )    $ (313,376 )    $ (42,016 ) 

USD Put/BRL Call

      BRL        3.700         Deutsche Bank AG         01/14/16         (14,600,000 )      (243,528 )      (15,432 )      228,096   
               

 

 

    

 

 

    

 

 

  

Totals

  

   $ (514,888 )    $ (328,808 )    $ 186,080   
               

 

 

    

 

 

    

 

 

  

 

Inflation Capped Options

   Strike
Index		   Counterparty  

Exercise Index

   Expiration
Date		     Notional
Amount		     Premiums
Received		     Market
Value		     Unrealized
Appreciation/
(Depreciation)		  

Cap - CPI-U Index

   3.000   Deutsche Bank AG   Maximum of [(Final Index/Initial Index) - (1 + 4.000%)]10 or 0     06/01/16      $ (7,900,000 )    $ (6,620 )    $ (1 )    $ 6,619   

Cap - CPI-U Index

   4.000   JPMorgan Chase
Bank N.A.		   Maximum of [(Final Index/Initial Index) - (1 + 4.000%)]10 or 0     04/22/24        (35,000,000 )      (254,625 )      (52,836 )      201,789   

Cap - CPI-U Index

   4.000   JPMorgan Chase
Bank N.A.		   Maximum of [(Final Index/Initial Index) - (1 + 4.000%)]10 or 0     05/16/24        (2,800,000 )      (19,460 )      (4,318 )      15,142   

Cap - HICP Index

   3.000   Goldman Sachs
Bank USA		   Maximum of [(Final Index/Initial Index) - (1 + 4.000%)]10 or 0     06/22/35        (9,900,000 )      (450,390 )      (346,160 )      104,230   

Floor - OTC CPURNSA Index

   0.001   Deutsche Bank AG   Maximum of [(1 + 0.000%)10 - (Final Index/Initial Index)] or 0     01/22/18        (4,500,000 )      (43,651 )      (22,689 )      20,962   

Floor - OTC CPURNSA Index

   0.001   BNP Paribas S.A.   Maximum of [(1 + 0.000%)10 - (Final Index/Initial Index)] or 0     03/01/18        (3,500,000 )      (30,100 )      (19,001 )      11,099   

Floor - OTC CPURNSA Index

   0.000   JPMorgan Chase
Bank N.A.		   Maximum of [(1 + 0.000%)10 - (Final Index/Initial Index)] or 0     03/24/20        (33,500,000 )      (378,549 )      (443,700 )      (65,151 ) 

Floor - OTC CPURNSA Index

   0.001   Citibank N.A.   Maximum of [(1 + 0.000%)10 -(Final Index/Initial Index)] or 0     04/07/20        (49,000,000 )      (436,720 )      (27,161 )      409,559   

Floor - OTC CPURNSA Index

   0.001   Citibank N.A.   Maximum of [(1 + 0.000%)10 -(Final Index/Initial Index)] or 0     09/29/20        (4,700,000 )      (60,630 )      (3,003 )      57,627   

Floor - OTC CPURNSA Index

   0.000   JPMorgan Chase
Bank N.A.		   Maximum of [(1 + 0.000%)10 - (Final Index/Initial Index)] or 0     10/02/20        (14,900,000 )      (275,010 )      (230,077 )      44,933   
 

 

 

    

 

 

    

 

 

  

Totals

  

   $ (1,955,755 )    $ (1,148,946 )    $ 806,809   
           

 

 

    

 

 

    

 

 

  

 

Interest Rate
Swaptions

   Strike
Rate		  

Counterparty

  

Floating Rate
Index

   Pay/
Receive
Floating
Rate		   Expiration
Date		     Notional
Amount		     Premiums
Received		     Market
Value		     Unrealized
Appreciation		  

Call - 5 Yr. IRS

   2.400%   Goldman Sachs Bank USA   3M LIBOR   Receive     03/14/16        USD        (121,000,000 )    $ (453,750 )    $ (209,028 )    $ 244,722   

Call - 5 Yr. IRS

   2.400%   Credit Suisse International   3M LIBOR   Receive     12/05/16        USD        (54,900,000 )      (436,455 )      (364,135 )      72,320   

Call - 5 Yr. IRS

   2.500%   Goldman Sachs Bank USA   3M LIBOR   Receive     01/19/16        USD        (45,300,000 )      (181,200 )      (24,281 )      156,919   

Call - 5 Yr. IRS

   2.500%   JPMorgan Chase Bank N.A.   3M LIBOR   Receive     01/25/16        USD        (39,100,000 )      (156,400 )      (28,428 )      127,972   

Call - 5 Yr. IRS

   2.500%   Goldman Sachs Bank USA   3M LIBOR   Receive     02/18/16        USD        (143,000,000 )      (457,600 )      (260,689 )      196,911   

Put - 5 Yr. IRS

   2.500%   Morgan Stanley Capital Services LLC   3M LIBOR   Pay     12/11/17        USD        (79,800,000 )      (2,660,000 )      (1,366,623 )      1,293,377   

Put - 5 Yr. IRS

   3.000%   Goldman Sachs Bank USA   3M LIBOR   Pay     01/19/16        USD        (45,300,000 )      (165,345 )      (9,690 )      155,655   
               

 

 

    

 

 

    

 

 

  

Totals

  

   $ (4,510,750 )    $ (2,262,874 )    $ 2,247,876   
               

 

 

    

 

 

    

 

 

  

 

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of December 31, 2015

Written Options—(Continued)

 

Credit Default
Swaptions

   Strike
Rate		  

Counterparty

  

Reference
Obligation

   Buy/Sell
Protection		     Expiration
Date		     Notional
Amount		     Premiums
Received		     Market
Value		     Unrealized
Appreciation		  

Put - 5 Yr. CDS

   1.100%   JPMorgan Chase Bank N.A.   CDX.N.A.IG.25     Pay        01/20/16        USD        (5,400,000 )    $ (10,260 )    $ (1,072 )    $ 9,188   

Put - 5 Yr. CDS

   1.200%   JPMorgan Chase Bank N.A.   CDX.N.A.IG.25     Pay        02/17/16        USD        (5,400,000 )      (11,340 )      (2,991 )      8,349   

Put - 5 Yr. CDS

   1.100%   JPMorgan Chase Bank N.A.   CDX. N.A.IG 25     Pay        02/17/16        USD        (5,400,000 )      (14,850 )      (4,981 )      9,869   
               

 

 

    

 

 

    

 

 

  

Totals

  

   $ (36,450 )    $ (9,044 )    $ 27,406   
               

 

 

    

 

 

    

 

 

  

Swap Agreements

OTC Interest Rate Swaps

 

Pay/Receive
Floating Rate

   Floating
Rate Index		   Fixed
Rate		     Maturity
Date		   

Counterparty

    Notional
Amount		      Market
Value		     Upfront
Premium
Paid/(Received)		     Unrealized
Appreciation/
(Depreciation)		  

Pay

   1 Day CDI     13.450 %    01/04/21    Credit Suisse International      BRL        1,400,000       $ (26,398 )    $ 102      $ (26,500 ) 

Pay

   1 Day CDI     14.500 %    01/04/21    BNP Paribas S.A.      BRL        28,200,000         (326,268 )      (477 )      (325,791 ) 

Pay

   1 Day CDI     14.560 %    01/04/21    BNP Paribas S.A.      BRL        7,100,000         (79,321 )      (486 )      (78,835 ) 

Pay

   1M UKRPI     3.140 %    01/14/30    Goldman Sachs Bank USA      GBP        21,660,000         207,390        —        207,390   

Pay

   1M UKRPI     3.195 %    04/15/30    Goldman Sachs Bank USA      GBP        7,300,000         66,420        —        66,420   

Pay

   1M UKRPI     3.300 %    12/15/30    BNP Paribas S.A.      GBP        4,500,000         21,261        19,820        1,441   

Pay

   1M UKRPI     3.320 %    05/15/30    Morgan Stanley Capital Services LLC      GBP        8,700,000         317,411        —        317,411   

Pay

   1M UKRPI     3.325 %    08/15/30    Citibank N.A.      GBP        13,900,000         352,419        (45,903 )      398,322   

Pay

   1M UKRPI     3.325 %    08/15/30    Goldman Sachs Bank USA      GBP        12,500,000         316,924        (28,394 )      345,318   

Pay

   1M UKRPI     3.325 %    08/15/30    Deutsche Bank AG      GBP        7,000,000         177,477        —        177,477   

Pay

   1M UKRPI     3.328 %    01/12/45    Credit Suisse International      GBP        800,000         (29,567 )      8,649        (38,216 ) 

Pay

   1M UKRPI     3.350 %    05/15/30    Deutsche Bank AG      GBP        5,300,000         235,701        —        235,701   

Pay

   1M UKRPI     3.353 %    05/15/30    Credit Suisse International      GBP        1,100,000         49,653        —        49,653   

Pay

   1M UKRPI     3.358 %    04/15/35    Goldman Sachs Bank USA      GBP        2,900,000         31,035        —        31,035   

Pay

   1M UKRPI     3.400 %    06/15/30    BNP Paribas S.A.      GBP        4,500,000         231,213        21,150        210,063   

Pay

   1M UKRPI     3.400 %    06/15/30    Goldman Sachs Bank USA      GBP        4,200,000         215,799        13,135        202,664   

Pay

   1M UKRPI     3.430 %    06/15/30    Citibank N.A.      GBP        7,300,000         433,930        5,042        428,888   

Pay

   1M UKRPI     3.430 %    06/15/30    Credit Suisse International      GBP        4,500,000         267,491        (3,073 )      270,564   

Pay

   1M UKRPI     3.500 %    10/15/44    Credit Suisse International      GBP        4,000,000         372,837        (47,628 )      420,465   

Pay

   1M UKRPI     3.550 %    11/15/44    Credit Suisse International      GBP        600,000         72,650        (947 )      73,597   

Pay

   3M CPURNSA     2.063 %    05/12/25    UBS AG Stamford      USD        400,000         8,317        —        8,317   

Pay

   EXT-CPI     1.675 %    06/15/25    Citibank N.A.      EUR        8,600,000         449,569        —        449,569   

Receive

   1 Day CDI     16.150 %    01/04/21    Goldman Sachs Bank USA      BRL        25,500,000         43,515        (13,621 )      57,136   

Receive

   1 Day CDI     16.150 %    01/04/21    BNP Paribas S.A.      BRL        11,100,000         18,942        (5,007 )      23,949   

Receive

   3M CPURNSA     1.725 %    03/04/19    Deutsche Bank AG      USD        8,125,000         (111,468 )      —        (111,468 ) 

Receive

   3M CPURNSA     1.730 %    04/15/16    Goldman Sachs Bank USA      USD        86,400,000         (2,121,241 )      (183,364 )      (1,937,877 ) 

Receive

   3M CPURNSA     1.800 %    01/17/16    Deutsche Bank AG      USD        10,100,000         (184,127 )      (3,260 )      (180,867 ) 

Receive

   3M CPURNSA     1.825 %    11/29/16    Deutsche Bank AG      USD        22,200,000         (615,718 )      (9,106 )      (606,612 ) 

Receive

   3M CPURNSA     1.845 %    11/29/16    Deutsche Bank AG      USD        16,400,000         (465,004 )      —        (465,004 ) 

Receive

   3M CPURNSA     1.860 %    11/05/16    Deutsche Bank AG      USD        32,300,000         (924,902 )      —        (924,902 ) 

Receive

   3M CPURNSA     1.908 %    04/15/17    Barclays Bank plc      USD        12,300,000         (442,457 )      —        (442,457 ) 

Receive

   3M CPURNSA     1.930 %    02/10/17    Deutsche Bank AG      USD        9,300,000         (266,870 )      —        (266,870 ) 

Receive

   3M CPURNSA     1.940 %    10/07/16    Deutsche Bank AG      USD        29,500,000         (903,456 )      —        (903,456 ) 

Receive

   3M CPURNSA     1.942 %    04/15/17    Goldman Sachs Bank USA      USD        101,400,000         (3,794,611 )      —        (3,794,611 ) 

Receive

   3M CPURNSA     2.018 %    08/19/17    Barclays Bank plc      USD        39,600,000         (1,496,473 )      (11,377 )      (1,485,096 ) 

Receive

   3M CPURNSA     2.173 %    11/01/18    Deutsche Bank AG      USD        21,800,000         (1,088,322 )      —        (1,088,322 ) 

Receive

   3M CPURNSA     2.175 %    10/01/18    Goldman Sachs Bank USA      USD        43,400,000         (2,167,412 )      42,961        (2,210,373 ) 

Receive

   3M CPURNSA     2.250 %    07/15/17    BNP Paribas S.A.      USD        10,400,000         (613,425 )      11,440        (624,865 ) 

Receive

   3M CPURNSA     2.315 %    11/16/17    Deutsche Bank AG      USD        12,700,000         (783,330 )      —        (783,330 ) 

Receive

   3M CPURNSA     2.415 %    02/12/17    Goldman Sachs Bank USA      USD        39,500,000         (2,214,110 )      21,811        (2,235,921 ) 

Receive

   3M CPURNSA     2.560 %    05/08/23    Deutsche Bank AG      USD        12,300,000         (1,359,810 )      —        (1,359,810 ) 

Receive

   EXT-CPI     0.525 %    10/15/17    UBS AG Stamford      EUR        15,300,000         (23,835 )      7,098        (30,933 ) 

Receive

   EXT-CPI     0.550 %    10/15/17    BNP Paribas S.A.      EUR        3,600,000         (7,587 )      —        (7,587 ) 

Receive

   EXT-CPI     0.570 %    10/15/17    Deutsche Bank AG      EUR        1,800,000         (4,585 )      —        (4,585 ) 

Receive

   EXT-CPI     0.580 %    10/15/17    Deutsche Bank AG      EUR        5,200,000         (14,390 )      (606 )      (13,784 ) 

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of December 31, 2015

OTC Interest Rate Swaps—(Continued)

 

Pay/Receive
Floating Rate

   Floating
Rate Index		   Fixed
Rate		     Maturity
Date		   

Counterparty

    Notional
Amount		      Market
Value		     Upfront
Premium
Paid/(Received)		     Unrealized
Appreciation/
(Depreciation)		  

Receive

   EXT-CPI     0.580 %    10/15/17    JPMorgan Chase Bank N.A.      EUR        7,300,000       $ (20,201 )    $ —      $ (20,201 ) 

Receive

   EXT-CPI     0.605 %    09/15/18    Deutsche Bank AG      EUR        3,600,000         (2,721 )      —        (2,721 ) 

Receive

   EXT-CPI     0.610 %    09/15/18    UBS AG Stamford      EUR        4,400,000         (4,058 )      —        (4,058 ) 

Receive

   EXT-CPI     0.615 %    09/15/18    Credit Suisse International      EUR        4,190,000         (4,560 )      —        (4,560 ) 

Receive

   EXT-CPI     0.623 %    09/15/18    Morgan Stanley Capital Services LLC      EUR        10,000         (13 )      1        (14 ) 

Receive

   EXT-CPI     0.640 %    09/15/18    Citibank N.A.      EUR        2,000,000         (3,840 )      —        (3,840 ) 

Receive

   EXT-CPI     0.650 %    09/15/18    Goldman Sachs Bank USA      EUR        2,400,000         (5,406 )      —        (5,406 ) 

Receive

   EXT-CPI     0.650 %    10/15/18    Citibank N.A.      EUR        3,500,000         (4,673 )      —        (4,673 ) 

Receive

   EXT-CPI     0.650 %    10/15/18    Goldman Sachs Bank USA      EUR        4,800,000         (6,409 )      520        (6,929 ) 

Receive

   EXT-CPI     0.650 %    10/15/18    Deutsche Bank AG      EUR        8,700,000         (11,616 )      4,863        (16,479 ) 

Receive

   EXT-CPI     0.655 %    08/15/18    Citibank N.A.      EUR        3,300,000         (8,360 )      (4,298 )      (4,062 ) 

Receive

   EXT-CPI     0.680 %    10/15/18    Societe Generale Paris      EUR        2,700,000         (6,296 )      1,237        (7,533 ) 
                

 

 

    

 

 

    

 

 

  

Totals

  

    $ (16,252,886 )    $ (199,718 )    $ (16,053,168 ) 
                

 

 

    

 

 

    

 

 

  

Centrally Cleared Interest Rate Swaps

 

Pay/Receive Floating Rate

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

Pay

    28-Day TIIE      5.780 %      10/06/22         MXN        20,500,000       $ (1,763 ) 

Pay

    28-Day TIIE      5.910 %      11/25/22         MXN        312,900,000         (92,490 ) 

Pay

    28-Day TIIE      6.710 %      09/20/29         MXN        208,500,000         (473,880 ) 

Pay

    28-Day TIIE      7.020 %      06/28/35         MXN        100,000         (83 ) 

Pay

    28-Day TIIE      7.030 %      06/28/35         MXN        9,200,000         (6,471 ) 

Pay

    3M LIBOR      2.605 %      12/09/45         USD        3,200,000         (40,172 ) 

Pay

    3M LIBOR      2.750 %      12/14/46         USD        6,600,000         599   

Receive

    3M LIBOR      1.500 %      12/16/17         USD        259,100,000         (387,365 ) 

Receive

    3M LIBOR      2.000 %      12/16/20         USD        59,100,000         690,704   

Receive

    3M LIBOR      2.225 %      09/16/25         USD        9,200,000         (24,019 ) 

Receive

    3M LIBOR      2.233 %      09/16/25         USD        15,900,000         (52,192 ) 

Receive

    3M LIBOR      2.250 %      06/15/26         USD        30,000,000         224,613   

Receive

    3M LIBOR      2.250 %      06/15/26         USD        10,900,000         36,596   

Receive

    3M LIBOR      2.350 %      10/02/25         USD        36,500,000         (491,928 ) 

Receive

    3M LIBOR      2.500 %      12/16/25         USD        126,500,000         (5,425,488 ) 

Receive

    3M LIBOR      2.570 %      02/10/46         USD        2,300,000         52,430   

Receive

    3M LIBOR      2.750 %      12/16/45         USD        40,050,000         248,607   

Receive

    3M LIBOR      2.800 %      10/28/25         USD        205,000,000         143,379   

Receive

    6M LIBOR      1.000 %      09/18/23         JPY        230,000,000         (71,228 ) 

Receive

    6M LIBOR      1.500 %      03/16/18         GBP        52,400,000         103,660   

Receive

    6M LIBOR      2.000 %      03/16/26         GBP        26,260,000         (307,623 ) 

Receive

    6M LIBOR      2.000 %      09/16/45         GBP        56,075,000         (138,757 ) 

Receive

    6M LIBOR      2.250 %      03/16/46         GBP        3,200,000         (77,138 ) 
               

 

 

  

Net Unrealized Depreciation

  

    $ (6,090,009 ) 
               

 

 

  

Centrally Cleared Credit Default Swaps on Credit Indices—Sell Protection (a)

 

Reference Obligation

    Fixed Deal
Receive Rate		      Maturity
Date		     

Implied Credit
Spread at
December 31,
2015(b)

    Notional
Amount(c)		      Unrealized
Depreciation		  

CDX.NA.HY.24

      5.000%         06/20/20       4.036%      USD         4,455,000       $ (39,573)   

CDX.NA.HY.25

      5.000%         12/20/20       4.726%      USD         19,100,000         (26,623)   
                 

 

 

  

Net Unrealized Depreciation

  

    $ (66,196)   
                 

 

 

  

 

See accompanying notes to financial statements.

 

MIST-15

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of December 31, 2015

 

OTC Credit Default Swaps on Corporate and Sovereign Issues—Sell Protection (a)

 

Reference Obligation

   Fixed Deal
Receive Rate		     Maturity
Date		    

Counterparty

   Implied Credit
Spread at
December 31,
2015(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
(Received)		     Unrealized
Appreciation/
(Depreciation)		  

Chesapeake Energy Corp. 6.630%, due 08/15/20

     5.000%        09/20/18      Goldman Sachs International     45.546%        USD        200,000      $ (119,732 )    $ (19,750 )    $ (99,982 ) 

Chesapeake Energy Corp. 6.630%, due 08/15/20

     5.000%        09/20/18      Morgan Stanley Capital Services LLC     45.546%        USD        100,000        (59,866 )      (7,639 )      (52,227 ) 

Chesapeake Energy Corp. 6.630%, due 08/15/20

     5.000%        09/20/20      Citibank N.A.     44.490%        USD        100,000        (70,508 )      (10,250 )      (60,258 ) 

Chesapeake Energy Corp. 6.630%, due 08/15/20

     5.000%        09/20/20      Goldman Sachs International     44.490%        USD        1,100,000        (775,583 )      (139,861 )      (635,722 ) 

Freeport-McMoRan, Inc. 3.550%, due 03/01/22

     1.000%        09/20/20      Citibank N.A.     12.721%        USD        6,900,000        (2,490,215 )      (1,154,626 )      (1,335,589 ) 

Freeport-McMoRan, Inc. 3.550%, due 03/01/22

     1.000%        09/20/20      JPMorgan Chase Bank N.A.     12.721%        USD        1,500,000        (538,690 )      (246,197 )      (292,493 ) 

Gazprom OAO Via Gaz Capital S.A.

     1.000%        03/20/16      Goldman Sachs International     2.332%        USD        2,500,000        (7,367 )      (177,742 )      170,375   

Gazprom OAO Via Gaz Capital S.A.

     1.000%        03/20/16      Goldman Sachs International     2.332%        USD        3,900,000        (11,492 )      (301,288 )      289,796   

Gazprom OAO Via Gaz Capital S.A.

     1.000%        03/20/16      JPMorgan Chase Bank N.A.     2.332%        USD        2,400,000        (7,072 )      (180,170 )      173,098   

Indonesia Government International Bond 6.880%, due 03/09/17

     1.000%        12/20/19      Goldman Sachs International     1.866%        USD        6,300,000        (209,878 )      (144,809 )      (65,069 ) 

Sberbank of Russia Via SB Capital S.A.

     1.000%        03/20/16      Goldman Sachs International     2.804%        USD        800,000        (3,189 )      (44,515 )      41,326   
             

 

 

    

 

 

    

 

 

  

Totals

  

   $ (4,293,592 )    $ (2,426,847 )    $ (1,866,745 ) 
             

 

 

    

 

 

    

 

 

  

 

(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 of purchased protection credit default swap contracts entered into by the Portfolio for the same referenced debt obligation.
(AUD)— Australian Dollar
(BRL)— Brazilian Real
(CNY)— Chinese Yuan
(COP)— Colombian Peso
(EUR)— Euro
(GBP)— British Pound
(HUF)— Hungarian Forint
(INR)— Indian Rupee
(JPY)— Japanese Yen
(KRW)— South Korean Won
(MXN)— Mexican Peso
(MYR)— Malaysian Ringgit
(NZD)— New Zealand Dollar
(PLN)— Polish Zloty
(SGD)— Singapore Dollar
(TWD)— Taiwanese Dollar
(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 December 31, 2015

 

(CDI)— Brazil Interbank Deposit Rate
(CDS)— Credit Default Swap
(CDX.NA.HY)— Markit North America High Yield CDS Index
(CPI-U)— USA-Non-Revised Consumer Price Index-Urban
(CPURNSA)— U.S. Consumer Price All Urban Non-Seasonally Adjusted
(EXT-CPI)— Excluding Tobacco-Non-revised Consumer Price Index
(HICP)— Harmonized Index of Consumer Prices
(IRS)— Interest Rate Swap
(LIBOR)— London Interbank Offered Rate
(TIIE)— Mexican Interbank Equilibrium Interest Rate
(UKRPI)— United Kingdom Retail Price Index

 

See accompanying notes to financial statements.

 

MIST-17

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1     Level 2     Level 3      Total  

Total U.S. Treasury & Government Agencies*

    $ —        $ 2,944,654,794      $ —         $ 2,944,654,794   

Total Corporate Bonds & Notes*

      —          287,985,538        —           287,985,538   

Total Foreign Government*

      —          250,989,758        —           250,989,758   

Total Asset-Backed Securities*

      —          92,738,225        —           92,738,225   

Total Mortgage-Backed Securities*

      —          88,867,452        —           88,867,452   

Total Purchased Options*

      —          3,177,172        —           3,177,172   

Total Convertible Preferred Stock*

      1,044,900        —          —           1,044,900   

Total Municipals

      —          635,150        —           635,150   

Total Floating Rate Loan*

      —          96,362        —           96,362   
Short-Term Investments          

Commercial Paper

      —          14,000,000        —           14,000,000   

Discount Note

      —          3,599,844        —           3,599,844   

U.S. Treasury

      —          3,423,904        —           3,423,904   

Repurchase Agreement

      —          4,433,574        —           4,433,574   

Total Short-Term Investments

      —          25,457,322        —           25,457,322   

Total Investments

    $ 1,044,900      $ 3,694,601,773      $ —         $ 3,695,646,673   
                                   

Secured Borrowings (Liability)

    $ —        $ (2,612,096,787 )    $ —         $ (2,612,096,787 ) 
Forward Contracts          

Forward Foreign Currency Exchange Contracts (Unrealized Appreciation)

    $ —        $ 11,759,352      $ —         $ 11,759,352   

Forward Foreign Currency Exchange Contracts (Unrealized Depreciation)

      —          (7,363,190 )      —           (7,363,190 ) 

Total Forward Contracts

    $ —        $ 4,396,162      $ —         $ 4,396,162   
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 1,681,568      $ —        $ —         $ 1,681,568   

Futures Contracts (Unrealized Depreciation)

      (884,163 )      —          —           (884,163 ) 

Total Futures Contracts

    $ 797,405      $ —        $ —         $ 797,405   
Written Options          

Credit Default Swaptions at Value

    $ —        $ (9,044 )    $ —         $ (9,044 ) 

Foreign Currency Written Options at Value

      —          (328,808 )      —           (328,808 ) 

Inflation Capped Options at Value

      —          (1,148,946 )      —           (1,148,946 ) 

Interest Rate Swaptions at Value

      —          (2,262,874 )      —           (2,262,874 ) 

Total Written Options

    $ —        $ (3,749,672 )    $ —         $ (3,749,672 ) 

 

See accompanying notes to financial statements.

 

MIST-18

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of December 31, 2015

Fair Value Hierarchy—(Continued)

 

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

Centrally Cleared Swap Contracts (Unrealized Appreciation)

    $ —         $ 1,500,588      $ —         $ 1,500,588   

Centrally Cleared Swap Contracts (Unrealized Depreciation)

      —           (7,656,793 )      —           (7,656,793 ) 

Total Centrally Cleared Swap Contracts

    $ —         $ (6,156,205 )    $ —         $ (6,156,205 ) 
OTC Swap Contracts           

OTC Swap Contracts at Value (Assets)

    $ —         $ 3,889,954      $ —         $ 3,889,954   

OTC Swap Contracts at Value (Liabilities)

      —           (24,436,432 )      —           (24,436,432 ) 

Total OTC Swap Contracts

    $ —         $ (20,546,478 )    $ —         $ (20,546,478 ) 

Total Reverse Repurchase Agreements (Liability)

    $ —         $ (145,375,000 )    $ —         $ (145,375,000 ) 

 

* 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,
2014		      Change in
Unrealized
Appreciation/
(Depreciation)		      Net Transfers
out of
Level 3		     Balance as of
December 31,
2015		      Change in Unrealized
Appreciation/
(Depreciation) from
Investments Still Held at
December 31,  2015		  
Corporate Bonds & Notes              

Banks

    $ 873,789       $ —       $ (873,789 )    $ —       $ —   
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Corporate Bonds & Notes in the amount of $873,789 were transferred out of Level 3 due to the initiation of a vendor or broker providing prices that are based on market activity which has been determined to be significant observable inputs.

 

See accompanying notes to financial statements.

 

MIST-19

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a)

    $ 3,695,646,673   

Cash denominated in foreign currencies (b)

      6,878,456   

Cash collateral (c)

      467,000   

OTC swap contracts at market value (d)

      3,889,954   

Unrealized appreciation on forward foreign currency exchange contracts

      11,759,352   

Receivable for:

   

Investments sold

      1,802,960,507   

Open OTC swap contracts cash collateral

      970,000   

Fund shares sold

      306,227   

Interest

      15,860,332   

Variation margin on futures contracts

      924,388   

Deferred dollar roll income

      470,174   

Interest on OTC swap contracts

      331   

Variation margin on centrally cleared swap contracts

      610,168   

Prepaid expenses

      7,935   

Other assets

      359,916  
  

 

 

  

Total Assets

      5,541,111,413   

Liabilities

   

Due to custodian

      960,090   

Written options at value (e)

      3,749,672   

Secured borrowings

      2,612,566,961   

Reverse repurchase agreements

      145,375,000   

Cash collateral (f)

      7,299,000   

OTC swap contracts at market value (g)

      24,436,432   

Unrealized depreciation on forward foreign currency exchange contracts

      7,363,190   

Payables for:

   

Investments purchased

      430,356   

Fund shares redeemed

      1,183,135   

Interest on reverse repurchase agreements

      35,536   

Accrued Expenses:

   

Management fees

      1,084,576   

Distribution and service fees

      272,447   

Deferred trustees’ fees

      81,937   

Other expenses

      498,385  
  

 

 

  

Total Liabilities

      2,805,336,717   
  

 

 

  

Net Assets

    $ 2,735,774,696  
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 3,246,872,699   

Distributions in excess of net investment income

      (2,815,513 ) 

Accumulated net realized loss

      (254,829,421 ) 

Unrealized depreciation on investments, written options, futures contracts, swap contracts and foreign currency transactions

      (253,453,069 )
  

 

 

  

Net Assets

    $ 2,735,774,696  
  

 

 

  

Net Assets

   

Class A

    $ 1,445,481,571   

Class B

      1,257,527,943   

Class E

      32,765,182   

Capital Shares Outstanding*

   

Class A

      155,393,765   

Class B

      136,071,060   

Class E

      3,539,264   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 9.30   

Class B

      9.24   

Class E

      9.26   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $3,934,552,475.
(b) Identified cost of cash denominated in foreign currencies was $7,094,346.
(c) Includes collateral of $7,000 for futures contracts, and $460,000 for centrally cleared swap contracts.
(d) Net premium received on OTC swap contracts was $85,426.
(e) Premiums received on written options were $7,017,843.
(f) Includes collateral of $7,259,000 for OTC swap contracts and $40,000 for secured-borrowing transactions.
(g) Net premium received on OTC swap contracts was $2,541,139.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends

    $ 67,500   

Interest (a)

      38,897,262  
  

 

 

  

Total investment income

      38,964,762  

Expenses

   

Management fees

      13,903,606   

Administration fees

      70,567   

Custodian and accounting fees

      658,232   

Distribution and service fees—Class B

      3,438,518   

Distribution and service fees—Class E

      56,135   

Interest expense

      3,140,099   

Audit and tax services

      130,483   

Legal

      26,460   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      154,483   

Insurance

      19,578   

Miscellaneous

      27,559  
  

 

 

  

Total expenses

      21,660,893  

Less management fee waiver

      (239,089 )
  

 

 

  

Net expenses

      21,421,804  
  

 

 

  

Net Investment Income

      17,542,958  
  

 

 

  

Net Realized and Unrealized Loss

   
Net realized gain (loss) on:   

Investments

      (115,964,942 ) 

Futures contracts

      (18,671,240 ) 

Written options

      6,003,374   

Swap contracts

      (44,512,591 ) 

Foreign currency transactions

      80,585,679  
  

 

 

  

Net realized loss

      (92,559,720 )
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (12,286,318 ) 

Futures contracts

      1,327,766   

Written options

      2,506,034   

Swap contracts

      23,228,896   

Foreign currency transactions

      (20,583,376 )
  

 

 

  

Net change in unrealized depreciation

      (5,806,998 )
  

 

 

  

Net realized and unrealized loss

      (98,366,718 )
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (80,823,760 )
  

 

 

  

 

(a) Net of foreign withholding taxes of $12,541.

 

See accompanying notes to financial statements.

 

MIST-20

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 17,542,958      $ 73,985,642   

Net realized gain (loss)

      (92,559,720 )      59,661,716   

Net change in unrealized depreciation

      (5,806,998 )     (30,562,839 )
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (80,823,760 )     103,084,519  
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (79,491,598 )      (32,181,909 ) 

Class B

      (67,778,150 )      (23,767,735 ) 

Class E

      (1,857,152 )     (749,414 )
  

 

 

    

 

 

  

Total distributions

      (149,126,900 )     (56,699,058 )
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (92,673,155 )     (361,979,912 )
  

 

 

    

 

 

  

Total decrease in net assets

      (322,623,815 )      (315,594,451 ) 

Net Assets

     

Beginning of period

      3,058,398,511       3,373,992,962  
  

 

 

    

 

 

  

End of period

    $ 2,735,774,696      $ 3,058,398,511   
  

 

 

    

 

 

  

Accumulated undistributed net investment income (loss)

     

End of period

    $ (2,815,513 )    $ 120,828,622   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      3,649,796      $ 36,844,348        6,566,365      $ 66,924,709   

Reinvestments

      8,280,375        79,491,598        3,195,820        32,181,909   

Redemptions

      (13,364,624 )      (130,314,401 )      (27,002,968 )      (273,994,258 )
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (1,434,453 )    $ (13,978,455 )      (17,240,783 )    $ (174,887,640 )
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      5,962,770      $ 58,678,637        6,462,259      $ 65,831,832   

Reinvestments

      7,097,189        67,778,150        2,372,030        23,767,735   

Redemptions

      (20,585,603 )      (199,056,490 )      (26,536,811 )      (269,293,171 )
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (7,525,644 )    $ (72,599,703 )      (17,702,522 )    $ (179,693,604 )
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      409,929      $ 4,004,331        340,389      $ 3,481,380   

Reinvestments

      194,060        1,857,152        74,717        749,414   

Redemptions

      (1,221,839 )      (11,956,480 )      (1,143,507 )      (11,629,462 )
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (617,850 )    $ (6,094,997 )      (728,401 )    $ (7,398,668 )
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (92,673,155 )      $ (361,979,912 )
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-21

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Statement of Cash Flows

 

For the Year Ended December 31, 2015

 

Cash Flows From Operating Activities

   

Net decrease in net assets from operations

    $ (80,823,760 ) 

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:

   

Investments purchased

      (2,597,297,854 ) 

Proceeds from investments sold

      2,840,163,570   

Sales of short-term investments, net

      433,780,319   

Net amortization/accretion of premium (discount)

      9,657,907   

Premium received on open written options, net

      6,309,952   

Decrease in interest receivable

      6,882,758   

Decrease in cash collateral, asset

      1,741,000   

Increase in OTC swap contracts at market value, asset

      (307,387 ) 

Decrease in unrealized appreciation on forward foreign currency exchange contracts

      32,061,111   

Increase in receivable for investments sold

      (446,816,324 ) 

Decrease in receivable for swap cash collateral

      160,000   

Decrease in receivable for principal paydowns

      1,744   

Increase in receivable for variation margin on swap contracts

      (610,168 ) 

Increase in receivable for variation margin on futures contracts

      (793,795 ) 

Decrease in receivable for deferred dollar roll income, asset

      1,860,567   

Decrease in interest receivable on OTC swap contracts

      206,862   

Decrease in other assets and prepaid expenses

      471   

Increase in OTC swap contracts at market value, liability

      3,021,077   

Decrease in cash collateral, liability

      (15,332,000 ) 

Decrease in unrealized depreciation on forward foreign currency exchange contracts

      (9,030,117 ) 

Increase in payable for investments purchased

      430,356   

Decrease in written options at value

      (490,000 ) 

Decrease in payable variation margin payable on swap contracts

      (536,917 ) 

Decrease in accrued management fees

      (141,975 ) 

Decrease in accrued distribution and service fees

      (40,986 ) 

Increase in deferred trustee’s fees

      14,513   

Increase in interest payable on reverse repurchase agreements

      35,536   

Increase in other expenses

      54,664   

Net realized loss from investments and written options

      109,961,568   

Net change in unrealized (appreciation) depreciation on investments and written options

      9,780,284   
  

 

 

  

Net cash provided by operating activities

    $ 303,902,976   
  

 

 

  

Cash Flows From Financing Activities

   

Proceeds from shares sold, including decrease in receivable for shares sold

      99,876,341   

Payment on shares redeemed, including increase in payable for shares redeemed

      (340,608,011 ) 

Increase in due to custodian bank

      360,499   

Proceeds from issuance of reverse repurchase agreements

      152,743,000   

Repayment of reverse repurchase agreements

      (7,368,000 ) 

Proceeds from secured borrowings

      23,418,688,515   

Repayment of secured borrowings

      (23,624,577,744 ) 
  

 

 

  

Net cash used in financing activities

    $ (300,885,400 ) 
  

 

 

  

Net increase in cash and foreign currency (a)

    $ 3,017,576   
  

 

 

  

Cash and cash in foreign currency at beginning of year

    $ 3,860,880   
  

 

 

  

Cash and cash in foreign currency at end of year

    $ 6,878,456   
  

 

 

  

Supplemental disclosure of cash flow information:

   

Non cash financing activities included herein consist of reinvestment of dividends and distributions:

    $ 149,126,900   
  

 

 

  

Cash paid for interest and fees on borrowings:

    $ 3,104,563   
  

 

 

  

 

(a) Includes net change in unrealized appreciation (depreciation) on foreign currency of $(50,888).

 

See accompanying notes to financial statements.

 

MIST-22

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Financial Highlights

 

Selected per share data                                
     Class A  
     Year Ended December 31,  
     2015     2014     2013     2012      2011  

Net Asset Value, Beginning of Period

    $ 10.07      $ 9.95     $ 11.83      $ 11.91       $ 11.43  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Income (Loss) from Investment Operations

            

Net investment income (a)

      0.07        0.24        0.09        0.20         0.24   

Net realized and unrealized gain (loss) on investments

      (0.33 )     0.07       (1.07 )     0.85        1.02  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total from investment operations

      (0.26 )     0.31       (0.98 )     1.05        1.26  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Less Distributions

            

Distributions from net investment income

      (0.51 )      (0.19 )      (0.27 )      (0.40 )       (0.22 ) 

Distributions from net realized capital gains

      0.00       0.00       (0.63 )     (0.73 )      (0.56 )
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total distributions

      (0.51 )     (0.19 )     (0.90 )     (1.13 )      (0.78 )
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 9.30      $ 10.07     $ 9.95      $ 11.83       $ 11.91  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total Return (%) (b)

      (2.71 )(c)     3.08  (c)     (8.98 )     9.33        11.48  

Ratios/Supplemental Data

            

Gross ratio of expenses to average net assets (%)

      0.61        0.56        0.55        0.58         0.51   

Gross ratio of expenses to average net assets excluding interest expense (%)

      0.51        0.51        0.50        0.50         0.50   

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

      0.61        0.56        0.55        0.58         0.51   

Net ratio of expenses to average net assets excluding interest expense (%) (d)

      0.50        0.51        0.50        0.50         0.50   

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

      0.71        2.39        0.83        1.70         2.07   

Portfolio turnover rate (%)

      64        43        44  (e)      53         458   

Net assets, end of period (in millions)

    $ 1,445.5      $ 1,579.7      $ 1,731.8      $ 1,685.0       $ 1,576.3   
     Class B  
     Year Ended December 31,  
     2015     2014     2013     2012      2011  

Net Asset Value, Beginning of Period

    $ 10.01      $ 9.88     $ 11.76      $ 11.84       $ 11.38  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Income (Loss) from Investment Operations

            

Net investment income (a)

      0.04        0.22        0.06        0.17         0.21   

Net realized and unrealized gain (loss) on investments

      (0.32 )     0.07       (1.07 )     0.85        1.01  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total from investment operations

      (0.28 )     0.29       (1.01 )     1.02        1.22  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Less Distributions

            

Distributions from net investment income

      (0.49 )      (0.16 )      (0.24 )      (0.37 )       (0.20 ) 

Distributions from net realized capital gains

      0.00       0.00       (0.63 )     (0.73 )      (0.56 )
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total distributions

      (0.49 )     (0.16 )     (0.87 )     (1.10 )      (0.76 )
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 9.24      $ 10.01     $ 9.88      $ 11.76       $ 11.84  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total Return (%) (b)

      (3.00 )(c)     2.89       (9.27 )     9.13        11.14  

Ratios/Supplemental Data

            

Gross ratio of expenses to average net assets (%)

      0.86        0.81        0.80        0.83         0.76   

Gross ratio of expenses to average net assets excluding interest expense (%)

      0.76        0.76        0.75        0.75         0.75   

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

      0.86        0.81        0.80        0.83         0.76   

Net ratio of expenses to average net assets excluding interest expense (%) (d)

      0.75        0.76        0.75        0.75         0.75   

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

      0.46        2.14        0.58        1.46         1.83   

Portfolio turnover rate (%)

      64        43        44  (e)      53         458   

Net assets, end of period (in millions)

    $ 1,257.5      $ 1,437.0      $ 1,593.8      $ 1,975.4       $ 1,786.3   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-23

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Financial Highlights

 

 

Selected per share data                                
     Class E  
     Year Ended December 31,  
     2015     2014     2013     2012      2011  

Net Asset Value, Beginning of Period

    $ 10.02      $ 9.90     $ 11.78      $ 11.85       $ 11.39  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Income (Loss) from Investment Operations

            

Net investment income (a)

      0.05        0.23        0.07        0.18         0.22   

Net realized and unrealized gain (loss) on investments

      (0.31 )     0.06       (1.07 )     0.86        1.00  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total from investment operations

      (0.26 )     0.29       (1.00 )     1.04        1.22  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Less Distributions

            

Distributions from net investment income

      (0.50 )      (0.17 )      (0.25 )      (0.38 )       (0.20 ) 

Distributions from net realized capital gains

      0.00       0.00       (0.63 )     (0.73 )      (0.56 )
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total distributions

      (0.50 )     (0.17 )     (0.88 )     (1.11 )      (0.76 )
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 9.26      $ 10.02     $ 9.90      $ 11.78       $ 11.85  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total Return (%) (b)

      (2.80 )(c)     2.89  (c)     (9.17 )     9.22        11.18  

Ratios/Supplemental Data

            

Gross ratio of expenses to average net assets (%)

      0.76        0.71        0.70        0.73         0.66   

Gross ratio of expenses to average net assets excluding interest expense (%)

      0.66        0.66        0.65        0.65         0.65   

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

      0.76        0.71        0.70        0.73         0.66   

Net ratio of expenses to average net assets excluding interest expense (%) (d)

      0.65        0.66        0.65        0.65         0.65   

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

      0.51        2.24        0.68        1.54         1.91   

Portfolio turnover rate (%)

      64        43        44  (e)      53         458   

Net assets, end of period (in millions)

    $ 32.8      $ 41.7      $ 48.4      $ 70.5       $ 61.9   

 

(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) Generally accepted accounting principles may require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes, and as such, the net asset values for shareholder transactions and the returns based on those net asset values may differ from the returns reported in the portfolio manager commentary section of this report.
(d) Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).
(e) Includes mortgage dollar roll and TBA transactions; excluding these transactions the portfolio turnover rate would have been 39% for the year ended December 31, 2013.

 

See accompanying notes to financial statements.

 

MIST-24

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 and subject to general oversight by the Board. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally categorized as Level 2 within the fair value hierarchy. Equity

 

MIST-25

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 through an independent pricing service based on the mean between closing bid and ask prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or broker-dealer. These contracts are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

Options, including swaptions, and futures contracts that are traded OTC are generally valued on the basis of quotations provided by broker-dealers or prices provided by 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, yield curves, credit curves, measures of volatility and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts (other than centrally cleared swaps) are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and other pricing services. Such quotations and prices are derived utilizing observable data, including the underlying reference securities or indices, credit spread quotations and expected default recovery rates determined by the pricing service. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or an independent pricing service when the exchange price is not available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third party prices are used to produce daily settlement prices. These securities are categorized as Level 2 within the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates, including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

Due to Custodian - Pursuant to the custodian agreement, the custodian may, in its discretion, advance funds to the Portfolio to make properly authorized payments. When such payments result in an overdraft, the Portfolio is obligated to repay the custodian at the current rate of interest charged by the custodian for secured loans (currently, the Federal Funds rate plus 2%). This obligation is payable on demand to the custodian. The custodian may avail itself of various remedies under the custodian agreement to obtain repayment of any overdraft amounts owed to it by a Portfolio. At December 31, 2015, the Portfolio had a payment due to the custodian pursuant to the foregoing arrangement of $960,090. Based on the short-term nature of these payments and the variable interest rate, the carrying value of the overdraft advances approximated its fair value at December 31, 2015. If measured at fair value, overdraft advances would have been considered as Level 2 in the fair value hierarchy at December 31, 2015. The Portfolio’s average overdraft advances during the year ended December 31, 2015 were not significant.

 

MIST-26

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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, options and swap transactions, foreign currency transactions, paydown reclasses, net operating losses, return of capital distributions, premium amortization adjustments, deferred deflation adjustments and treasury rolls. These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

Mortgage Dollar Rolls - The Portfolio may enter into mortgage “dollar rolls” in which a Portfolio sells to-be-announced (“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.

 

MIST-27

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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.

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 sale commitments are valued at the current market value of the underlying securities, according to the procedures described under “Investment Valuation and Fair Value Measurements”.

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.

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 generally 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.

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, 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. The purchase of assignments will typically result in the Portfolio having a direct contractual relationship with the borrower, and the Portfolio may enforce compliance by the borrower with the terms of the loan agreement.

The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments it acquires direct rights against the borrower of the loan. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing.

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.

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

 

MIST-28

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 proceeds received from a short sale are recorded as a liability. The Portfolio will realize 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. Conversely, the Portfolio will realize a gain if the security declines in price between those dates. The latter 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 (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $4,433,574, 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 December 31, 2015.

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 re-acquire 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 in connection with any reverse repurchase transaction, the MRA entitles the non-defaulting party with a right to set-off claims and apply property held by it in respect of any reverse 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 Reverse repurchase agreements on the Statement of Assets and Liabilities.

For the year ended December 31, 2015, the Portfolio had an outstanding reverse repurchase agreement balance for 28 days. The average amount of borrowings was $118,317,464 and the weighted average interest rate was 0.384% during the 28 day period.

The following table summarizes open reverse repurchase agreements by counterparty which are subject to offset under an MRA on a net basis as of December 31, 2015:

 

Counterparty

    Reverse Repurchase
Agreements		      Collateral Pledged1      Net
Amount*		  

JPMorgan Securities LLC

    $ 145,375,000       $ (144,489,338 )     $ 885,662   
  

 

 

     

 

 

     

 

 

  
   $ 145,375,000       $ (144,489,338 )     $ 885,662   
  

 

 

     

 

 

     

 

 

  

 

  1  Collateral with a value of $144,489,330 has been pledged in connection with open reverse repurchase agreements. In some instances, the actual collateral pledged may be more than the amount shown here due to overcollateralization.
  * Net amount represents the net amount payable due to the counterparty in the event of default.

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.

 

MIST-29

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

The Portfolio receives cash from the transfer of the security to use for other investment purposes. During the year ended December 31, 2015, the Portfolio entered into secured borrowing transactions involving U.S. Treasury 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 as 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 year ended December 31, 2015, the Portfolio’s average amount of borrowings was $1,170,287,922 and the weighted average interest rate was 0.26%. For the year ended December 31, 2015, the Portfolio had an outstanding secured borrowing transaction balance for 365 days.

At December 31, 2015, the amount of the Portfolio’s outstanding borrowings was $2,612,566,961. The Master Securities Forward Transaction Agreement (“MSFTA”) is a master netting agreement (“MNA”) which provides both parties with the rights to set-off in the event of default by either party. The Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized assets and liabilities.

The following table presents the Portfolio’s secured borrowings by counterparty net of amounts available for offset under the MSFTA and net of the related collateral pledged or received by the Portfolio as of December 31, 2015:

 

Counterparty

    Payable for
Secured
Borrowings		     Financial
Instruments
Available for
Offset(a)		      Collateral
Pledged(b)		      Collateral
Received(b)		      Net Amount(c)  

BNP Paribas

    $ (40,281,802 )    $ 39,277,112       $ —       $ —       $ (1,004,690 ) 

BNP Paribas Securities Corp

      (1,721,964,896 )      1,712,025,761         —         —         (9,939,135 ) 

Morgan Stanley & Co. International PLC

      (81,112,636 )      80,381,797         —         40,000         (690,839 ) 

Morgan Stanley

      (750,287,448 )      741,865,748         —         —         (8,421,700 ) 

Barclays Capital, Inc.

      (18,920,179 )      18,621,613         —         —         (298,566 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  
   $ (2,612,566,961 )    $ 2,592,172,031       $ —       $ 40,000       $ (20,354,930 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) Represents market value of borrowings as of December 31, 2015.
  (b) Under the terms of the MSFTA agreement, the Portfolio and the counterparties are not permitted to sell, repledge, or use the collateral associated with the transaction.
  (c) Net amount represents the net amount payable due to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity.

The following table provides a breakdown of the collateral received and the remaining contractual maturities for reverse repurchase agreements and secured borrowing transactions, which are accounted for as secured borrowings.

 

     Remaining Contractual Maturity of the Agreements
As of December 31, 2015		  
      Overnight and
Continuous		      Up to
30 Days		     31 - 90
Days		      Greater than
90 days		     Total  
Reverse Repurchase Agreements             

U.S. Treasury

    $ —       $ —      $ —       $ (145,375,000 )    $ (145,375,000 ) 
Secured Borrowing Transactions             

Foreign Government

      —         (121,394,437 )      —         —        (121,394,437 ) 

U.S. Treasury

      —         (2,491,172,524 )      —         —        (2,491,172,524 ) 

Total

    $ —       $ (2,612,566,961 )    $ —       $ —      $ (2,612,566,961 ) 

Total Borrowings

    $ —       $ (2,612,566,961 )    $ —       $ (145,375,000 )    $ (2,757,941,961 ) 

Gross amount of recognized liabilities for reverse repurchase agreements and secured borrowing transactions

  

   $ (2,757,941,961 ) 

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 valuation 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.

 

MIST-30

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 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 cash 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. If futures contracts are exchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

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 investment exposure to a target asset class or to enhance return. Writing puts or buying calls tends to increase the Portfolio’s exposure to the underlying instrument and writing calls or buying puts tends 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 is worthless when it expires and the premium paid for the option is considered a realized 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 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 subsequently marked to market to reflect the current value of the option written. 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

 

MIST-31

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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.

Options on swaps (“swaptions”) are similar to options on securities except that instead of selling or purchasing the right to buy or sell a security, the writer or purchaser of the swaptions is granting or buying the right to enter into a previously agreed upon interest rate or credit default swap agreement (interest rate risk and/or credit risk) at any time before the expiration of the option.

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 either privately negotiated in the OTC market (“OTC swaps”) or 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 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.

Centrally Cleared Swaps: Clearinghouses currently offer clearing derivative transactions which include interest rate and 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.

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 upon entering into the swap agreement 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 they are 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

 

MIST-32

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 be worthless when it expires 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 involving an entity in the index, the credit event is settled based on that entity’s 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 December 31, 2015, 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.

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: (1) 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”; (2) 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 (3) 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

 

MIST-33

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 contract’s 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.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of 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)    $ 3,177,172         
   OTC swap contracts at market value (b)      3,889,954       OTC swap contracts at market value (b)    $ 20,142,840   
   Unrealized appreciation on centrally cleared swap contracts (c) (d)      1,500,588       Unrealized depreciation on centrally cleared swap contracts (c) (d)      7,590,597   
   Unrealized appreciation on futures contracts (c) (e)      1,681,568       Unrealized depreciation on futures contracts (c) (e)      884,163   
         Written options at value      3,411,820   
Credit          OTC swap contracts at market value (b)      4,293,592   
         Unrealized depreciation on centrally cleared swap contracts (c) (d)      66,196   
         Written options at value      9,044   
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts      11,759,352       Unrealized depreciation on forward foreign currency exchange contracts      7,363,190   
         Written options at value      328,808   
     

 

 

        

 

 

  
Total       $ 22,008,634          $ 44,090,250   
     

 

 

        

 

 

  

 

  (a) Represents purchased options which are part of investments as shown in the Statement of Assets and Liabilities.
  (b) Excludes OTC swap interest receivable of $331.
  (c) Financial instrument not subject to a master netting agreement.
  (d) 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.
  (e) 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 Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized 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 (“MNA”) (see Note 4), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Assets
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Received†		     Net Amount*  

BNP Paribas S.A.

    $ 861,851       $ (861,851 )    $ —      $ —   

Citibank N.A.

      3,397,787         (3,397,787 )      —        —   

Credit Suisse International

      1,275,946         (800,748 )      (280,000 )      195,198   

Deutsche Bank AG

      1,674,423         (1,674,423 )      —        —   

Goldman Sachs Bank USA

      2,001,075         (2,001,075 )      —        —   

JPMorgan Chase Bank N.A.

      5,724,993         (2,440,356 )      (3,284,637 )      —   

Morgan Stanley Capital Services LLC

      3,250,918         (1,426,502 )      (1,824,416 )      —   

UBS AG Stamford

      639,485         (639,485 )      —        —   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 18,826,478       $ (13,242,227 )    $ (5,389,053 )    $ 195,198   
  

 

 

     

 

 

    

 

 

    

 

 

  

 

MIST-34

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under an MNA, or similar agreement, and net of the related collateral pledged by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Liabilities
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Pledged†		     Net Amount**  

Barclays Bank plc

    $ 1,938,930       $ —      $ (1,938,930 )    $ —   

BNP Paribas S.A.

      1,289,709         (861,851 )      (427,858 )      —   

Citibank N.A.

      4,559,666         (3,397,787 )      (1,039,186 )      122,693   

Credit Suisse International

      800,748         (800,748 )      —        —   

Deutsche Bank AG

      7,446,214         (1,674,423 )      (5,771,791 )      —   

Goldman Sachs Bank USA

      11,575,865         (2,001,075 )      (9,352,425 )      222,365   

Goldman Sachs International

      1,127,241         —        (1,104,133 )      23,108   

JPMorgan Chase Bank N.A.

      2,440,356         (2,440,356 )      —        —   

Morgan Stanley Capital Services LLC

      1,426,502         (1,426,502 )      —        —   

Societe Generale Paris

      6,296         —        —        6,296   

UBS AG Stamford

      2,937,767         (639,485 )      (2,298,282 )      —   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 35,549,294       $ (13,242,227 )    $ (21,932,605 )    $ 374,462   
  

 

 

     

 

 

    

 

 

    

 

 

  

 

  * Net amount represents the net amount receivable from the counterparty in the event of default.
  ** Net amount represents the net amount payable due to the counterparty in the event of default.
  † In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

Statement of Operations Location-Net Realized Gain (Loss)

    Interest Rate     Credit     Foreign
Exchange		     Total  

Investments (a)

    $ (2,431,746 )    $ —      $ —      $ (2,431,746 ) 

Forward foreign currency transactions

      —        —        81,956,114        81,956,114   

Futures contracts

      (18,671,240 )      —        —        (18,671,240 ) 

Swap contracts

      (44,877,504 )      361,788        3,125        (44,512,591 ) 

Written options

      4,123,502        455,222        1,424,650        6,003,374   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ (61,856,988 )    $ 817,010      $ 83,383,889      $ 22,343,911   
  

 

 

    

 

 

    

 

 

    

 

 

  

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

    Interest Rate     Credit     Foreign
Exchange		     Total  

Investments (a)

    $ (1,566,404 )    $ —      $ —      $ (1,566,404 ) 

Forward foreign currency transactions

      —        —        (23,030,994 )      (23,030,994 ) 

Futures contracts

      1,327,766        —        —        1,327,766   

Swap contracts

      25,385,781        (2,156,885 )      —        23,228,896   

Written options

      2,127,529        (80,927 )      459,432        2,506,034   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 27,274,672      $ (2,237,812 )    $ (22,571,562 )    $ 2,465,298   
  

 

 

    

 

 

    

 

 

    

 

 

  

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Investments (a)

    $ 1,256,977,458   

Forward foreign currency transactions

      2,005,894,653   

Futures contracts long

      276,039,464   

Futures contracts short

      (834,172,301 ) 

Swap contracts

      1,882,673,393   

Written options

      (892,912,866 ) 

 

  ‡ Averages are based on activity levels during 2015.
  (a) Represents purchased options which are part of net realized gain (loss) on investments and net change in unrealized appreciation (depreciation) on investments as shown in the Statement of Operations.

 

MIST-35

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Written Options

The Portfolio transactions in written options during the year ended December 31, 2015:

 

Call Options

    Notional
Amount*		      Number of
Contracts		      Premium
Received		  

Options outstanding December 31, 2014

      305,830,000         —       $ 2,414,733   

Options written

      1,405,478,000         846         10,367,062   

Options bought back

      (824,800,000 )       —         (6,199,690 ) 

Options exercised

      (171,195,000 )       (343 )       (1,276,946 ) 

Options expired

      (250,013,000 )       (503 )       (2,617,298 ) 
  

 

 

     

 

 

     

 

 

  

Options outstanding December 31, 2015

      465,300,000         —       $ 2,687,861   
  

 

 

     

 

 

     

 

 

  

Put Options

    Notional
Amount*		      Number of
Contracts		      Premium
Received		  

Options outstanding December 31, 2014

      321,700,000         538       $ 4,296,532   

Options written

      1,114,896,000         1,032         6,646,171   

Options bought back

      (381,900,000 )       —         (1,947,025 ) 

Options exercised

      (131,883,000 )       —         (856,449 ) 

Options expired

      (656,813,000 )       (1,570 )       (3,809,247 ) 
  

 

 

     

 

 

     

 

 

  

Options outstanding December 31, 2015

      266,000,000         —       $ 4,329,982   
  

 

 

     

 

 

     

 

 

  

 

  * Amount shown is in the currency in which the transaction was denominated.

4. Certain Risks

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”).

Market 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, 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC 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

 

MIST-36

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

The MSFTA govern the considerations and factors surrounding the settlement of certain forward settling transactions, such as To-Be-Announced securities and delayed-delivery or secured borrowings transactions by and between the Portfolio and select counterparties. The MSFTA maintain provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to Portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may 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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$1,814,567,698    $ 703,119,510       $ 1,565,658,501       $ 878,596,606   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended

December 31, 2015

    % per annum     Average Daily Net Assets
$13,903,606      0.500 %    First $1.2 billion
     0.450 %    Over $1.2 billion

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Pacific Investment Management Company LLC is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, for the period May 1, 2015 to April 30, 2016, 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 $2 billion

 

MIST-37

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

An identical agreement was in place for the period January 1, 2015 to April 30, 2015. Amounts waived for the year ended December 31, 2015 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, LLC, 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 year ended December 31, 2015 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 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Return of Capital      Total  

2015

      2014        2015            2014        2015          2014        2015        2014  
$148,806,676      $ 56,699,058       $ —         $ —       $ 320,224         $ —       $ 149,126,900         $ 56,699,058   

As of December 31, 2015, 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		     Other
Accumulated
Capital Losses		     Total  
$—    $ —       $ (375,380,245 )    $ (135,635,821 )    $ (511,016,066 ) 

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, 2015, the Portfolio had no pre-enactment capital loss carryforwards, post-enactment short-term capital losses of $14,377,312 and post-enactment long-term capital losses of $121,258,509.

 

MIST-38

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 PIMCO Inflation Protected Bond Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations and the statement of cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian, brokers, and agent banks; when replies were not received from brokers or agent banks, 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 PIMCO Inflation Protected Bond Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-39

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-40

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-41

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-42

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-43

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

PIMCO Inflation Protected Bond Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Pacific Investment Management Co. LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe for the three- and five-year periods ended June 30, 2015, and underperformed the median of its Performance Universe for the one-year period ended June 30, 2015. The Board also noted that the Portfolio underperformed its Lipper Index for the one- and three-year periods ended June 30, 2015, and outperformed its Lipper Index for the five-year period ended June 30, 2015. The Board further considered that the Portfolio underperformed its benchmark, the Barclays U.S. Treasury Inflation-Protected Securities (TIPS) Index, for the one-, three-, and five- year periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, the Expense Universe median and the Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were above the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also took into account that the Portfolio’s contractual sub-advisory fees were above the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size. In addition, the Board considered that the Adviser had negotiated reductions to the Portfolio’s sub-advisory fee schedule and that the Adviser agreed to waive a portion of its advisory fee in order for contractholders to benefit from the lower sub-advisory fee effective January 1, 2015.

 

MIST-44

Met Investors Series Trust

PIMCO Total Return Portfolio

Managed by Pacific Investment Management Company

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A, B, and E shares of the PIMCO Total Return Portfolio returned 0.28%, 0.01%, and 0.11%, respectively. The Portfolio’s benchmark, the Barclays U.S. Aggregate Bond Index1, returned 0.55%.

MARKET ENVIRONMENT / CONDITIONS

In addition to the European Central Bank’s (the “ECB”) highly anticipated foray into quantitative easing (“QE”), the New Year began with a host of global central banks embracing monetary easing. Eurozone bonds and equities rallied strongly on the announcement of QE, though economic data also improved on the margin. The U.S. Federal Reserve (the “Fed”) remained an outlier among easing central banks as officials reiterated their desire to hike rates sometime this year, emphasizing the importance of incoming data. Some trends from 2014 continued into 2015, including generalized U.S. dollar strength, lower oil prices, and uncertainty as evidenced in the choppiness of risk assets.

The U.S. economy continued to show signs of strength, as a healthier labor market, improving outlook for spending, and modest rebound in oil prices led to a sell-off in longer-dated U.S. Treasuries over the second quarter. After the U.S. dollar’s seemingly unstoppable 25% rally over the prior nine months, lingering uncertainty about the start and pace of the Fed rate hikes anchored short-dated Treasuries and led to second quarter softness in the U.S. dollar. Elsewhere in developed markets, global deflation fears gradually receded as oil prices firmed, the ECB committed to prevent deflation with QE, and the outlook for growth brightened. Although volatility in eurozone markets grabbed headlines amid Greek concerns, modest market moves suggested the events in Greece were more noise than news for global financial markets.

In the third quarter of 2015, a cascade of negative headlines soured global risk sentiment. Rising concern over the outlook for Chinese growth sent commodity prices, inflation expectations, and emerging market assets tumbling. The subsequent rise in global financial market volatility to multi-year highs drove the Fed to hold rates steady in September and moved developed market central banks to reiterate their commitment to accommodative policies. Despite headlines and financial market turmoil, economic growth in the U.S. remained robust.

The fourth quarter brought some respite as economic fundamentals strengthened and sentiment stabilized. The improving backdrop was sufficient to give the Fed the confidence to lift policy rates for the first time in nearly a decade. While markets first responded to the long-awaited liftoff with a sense of relief, they remained on edge heading into year-end both due to oil prices and widening high yield spreads which generated fears of reduced market liquidity following a distressed debt mutual fund closure.

PORTFOLIO REVIEW / PERIOD END POSITIONING

U.S. duration exposure, curve positioning, and instrument selection, which were partially facilitated through futures, swaps, and Eurodollar futures, detracted from performance as gains at the front-end of the yield curve were not enough to offset losses elsewhere amid volatility in U.S. rates. An allocation to Treasury Inflation-Protected Securities (“TIPS”) detracted from returns as inflation expectations narrowed over the year alongside sliding oil prices. Exposure to German debt, through a combination of cash bonds and futures, was negative for returns as the yield curve steepened. However, this loss was partially offset by exposure to European peripheral spread, as yields rallied amid the ECB’s accommodative measures. In the corporate credit space, sector and security selection within investment-grade credit, specifically a focus on Financials, was positive for performance; as well as, an underweight to Industrials and Utilities as spreads widened. Exposure to declining high yield corporate bonds partially offset credit sector returns amid volatility stemming from the Energy sector. Through the use of currency forwards, at year-end the Portfolio held a long U.S. dollar position versus the euro, Japanese yen, and a basket of emerging market currencies. This was positive for performance, as these currencies depreciated over the period, in light of diverging monetary policies. An allocation to non-Agency mortgages contributed to performance, as prices continued to appreciate in-line with the ongoing housing recovery and strong demand.

In regards to Portfolio positioning as of year-end, the Portfolio remained underweight duration as the economy continues to show signs of a broad-based and self-sustaining recovery and the Fed is looking to move rates gradually higher. We maintained positions in TIPS to protect against any future surprises in inflation. Within spread strategies, we focused on relative value opportunities in

 

MIST-1

Met Investors Series Trust

PIMCO Total Return Portfolio

Managed by Pacific Investment Management Company

Portfolio Manager Commentary*—(Continued)

 

Agency mortgage-backed securities (“MBS”), and maintained select positions in non-Agency MBS that continue to offer attractive risk-adjusted yields. While we were selective overall in the corporate sector, we found attractive opportunities in specific credits that benefit from U.S. growth and a resurgent housing sector. Given high real yields in Mexico and the potential for rates to converge to those in the U.S., the Portfolio maintained a preference for local currency Mexican duration. For currency positioning, the Portfolio maintained a long position in the U.S. dollar against the Japanese yen, the euro, and a basket of mainly Asian emerging currencies.

Scott A. Mather

Mark Kiesel

Mihir Worah

Portfolio Managers

Pacific Investment Management 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, 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 subject to change at any time based upon economic, market, or other conditions and the advisory 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 Total Return Portfolio

A $10,000 INVESTMENT COMPARED TO THE BARCLAYS U.S. AGGREGATE BOND INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year  
PIMCO Total Return Portfolio                 

Class A

        0.28           3.13           5.47   

Class B

        0.01           2.87           5.20   

Class E

        0.11           2.98           5.31   
Barclays U.S. Aggregate Bond Index        0.55           3.25           4.51   

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.

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 DECEMBER 31, 2015

Top Sectors

 

     % of
Net Assets		  
U.S. Treasury & Government Agencies      78.2   
Corporate Bonds & Notes      26.8   
Asset-Backed Securities      7.8   
Mortgage-Backed Securities      5.7   
Municipals      4.1   
Foreign Government      4.0   
Floating Rate Loans      0.9   
Convertible Bonds      0.6   
Preferred Stocks      0.4   
Convertible Preferred Stocks      0.3   

 

MIST-3

Met Investors Series Trust

PIMCO Total Return 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual      1.17 %     $ 1,000.00         $ 998.20         $ 5.89   
   Hypothetical*      1.17 %     $ 1,000.00         $ 1,019.31         $ 5.96   

Class B(a)

    Actual      1.42 %     $ 1,000.00         $ 997.30         $ 7.15   
   Hypothetical*      1.42 %     $ 1,000.00         $ 1,018.05         $ 7.22   

Class E(a)

    Actual      1.32 %     $ 1,000.00         $ 997.30         $ 6.65   
   Hypothetical*      1.32 %     $ 1,000.00         $ 1,018.55         $ 6.72   

* 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 (184 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

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

U.S. Treasury & Government Agencies—78.2% of Net Assets

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage - Backed—39.0%

  

Fannie Mae 10 Yr. Pool
3.000%, 12/01/20

     169,571      $ 174,831   

3.000%, 02/01/21

     518,154        534,312   

3.000%, 08/01/21

     377,964        389,931   

3.000%, 11/01/21

     97,460        100,563   

3.000%, 03/01/22

     431,877        445,638   

3.000%, 05/01/22

     1,437,743        1,483,609   

3.500%, 07/01/20

     169,965        178,065   

3.500%, 01/01/21

     841,191        881,280   

3.500%, 06/01/21

     326,735        342,306   

3.500%, 07/01/21

     248,417        260,256   

3.500%, 09/01/21

     295,967        310,072   

3.500%, 09/01/23

     290,354        304,874   

4.000%, 05/01/19

     14,308        14,916   

4.500%, 03/01/18

     41,605        42,981   

4.500%, 07/01/18

     35,915        37,118   

4.500%, 11/01/18

     17,518        18,106   

4.500%, 12/01/18

     10,105        10,441   

4.500%, 05/01/19

     483,374        499,987   

5.500%, 11/01/17

     46,320        47,568   

5.500%, 09/01/18

     100,551        104,374   

5.500%, 10/01/18

     55,334        57,675   

Fannie Mae 15 Yr. Pool
3.000%, 09/01/28

     796,100        823,005   

3.000%, TBA (a)

     81,000,000        83,441,583   

3.500%, 10/01/25

     449,123        471,466   

3.500%, 10/01/26

     306,996        322,397   

3.500%, 12/01/26

     381,141        400,288   

3.500%, 08/01/27

     385,968        406,471   

3.500%, 07/01/29

     207,194        217,990   

3.500%, TBA (a)

     56,000,000        58,615,064   

4.000%, 07/01/18

     4,272        4,454   

4.000%, 08/01/18

     1,528        1,592   

4.000%, 09/01/18

     866        903   

4.000%, 05/01/19

     833,163        868,563   

4.000%, 07/01/19

     364,685        380,180   

4.000%, 08/01/20

     278,291        290,175   

4.000%, 03/01/22

     50,467        52,625   

4.000%, 04/01/24

     57,500        60,842   

4.000%, 05/01/24

     2,520,250        2,668,766   

4.000%, 06/01/24

     2,765,326        2,926,137   

4.000%, 07/01/24

     27,765        29,392   

4.000%, 02/01/25

     863,287        913,518   

4.000%, 06/01/25

     290,184        307,650   

4.000%, 07/01/25

     8,043        8,456   

4.000%, 08/01/25

     877,977        931,316   

4.000%, 09/01/25

     45,522        47,829   

4.000%, 12/01/25

     316,234        335,339   

4.000%, 02/01/26

     225,740        239,412   

4.000%, 03/01/26

     44,765        47,480   

4.000%, 06/01/26

     45,999        48,827   

4.500%, 03/01/18

     137,868        142,443   

4.500%, 04/01/18

     230,093        237,757   

4.500%, 06/01/18

     706,706        730,256   

4.500%, 07/01/18

     361,447        373,522   

4.500%, 08/01/18

     3,942        4,074   

Agency Sponsored Mortgage - Backed—(Continued)

  

Fannie Mae 15 Yr. Pool
4.500%, 10/01/18

     13,887      14,352   

4.500%, 11/01/18

     858,891        887,611   

4.500%, 12/01/18

     246,255        255,131   

4.500%, 02/01/19

     159,305        165,137   

4.500%, 05/01/19

     310,866        322,841   

4.500%, 06/01/19

     152,290        158,036   

4.500%, 11/01/19

     163,724        170,523   

4.500%, 12/01/19

     194,896        202,419   

4.500%, 08/01/20

     288,434        301,311   

4.500%, 09/01/20

     417,389        435,171   

4.500%, 10/01/20

     16,859        17,582   

4.500%, 12/01/20

     326,386        340,528   

4.500%, 01/01/22

     8,132        8,408   

4.500%, 02/01/23

     277,316        293,323   

4.500%, 03/01/23

     523,628        550,125   

4.500%, 05/01/23

     52,556        55,754   

4.500%, 06/01/23

     3,212        3,400   

4.500%, 01/01/24

     5,144        5,319   

4.500%, 04/01/24

     82,678        87,586   

4.500%, 05/01/24

     267,908        287,471   

4.500%, 08/01/24

     55,918        59,269   

4.500%, 10/01/24

     370,811        396,135   

4.500%, 11/01/24

     100,213        108,110   

4.500%, 02/01/25

     702,381        749,311   

4.500%, 03/01/25

     474,477        509,576   

4.500%, 04/01/25

     296,115        314,524   

4.500%, 05/01/25

     915,332        985,918   

4.500%, 06/01/25

     88,093        93,786   

4.500%, 07/01/25

     3,543,939        3,814,432   

4.500%, 08/01/25

     100,596        108,169   

4.500%, 09/01/25

     245,761        264,262   

4.500%, 11/01/25

     179,236        192,535   

4.500%, 04/01/26

     15,383        16,594   

4.500%, 01/01/27

     151,613        157,860   

5.500%, 12/01/17

     2,084        2,129   

5.500%, 01/01/18

     59,504        60,937   

5.500%, 02/01/18

     434,147        446,555   

5.500%, 11/01/18

     1,649        1,700   

5.500%, 09/01/19

     52,571        54,075   

5.500%, 09/01/20

     13,000        13,823   

5.500%, 12/01/20

     1,661        1,724   

5.500%, 03/01/22

     161,433        173,930   

5.500%, 04/01/22

     96,344        101,225   

5.500%, 07/01/22

     132,179        142,414   

5.500%, 09/01/22

     69,488        75,127   

5.500%, 10/01/22

     502,019        542,926   

5.500%, 11/01/22

     123,358        133,484   

5.500%, 12/01/22

     140,605        150,221   

5.500%, 02/01/23

     143,362        156,162   

5.500%, 03/01/23

     23,274        25,200   

5.500%, 07/01/23

     12,620        13,708   

5.500%, 08/01/23

     63,471        69,291   

5.500%, 10/01/23

     91,806        98,697   

5.500%, 11/01/23

     13,478        13,646   

5.500%, 12/01/23

     47,868        51,641   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

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

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage - Backed—(Continued)

  

Fannie Mae 15 Yr. Pool
5.500%, 01/01/24

     13,904      $ 15,089   

5.500%, 03/01/24

     87,480        94,882   

5.500%, 09/01/24

     70,690        74,783   

5.500%, 01/01/25

     1,177,255        1,280,012   

5.500%, 05/01/25

     231,461        241,941   

6.000%, 03/01/17

     3,048        3,054   

6.000%, 04/01/17

     3,019        3,067   

6.000%, 06/01/17

     2,405        2,448   

6.000%, 07/01/17

     6,535        6,582   

6.500%, 04/01/16

     716        717   

6.500%, 06/01/16

     564        567   

6.500%, 07/01/16

     505        507   

6.500%, 08/01/16

     177        178   

6.500%, 09/01/16

     1,357        1,371   

6.500%, 10/01/16

     2,922        2,955   

6.500%, 02/01/17

     2,781        2,813   

6.500%, 07/01/17

     511        512   

6.500%, 10/01/17

     2,647        2,723   

Fannie Mae 20 Yr. Pool
4.000%, 04/01/29

     79,051        84,213   

4.000%, 05/01/29

     260,352        277,836   

4.000%, 03/01/30

     162,507        173,453   

4.000%, 05/01/30

     245,777        262,658   

4.000%, 08/01/30

     211,745        225,985   

4.000%, 09/01/30

     125,168        132,670   

4.000%, 10/01/30

     5,823        6,214   

4.000%, 11/01/30

     638,108        681,150   

4.000%, 12/01/30

     87,248        93,135   

4.000%, 06/01/31

     11,835        12,662   

4.000%, 09/01/31

     328,351        351,253   

4.000%, 11/01/31

     72,009        77,038   

4.500%, 01/01/25

     14,394        15,546   

4.500%, 04/01/31

     65,996        71,844   

5.000%, 05/01/23

     204,051        224,427   

5.000%, 05/01/24

     208,225        229,018   

5.000%, 01/01/25

     151,445        166,567   

5.000%, 09/01/25

     45,251        49,770   

5.000%, 11/01/25

     57,771        63,540   

5.000%, 12/01/25

     372,852        410,085   

5.000%, 01/01/26

     96,078        105,672   

5.000%, 03/01/26

     80,302        88,320   

5.000%, 02/01/27

     7,806        8,585   

5.000%, 05/01/27

     215,304        236,803   

5.000%, 07/01/27

     9,744        10,717   

5.000%, 08/01/27

     4,196        4,617   

5.000%, 03/01/28

     21,711        23,879   

5.000%, 04/01/28

     680,159        748,078   

5.000%, 05/01/28

     797,760        877,423   

5.000%, 06/01/28

     2,379,795        2,617,434   

5.000%, 01/01/29

     81,651        89,804   

5.000%, 05/01/29

     401,792        444,581   

5.000%, 07/01/29

     110,788        121,851   

5.000%, 12/01/29

     33,863        37,244   

5.500%, 02/01/19

     13,719        15,274   

5.500%, 06/01/23

     251,728        280,275   

Agency Sponsored Mortgage - Backed—(Continued)

  

Fannie Mae 20 Yr. Pool
5.500%, 07/01/24

     11,305      12,587   

5.500%, 01/01/25

     12,473        13,888   

5.500%, 02/01/25

     3,583        3,989   

5.500%, 03/01/25

     882,410        994,097   

5.500%, 08/01/25

     77,205        86,816   

5.500%, 10/01/25

     5,436        6,052   

5.500%, 11/01/25

     13,393        14,911   

5.500%, 03/01/26

     99,151        110,395   

5.500%, 05/01/26

     2,785        3,100   

5.500%, 06/01/26

     498,696        555,251   

5.500%, 01/01/27

     70,083        78,031   

5.500%, 06/01/27

     10,886        12,121   

5.500%, 07/01/27

     266,009        296,176   

5.500%, 08/01/27

     122,469        136,357   

5.500%, 10/01/27

     176,674        196,710   

5.500%, 11/01/27

     42,547        47,372   

5.500%, 12/01/27

     355,289        395,629   

5.500%, 01/01/28

     128,084        142,609   

5.500%, 03/01/28

     66,079        73,573   

5.500%, 04/01/28

     210,378        234,235   

5.500%, 05/01/28

     79,667        88,701   

5.500%, 06/01/28

     20,780        23,137   

5.500%, 07/01/28

     11,492        12,795   

5.500%, 09/01/28

     149,485        166,437   

5.500%, 10/01/28

     28,220        31,420   

5.500%, 12/01/28

     9,557        10,640   

5.500%, 01/01/29

     168,464        187,568   

5.500%, 07/01/29

     161,215        179,677   

5.500%, 10/01/29

     363,252        404,588   

5.500%, 04/01/30

     265,458        295,757   

6.000%, 08/01/18

     3,564        4,021   

6.000%, 12/01/18

     87,760        99,035   

6.000%, 02/01/19

     6,388        7,209   

6.000%, 06/01/22

     684,406        772,330   

6.000%, 09/01/22

     170,075        191,925   

6.000%, 10/01/22

     107,152        120,917   

6.000%, 01/01/23

     171,372        193,388   

6.000%, 06/01/26

     13,830        15,606   

6.000%, 08/01/26

     19,637        22,160   

6.000%, 12/01/26

     16,946        19,123   

6.000%, 07/01/27

     57,751        65,170   

6.000%, 11/01/27

     12,365        13,953   

6.000%, 09/01/28

     101,755        114,827   

6.000%, 10/01/28

     56,292        63,523   

Fannie Mae 30 Yr. Pool
3.000%, TBA (a)

     115,000,000        114,975,148   

3.500%, TBA (a)

     399,000,000        411,045,252   

4.000%, 05/01/34

     212,289        225,487   

4.000%, 05/01/35

     178,086        189,022   

4.000%, 01/01/41

     797,020        849,786   

4.000%, 03/01/41

     515,017        550,901   

4.000%, 05/01/41

     445,709        475,039   

4.000%, 05/01/42

     212,277        226,271   

4.000%, 12/01/43

     925,958        983,372   

4.000%, TBA (a)

     586,000,000        619,556,845   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

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

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage - Backed—(Continued)

  

Fannie Mae 30 Yr. Pool
4.500%, 04/01/39

     1,330,290      $ 1,454,767   

4.500%, 05/01/39

     126,718        137,732   

4.500%, 06/01/39

     51,836        56,319   

4.500%, 08/01/39

     45,036        48,722   

4.500%, 12/01/39

     14,541        15,994   

4.500%, 05/01/40

     56,974        61,948   

4.500%, 09/01/40

     52,913        57,528   

4.500%, 10/01/40

     401,184        433,290   

4.500%, 12/01/40

     98,518        106,587   

4.500%, 02/01/41

     343,321        371,895   

4.500%, 05/01/41

     28,408        31,039   

4.500%, 06/01/41

     26,708        28,907   

4.500%, 07/01/41

     17,617        19,168   

4.500%, 09/01/41

     904,744        977,436   

4.500%, 10/01/41

     291,844        315,814   

4.500%, 03/01/42

     48,123        51,977   

4.500%, 06/01/42

     118,800        128,803   

4.500%, 07/01/42

     1,395,994        1,509,034   

4.500%, 11/01/43

     25,889        28,391   

4.500%, TBA (a)

     230,000,000        248,218,655   

5.000%, 03/01/32

     3,723        4,095   

5.000%, 09/01/32

     2,492        2,741   

5.000%, 10/01/32

     1,050        1,155   

5.000%, 04/01/33

     85,915        94,495   

5.000%, 07/01/33

     170,234        189,515   

5.000%, 08/01/33

     3,750        4,179   

5.000%, 09/01/33

     2,950        3,308   

5.000%, 10/01/33

     30,851        34,382   

5.000%, 11/01/33

     760        836   

5.000%, 01/01/34

     166,927        183,596   

5.000%, 04/01/34

     214,989        239,571   

5.000%, 06/01/34

     4,764        5,335   

5.000%, 12/01/34

     32,408        35,645   

5.000%, 01/01/35

     114,088        127,102   

5.000%, 04/01/35

     90        100   

5.000%, 07/01/35

     31,573        34,726   

5.000%, 09/01/35

     65,661        72,454   

5.000%, 01/01/38

     258,735        286,627   

5.000%, 04/01/39

     41,297        45,651   

5.000%, 10/01/39

     14,064        15,607   

5.000%, 11/01/39

     36,114        40,317   

5.000%, 06/01/40

     31,678        34,853   

5.000%, 11/01/42

     229,697        254,436   

5.000%, TBA (a)

     104,000,000        114,470,689   

5.500%, 12/01/28

     32,681        36,485   

5.500%, 06/01/33

     85,319        95,942   

5.500%, 07/01/33

     13,143        14,774   

5.500%, 09/01/33

     279,778        314,962   

5.500%, 11/01/33

     243,781        271,427   

5.500%, 12/01/33

     1,902        2,142   

5.500%, 04/01/34

     17,717        19,773   

5.500%, 07/01/34

     35,632        40,094   

5.500%, 08/01/34

     290,547        327,480   

5.500%, 09/01/34

     21,740        24,489   

5.500%, 11/01/34

     553,763        622,995   

Agency Sponsored Mortgage - Backed—(Continued)

  

Fannie Mae 30 Yr. Pool
5.500%, 12/01/34

     1,352,521      1,524,571   

5.500%, 01/01/35

     468,637        527,419   

5.500%, 02/01/35

     662,357        745,166   

5.500%, 03/01/35

     753,445        841,761   

5.500%, 04/01/35

     204,743        230,256   

5.500%, 05/01/35

     259,544        292,620   

5.500%, 06/01/35

     410,723        462,749   

5.500%, 08/01/35

     282,718        318,954   

5.500%, 09/01/35

     3,792,269        4,254,283   

5.500%, 10/01/35

     827,150        926,927   

5.500%, 11/01/35

     1,917,586        2,153,639   

5.500%, 12/01/35

     1,838,258        2,057,695   

5.500%, 01/01/36

     1,889,024        2,111,454   

5.500%, 02/01/36

     2,723        3,069   

5.500%, 03/01/36

     440,017        494,049   

5.500%, 04/01/36

     10,303        11,494   

5.500%, 05/01/36

     2,091,869        2,339,589   

5.500%, 06/01/36

     1,403,779        1,562,973   

5.500%, 07/01/36

     1,777,988        2,000,286   

5.500%, 09/01/36

     278,809        313,405   

5.500%, 10/01/36

     11,657        13,044   

5.500%, 11/01/36

     225,993        253,142   

5.500%, 12/01/36

     715,313        798,837   

5.500%, 01/01/37

     109,042        121,927   

5.500%, 02/01/37

     200,943        224,710   

5.500%, 03/01/37

     56,908        63,361   

5.500%, 04/01/37

     3,606,819        4,031,158   

5.500%, 05/01/37

     522,176        584,003   

5.500%, 06/01/37

     789        879   

5.500%, 07/01/37

     9,919        11,050   

5.500%, 08/01/37

     2,677,080        3,004,370   

5.500%, 01/01/38

     11,482        12,853   

5.500%, 02/01/38

     1,404,541        1,571,121   

5.500%, 03/01/38

     2,028,611        2,276,688   

5.500%, 05/01/38

     5,038,773        5,634,731   

5.500%, 06/01/38

     22,671,277        25,320,745   

5.500%, 09/01/38

     23,184        25,813   

5.500%, 10/01/38

     1,369,891        1,534,794   

5.500%, 11/01/38

     1,953,460        2,176,163   

5.500%, 12/01/38

     6,268,901        6,979,819   

5.500%, 01/01/39

     111,733        125,517   

5.500%, 07/01/39

     22,363        24,914   

5.500%, 08/01/39

     244,599        272,455   

5.500%, 09/01/39

     15,707        17,489   

5.500%, 11/01/39

     4,157,836        4,636,421   

5.500%, 12/01/39

     6,036        6,738   

5.500%, 02/01/40

     704,415        784,643   

5.500%, 03/01/40

     1,562,943        1,741,655   

5.500%, 06/01/40

     129,175        143,975   

5.500%, 09/01/40

     599,661        669,614   

5.500%, 12/01/40

     265,390        296,514   

5.500%, 07/01/41

     7,372,282        8,223,434   

5.500%, TBA (a)

     8,000,000        8,917,782   

6.000%, 12/01/28

     71,166        80,553   

6.000%, 01/01/29

     30,436        34,729   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

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

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage - Backed—(Continued)

  

Fannie Mae 30 Yr. Pool
6.000%, 02/01/29

     284      $ 320   

6.000%, 04/01/29

     4,464        5,092   

6.000%, 06/01/29

     6,090        6,940   

6.000%, 11/01/32

     51,712        58,435   

6.000%, 02/01/33

     17,003        19,399   

6.000%, 03/01/33

     26,485        30,219   

6.000%, 04/01/33

     16,098        18,169   

6.000%, 05/01/33

     27,177        30,984   

6.000%, 07/01/33

     28,691        32,762   

6.000%, 08/01/33

     —        0   

6.000%, 01/01/34

     74,640        84,253   

6.000%, 09/01/34

     48,910        55,212   

6.000%, 11/01/34

     11,360        12,916   

6.000%, 04/01/35

     1,199,501        1,369,195   

6.000%, 05/01/35

     39,129        44,532   

6.000%, 06/01/35

     6,638        7,501   

6.000%, 07/01/35

     81,237        91,923   

6.000%, 09/01/35

     12,454        14,094   

6.000%, 11/01/35

     685,256        775,633   

6.000%, 12/01/35

     251,160        284,241   

6.000%, 01/01/36

     159,490        180,421   

6.000%, 02/01/36

     374,687        423,934   

6.000%, 03/01/36

     143,278        162,089   

6.000%, 04/01/36

     41,887        47,339   

6.000%, 05/01/36

     1,050,228        1,189,302   

6.000%, 06/01/36

     58,894        66,671   

6.000%, 07/01/36

     1,211,177        1,370,600   

6.000%, 08/01/36

     3,220,766        3,641,247   

6.000%, 09/01/36

     1,035,590        1,173,407   

6.000%, 10/01/36

     459,409        519,580   

6.000%, 11/01/36

     168,731        191,088   

6.000%, 12/01/36

     2,760,443        3,117,124   

6.000%, 01/01/37

     1,974,152        2,232,253   

6.000%, 02/01/37

     1,818,351        2,057,055   

6.000%, 03/01/37

     414,868        469,325   

6.000%, 04/01/37

     1,045,313        1,182,166   

6.000%, 05/01/37

     2,796,478        3,162,815   

6.000%, 06/01/37

     274,030        309,427   

6.000%, 07/01/37

     349,582        395,480   

6.000%, 08/01/37

     428,971        485,446   

6.000%, 09/01/37

     983,962        1,113,150   

6.000%, 10/01/37

     50,162        56,606   

6.000%, 11/01/37

     113,963        129,596   

6.000%, 12/01/37

     338,354        382,589   

6.000%, 01/01/38

     367,158        415,370   

6.000%, 02/01/38

     871,813        991,688   

6.000%, 03/01/38

     17,738        20,217   

6.000%, 04/01/38

     38,338        43,385   

6.000%, 05/01/38

     163,526        184,844   

6.000%, 07/01/38

     1,216,977        1,376,397   

6.000%, 08/01/38

     23,756        26,886   

6.000%, 09/01/38

     1,081,845        1,220,851   

6.000%, 10/01/38

     3,065,456        3,465,800   

6.000%, 11/01/38

     89,098        100,684   

6.000%, 12/01/38

     466,455        527,042   

Agency Sponsored Mortgage - Backed—(Continued)

  

Fannie Mae 30 Yr. Pool
6.000%, 01/01/39

     1,048,122      1,185,991   

6.000%, 04/01/39

     1,568,534        1,773,013   

6.000%, 06/01/39

     156,872        177,025   

6.000%, 07/01/39

     188,558        213,665   

6.000%, 08/01/39

     1,036,424        1,169,572   

6.000%, 09/01/39

     419,452        474,749   

6.000%, 02/01/40

     2,985        3,376   

6.000%, 04/01/40

     256,509        290,003   

6.000%, 05/01/40

     9,266        10,457   

6.000%, 06/01/40

     362,056        409,329   

6.000%, 09/01/40

     13,572        15,335   

6.000%, 10/01/40

     11,097,615        12,546,875   

6.000%, 04/01/41

     1,005,446        1,136,078   

6.000%, 05/01/41

     54,360,367        61,454,803   

8.000%, 10/01/25

     1,514        1,736   

Fannie Mae ARM Pool
1.443%, 08/01/41 (b)

     423,091        428,713   

1.443%, 07/01/42 (b)

     353,046        361,180   

1.443%, 08/01/42 (b)

     348,388        356,538   

1.443%, 10/01/44 (b)

     552,284        565,548   

1.493%, 09/01/41 (b)

     1,143,821        1,169,794   

1.853%, 09/01/35 (b)

     1,974,500        2,046,796   

1.875%, 06/01/33 (b)

     46,906        49,062   

1.980%, 01/01/35 (b)

     287,385        300,282   

1.985%, 12/01/34 (b)

     1,942,167        2,021,518   

1.985%, 03/01/35 (b)

     64,559        67,801   

2.000%, 08/01/36 (b)

     769,623        810,703   

2.122%, 11/01/35 (b)

     262,421        275,360   

2.130%, 01/01/35 (b)

     84,436        88,568   

2.151%, 01/01/35 (b)

     74,734        78,741   

2.180%, 01/01/35 (b)

     105,318        112,393   

2.220%, 02/01/35 (b)

     49,140        52,195   

2.225%, 03/01/33 (b)

     4,248        4,525   

2.226%, 12/01/34 (b)

     815,812        846,189   

2.244%, 12/01/34 (b)

     61,438        64,107   

2.246%, 05/01/35 (b)

     62,573        66,432   

2.247%, 10/01/28 (b)

     169,938        175,935   

2.256%, 01/01/35 (b)

     29,818        31,185   

2.307%, 02/01/31 (b)

     226,778        233,046   

2.369%, 11/01/34 (b)

     6,014        6,338   

2.369%, 10/01/35 (b)

     595,198        633,636   

2.382%, 05/01/34 (b)

     932,454        990,661   

2.386%, 07/01/32 (b)

     35,614        36,808   

2.388%, 02/01/35 (b)

     189,816        201,037   

2.437%, 04/01/35 (b)

     159,627        170,365   

2.451%, 10/01/34 (b)

     26,531        28,409   

2.454%, 11/01/35 (b)

     688,897        733,347   

2.470%, 07/01/33 (b)

     33,540        35,431   

2.470%, 11/01/35 (b)

     397,428        420,582   

2.473%, 08/01/35 (b)

     1,135,797        1,206,859   

2.500%, 08/01/35 (b)

     825,564        876,713   

2.505%, 09/01/31 (b)

     51,670        53,939   

2.519%, 09/01/32 (b)

     183,405        195,621   

2.537%, 04/01/34 (b)

     10,712        11,325   

2.545%, 11/01/34 (b)

     140,610        148,633   

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

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

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage - Backed—(Continued)

  

Fannie Mae ARM Pool
2.563%, 05/01/35 (b)

     547,283      $ 581,661   

2.614%, 11/01/34 (b)

     2,980,837        3,152,563   

2.685%, 09/01/34 (b)

     1,106,166        1,180,921   

2.760%, 11/01/32 (b)

     63,654        66,067   

4.321%, 12/01/36 (b)

     307,965        328,090   

4.504%, 01/01/36 (b)

     152,841        161,727   

4.611%, 09/01/34 (b)

     63,626        68,006   

Fannie Mae Pool
2.310%, 08/01/22

     8,200,000        8,096,577   

2.475%, 04/01/19

     14,745,265        14,967,867   

2.870%, 09/01/27

     7,300,000        7,124,629   

3.240%, 07/01/22

     22,319,897        23,181,508   

3.330%, 11/01/21

     1,484,860        1,537,090   

Fannie Mae REMICS (CMO)
0.760%, 09/18/31 (b)

     365,608        367,021   

1.322%, 04/25/32 (b)

     114,778        117,677   

2.326%, 05/25/35 (b)

     1,629,471        1,713,527   

Freddie Mac 15 Yr. Gold Pool
5.500%, 04/01/16

     39        39   

5.500%, 09/01/19

     217,426        227,679   

Freddie Mac 20 Yr. Gold Pool
4.000%, 06/01/30

     163,128        174,238   

4.000%, 09/01/30

     684,677        731,256   

4.000%, 10/01/30

     39,181        41,850   

5.500%, 04/01/21

     16,437        18,148   

5.500%, 12/01/22

     924        1,020   

5.500%, 03/01/23

     189,147        208,848   

5.500%, 06/01/26

     3,167        3,498   

5.500%, 08/01/26

     1,656        1,829   

5.500%, 06/01/27

     45,901        50,693   

5.500%, 12/01/27

     96,652        106,726   

5.500%, 01/01/28

     57,435        63,431   

5.500%, 02/01/28

     14,310        15,803   

5.500%, 05/01/28

     117,926        130,238   

5.500%, 06/01/28

     182,092        201,099   

6.000%, 03/01/21

     40,329        45,263   

6.000%, 01/01/22

     186,559        209,436   

6.000%, 10/01/22

     674,946        757,888   

6.000%, 12/01/22

     39,974        44,885   

6.000%, 04/01/23

     33,618        37,744   

Freddie Mac 30 Yr. Gold Pool
3.500%, TBA (a)

     28,000,000        28,761,522   

3.500%, TBA (a)

     47,000,000        48,381,081   

4.000%, 12/01/40

     360,582        382,045   

4.000%, TBA (a)

     34,000,000        35,917,144   

4.500%, 04/01/34

     33,852        36,603   

4.500%, 06/01/35

     120,442        130,259   

4.500%, 04/01/41

     199,228        214,885   

4.500%, 10/01/41

     259,701        280,896   

4.500%, TBA (a)

     29,800,000        32,102,050   

5.500%, 03/01/32

     30,617        33,920   

5.500%, 01/01/33

     2,440        2,712   

5.500%, 05/01/33

     3,491        3,866   

5.500%, 08/01/33

     2,747        3,053   

5.500%, 10/01/33

     4,025        4,449   

Agency Sponsored Mortgage - Backed—(Continued)

  

Freddie Mac 30 Yr. Gold Pool
5.500%, 12/01/33

     2,227      2,471   

5.500%, 01/01/34

     3,220        3,577   

5.500%, 05/01/34

     65,134        72,410   

5.500%, 09/01/34

     39,371        43,722   

5.500%, 01/01/35

     55,407        61,691   

5.500%, 07/01/35

     2,770        3,083   

5.500%, 10/01/35

     116,052        128,742   

5.500%, 11/01/35

     151,026        166,807   

5.500%, 12/01/35

     57,497        63,813   

5.500%, 01/01/36

     82,415        91,264   

5.500%, 02/01/36

     78,001        86,181   

5.500%, 04/01/36

     33,307        37,011   

5.500%, 06/01/36

     2,724,706        3,029,009   

5.500%, 07/01/36

     63,974        71,037   

5.500%, 08/01/36

     99,863        110,318   

5.500%, 10/01/36

     32,684        36,254   

5.500%, 12/01/36

     521,297        579,248   

5.500%, 02/01/37

     42,579        47,166   

5.500%, 03/01/37

     23,414        26,240   

5.500%, 04/01/37

     44,752        49,513   

5.500%, 06/01/37

     77,449        86,748   

5.500%, 07/01/37

     439,987        489,824   

5.500%, 08/01/37

     139,804        156,550   

5.500%, 09/01/37

     89,971        99,615   

5.500%, 10/01/37

     18,010        20,017   

5.500%, 11/01/37

     490,470        545,618   

5.500%, 12/01/37

     22,572        24,997   

5.500%, 01/01/38

     148,263        164,745   

5.500%, 02/01/38

     387,167        430,710   

5.500%, 03/01/38

     165,401        183,862   

5.500%, 04/01/38

     342,358        380,689   

5.500%, 05/01/38

     714,817        794,194   

5.500%, 06/01/38

     538,959        598,862   

5.500%, 07/01/38

     782,596        870,790   

5.500%, 08/01/38

     2,080,637        2,313,894   

5.500%, 09/01/38

     531,461        590,628   

5.500%, 10/01/38

     15,468,667        17,193,427   

5.500%, 11/01/38

     5,189,034        5,729,263   

5.500%, 12/01/38

     12,452        13,748   

5.500%, 01/01/39

     1,205,692        1,341,662   

5.500%, 02/01/39

     267,779        296,572   

5.500%, 03/01/39

     151,627        168,658   

5.500%, 06/01/39

     5,288,389        5,884,937   

5.500%, 09/01/39

     109,520        121,283   

5.500%, 02/01/40

     164,093        182,337   

5.500%, 03/01/40

     20,557        22,785   

5.500%, 05/01/40

     4,909        5,460   

5.500%, 08/01/40

     156,731        174,162   

5.500%, 02/01/41

     84,748        93,716   

Freddie Mac ARM Non-Gold Pool
2.093%, 09/01/35 (b)

     351,337        370,331   

2.213%, 01/01/35 (b)

     75,880        80,779   

2.236%, 02/01/35 (b)

     49,203        52,185   

2.242%, 02/01/35 (b)

     64,349        68,063   

2.257%, 02/01/35 (b)

     66,816        70,886   

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

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

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage - Backed—(Continued)

  

Freddie Mac ARM Non-Gold Pool
2.289%, 02/01/35 (b)

     66,982      $ 71,089   

2.302%, 02/01/35 (b)

     27,557        29,004   

2.382%, 01/01/35 (b)

     300,868        320,256   

2.422%, 10/01/34 (b)

     68,725        72,517   

2.463%, 09/01/35 (b)

     578,170        616,666   

2.476%, 03/01/35 (b)

     107,349        111,605   

2.480%, 02/01/35 (b)

     113,642        119,842   

2.487%, 08/01/35 (b)

     699,950        740,538   

2.488%, 06/01/35 (b)

     1,395,847        1,479,383   

2.500%, 02/01/35 (b)

     77,340        82,365   

2.615%, 11/01/31 (b)

     29,902        31,588   

2.623%, 11/01/34 (b)

     119,704        126,016   

2.686%, 11/01/34 (b)

     37,858        40,020   

2.711%, 08/01/32 (b)

     167,604        173,633   

2.722%, 01/01/29 (b)

     405,906        425,296   

2.747%, 11/01/34 (b)

     55,560        59,107   

2.771%, 11/01/34 (b)

     48,510        51,551   

Freddie Mac REMICS (CMO)
0.581%, 07/15/34 (b)

     74,183        74,553   

1.875%, 11/15/23 (b)

     400,578        413,250   

3.500%, 07/15/32

     18,747        19,026   

3.500%, 01/15/42

     22,933,898        23,361,157   

6.500%, 01/15/24

     25,965        28,746   

Freddie Mac Structured Pass-Through Securities (CMO)
1.443%, 10/25/44 (b)

     1,248,905        1,269,842   

1.443%, 02/25/45 (b)

     112,193        114,098   

1.643%, 07/25/44 (b)

     6,363,347        6,466,498   

Ginnie Mae I 30 Yr. Pool
3.000%, TBA (a)

     7,000,000        7,087,167   

3.500%, TBA (a)

     5,000,000        5,201,851   

4.000%, TBA (a)

     11,000,000        11,668,591   

5.000%, 10/15/33

     7,363        8,070   

5.000%, 12/15/33

     48,080        53,468   

5.000%, 05/15/34

     7,208        8,033   

5.000%, 07/15/34

     6,001        6,605   

5.000%, 11/15/35

     5,477        6,104   

5.000%, 03/15/36

     4,004        4,463   

5.000%, 03/15/38

     341,673        378,255   

5.000%, 06/15/38

     725,983        804,275   

5.000%, 10/15/38

     1,102,211        1,214,788   

5.000%, 11/15/38

     337,384        373,651   

5.000%, 01/15/39

     248,370        272,067   

5.000%, 02/15/39

     169,348        187,389   

5.000%, 03/15/39

     2,584,329        2,860,275   

5.000%, 04/15/39

     5,622,913        6,162,798   

5.000%, 05/15/39

     5,121,798        5,707,478   

5.000%, 06/15/39

     1,937,593        2,125,913   

5.000%, 07/15/39

     3,450,952        3,820,868   

5.000%, 08/15/39

     478,891        528,592   

5.000%, 09/15/39

     539,850        596,872   

5.000%, 10/15/39

     1,259,256        1,390,004   

5.000%, 05/15/40

     58,652        64,872   

5.000%, 07/15/40

     928,418        1,019,218   

5.000%, 09/15/40

     644,678        711,614   

Agency Sponsored Mortgage - Backed—(Continued)

  

Ginnie Mae I 30 Yr. Pool
5.000%, 12/15/40

     46,499      51,326   

5.000%, 07/15/41

     35,775        39,206   

5.000%, TBA (a)

     5,000,000        5,477,547   

7.000%, 10/15/23

     4,347        4,670   

7.500%, 01/15/26

     6,246        6,911   

Ginnie Mae II 30 Yr. Pool
3.500%, TBA (a)

     56,000,000        58,294,143   

4.000%, TBA (a)

     29,000,000        30,736,036   

4.000%, TBA (a)

     13,000,000        13,805,389   

Ginnie Mae II ARM Pool
1.625%, 01/20/26 (b)

     13,123        13,192   

1.625%, 11/20/27 (b)

     19,580        20,193   

1.625%, 10/20/28 (b)

     12,561        12,891   

1.625%, 10/20/29 (b)

     7,864        8,183   

1.625%, 11/20/30 (b)

     56,490        58,761   

1.750%, 01/20/23 (b)

     17,785        18,254   

1.750%, 02/20/26 (b)

     11,299        11,612   

1.750%, 05/20/26 (b)

     20,542        20,881   

1.750%, 01/20/27 (b)

     5,417        5,581   

1.750%, 02/20/27 (b)

     5,811        5,830   

1.750%, 06/20/27 (b)

     5,994        6,177   

1.750%, 02/20/28 (b)

     14,476        14,879   

1.750%, 03/20/28 (b)

     15,352        15,785   

1.750%, 05/20/28 (b)

     6,537        6,734   

1.750%, 04/20/29 (b)

     6,167        6,200   

1.750%, 05/20/29 (b)

     9,968        10,219   

1.750%, 01/20/30 (b)

     39,928        41,114   

1.750%, 06/20/30 (b)

     12,013        12,324   

1.750%, 04/20/31 (b)

     14,502        14,803   

1.750%, 03/20/32 (b)

     682        700   

1.750%, 04/20/32 (b)

     8,958        9,228   

1.750%, 05/20/32 (b)

     19,954        20,556   

1.750%, 03/20/33 (b)

     5,929        6,083   

1.875%, 08/20/27 (b)

     77,494        79,307   

1.875%, 09/20/27 (b)

     71,259        71,327   

1.875%, 07/20/29 (b)

     10,042        10,384   

1.875%, 08/20/29 (b)

     10,214        10,548   

1.875%, 09/20/29 (b)

     11,978        12,277   

1.875%, 08/20/31 (b)

     3,823        3,957   

1.875%, 07/20/32 (b)

     9,397        9,632   

1.875%, 09/20/33 (b)

     60,263        62,358   

2.000%, 02/20/22 (b)

     12,639        12,827   

2.000%, 04/20/22 (b)

     997        1,007   

2.000%, 04/20/30 (b)

     22,123        22,687   

2.000%, 05/20/30 (b)

     32,889        33,727   

2.125%, 10/20/31 (b)

     5,990        6,054   

2.250%, 04/20/29 (b)

     14,659        14,659   

2.500%, 11/20/26 (b)

     14,451        14,583   

2.500%, 10/20/30 (b)

     3,036        3,130   

Government National Mortgage Association (CMO)
0.645%, 01/16/31 (b)

     30,967        31,118   

0.792%, 08/20/65 (b)

     4,595,027        4,549,059   

0.845%, 02/16/30 (b)

     9,916        9,973   

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

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

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage - Backed—(Continued)

  

Government National Mortgage Association (CMO)
1.250%, 12/20/65 (b)

    30,411,290      $ 30,669,003   
   

 

 

  
      2,441,131,083   
   

 

 

  

U.S. Treasury—39.2%

  

U.S. Treasury Bonds
2.500%, 02/15/45 (d)

     6,500,000        5,831,976   

2.750%, 08/15/42

     62,000,000        59,260,840   

2.750%, 11/15/42 (d)

     78,500,000        74,847,945   

2.875%, 05/15/43

     57,100,000        55,672,500   

2.875%, 08/15/45 (d)

     115,600,000        112,271,992   

3.000%, 05/15/42 (d)

     49,500,000        49,805,514   

3.000%, 11/15/44 (d)

     125,600,000        125,143,695   

3.000%, 11/15/45 (d)

     17,500,000        17,447,360   

3.125%, 02/15/42 (e)

     29,600,000        30,563,154   

3.125%, 02/15/43

     10,600,000        10,864,173   

3.125%, 08/15/44 (d)

     223,900,000        228,824,009   

3.375%, 05/15/44

     67,700,000        72,655,843   

4.250%, 05/15/39

     40,500,000        50,028,557   

4.375%, 11/15/39 (d)

     74,900,000        94,177,987   

4.375%, 05/15/40

     8,800,000        11,072,873   

4.500%, 08/15/39 (d)

     25,900,000        33,146,950   

4.625%, 02/15/40

     12,800,000        16,672,499   

U.S. Treasury Inflation Indexed Bonds
0.750%, 02/15/42 (f)

     5,157,642        4,531,071   

0.750%, 02/15/45 (d) (f)

     30,906,612        26,953,934   

1.750%, 01/15/28 (d) (f)

     149,632,540        163,496,893   

2.000%, 01/15/26 (d) (f)

     57,399,935        63,772,246   

2.375%, 01/15/25 (d) (f)

     124,285,330        141,293,653   

2.375%, 01/15/27 (d) (f)

     122,066,865        141,112,836   

2.500%, 01/15/29 (d) (f)

     90,949,559        107,744,396   

3.625%, 04/15/28 (f)

     735,260        961,161   

3.875%, 04/15/29 (f)

     9,404,070        12,775,457   

U.S. Treasury Inflation Indexed Notes
0.125%, 04/15/17 (f)

     23,770,532        23,723,181   

0.125%, 04/15/20 (d) (e) (f) (g)

     27,726,699        27,373,267   

0.125%, 01/15/22 (d) ( f)

     13,766,004        13,339,932   

0.125%, 07/15/22 (d) (f)

     17,272,142        16,747,224   

0.125%, 01/15/23 (f)

     43,792,425        41,987,695   

0.125%, 07/15/24 (d) (f)

     212,554,374        201,868,628   

0.250%, 01/15/25 (f)

     18,376,311        17,540,042   

0.375%, 07/15/25 (d) (f)

     36,507,016        35,345,253   

0.625%, 07/15/21 (d) (e) (f)

     12,979,821        13,064,995   

1.125%, 01/15/21 (e) (f)

     11,416,230        11,769,574   

1.250%, 07/15/20 (d) (e) (f) (g)

     15,813,555        16,444,658   

U.S. Treasury Notes
0.625%, 09/30/17 (d) (e) (g) (h)

     10,400,000        10,328,094   

1.375%, 03/31/20 (d) (e) (g) (h)

     22,000,000        21,729,290   

1.750%, 09/30/22 (h)

     20,400,000        19,995,182   

2.250%, 11/15/24 (d) (e)

     133,300,000        133,232,284   

2.500%, 05/15/24 (d)

     90,800,000        92,782,709   

2.750%, 02/15/24

     43,100,000        44,893,046   
   

 

 

  
      2,453,094,568   
   

 

 

  

Total U.S. Treasury & Government Agencies
(Cost $4,982,283,358)

       4,894,225,651   
   

 

 

  
Corporate Bonds & Notes—26.8%   
Security Description   Principal
Amount*		     Value  

Airlines—0.1%

    

Latam Airlines Pass-Through Trust
4.200%, 08/15/29 (144A)

     3,500,000      3,281,250   

4.500%, 08/15/25 (144A) (i)

     3,000,000        2,760,000   
   

 

 

  
      6,041,250   
   

 

 

  

Auto Manufacturers—1.5%

    

Ford Motor Credit Co. LLC
0.794%, 11/08/16 (b)

     27,900,000        27,705,007   

0.982%, 09/08/17 (b)

     3,700,000        3,648,422   

1.500%, 01/17/17

     2,550,000        2,532,124   

2.500%, 01/15/16

     3,259,000        3,259,737   

3.984%, 06/15/16

     9,497,000        9,602,426   

4.207%, 04/15/16

     5,429,000        5,472,470   

8.000%, 12/15/16

     500,000        528,561   

General Motors Financial Co., Inc.
3.150%, 01/15/20

     12,300,000        12,189,927   

3.200%, 07/13/20

     20,300,000        19,987,441   

Volkswagen Bank GmbH
0.306%, 11/27/17 (EUR) (b)

     6,900,000        7,218,577   
   

 

 

  
      92,144,692   
   

 

 

  

Auto Parts & Equipment—0.2%

    

Schaeffler Holding Finance B.V.
5.750%, 11/15/21 (EUR) (j)

     6,500,000        7,567,175   

6.250%, 11/15/19 (144A) (j)

     5,300,000        5,538,500   
   

 

 

  
      13,105,675   
   

 

 

  

Banks—15.2%

    

American Express Bank FSB
6.000%, 09/13/17

     31,500,000        33,740,941   

American Express Centurion Bank
6.000%, 09/13/17

     3,300,000        3,534,765   

Banco Espirito Santo S.A.
2.625%, 05/08/17 (EUR)

     1,700,000        218,002   

4.750%, 01/15/18 (EUR)

     3,100,000        384,057   

Banco Popular Espanol S.A.
11.500%, 10/10/18 (EUR) (b)

     5,800,000        6,838,917   

Banco Santander Brazil S.A.
4.250%, 01/14/16 (144A)

     16,200,000        16,180,560   

Banco Santander Chile
1.221%, 04/11/17 (144A) (b)

     29,900,000        29,526,250   

1.915%, 01/19/16 (144A) (b)

     6,900,000        6,893,100   

Banco Santander S.A.
6.250%, 09/11/21 (EUR) (b)

     5,900,000        5,995,055   

Bank of America Corp.
0.764%, 05/08/17 (b)

     8,000,000        7,980,240   

0.832%, 11/14/16 (b)

     41,700,000        41,676,523   

2.650%, 04/01/19

     8,000,000        8,019,512   

4.100%, 07/24/23

     2,600,000        2,688,304   

4.125%, 01/22/24

     12,030,000        12,425,186   

5.625%, 10/14/16

     30,407,000        31,369,594   

6.000%, 09/01/17

     7,524,000        8,007,116   

6.400%, 08/28/17

     3,100,000        3,320,714   

6.875%, 04/25/18

     26,300,000        29,015,659   

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Banks—(Continued)

    

Bank of China (Hong Kong), Ltd.
5.550%, 02/11/20 (144A)

     2,500,000      $ 2,719,213   

Bank of Montreal
1.950%, 01/30/18 (144A)

     3,600,000        3,628,400   

Bank of Nova Scotia (The)
1.250%, 04/11/17

     71,200,000        71,074,474   

1.950%, 01/30/17 (144A)

     800,000        806,463   

Bankia S.A.
4.000%, 05/22/24 (EUR) (b)

     2,100,000        2,262,206   

Barclays Bank plc
6.500%, 09/15/19 (EUR) (b)

     5,200,000        5,720,325   

7.750%, 04/10/23 (b)

     3,700,000        3,949,750   

10.179%, 06/12/21 (144A)

     17,900,000        23,187,588   

14.000%, 06/15/19 (GBP) (b)

     600,000        1,142,136   

BB&T Corp.
1.372%, 06/15/18 (b)

     27,200,000        27,253,938   

BBVA Bancomer S.A.
4.500%, 03/10/16 (144A)

     3,900,000        3,919,894   

6.500%, 03/10/21 (144A)

     7,800,000        8,268,000   

BNP Paribas S.A.
7.375%, 08/19/25 (144A) (b)

     5,400,000        5,541,750   

BPCE S.A.
0.934%, 11/18/16 (b)

     54,700,000        54,712,089   

CIT Group, Inc.
5.250%, 03/15/18

     2,400,000        2,478,000   

Citigroup, Inc.
0.849%, 05/01/17 (b)

     65,300,000        65,001,579   

1.280%, 07/25/16 (b)

     3,200,000        3,204,509   

1.402%, 04/01/16 (b)

     2,700,000        2,699,641   

Cooperatieve Centrale Raiffeisen-Boerenleenbank BA
5.250%, 08/04/45

     7,500,000        7,859,175   

Credit Agricole S.A.
6.500%, 06/23/21 (EUR) (b)

     4,700,000        5,241,802   

6.625%, 09/23/19 (144A) (b)

     6,500,000        6,389,500   

7.875%, 01/23/24 (b)

     1,400,000        1,431,500   

8.125%, 09/19/33 (b)

     3,000,000        3,306,384   

8.375%, 10/13/19 (144A) (b)

     6,900,000        7,728,000   

Credit Suisse Group Funding Guernsey, Ltd.
3.750%, 03/26/25 (144A)

     5,710,000        5,523,192   

3.800%, 09/15/22 (144A)

     18,300,000        18,285,561   

Goldman Sachs Group, Inc. (The)
3.750%, 05/22/25

     5,375,000        5,410,841   

HSBC Holdings plc
6.375%, 03/30/25 (b)

     3,000,000        2,996,250   

JPMorgan Chase & Co.
0.882%, 02/15/17 (b)

     55,300,000        55,263,834   

2.250%, 01/23/20

     12,300,000        12,100,506   

3.150%, 07/05/16

     4,900,000        4,950,651   

5.300%, 05/01/20 (b)

     20,100,000        20,024,625   

JPMorgan Chase Bank N.A.
0.832%, 06/13/16 (b)

     5,300,000        5,292,124   

6.000%, 10/01/17

     23,600,000        25,232,176   

LBG Capital No. 2 plc
15.000%, 12/21/19 (EUR)

     1,400,000        2,171,869   

Banks—(Continued)

    

Lloyds Bank plc
12.000%, 12/16/24 (144A) (b)

     5,700,000      8,075,760   

Lloyds Banking Group plc
7.625%, 06/27/23 (GBP) (b)

     11,400,000        17,595,757   

7.875%, 06/27/29 (GBP) (b)

     200,000        311,793   

Mizuho Bank, Ltd.
1.053%, 09/25/17 (144A) (b)

     1,300,000        1,291,637   

1.507%, 10/20/18 (144A) (b)

     11,800,000        11,908,088   

2.150%, 10/20/18 (144A) (i)

     7,200,000        7,171,870   

Morgan Stanley
1.600%, 04/25/18 (b)

     32,000,000        32,341,792   

2.125%, 04/25/18

     4,700,000        4,706,275   

National Australia Bank, Ltd.
0.883%, 06/30/17 (144A) (b)

     48,300,000        48,179,298   

National Bank of Canada
2.200%, 10/19/16 (144A)

     1,400,000        1,412,362   

Novo Banco S.A.
5.000%, 04/04/19 (EUR)

     3,748,000        3,515,200   

5.000%, 04/23/19 (EUR)

     1,466,000        1,382,159   

5.000%, 05/14/19 (EUR)

     100,000        94,446   

5.000%, 05/23/19 (EUR)

     237,000        231,778   

Royal Bank of Scotland Group plc
6.990%, 10/05/17 (144A) (b)

     2,000,000        2,315,000   

8.000%, 08/10/25 (b)

     5,700,000        6,027,750   

Societe Generale S.A.
4.250%, 04/14/25 (144A) (i)

     10,900,000        10,286,472   

Turkiye Garanti Bankasi A/S
2.817%, 04/20/16 (144A) (b)

     3,000,000        2,993,340   

U.S. Bank N.A.
0.440%, 04/22/16 (b)

     7,400,000        7,400,414   

UBS AG
0.974%, 06/01/17 (b)

     11,000,000        10,977,626   

1.264%, 06/01/20 (b)

     4,000,000        3,984,644   

Wachovia Corp.
0.782%, 06/15/17 (b)

     27,870,000        27,784,606   

Wells Fargo & Co.
7.980%, 03/15/18 (b)

     20,300,000        21,086,625   
   

 

 

  
      955,667,132   
   

 

 

  

Biotechnology—0.1%

  

Amgen, Inc.
2.300%, 06/15/16

     5,108,000        5,137,391   
   

 

 

  

Chemicals—0.1%

  

Braskem Finance, Ltd.
5.750%, 04/15/21 (144A)

     3,300,000        2,871,000   

Rohm & Haas Co.
6.000%, 09/15/17

     2,438,000        2,594,941   
   

 

 

  
      5,465,941   
   

 

 

  

Computers—0.1%

  

Apple, Inc.
2.850%, 05/06/21

     3,700,000        3,789,170   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Diversified Financial Services—1.6%

  

Ally Financial, Inc.
2.750%, 01/30/17

     14,700,000      $ 14,663,250   

3.125%, 01/15/16

     5,000,000        5,000,000   

5.500%, 02/15/17

     15,000,000        15,450,000   

Bear Stearns Cos. LLC (The)
6.400%, 10/02/17

     1,400,000        1,507,698   

7.250%, 02/01/18

     4,200,000        4,632,969   

BM&FBovespa S.A. - Bolsa de Valores Mercadorias e Futuros
5.500%, 07/16/20 (144A)

     1,000,000        982,500   

General Electric Capital Corp.
6.375%, 11/15/67 (b)

     5,100,000        5,325,930   

International Lease Finance Corp.
6.750%, 09/01/16 (144A)

     5,300,000        5,445,750   

LeasePlan Corp. NV
2.875%, 01/22/19 (144A)

     17,600,000        17,373,400   

Navient Corp.
8.450%, 06/15/18

     8,300,000        8,735,750   

OneMain Financial Holdings, Inc.
6.750%, 12/15/19 (144A)

     3,100,000        3,142,625   

7.250%, 12/15/21 (144A)

     3,100,000        3,107,750   

Piper Jaffray Cos.
5.060%, 10/09/18 (144A) (i)

     5,000,000        4,974,550   

Rio Oil Finance Trust
9.250%, 07/06/24 (144A)

     950,000        703,000   

Springleaf Finance Corp.
6.900%, 12/15/17

     3,200,000        3,312,000   

SteelRiver Transmission Co. LLC
4.710%, 06/30/17 (144A) (i)

     5,546,156        5,684,644   
   

 

 

  
      100,041,816   
   

 

 

  

Electric—0.7%

  

Dynegy, Inc.
6.750%, 11/01/19

     22,450,000        21,103,000   

7.375%, 11/01/22

     7,000,000        6,090,000   

7.625%, 11/01/24

     3,600,000        3,077,280   

IPALCO Enterprises, Inc.
3.450%, 07/15/20

     6,500,000        6,370,000   

Majapahit Holding B.V.
7.250%, 06/28/17

     2,040,000        2,167,500   

7.750%, 01/20/20

     5,000,000        5,593,750   
   

 

 

  
      44,401,530   
   

 

 

  

Food—0.0%

  

Kraft Heinz Foods Co.
5.000%, 07/15/35 (144A)

     2,100,000        2,151,490   
   

 

 

  

Forest Products & Paper—0.1%

  

International Paper Co.
5.250%, 04/01/16

     6,500,000        6,560,118   
   

 

 

  

Healthcare-Services—0.1%

  

HCA, Inc.
3.750%, 03/15/19

     4,500,000        4,533,750   
   

 

 

  

Holding Companies-Diversified—0.1%

  

Blackstone CQP Holdco L.P.
9.296%, 03/19/19 (144A) (c) (i)

     4,017,287      4,006,784   
   

 

 

  

Lodging—0.2%

  

MGM Resorts International
6.875%, 04/01/16

     14,200,000        14,324,250   
   

 

 

  

Machinery-Diversified—0.1%

  

John Deere Capital Corp.
0.421%, 04/12/16 (b)

     9,900,000        9,893,080   
   

 

 

  

Media—0.0%

  

DISH DBS Corp.
4.250%, 04/01/18

     500,000        501,250   

4.625%, 07/15/17

     1,000,000        1,020,000   
   

 

 

  
      1,521,250   
   

 

 

  

Oil & Gas—2.4%

  

California Resources Corp.
5.000%, 01/15/20

     2,263,000        806,194   

8.000%, 12/15/22 (144A)

     6,069,000        3,193,811   

CNPC General Capital, Ltd.
1.262%, 05/14/17 (144A) (b)

     26,700,000        26,652,153   

Ecopetrol S.A.
5.375%, 06/26/26

     4,100,000        3,495,250   

Petrobras Global Finance B.V.
1.990%, 05/20/16 (b)

     5,500,000        5,362,500   

2.000%, 05/20/16

     4,500,000        4,432,500   

2.461%, 01/15/19 (b)

     700,000        532,000   

2.886%, 03/17/17 (b)

     5,300,000        4,856,125   

3.406%, 03/17/20 (b)

     4,500,000        3,195,000   

3.500%, 02/06/17

     3,900,000        3,646,500   

3.875%, 01/27/16

     2,800,000        2,788,800   

4.375%, 05/20/23

     23,000,000        15,180,000   

4.875%, 03/17/20

     1,000,000        750,000   

5.375%, 01/27/21

     8,200,000        6,109,000   

5.750%, 01/20/20

     9,100,000        7,143,500   

6.125%, 10/06/16

     3,100,000        3,069,000   

6.250%, 03/17/24

     1,600,000        1,148,000   

6.750%, 01/27/41

     8,400,000        5,376,000   

6.850%, 06/05/15

     2,900,000        1,877,750   

Statoil ASA
0.804%, 11/08/18 (b)

     49,900,000        49,508,834   
   

 

 

  
      149,122,917   
   

 

 

  

Pharmaceuticals—0.7%

  

AbbVie, Inc.
1.800%, 05/14/18

     13,800,000        13,736,465   

Actavis Funding SCS
3.000%, 03/12/20

     8,700,000        8,693,084   

3.450%, 03/15/22

     4,900,000        4,905,346   

Merck & Co., Inc.
2.350%, 02/10/22

     4,300,000        4,221,989   

2.750%, 02/10/25

     4,000,000        3,894,032   

3.700%, 02/10/45

     9,200,000        8,495,740   

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Pharmaceuticals—(Continued)

  

Valeant Pharmaceuticals International, Inc.
4.500%, 05/15/23 (EUR)

     1,900,000      $ 1,791,235   
   

 

 

  
      45,737,891   
   

 

 

  

Pipelines—0.5%

  

Energy Transfer Partners L.P.
6.125%, 12/15/45

     10,600,000        8,624,224   

Kinder Morgan Energy Partners L.P.
5.950%, 02/15/18

     4,000,000        4,101,188   

MPLX L.P.
4.875%, 06/01/25 (144A) (i)

     6,700,000        5,996,500   

Targa Resources Partners L.P. / Targa Resources Partners Finance Corp.
4.125%, 11/15/19

     8,250,000        6,868,125   

Tesoro Logistics L.P. / Tesoro Logistics Finance Corp.
5.500%, 10/15/19 (144A)

     1,900,000        1,843,000   

6.250%, 10/15/22 (144A)

     4,800,000        4,548,000   
   

 

 

  
      31,981,037   
   

 

 

  

Real Estate Investment Trusts—0.3%

  

Digital Delta Holdings LLC
3.400%, 10/01/20 (144A)

     5,300,000        5,305,809   

4.750%, 10/01/25 (144A)

     8,000,000        8,070,864   

Goodman Funding Property, Ltd.
6.000%, 03/22/22 (144A)

     5,000,000        5,548,730   
   

 

 

  
      18,925,403   
   

 

 

  

Retail—0.0%

  

CVS Pass-Through Trust
6.943%, 01/10/30

     876,253        1,001,859   
   

 

 

  

Savings & Loans—0.2%

  

Nationwide Building Society
6.250%, 02/25/20 (144A)

     10,800,000        12,348,094   
   

 

 

  

Telecommunications—2.2%

  

AT&T, Inc.
3.400%, 05/15/25

     8,500,000        8,169,265   

Ooredoo International Finance, Ltd.
3.375%, 10/14/16 (144A)

     400,000        403,888   

Sprint Communications, Inc.
9.125%, 03/01/17

     2,000,000        2,035,000   

Telefonica Emisiones S.A.U.
1.243%, 06/23/17 (b)

     29,500,000        29,331,142   

Verizon Communications, Inc.
0.877%, 06/09/17 (b)

     39,900,000        39,731,901   

2.252%, 09/14/18 (b)

     3,700,000        3,788,563   

2.500%, 09/15/16

     3,086,000        3,110,080   

3.000%, 11/01/21

     6,300,000        6,282,291   

3.500%, 11/01/24

     28,100,000        27,754,370   

3.650%, 09/14/18

     14,600,000        15,267,089   
   

 

 

  
      135,873,589   
   

 

 

  

Transportation—0.1%

  

Hellenic Railways Organization S.A.
4.028%, 03/17/17 (EUR) (k)

     4,900,000      4,899,068   

5.014%, 12/27/17 (EUR) (k)

     500,000        497,188   
   

 

 

  
      5,396,256   
   

 

 

  

Trucking & Leasing—0.2%

  

GATX Corp.
6.000%, 02/15/18

     5,000,000        5,357,410   

GATX Financial Corp.
5.800%, 03/01/16

     5,000,000        5,036,250   
   

 

 

  
      10,393,660   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $1,701,605,852)

       1,679,566,025   
   

 

 

  
Asset-Backed Securities—7.8%   

Asset-Backed - Automobile—0.3%

  

Ally Auto Receivables Trust
0.480%, 02/15/17

     2,305,325        2,304,735   

Nissan Auto Lease Trust
0.491%, 09/15/16 (b)

     2,800,692        2,800,318   

Santander Drive Auto Receivables Trust
1.200%, 12/17/18

     12,000,000        11,976,558   

Toyota Auto Receivables Owner Trust
0.400%, 12/15/16

     4,020,312        4,019,238   
   

 

 

  
      21,100,849   
   

 

 

  

Asset-Backed - Home Equity—1.7%

  

ACE Securities Corp. Home Equity Loan Trust
0.572%, 04/25/36 (b)

     9,796,016        8,736,495   

0.892%, 10/25/35 (b)

     7,100,000        6,043,521   

Asset-Backed Funding Certificates Trust
1.122%, 06/25/34 (b)

     2,549,439        2,373,398   

Asset-Backed Securities Corp. Home Equity Loan Trust
0.502%, 05/25/37 (b)

     30,804        21,014   

0.872%, 11/25/35 (b)

     2,000,000        1,796,920   

Bear Stearns Asset-Backed Securities I Trust
0.672%, 04/25/37 (b)

     14,920,345        11,017,303   

0.882%, 02/25/36 (b)

     1,000,000        755,055   

1.092%, 06/25/35 (b)

     7,500,000        6,615,704   

1.422%, 10/25/37 (b)

     4,785,443        4,416,020   

Bear Stearns Asset-Backed Securities Trust
1.222%, 10/27/32 (b)

     19,042        18,137   

Citigroup Mortgage Loan Trust, Inc.
0.582%, 12/25/36 (144A) (b)

     11,908,572        7,800,377   

0.592%, 05/25/37 (b)

     13,485,000        12,287,527   

HSI Asset Securitization Corp. Trust
0.592%, 12/25/36 (b)

     12,659,395        5,327,932   

Merrill Lynch Mortgage Investors Trust
0.922%, 06/25/36 (b)

     2,461,637        2,340,654   

Morgan Stanley ABS Capital I, Inc.
0.482%, 05/25/37 (b)

     298,464        188,799   

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

Asset-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Asset-Backed - Home Equity—(Continued)

  

Morgan Stanley Home Equity Loan Trust
0.592%, 04/25/37 (b)

     6,152,615      $ 3,433,482   

Option One Mortgage Corp. Asset-Backed Certificates
1.062%, 08/25/33 (b)

     18,764        17,748   

Renaissance Home Equity Loan Trust
1.302%, 08/25/33 (b)

     113,328        105,988   

5.812%, 11/25/36

     23,845,894        12,927,166   

Residential Asset Securities Corp. Trust
0.702%, 06/25/36 (b)

     6,000,000        4,753,514   

1.002%, 06/25/33 (b)

     1,202,513        1,023,953   

1.187%, 03/25/34 (b)

     2,275,859        2,109,953   

Soundview Home Loan Trust
0.602%, 05/25/36 (b)

     9,592,483        9,064,713   
   

 

 

  
      103,175,373   
   

 

 

  

Asset-Backed - Manufactured Housing—0.0%

  

Conseco Financial Corp.
6.220%, 03/01/30

     49,871        52,025   

Mid-State Trust
7.791%, 03/15/38

     128,444        138,686   
   

 

 

  
      190,711   
   

 

 

  

Asset-Backed - Other—5.8%

  

Ameriquest Mortgage Securities, Inc. Asset-Backed Pass-Through Certificates
1.202%, 05/25/34 (b)

     5,736,092        5,271,146   

Argent Securities, Inc. Asset-Backed Pass-Through Certificates
0.802%, 02/25/36 (b)

     7,558,061        5,105,058   

BlackRock Senior Income
0.557%, 04/20/19 (144A) (b)

     1,093,674        1,086,642   

Bridgeport CLO II, Ltd.
0.763%, 06/18/21 (144A) (b)

     3,617,766        3,540,838   

Celf Loan Partners IV plc
0.997%, 05/03/23 (GBP) (b)

     11,399,620        16,294,943   

Chapel B.V.
0.577%, 11/17/64 (EUR) (b)

     2,627,999        2,706,367   

CIFC Funding, Ltd.
1.587%, 01/19/23 (144A) (b)

     3,919,128        3,919,128   

Citigroup Mortgage Loan Trust, Inc.
0.482%, 07/25/45 (b)

     455,750        311,898   

0.662%, 10/25/36 (b)

     12,103,393        11,695,044   

Countrywide Asset-Backed Certificates
0.562%, 02/25/37 (b)

     2,730,033        2,654,486   

0.572%, 05/25/37 (b)

     3,418,367        3,090,856   

0.572%, 06/25/47 (b)

     996,176        887,290   

0.602%, 06/25/36 (b)

     3,771,796        3,700,916   

0.622%, 06/25/47 (b)

     12,912,726        9,329,521   

0.982%, 12/25/35 (b)

     3,500,000        3,290,814   

5.049%, 10/25/46 (b)

     15,386,718        14,500,138   

5.397%, 10/25/32 (b)

     13,233,257        11,434,284   

CWABS Asset-Backed Certificates Trust
0.572%, 03/25/47 (b)

     3,582,939        3,172,050   

0.772%, 04/25/36 (b)

     7,818,191        7,701,076   

Asset-Backed - Other—(Continued)

  

CWABS Asset-Backed Certificates Trust
1.122%, 11/25/35 (b)

     10,000,000      8,150,572   

1.427%, 01/25/35 (b)

     6,013,387        6,013,076   

First Franklin Mortgage Loan Trust
0.562%, 12/25/36 (b)

     8,316,676        5,175,217   

0.782%, 10/25/35 (b)

     10,089,379        9,394,728   

1.847%, 10/25/34 (b)

     5,362,296        4,485,029   

GSAMP Trust
0.592%, 12/25/36 (b)

     3,650,905        2,017,256   

0.812%, 01/25/36 (b)

     14,600,000        12,105,403   

1.742%, 12/25/34 (b)

     7,758,233        5,374,716   

Harvest CLO V S.A.
0.205%, 04/05/24 (EUR) (b)

     6,704,357        7,211,482   

Hillmark Funding, Ltd.
0.628%, 05/21/21 (144A) (b)

     14,167,324        13,905,809   

Home Equity Loan Trust
0.652%, 04/25/37 (b)

     15,900,000        9,287,289   

Home Equity Mortgage Loan Asset-Backed Trust
0.672%, 03/25/36 (b)

     5,984,341        5,841,082   

LCM IX L.P.
1.521%, 07/14/22 (144A) (b)

     8,301,273        8,250,262   

Lehman XS Trust
0.592%, 02/25/37 (b)

     14,310,443        8,012,869   

1.222%, 10/25/35 (b)

     5,820,796        5,419,362   

Lockwood Grove CLO, Ltd.
1.690%, 01/25/24 (144A) (b)

     14,900,000        14,826,647   

Long Beach Mortgage Loan Trust
1.202%, 08/25/35 (b)

     10,000,000        7,368,464   

Morgan Stanley ABS Capital I, Inc. Trust
1.382%, 06/25/35 (b)

     7,037,350        6,910,512   

Mountain View Funding CLO, Ltd.
0.581%, 04/15/19 (144A) (b)

     1,779,531        1,770,330   

OneMain Financial Issuance Trust
3.190%, 03/18/26 (144A)

     6,900,000        6,857,220   

Park Place Securities, Inc. Asset-Backed Pass-Through Certificates
0.912%, 09/25/35 (b)

     5,000,000        3,994,960   

1.472%, 10/25/34 (b)

     5,800,000        4,929,968   

2.222%, 12/25/34 (b)

     4,636,570        4,028,432   

Penta CLO S.A.
0.172%, 06/04/24 (EUR) (b)

     1,063,060        1,142,014   

Popular ABS Mortgage Pass-Through Trust
0.512%, 06/25/47 (b)

     113,764        113,162   

RAMP Trust
0.722%, 05/25/36 (b)

     32,629,717        24,330,584   

Residential Asset Securities Corp. Trust
0.582%, 11/25/36 (b)

     11,160,058        9,534,308   

RMAT LLC
4.090%, 07/27/20 (144A)

     9,481,242        9,414,868   

Securitized Asset-Backed Receivables LLC Trust
0.672%, 05/25/36 (b)

     10,813,721        6,157,560   

Small Business Administration Participation Certificates
5.500%, 10/01/18

     7,519        7,791   

6.220%, 12/01/28

     3,942,347        4,478,732   

 

See accompanying notes to financial statements.

 

MIST-15

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

Asset-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Asset-Backed - Other—(Continued)

  

Soundview Home Loan Trust
0.532%, 02/25/37 (b)

     2,688,093      $ 1,122,425   

Specialty Underwriting & Residential Finance Trust
0.692%, 04/25/37 (b)

     5,929,031        3,361,810   

Structured Asset Investment Loan Trust
1.157%, 08/25/35 (b)

     8,760,000        8,434,400   

Structured Asset Securities Corp. Mortgage Loan Trust
0.582%, 03/25/36 (b)

     4,598,282        4,412,825   

1.322%, 08/25/37 (b)

     983,061        927,986   

Sunrise S.r.l.
0.396%, 08/27/31 (EUR) (b)

     910,776        989,349   

United States Small Business Administration
5.471%, 03/10/18

     809,428        867,142   

Wells Fargo Home Equity Asset-Backed Securities Trust
0.902%, 12/25/35 (b)

     20,861,000        17,349,543   

Wood Street CLO B.V.
0.231%, 11/22/21 (EUR) (b)

     1,139,584        1,233,720   
   

 

 

  
      364,901,399   
   

 

 

  

Asset-Backed - Student Loan—0.0%

  

SLM Private Education Loan Trust
2.981%, 12/16/19 (144A) (b)

     160,319        160,446   

SLM Student Loan Trust
0.450%, 01/25/19 (b)

     1,502,112        1,491,012   
   

 

 

  
      1,651,458   
   

 

 

  

Total Asset-Backed Securities
(Cost $480,666,987)

       491,019,790   
   

 

 

  
Mortgage-Backed Securities—5.7%   

Collateralized Mortgage Obligations—3.8%

  

Adjustable Rate Mortgage Trust
2.797%, 11/25/35 (b)

     604,663        513,152   

Aire Valley Mortgages plc
0.167%, 09/20/66 (EUR) (b)

     4,058,440        4,282,785   

Alternative Loan Trust
5.500%, 02/25/36

     5,489,548        4,934,101   

Alternative Loan Trust Resecuritization
3.942%, 03/25/47 (b)

     6,017,424        5,618,266   

American Home Mortgage Assets Trust
1.177%, 11/25/46 (b)

     4,086,724        2,073,658   

American Home Mortgage Investment Trust
2.654%, 02/25/45 (b)

     1,542,920        1,538,711   

Banc of America Alternative Loan Trust
16.012%, 09/25/35 (b)

     5,525,564        6,708,163   

26.714%, 11/25/46 (b)

     2,265,666        3,466,366   

Banc of America Funding Trust
2.754%, 05/25/35 (b)

     1,638,556        1,666,483   

2.801%, 02/20/36 (b)

     4,552,392        4,515,588   

3.007%, 01/20/47 (b)

     281,507        236,691   

Collateralized Mortgage Obligations—(Continued)

  

Banc of America Funding, Ltd.
0.503%, 10/03/39 (144A) (b)

     8,848,466      8,801,189   

BCAP LLC Trust
4.000%, 02/26/37 (144A) (b)

     2,313,371        2,298,008   

5.250%, 02/26/36 (144A)

     6,464,768        5,725,517   

5.250%, 08/26/37 (144A)

     8,642,113        8,952,426   

Bear Stearns Adjustable Rate Mortgage Trust
2.320%, 08/25/35 (b)

     24,068        24,284   

2.480%, 08/25/35 (b)

     706,512        708,174   

2.581%, 02/25/33 (b)

     16,138        15,523   

2.842%, 10/25/35 (b)

     5,165,565        5,130,569   

Bear Stearns ALT-A Trust
1.262%, 11/25/34 (b)

     581,094        568,965   

2.601%, 05/25/35 (b)

     1,836,055        1,774,410   

2.702%, 11/25/36 (b)

     3,073,576        2,206,704   

2.726%, 09/25/35 (b)

     1,476,531        1,244,629   

2.760%, 11/25/36 (b)

     5,194,149        3,937,944   

4.687%, 05/25/36 (b)

     2,955,751        2,057,124   

Bear Stearns Structured Products, Inc. Trust
2.566%, 12/26/46 (b)

     1,138,963        842,833   

2.693%, 01/26/36 (b)

     1,561,117        1,282,594   

Chase Mortgage Finance Trust
2.466%, 03/25/37 (b)

     2,526,134        2,352,785   

2.700%, 12/25/35 (b)

     4,701,599        4,483,308   

5.413%, 09/25/36 (b)

     4,636,325        4,075,408   

ChaseFlex Trust
0.722%, 07/25/37 (b)

     7,074,881        5,726,311   

Chevy Chase Funding LLC Mortgage-Backed Certificate
0.672%, 08/25/35 (144A) (b)

     56,254        50,355   

CHL Mortgage Pass-Through Trust
5.500%, 12/25/34

     9,358,462        9,439,594   

Citicorp Mortgage Securities Trust
6.000%, 05/25/37

     3,550,372        3,668,211   

Citigroup Mortgage Loan Trust, Inc.
2.311%, 10/25/46 (b)

     2,620,881        2,141,174   

2.420%, 09/25/35 (b)

     856,385        859,850   

2.430%, 09/25/35 (b)

     2,501,269        2,500,886   

2.730%, 10/25/35 (b)

     4,437,381        4,393,658   

Countrywide Alternative Loan Trust
0.612%, 03/20/46 (b)

     240,457        180,831   

4.578%, 05/25/35 (b) (l)

     2,752,224        249,894   

Countrywide Home Loan Mortgage Pass-Through Trust
0.712%, 04/25/35 (b)

     113,263        98,820   

0.742%, 03/25/35 (b)

     886,907        778,767   

2.559%, 09/20/36 (b)

     4,464,953        3,959,068   

Countrywide Home Reperforming Loan REMIC Trust
0.762%, 06/25/35 (144A) (b)

     2,619,174        2,278,167   

Credit Suisse First Boston Mortgage Securities Corp.
0.824%, 03/25/32 (144A) (b)

     70,114        64,684   

6.000%, 11/25/35

     2,632,252        2,028,902   

Deutsche Alt-A Securities Mortgage Loan Trust
0.612%, 08/25/47 (b)

     6,919,868        5,520,193   

 

See accompanying notes to financial statements.

 

MIST-16

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

Mortgage-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Collateralized Mortgage Obligations—(Continued)

  

Downey Savings & Loan Association Mortgage Loan Trust
2.547%, 07/19/44 (b)

     712,815      $ 709,165   

First Horizon Alternative Mortgage Securities Trust
4.278%, 01/25/36 (b) (l)

     42,324,361        5,184,916   

First Horizon Mortgage Pass-Through Trust
2.723%, 08/25/35 (b)

     382,169        339,154   

Granite Mortgages plc
0.329%, 01/20/44 (EUR) (b)

     66,536        72,291   

0.962%, 01/20/44 (GBP) (b)

     107,028        157,744   

GreenPoint MTA Trust
0.862%, 06/25/45 (b)

     77,693        68,354   

GSR Mortgage Loan Trust
2.692%, 04/25/36 (b)

     3,469,820        3,111,011   

2.806%, 09/25/35 (b)

     64,167        65,557   

6.000%, 03/25/32

     160        165   

HarborView Mortgage Loan Trust
0.592%, 01/19/38 (b)

     176,318        143,810   

0.622%, 05/19/35 (b)

     1,255,219        1,042,304   

IndyMac ARM Trust
1.842%, 01/25/32 (b)

     547        509   

1.864%, 01/25/32 (b)

     31,673        30,443   

IndyMac INDX Mortgage Loan Trust
0.632%, 05/25/46 (b)

     8,881,746        7,276,025   

JPMorgan Mortgage Trust
2.534%, 07/25/35 (b)

     3,024,435        2,986,941   

5.750%, 01/25/36

     481,963        420,327   

MASTR Alternative Loan Trust
0.822%, 03/25/36 (b)

     738,730        179,136   

Merrill Lynch Mortgage Investors Trust
0.672%, 11/25/35 (b)

     105,467        98,629   

0.802%, 08/25/35 (b)

     7,264,758        6,586,832   

1.244%, 10/25/35 (b)

     173,739        164,556   

Morgan Stanley Re-REMIC Trust
0.567%, 03/26/37 (144A) (b)

     4,865,755        3,281,541   

Nomura Asset Acceptance Corp. Alternative Loan Trust
4.976%, 05/25/35

     1,630,744        1,386,250   

RBSSP Resecuritization Trust
0.461%, 06/27/36 (144A) (b)

     8,300,000        6,744,718   

Residential Accredit Loans, Inc. Trust
0.602%, 06/25/46 (b)

     1,762,006        740,959   

0.862%, 06/25/34 (b)

     1,911,602        1,875,144   

6.000%, 12/25/35

     11,548,444        10,066,781   

Residential Asset Securitization Trust
0.822%, 05/25/33 (b)

     31,241        31,190   

6.000%, 06/25/36

     4,648,788        3,300,892   

RFMSI Trust
0.772%, 06/25/18 (b)

     1,233        1,195   

Sequoia Mortgage Trust
0.752%, 07/20/33 (b)

     333,535        313,440   

1.042%, 04/19/27 (b)

     1,291,957        1,200,258   

Structured Adjustable Rate Mortgage Loan Trust
2.535%, 04/25/35 (b)

     8,826,329        8,526,910   

2.540%, 01/25/35 (b)

     2,419,770        2,294,654   

2.586%, 08/25/35 (b)

     190,973        177,602   

Collateralized Mortgage Obligations—(Continued)

  

Structured Asset Mortgage Investments II Trust
0.652%, 05/25/45 (b)

     1,184,340      1,036,430   

0.652%, 07/19/35 (b)

     1,089,562        1,027,602   

WaMu Mortgage Pass-Through Certificates Trust
1.643%, 08/25/42 (b)

     81,980        77,553   

1.657%, 06/25/42 (b)

     171,618        165,316   

Wells Fargo Mortgage-Backed Securities Trust
2.609%, 09/25/33 (b)

     755,659        752,347   

2.710%, 07/25/36 (b)

     8,778,491        8,548,835   

2.733%, 10/25/36 (b)

     2,900,686        2,747,552   

2.744%, 04/25/36 (b)

     1,365,821        1,332,166   

2.763%, 03/25/36 (b)

     14,768,756        14,282,231   

5.750%, 03/25/36

     5,352,965        5,458,941   

5.788%, 04/25/36 (b)

     350,724        59,082   
   

 

 

  
      240,043,181   
   

 

 

  

Commercial Mortgage-Backed Securities—1.9%

  

Banc of America Commercial Mortgage Trust
5.451%, 01/15/49

     7,384,301        7,574,488   

Bear Stearns Commercial Mortgage Securities Trust
5.331%, 02/11/44

     334,322        343,720   

5.700%, 06/11/50

     5,300,000        5,524,970   

Credit Suisse Commercial Mortgage Trust
5.297%, 12/15/39

     4,457,355        4,557,725   

5.383%, 02/15/40

     700,056        713,600   

5.467%, 09/15/39

     17,583,426        17,769,220   

Greenwich Capital Commercial Funding Corp.
5.444%, 03/10/39

     6,498,445        6,643,228   

JPMorgan Chase Commercial Mortgage Securities Trust
5.420%, 01/15/49

     362,183        369,646   

5.794%, 02/12/51 (b)

     11,929,192        12,400,320   

LB-UBS Commercial Mortgage Trust
5.866%, 09/15/45 (b)

     11,195,029        11,748,711   

ML-CFC Commercial Mortgage Trust
5.485%, 03/12/51 (b)

     2,200,000        2,255,616   

5.877%, 08/12/49 (b)

     7,400,000        7,712,414   

Morgan Stanley Capital I Trust
1.467%, 08/14/31 (144A) (b)

     22,130,272        22,046,622   

Morgan Stanley Re-REMIC Trust
5.795%, 08/12/45 (144A) (b)

     768,894        789,894   

Wachovia Bank Commercial Mortgage Trust
5.713%, 06/15/49 (b)

     16,700,000        17,106,079   
   

 

 

  
      117,556,253   
   

 

 

  

Total Mortgage-Backed Securities
(Cost $353,850,871)

       357,599,434   
   

 

 

  
Municipals—4.1%   

American Municipal Power-Ohio, Inc., Combined Hydroelectric Projects Revenue, Build America Bonds, Taxable
8.084%, 02/15/50

     6,900,000        10,176,396   

 

See accompanying notes to financial statements.

 

MIST-17

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

Municipals—(Continued)

 

Security Description   Principal
Amount*		     Value  

Bay Area Toll Bridge Authority, Build America Bonds
7.043%, 04/01/50

     10,400,000      $ 14,335,048   

California Infrastructure & Economic Development Bank Revenue, Build America Bonds
6.486%, 05/15/49

     2,500,000        2,967,150   

California State General Obligation Unlimited, Build America Bonds
7.625%, 03/01/40

     16,600,000        24,174,082   

7.950%, 03/01/36

     5,700,000        6,818,967   

California State Public Works Board Lease Revenue Build America Bonds, Taxable, University Projects
7.804%, 03/01/35

     3,100,000        4,028,636   

California State University Revenue, Build America Bonds
6.484%, 11/01/41

     4,400,000        5,408,128   

Calleguas-Las Virgenes California Public Financing Water Revenue Authority, Build America Bonds
5.944%, 07/01/40

     7,800,000        9,434,334   

Chicago Transit Authority Transfer Tax Receipts Revenue
6.300%, 12/01/21

     315,000        336,656   

6.899%, 12/01/40

     14,500,000        16,852,190   

City of Chicago, IL General Obligation Unlimited
7.750%, 01/01/42

     11,400,000        11,536,686   

Clark County NV, Airport Revenue
6.820%, 07/01/45

     4,800,000        6,686,208   

East Baton Rouge Sewer Commission, Build America Bonds
6.087%, 02/01/45

     15,000,000        16,489,350   

Irvine Ranch CA, Water District, Build America Bonds, Taxable
6.622%, 05/01/40

     21,700,000        27,896,218   

Los Angeles CA, Wastewater System Revenue, Build America Bonds
5.713%, 06/01/39

     2,300,000        2,714,782   

Los Angeles Department of Water & Power Revenue, Build America Bonds
6.166%, 07/01/40

     18,190,000        20,384,624   

Los Angeles, Unified School District, Build America Bonds
6.758%, 07/01/34

     1,100,000        1,449,382   

Metropolitan Transportation Authority Build America Bonds, Metro Transit Authority
6.089%, 11/15/40

     200,000        253,538   

Newport Beach CA, Certificates of Participation, Build America Bonds
7.168%, 07/01/40

     31,650,000        39,849,882   

Pennsylvania Economic Development Financing Authority, Build America Bonds
6.532%, 06/15/39

     1,000,000        1,121,700   

Port Authority of New York & New Jersey
5.647%, 11/01/40

     3,000,000        3,547,170   

Public Power Generation Agency, Build America Bonds, Whelan Energy Centre Unit
7.242%, 01/01/41

     1,800,000      2,146,428   

Regents of the University of California, Medical Center Pooled Revenue, Build America Bonds
6.548%, 05/15/48

     3,400,000        4,363,900   

State of California General Obligation Unlimited, Build America Bonds
7.500%, 04/01/34

     2,900,000        4,046,573   

7.550%, 04/01/39

     2,900,000        4,212,279   

7.600%, 11/01/40

     1,900,000        2,820,075   

State of Georgia
6.655%, 04/01/57

     1,300,000        1,543,724   

State of Texas Transportation Commission Revenue, Build America Bonds
5.178%, 04/01/30

     2,300,000        2,707,491   

State of Wisconsin, General Fund Annual Appropriation Revenue
5.050%, 05/01/18

     2,900,000        3,130,231   

Tobacco Settlement Financing Authority
7.467%, 06/01/47

     7,215,000        6,234,842   
   

 

 

  

Total Municipals
(Cost $179,362,690)

       257,666,670   
   

 

 

  
Foreign Government—4.0%   

Provincial—1.1%

  

Province of Ontario Canada
1.650%, 09/27/19

     7,000,000        6,912,367   

3.150%, 06/02/22 (CAD)

     9,300,000        7,267,066   

4.000%, 06/02/21 (CAD)

     31,100,000        25,298,503   

4.400%, 04/14/20

     2,700,000        2,950,924   

Province of Quebec Canada
3.500%, 07/29/20

     10,600,000        11,210,168   

3.500%, 12/01/22 (CAD)

     3,300,000        2,630,413   

4.250%, 12/01/21 (CAD)

     15,200,000        12,573,257   
   

 

 

  
      68,842,698   
   

 

 

  

Sovereign—2.9%

  

Banco Nacional de Desenvolvimento Economico e Social
3.375%, 09/26/16 (144A)

     2,600,000        2,574,000   

4.125%, 09/15/17 (144A) (EUR)

     2,700,000        2,729,134   

Brazil Letras do Tesouro Nacional
Zero Coupon, 04/01/16 (BRL)

     508,900,000        124,357,730   

Export-Import Bank of Korea
4.000%, 01/29/21

     2,500,000        2,662,600   

5.125%, 06/29/20

     2,500,000        2,759,563   

Mexican Bonos
8.000%, 06/11/20 (MXN)

     372,700,000        23,797,980   

Mexican Udibonos
4.000%, 11/08/46 (MXN) (f)

     415,594,603        24,413,316   
   

 

 

  
      183,294,323   
   

 

 

  

Total Foreign Government
(Cost $321,371,608)

       252,137,021   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-18

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

Floating Rate Loans (m)—0.9%

 

Security Description   Shares/
Principal/
Notional
Amount*		     Value  

Auto Manufacturers—0.3%

  

Chrysler Group LLC Term Loan B,
3.500%, 05/24/17

     16,028,849      $ 16,000,398   
   

 

 

  

Healthcare-Services—0.3%

    

HCA, Inc. Term Loan B5,
3.174%, 03/31/17

     21,962,972        21,961,457   
   

 

 

  

Lodging—0.0%

    

MGM Resorts International Term Loan A,
3.174%, 12/20/17

     1,969,543        1,959,696   
   

 

 

  

Sovereign—0.2%

    

Hellenic Republic Schuldschein Loan,
3.930%, 03/30/16 (EUR) (k)

     12,000,000        12,649,768   
   

 

 

  

Transportation—0.1%

    

Swissport Investments S.A. Term Loan B,
11/30/21 (EUR) (n)

     3,000,000        3,260,249   
   

 

 

  

Total Floating Rate Loans
(Cost $56,075,379)

       55,831,568   
   

 

 

  
Convertible Bond—0.6%   

Banks—0.6%

  

LBG Capital No. 2 plc
15.000%, 12/21/19 (GBP)
(Cost $49,775,787)

     20,300,000        40,400,452   
   

 

 

  
Preferred Stock—0.4%                

Banks—0.4%

    

GMAC Capital Trust I,
8.125% (b)
(Cost $21,508,725)

     860,349        21,818,451   
   

 

 

  
Convertible Preferred Stock—0.3%   

Banks—0.3%

    

Wells Fargo & Co.,
Series L 7.500%, 12/31/49
(Cost $11,056,200)

     15,450        17,937,450   
   

 

 

  
Purchased Options—0.1%   

Interest Rate Swaptions—0.1%

  

Call - OTC - 1-Year Interest Rate Swap, Exercise Rate 0.800%, Expires 01/19/16 (Counterparty - Morgan Stanley Capital Services, LLC) (k)

     249,500,000        4,616   

Call - OTC - 10-Year Interest Rate Swap, Exercise Rate 1.750%, Expires 01/29/16 (Counterparty - Morgan Stanley Capital Services, LLC) (k)

     42,200,000      $ 3,519   

Call - OTC - 2-Year Interest Rate Swap, Exercise Rate 2.100%, Expires 01/30/18 (Counterparty - JPMorgan Chase Bank N.A.) (k)

     83,600,000        782,019   

Call - OTC - 5-Year Interest Rate Swap, Exercise Rate 1.500%, Expires 01/29/16 (Counterparty - Morgan Stanley Capital Services, LLC) (k)

     42,200,000        12,293   

Put - OTC - 10-Year Interest Rate Swap, Exercise Rate 2.580%, Expires 05/12/16 (Counterparty - Morgan Stanley Capital Services, LLC) (k)

     34,200,000        214,732   

Put - OTC - 10-Year Interest Rate Swap, Exercise Rate 2.580%, Expires 05/23/16 (Counterparty - Morgan Stanley Capital Services, LLC) (k)

     79,800,000        553,022   

Put - OTC - 30-Year Interest Rate Swap, Exercise Rate 2.905%, Expires 08/20/18 (Counterparty - Morgan Stanley Capital Services, LLC) (k)

     10,200,000        865,120   

Put - OTC - 30-Year Interest Rate Swap, Exercise Rate 2.930%, Expires 08/20/18 (Counterparty - Goldman Sachs Bank USA) (k)

     11,900,000        987,849   

Put - OTC - 30-Year Interest Rate Swap, Exercise Rate 2.940%, Expires 08/20/18 (Counterparty - Goldman Sachs Bank USA) (k)

     10,400,000        849,059   

Put - OTC - 30-Year Interest Rate Swap, Exercise Rate 3.020%, Expires 08/21/17 (Counterparty - Morgan Stanley Capital Services, LLC) (k)

     22,600,000        1,182,807   
   

 

 

  
      5,455,036   
   

 

 

  

Options on Exchange-Traded Futures Contracts—0.0%

  

Put - U.S. Treasury Note 5-Year Futures @109.00, Expires 02/19/16

     3,500        27,346   

Put - U.S. Treasury Note 5-Year Futures @110.50, Expires 02/19/16

     946        7,391   

Put - U.S. Treasury Note 5-Year Futures @111.00, Expires 02/19/16

     1,058        8,266   
   

 

 

  
      43,003   
   

 

 

  

Total Purchased Options
(Cost $10,871,830)

       5,498,039   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-19

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

Short-Term Investments—2.8%

 

Security Description   Principal
Amount*		     Value  

Commercial Paper—0.1%

    

Deutsche Telekom AG
0.810%, 01/12/16 (o)

     6,500,000      $ 6,498,391   
   

 

 

  

Repurchase Agreements—2.4%

    

Credit Suisse Securities (USA) LLC Repurchase Agreement dated 12/31/15 at
0.550% to be repurchased at $138,108,439 on 01/04/16, collateralized by $141,557,000 U.S. Treasury Note at 0.625% due 08/31/17 with a value of $140,650,186.

     138,100,000        138,100,000   

Deutsche Bank Securities, Inc. Repurchase Agreement dated 12/31/15 at
0.500% to be repurchased at $8,400,467 on 01/04/16, collateralized by $8,285,000 U.S. Treasury Bond at 3.125% due 02/15/43 with a value of $8,491,479.

     8,400,000        8,400,000   

Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/15 at
0.030% to be repurchased at $1,433,922 on 01/04/16, collateralized by $1,465,000 U.S. Treasury Note at 1.625% due 07/31/20 with a value of $1,466,831.

     1,433,917        1,433,917   
   

 

 

  
      147,933,917   
   

 

 

  

U.S. Treasury—0.3%

    

U.S. Treasury Bills
0.112%, 01/21/16 (h) (o)

     3,335,000        3,334,784   

0.118%, 01/14/16 (h) (o)

     2,904,000        2,903,869   

0.200%, 01/07/16 (h) (o)

     70,000        69,997   

0.566%, 06/30/16 (e) (h) (o) (p) (q)

     9,600,000        9,573,001   
   

 

 

  
      15,881,651   
   

 

 

  

Total Short-Term Investments
(Cost $170,313,959)

       170,313,959   
   

 

 

  

Total Investments—131.7%
(Cost $8,338,743,246) (r)

       8,244,014,510   

Other assets and liabilities (net)—(31.7)%

       (1,982,438,071 ) 
   

 

 

  
Net Assets—100.0%     $ 6,261,576,439   
   

 

 

  

 

* Principal and notional amounts 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 December 31, 2015. Maturity date shown for callable securities reflects the earliest possible call date.
(c) Security was valued in good faith under procedures approved by the Board of Trustees. As of December 31, 2015, these securities represent 0.1% of net assets.
(d) All or a portion of this security has been transferred in a secured-borrowing transaction. (See Note 2 of the Notes to Financial Statements.)
(e) All or a portion of the security was pledged as collateral against open centrally cleared swap contracts. As of December 31, 2015, the market value of securities pledged was $90,137,763.
(f) Principal amount of security is adjusted for inflation.
(g) All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2015, the market value of securities pledged was $16,652,272.
(h) All or a portion of the security was pledged as collateral against open OTC swap contracts and open forward foreign currency exchange contracts. As of December 31, 2015, the market value of securities pledged was $15,475,363.
(i) 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 December 31, 2015, the market value of restricted securities was $40,880,820, which is 0.7% of net assets. See details shown in the Restricted Securities table that follows.
(j) Payment-in-kind security for which part of the income earned may be paid as additional principal.
(k) Illiquid security. As of December 31, 2015, these securities represent 0.4% of net assets.
(l) Interest only security.
(m) 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.
(n) This loan will settle after December 31, 2015, at which time the interest rate will be determined.
(o) The rate shown represents current yield to maturity.
(p) All or a portion of the security was pledged as collateral against TBA securities. As of December 31, 2015, the value of securities pledged amounted to $423,805.
(q) All or a portion of the security was pledged as collateral against open secured borrowing transactions. As of December 31, 2015, the value of securities pledged amounted to $768,832.
(r) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $8,389,934,410. The aggregate unrealized appreciation and depreciation of investments were $112,900,011 and $(258,819,911), respectively, resulting in net unrealized depreciation of $(145,919,900) for federal income tax purposes.
(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 December 31, 2015, the market value of 144A securities was $506,034,212, which is 8.1% of net assets.

 

See accompanying notes to financial statements.

 

MIST-20

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

 

(ARM)— Adjustable-Rate Mortgage
(BRL)— Brazilian Real
(CAD)— Canadian Dollar
(CLO)— Collateralized Loan Obligation
(CMO)— Collateralized Mortgage Obligation
(EUR)— Euro
(GBP)— British Pound
(MXN)— Mexican Peso
(REMIC)— Real Estate Mortgage Investment Conduit

 

Restricted Securities

    Acquisition
Date		      Principal
Amount		      Cost      Value  

Blackstone CQP Holdco L.P. 9.296%, 03/19/19

      06/25/14 - 12/31/15       $ 4,017,287       $ 4,087,287       $ 4,006,784   

Latam Airlines Pass-Through Trust 4.500%, 08/15/25

      10/07/15         3,000,000         2,830,458         2,760,000   

MPLX L.P. 4.875%, 06/01/25

      05/28/15         6,700,000         6,631,040         5,996,500   

Mizuho Bank, Ltd. 2.150%, 10/20/18

      10/13/15         7,200,000         7,196,094         7,171,870   

Piper Jaffray Cos. 5.060%, 10/09/18

      10/08/15         5,000,000         5,000,000         4,974,550   

Societe Generale S.A. 4.250%, 04/14/25

      04/08/15         10,900,000         10,739,722         10,286,472   

SteelRiver Transmission Co. LLC 4.710%, 06/30/17

      11/17/10         5,546,156         5,546,169         5,684,644   
           

 

 

  
            $ 40,880,820   
           

 

 

  

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy

     

Counterparty

    Settlement
Date		      In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
BRL     36,072,068      

BNP Paribas S.A.

      01/05/16       $ 9,301,000       $ (183,258 ) 
BRL     50,490,648      

BNP Paribas S.A.

      01/05/16         13,365,447         (603,198 ) 
BRL     5,500,000      

Barclays Bank plc

      01/05/16         1,375,000         15,205   
BRL     32,842,186      

Citibank N.A.

      01/05/16         8,677,161         (375,818 ) 
BRL     573,200,000      

Citibank N.A.

      01/05/16         144,263,681         620,995   
BRL     7,531,452      

Deutsche Bank AG

      01/05/16         1,965,000         (61,315 ) 
BRL     13,354,926      

Deutsche Bank AG

      01/05/16         3,406,000         (30,347 ) 
BRL     14,530,049      

Deutsche Bank AG

      01/05/16         3,729,000         (56,318 ) 
BRL     16,440,270      

Deutsche Bank AG

      01/05/16         4,235,000         (79,482 ) 
BRL     17,118,653      

Deutsche Bank AG

      01/05/16         4,357,000         (30,010 ) 
BRL     17,967,175      

Deutsche Bank AG

      01/05/16         4,682,000         (140,534 ) 
BRL     18,491,255      

Deutsche Bank AG

      01/05/16         4,876,000         (202,065 ) 
BRL     20,028,364      

Deutsche Bank AG

      01/05/16         4,952,000         110,462   
BRL     21,591,620      

Deutsche Bank AG

      01/05/16         5,661,000         (203,402 ) 
BRL     26,167,658      

Deutsche Bank AG

      01/05/16         6,838,000         (223,742 ) 
BRL     26,612,251      

Deutsche Bank AG

      01/05/16         6,992,000         (265,365 ) 
BRL     31,609,261      

Deutsche Bank AG

      01/05/16         8,207,000         (217,297 ) 
BRL     32,419,735      

Deutsche Bank AG

      01/05/16         8,226,000         (31,438 ) 
BRL     32,830,452      

Deutsche Bank AG

      01/05/16         8,491,000         (192,624 ) 
BRL     35,520,412      

Deutsche Bank AG

      01/05/16         9,098,000         (119,697 ) 
BRL     89,533,102      

Deutsche Bank AG

      01/05/16         22,928,985         (298,185 ) 
BRL     29,871,800      

Goldman Sachs Bank USA

      01/05/16         7,650,021         (99,487 ) 
BRL     573,200,000      

JPMorgan Chase Bank N.A.

      01/05/16         146,793,690         (1,909,014 ) 
BRL     17,118,653      

Deutsche Bank AG

      02/02/16         4,350,246         (65,803 ) 
BRL     20,028,364      

Deutsche Bank AG

      02/02/16         4,959,971         52,712   
BRL     93,094,304      

Deutsche Bank AG

      02/02/16         23,525,891         (226,322 ) 
BRL     3,798,695      

JPMorgan Chase Bank N.A.

      01/03/18         1,103,470         (340,907 ) 
CAD     100,686,439      

Societe Generale Paris

      01/05/16         72,665,418         100,747   
CAD     28,653,000      

Citibank N.A.

      02/11/16         21,488,631         (779,254 ) 
CAD     1,518,000      

JPMorgan Chase Bank N.A.

      02/11/16         1,138,023         (40,866 ) 
CAD     4,882,000      

JPMorgan Chase Bank N.A.

      02/11/16         3,680,434         (151,897 ) 
CHF     18,603,000      

JPMorgan Chase Bank N.A.

      02/11/16         18,249,921         352,551   
CHF     5,117,000      

UBS AG, Stamford

      02/11/16         5,020,639         96,216   
CNY     194,576,224      

Deutsche Bank AG

      01/29/16         30,440,586         (520,943 ) 
DKK     22,080,000      

JPMorgan Chase Bank N.A.

      02/11/16         3,190,036         28,748   
EUR     24,880,000      

Goldman Sachs Bank USA

      01/05/16         27,017,707         20,628   
EUR     37,999,000      

Goldman Sachs Bank USA

      01/05/16         40,503,047         792,359   

 

See accompanying notes to financial statements.

 

MIST-21

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

Forward Foreign Currency Exchange Contracts—(Continued)

 

Contracts to Buy

     

Counterparty

    Settlement
Date		      In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
EUR     51,899,000      

Goldman Sachs Bank USA

      01/05/16       $ 55,159,913       $ 1,241,315   
EUR     10,647,000      

JPMorgan Chase Bank N.A.

      01/05/16         11,292,169         278,456   
EUR     16,998,000      

JPMorgan Chase Bank N.A.

      01/05/16         18,412,152         60,421   
EUR     196,440,208      

UBS AG, Stamford

      01/05/16         214,571,640         (1,090,282 ) 
EUR     15,175,000      

JPMorgan Chase Bank N.A.

      02/11/16         16,678,208         (171,719 ) 
EUR     17,056,000      

Deutsche Bank AG

      06/13/16         23,052,890         (4,431,838 ) 
GBP     2,716,000      

Citibank N.A.

      01/05/16         4,109,270         (105,343 ) 
GBP     58,250,000      

Citibank N.A.

      01/05/16         86,445,691         (573,540 ) 
GBP     1,071,000      

JPMorgan Chase Bank N.A.

      01/05/16         1,614,980         (36,111 ) 
GBP     771,000      

UBS AG, Stamford

      01/05/16         1,162,227         (25,619 ) 
GBP     795,000      

UBS AG, Stamford

      01/05/16         1,193,473         (21,484 ) 
GBP     698,000      

UBS AG, Stamford

      02/02/16         1,033,521         (4,447 ) 
GBP     886,000      

Citibank N.A.

      02/11/16         1,322,512         (16,252 ) 
ILS     13,088,574      

BNP Paribas S.A.

      02/18/16         3,364,000         2,406   
ILS     58,869,735      

BNP Paribas S.A.

      02/18/16         15,178,954         (37,548 ) 
ILS     20,895,891      

Barclays Bank plc

      02/18/16         5,383,000         (8,538 ) 
ILS     14,236,976      

Citibank N.A.

      02/18/16         3,677,000         (15,223 ) 
ILS     16,091,000      

Citibank N.A.

      02/18/16         4,136,929         1,706   
ILS     40,652,000      

JPMorgan Chase Bank N.A.

      02/18/16         10,633,709         (177,939 ) 
ILS     285,818,035      

JPMorgan Chase Bank N.A.

      02/18/16         73,499,636         13,294   
ILS     24,517,246      

Societe Generale Paris

      02/18/16         6,348,000         (42,119 ) 
ILS     43,579,507      

Societe Generale Paris

      02/18/16         11,261,000         (52,270 ) 
ILS     51,609,203      

Societe Generale Paris

      02/18/16         13,337,779         (63,796 ) 
INR     1,570,396,904      

UBS AG, Stamford

      01/21/16         23,631,693         44,268   
JPY     551,000,000      

Citibank N.A.

      01/05/16         4,468,522         115,695   
JPY     568,500,000      

Goldman Sachs Bank USA

      01/05/16         4,624,287         105,527   
JPY     1,032,500,000      

Goldman Sachs Bank USA

      01/05/16         8,446,678         143,529   
JPY     18,085,000,000      

Goldman Sachs Bank USA

      01/05/16         147,813,649         2,650,180   
JPY     31,645,976,028      

JPMorgan Chase Bank N.A.

      01/05/16         261,523,592         1,765,031   
JPY     1,964,900,000      

UBS AG, Stamford

      01/05/16         15,977,161         370,441   
JPY     2,388,700,000      

UBS AG, Stamford

      01/05/16         19,668,889         204,650   
JPY     520,200,000      

Citibank N.A.

      02/12/16         4,225,302         106,068   
JPY     1,565,700,000      

Citibank N.A.

      02/12/16         12,746,568         290,006   
JPY     1,875,700,000      

Citibank N.A.

      02/12/16         15,259,860         357,884   
JPY     8,616,800,000      

UBS AG, Stamford

      02/12/16         70,448,594         1,297,943   
KRW     9,285,195,450      

Deutsche Bank AG

      01/19/16         7,944,144         (28,408 ) 
KRW     12,485,476,100      

Deutsche Bank AG

      01/21/16         10,680,476         (37,045 ) 
KRW     9,110,134,000      

Goldman Sachs Bank USA

      01/21/16         7,797,769         (31,699 ) 
KRW     10,869,768,600      

JPMorgan Chase Bank N.A.

      01/21/16         9,371,298         (105,201 ) 
KRW     12,204,343,800      

JPMorgan Chase Bank N.A.

      01/21/16         10,516,000         (112,225 ) 
KRW     18,166,958,400      

JPMorgan Chase Bank N.A.

      01/21/16         15,540,597         (53,902 ) 
MXN     6,241,000      

Barclays Bank plc

      03/14/16         361,374         (1,025 ) 
MXN     15,208,000      

Barclays Bank plc

      03/14/16         881,240         (3,146 ) 
MXN     57,935,000      

Barclays Bank plc

      03/14/16         3,362,118         (17,013 ) 
MXN     54,057,120      

Goldman Sachs Bank USA

      03/14/16         3,120,000         1,200   
MXN     162,367,000      

JPMorgan Chase Bank N.A.

      03/14/16         9,507,656         (132,761 ) 
MXN     812,441,000      

JPMorgan Chase Bank N.A.

      03/14/16         47,188,302         (278,835 ) 
MXN     65,162,565      

UBS AG, Stamford

      03/14/16         3,770,000         (7,584 ) 
MXN     114,685,850      

UBS AG, Stamford

      03/14/16         6,632,000         (10,163 ) 
MYR     12,468,183      

Deutsche Bank AG

      01/19/16         2,933,000         (32,079 ) 
MYR     44,298,380      

Deutsche Bank AG

      01/19/16         10,214,060         92,662   
MYR     4,605,750      

UBS AG, Stamford

      01/19/16         1,068,000         3,601   
MYR     47,671,010      

UBS AG, Stamford

      01/19/16         11,280,409         (188,991 ) 
MYR     31,008,915      

Citibank N.A.

      05/24/16         7,203,000         (46,965 ) 
MYR     33,786,720      

Deutsche Bank AG

      05/24/16         7,920,000         (122,922 ) 
MYR     8,243,598      

JPMorgan Chase Bank N.A.

      05/24/16         1,914,000         (11,596 ) 
PHP     178,100,160      

Citibank N.A.

      01/21/16         3,806,372         (25,156 ) 

 

See accompanying notes to financial statements.

 

MIST-22

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

Forward Foreign Currency Exchange Contracts—(Continued)

 

Contracts to Buy

     

Counterparty

    Settlement
Date		      In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
PHP     325,955,000      

UBS AG, Stamford

      01/21/16       $ 6,910,218       $ 10,080   
RUB     517,330,125      

Societe Generale Paris

      01/20/16         7,605,000         (534,701 ) 
RUB     698,792,160      

Societe Generale Paris

      01/20/16         10,622,848         (1,072,525 ) 
RUB     2,942,636,706      

Societe Generale Paris

      01/20/16         44,685,270         (4,468,546 ) 
RUB     255,296,100      

Goldman Sachs Bank USA

      03/23/16         3,460,000         (27,336 ) 
RUB     1,191,800,824      

Societe Generale Paris

      03/23/16         17,739,091         (1,714,358 ) 
RUB     4,158,758,991      

Societe Generale Paris

      04/15/16         57,362,193         (1,804,050 ) 
THB     181,888,000      

UBS AG, Stamford

      02/26/16         5,061,583         (13,784 ) 
TRY     14,921,071      

Barclays Bank plc

      01/20/16         5,098,000         (5,280 ) 
TRY     14,330,001      

Citibank N.A.

      01/20/16         4,889,000         1,982   
TRY     11,239,477      

Goldman Sachs Bank USA

      01/20/16         3,814,000         22,153   
TRY     65,212,869      

Goldman Sachs Bank USA

      01/20/16         22,324,000         (66,156 ) 
TRY     7,340,000      

JPMorgan Chase Bank N.A.

      01/20/16         2,498,762         6,458   

Contracts to Deliver

                     
BRL     86,562,716      

BNP Paribas S.A.

      01/05/16         22,168,284         288,293   
BRL     5,500,000      

Barclays Bank plc

      01/05/16         1,408,523         18,317   
BRL     606,042,186      

Citibank N.A.

      01/05/16         155,204,411         2,018,393   
BRL     291,505,312      

Deutsche Bank AG

      01/05/16         77,179,061         3,496,833   
BRL     93,094,304      

Deutsche Bank AG

      01/05/16         23,757,638         226,692   
BRL     20,028,364      

Deutsche Bank AG

      01/05/16         5,012,103         (50,359 ) 
BRL     17,118,653      

Deutsche Bank AG

      01/05/16         4,393,341         66,351   
BRL     29,871,800      

Goldman Sachs Bank USA

      01/05/16         7,861,000         310,466   
BRL     355,900,000      

JPMorgan Chase Bank N.A.

      01/05/16         123,084,904         33,125,978   
BRL     217,300,000      

JPMorgan Chase Bank N.A.

      01/05/16         72,946,390         18,020,639   
BRL     439,900,000      

Citibank N.A.

      04/04/16         129,097,579         21,231,135   
BRL     69,000,000      

Citibank N.A.

      04/04/16         20,372,011         3,452,746   
BRL     85,642,326      

Credit Suisse International

      04/04/16         20,597,000         (403,075 ) 
BRL     75,000,000      

UBS AG, Stamford

      07/05/17         26,417,753         10,499,510   
BRL     3,798,695      

BNP Paribas S.A.

      01/03/18         1,111,054         348,491   
CAD     100,076,439      

JPMorgan Chase Bank N.A.

      01/05/16         75,103,052         2,777,734   
CAD     610,000      

JPMorgan Chase Bank N.A.

      01/05/16         437,900         (2,947 ) 
CAD     100,686,439      

Societe Generale Paris

      02/02/16         72,673,983         (96,489 ) 
CAD     621,000      

Citibank N.A.

      02/11/16         458,589         9,752   
CAD     702,000      

JPMorgan Chase Bank N.A.

      02/11/16         527,640         20,259   
CHF     12,682,000      

JPMorgan Chase Bank N.A.

      02/11/16         12,695,681         14,041   
CHF     9,839,000      

JPMorgan Chase Bank N.A.

      02/11/16         9,873,589         34,868   
CHF     1,072,000      

JPMorgan Chase Bank N.A.

      02/11/16         1,069,262         (2,707 ) 
CNY     196,801,735      

BNP Paribas S.A.

      01/29/16         30,064,426         (197,429 ) 
CNY     74,183,863      

BNP Paribas S.A.

      09/14/16         11,275,000         (695 ) 
CNY     77,233,711      

UBS AG, Stamford

      09/14/16         11,743,000         3,739   
CNY     149,800,752      

JPMorgan Chase Bank N.A.

      09/30/16         22,832,000         79,157   
CNY     61,149,914      

JPMorgan Chase Bank N.A.

      10/11/16         9,353,000         69,491   
CNY     289,629,936      

UBS AG, Stamford

      10/11/16         44,124,000         153,666   
CNY     122,036,124      

JPMorgan Chase Bank N.A.

      12/05/16         18,332,000         (153,631 ) 
EUR     189,895,000      

Citibank N.A.

      01/05/16         205,349,320         (1,019,034 ) 
EUR     26,726,000      

Citibank N.A.

      01/05/16         29,090,153         45,677   
EUR     12,664,000      

Citibank N.A.

      01/05/16         13,748,922         (13,677 ) 
EUR     8,334,000      

JPMorgan Chase Bank N.A.

      01/05/16         9,128,814         71,841   
EUR     101,244,208      

UBS AG, Stamford

      01/05/16         107,593,739         (2,433,385 ) 
EUR     3,150,000      

Deutsche Bank AG

      02/01/16         4,238,955         813,410   
EUR     196,440,208      

UBS AG, Stamford

      02/02/16         214,722,899         1,093,973   
EUR     10,031,000      

JPMorgan Chase Bank N.A.

      02/11/16         10,972,558         61,415   
EUR     37,241,000      

Deutsche Bank AG

      06/13/16         50,990,377         10,332,158   
EUR     28,951,000      

Barclays Bank plc

      06/27/16         39,809,073         8,187,170   
GBP     60,445,000      

Deutsche Bank AG

      01/05/16         91,121,140         2,013,119   
GBP     3,158,000      

UBS AG, Stamford

      01/05/16         4,759,033         103,510   
GBP     58,250,000      

Citibank N.A.

      02/02/16         86,448,301         569,305   

 

See accompanying notes to financial statements.

 

MIST-23

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

Forward Foreign Currency Exchange Contracts—(Continued)

 

Contracts to Deliver

     

Counterparty

    Settlement
Date		      In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
ILS     569,374,241      

Deutsche Bank AG

      02/18/16       $ 146,796,068       $ 351,955   
INR     1,555,343,853      

Citibank N.A.

      01/21/16         23,419,444         (29,571 ) 
JPY     534,300,000      

Citibank N.A.

      01/05/16         4,401,383         (43,894 ) 
JPY     32,335,176,028      

Goldman Sachs Bank USA

      01/05/16         264,716,955         (4,305,684 ) 
JPY     14,666,400,000      

Goldman Sachs Bank USA

      01/05/16         118,916,114         (3,105,601 ) 
JPY     4,422,600,000      

Goldman Sachs Bank USA

      01/05/16         36,456,524         (338,684 ) 
JPY     1,001,500,000      

Goldman Sachs Bank USA

      01/05/16         8,141,296         (190,997 ) 
JPY     755,500,000      

Goldman Sachs Bank USA

      01/05/16         6,213,134         (72,485 ) 
JPY     2,521,100,000      

UBS AG, Stamford

      01/05/16         20,539,982         (435,100 ) 
JPY     31,645,976,028      

JPMorgan Chase Bank N.A.

      02/02/16         261,671,612         (1,771,902 ) 
JPY     1,346,300,000      

JPMorgan Chase Bank N.A.

      02/12/16         10,929,700         (280,072 ) 
JPY     73,700,000      

JPMorgan Chase Bank N.A.

      02/12/16         598,922         (14,730 ) 
KRW     9,285,195,450      

JPMorgan Chase Bank N.A.

      01/19/16         8,131,000         215,263   
KRW     3,310,967,060      

JPMorgan Chase Bank N.A.

      01/20/16         2,918,000         95,439   
KRW     7,630,807,200      

Citibank N.A.

      01/21/16         6,654,000         149,004   
KRW     14,725,993,000      

Credit Suisse International

      01/21/16         12,878,000         324,607   
KRW     9,285,195,450      

Deutsche Bank AG

      01/21/16         7,942,853         27,550   
KRW     4,822,551,500      

Deutsche Bank AG

      01/21/16         4,199,000         87,944   
KRW     17,402,294,720      

JPMorgan Chase Bank N.A.

      01/21/16         14,795,353         (39,493 ) 
KRW     7,923,796,000      

JPMorgan Chase Bank N.A.

      01/21/16         6,831,448         76,689   
KRW     5,338,456,200      

JPMorgan Chase Bank N.A.

      01/21/16         4,566,686         15,839   
MXN     89,982,816      

BNP Paribas S.A.

      03/14/16         5,264,000         68,489   
MXN     242,396,000      

Citibank N.A.

      03/14/16         13,848,747         (146,937 ) 
MXN     1,757,007,751      

Goldman Sachs Bank USA

      03/14/16         102,463,770         1,016,037   
MXN     38,465,858      

Goldman Sachs Bank USA

      03/14/16         2,227,000         6,023   
MXN     57,736,392      

UBS AG, Stamford

      03/14/16         3,342,000         8,363   
MXN     52,329,154      

UBS AG, Stamford

      03/14/16         3,067,000         45,571   
MYR     14,318,964      

Goldman Sachs Bank USA

      01/14/16         3,366,000         33,270   
MYR     23,014,378      

Citibank N.A.

      01/15/16         5,386,000         29,802   
MYR     34,182,720      

Goldman Sachs Bank USA

      01/15/16         7,968,000         12,564   
MYR     19,344,910      

Citibank N.A.

      01/19/16         4,442,000         (58,901 ) 
MYR     33,480,354      

Deutsche Bank AG

      01/19/16         7,647,408         (142,328 ) 
MYR     41,158,959      

Goldman Sachs Bank USA

      01/19/16         9,543,000         (33,286 ) 
MYR     34,536,607      

Goldman Sachs Bank USA

      01/19/16         7,880,572         (154,919 ) 
MYR     36,636,720      

JPMorgan Chase Bank N.A.

      01/19/16         8,790,000         265,884   
MYR     28,976,351      

UBS AG, Stamford

      01/19/16         6,856,685         114,876   
MYR     28,918,968      

UBS AG, Stamford

      01/19/16         6,594,224         (134,234 ) 
MYR     116,033,880      

Barclays Bank plc

      02/26/16         27,238,000         311,905   
MYR     41,261,220      

Barclays Bank plc

      02/26/16         9,618,000         43,180   
PHP     519,874,460      

Goldman Sachs Bank USA

      01/21/16         11,038,846         1,475   
RUB     4,158,758,991      

Societe Generale Paris

      01/20/16         58,747,831         1,910,486   
SGD     357,000      

Deutsche Bank AG

      02/26/16         251,852         498   
SGD     11,850,333      

Goldman Sachs Bank USA

      02/26/16         8,432,000         88,520   
SGD     18,031,000      

JPMorgan Chase Bank N.A.

      02/26/16         12,761,696         66,586   
SGD     12,239,000      

JPMorgan Chase Bank N.A.

      02/26/16         8,582,749         (34,380 ) 
SGD     11,410,738      

Societe Generale Paris

      02/26/16         8,059,000         25,027   
THB     349,127,221      

Barclays Bank plc

      01/15/16         9,666,000         (33,270 ) 
THB     178,350,900      

Barclays Bank plc

      02/26/16         4,935,000         (14,637 ) 
THB     343,440,730      

Credit Suisse International

      02/26/16         9,553,289         22,040   
THB     758,955,110      

JPMorgan Chase Bank N.A.

      02/26/16         20,983,000         (79,703 ) 
TRY     114,133,089      

JPMorgan Chase Bank N.A.

      01/20/16         38,373,738         (581,097 ) 
TWD     455,342,760      

JPMorgan Chase Bank N.A.

      01/14/16         13,836,000         (26,906 ) 
TWD     187,109,225      

Goldman Sachs Bank USA

      01/15/16         5,695,000         (1,571 ) 
TWD     111,103,300      

Goldman Sachs Bank USA

      01/15/16         3,377,000         (5,558 ) 
TWD     246,853,530      

Barclays Bank plc

      02/26/16         7,518,000         (724 ) 
TWD     229,280,490      

Goldman Sachs Bank USA

      02/26/16         7,002,000         18,520   
TWD     126,484,190      

JPMorgan Chase Bank N.A.

      02/26/16         3,879,288         26,802   
             

 

 

  

Net Unrealized Appreciation

  

    $ 94,669,716   
             

 

 

  

 

See accompanying notes to financial statements.

 

MIST-24

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

Futures Contracts

 

 

Futures Contracts—Long

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

3-Month Euribor

      03/14/16         942        EUR         235,877,742      $ 11,773   

Euro-Bobl Futures

      03/08/16         1,341        EUR         175,512,834        (309,033 ) 

Euro-Schatz Futures

      03/08/16         612        EUR         68,230,335        14,981   

Put Options on 5 Year Euro-Bobl Futures, Strike EUR 126.50

      02/19/16         883        EUR         5,166        (816 ) 

U.S. Treasury Note 5 Year Futures

      03/31/16         15,769        USD         1,870,687,182        (4,894,166 ) 

Futures Contracts—Short

                    

90 Day EuroDollar Futures

      09/19/16         (1,363 )      USD         (336,306,859 )      (814,154 ) 

90 Day EuroDollar Futures

      12/19/16         (4,509 )      USD         (1,111,918,949 )      (1,465,876 ) 

90 Day EuroDollar Futures

      03/13/17         (1,118 )      USD         (275,049,192 )      (593,708 ) 

90 Day EuroDollar Futures

      09/18/17         (5,843 )      USD         (1,433,214,278 )      (3,360,309 ) 

90 Day EuroDollar Futures

      03/19/18         (661 )      USD         (161,609,025 )      (559,062 ) 

90 Day Sterling Futures

      12/21/16         (1,138 )      GBP         (140,922,947 )      182,648   

90 Day Sterling Futures

      03/15/17         (3,540 )      GBP         (437,100,436 )      (392,969 ) 

90 Day Sterling Futures

      06/21/17         (1,163 )      GBP         (143,097,209 )      (571,865 ) 

90 Day Sterling Futures

      09/20/17         (310 )      GBP         (38,289,868 )      127,139   

Canada Government Bond 10 Year Futures

      03/21/16         (445 )      CAD         (61,493,872 )      (900,974 ) 

U.S. Treasury Long Bond Futures

      03/21/16         (163 )      USD         (24,981,752 )      (79,498 ) 

U.S. Treasury Note 10 Year Futures

      03/21/16         (3,974 )      USD         (501,092,160 )      740,722   

United Kingdom Long Gilt Bond Futures

      03/29/16         (26 )      GBP         (3,041,851 )      8,595   
            

 

 

  

Net Unrealized Depreciation

  

   $ (12,856,572 ) 
            

 

 

  

Written Options

 

Foreign Currency Written Options

    Strike
Price		   Counterparty   Expiration
Date		   Notional
Amount		     Premiums
Received		     Market
Value		     Unrealized
Appreciation/
(Depreciation)		  

EUR Put/USD Call

    USD    1.078   Citibank N.A.   01/22/16     (22,000,000 )    $ (156,185 )    $ (133,888 )    $ 22,297   

USD Call/BRL Put

    BRL    4.450   Goldman Sachs Bank USA   01/14/16     (38,200,000 )      (785,010 )      (19,788 )      765,222   

USD Call/BRL Put

    BRL    4.600   Credit Suisse International   03/14/16     (31,600,000 )      (891,120 )      (297,798 )      593,322   

USD Call/BRL Put

    BRL    4.550   Deutsche Bank AG   03/17/16     (21,100,000 )      (532,564 )      (244,359 )      288,205   

USD Call/MXN Put

    MXN    17.400   Goldman Sachs Bank USA   02/05/16     (22,500,000 )      (219,600 )      (220,658 )      (1,058 ) 

USD Call/MXN Put

    MXN    17.650   Goldman Sachs Bank USA   03/08/16     (22,500,000 )      (253,687 )      (265,500 )      (11,813 ) 

USD Call/RUB Put

    RUB    72.500   Citibank N.A.   02/24/16     (5,100,000 )      (97,920 )      (198,288 )      (100,368 ) 

USD Call/RUB Put

    RUB    74.000   Societe Generale Paris   03/09/16     (7,400,000 )      (135,420 )      (178,340 )      (42,920 ) 

USD Call/RUB Put

    RUB    71.500   Citibank N.A.   03/09/16     (9,800,000 )      (210,210 )      (369,460 )      (159,250 ) 
             

 

 

    

 

 

    

 

 

  

Totals

  

   $ (3,281,716 )    $ (1,928,079 )    $ 1,353,637   
             

 

 

    

 

 

    

 

 

  

 

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 -(Final Index/Intial Index)] or 0     03/10/20      $ (5,800,000 )    $ (43,500 )    $ (2,987 )    $ 40,513   

Floor - OTC CPURNSA Index

   215.949   Citibank N.A.   Maximum of [(1 + 0.000%)10 -(Final Index/Intial Index)] or 0     03/12/20        (16,200,000 )      (137,080 )      (8,343 )      128,737   

Floor - OTC CPURNSA Index

   216.687   Citibank N.A.   Maximum of [(1 + 0.000%)10 -(Final Index/Intial Index)] or 0     04/07/20        (38,800,000 )      (346,040 )      (21,507 )      324,533   

Floor - OTC CPURNSA Index

   217.965   Citibank N.A.   Maximum of [(1 + 0.000%)10 -(Final Index/Intial Index)] or 0     09/29/20        (17,500,000 )      (225,750 )      (11,181 )      214,569   

Floor - OTC CPURNSA Index

   218.016   Deutsche Bank
AG		   Maximum of [(1 + 0.000%)10 -(Final Index/Intial Index)] or 0     10/13/20        (18,000,000 )      (176,400 )      (12,121 )      164,279   
           

 

 

    

 

 

    

 

 

  

Totals

  

   $ (928,770 )    $ (56,139 )    $ 872,631   
           

 

 

    

 

 

    

 

 

  

 

See accompanying notes to financial statements.

 

MIST-25

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

Written Options—(Continued)

 

 

Interest Rate
Swaptions

   Strike
Rate		  

Counterparty

  

Floating Rate
Index

   Pay/
Receive
Floating
Rate		   Expiration
Date		     Notional
Amount		     Premiums
Received		     Market
Value		     Unrealized
Appreciation		  

Call - 1 Yr. IRS

   0.500%   Morgan Stanley Capital Services, LLC   3M LIBOR   Receive     01/19/16      $          (166,100,000 )    $ (99,660 )    $ (17 )    $ 99,643   

Call - 1 Yr. IRS

   0.520%   Morgan Stanley Capital Services, LLC   3M LIBOR   Receive     01/19/16          (83,400,000 )      (50,040 )      (8 )      50,032   

Call - 1 Yr. IRS

   0.650%   Morgan Stanley Capital Services, LLC   3M LIBOR   Receive     01/19/16          (166,100,000 )      (182,710 )      (17 )      182,693   

Call - 1 Yr. IRS

   0.660%   Morgan Stanley Capital Services, LLC   3M LIBOR   Receive     01/19/16          (83,400,000 )      (83,400 )      (8 )      83,392   

Call - 2 Yr. IRS

   1.100%   JPMorgan Chase Bank N.A.   3M LIBOR   Receive     01/30/18          (83,600,000 )      (434,720 )      (198,976 )      235,744   

Call - 2 Yr. IRS

   1.600%   JPMorgan Chase Bank N.A.   3M LIBOR   Receive     01/30/18          (83,600,000 )      (756,580 )      (424,646 )      331,934   

Call - 5 Yr. IRS

   1.100%   Morgan Stanley Capital Services, LLC   3M LIBOR   Receive     01/29/16          (42,200,000 )      (160,360 )      (55 )      160,305   

Call - 5 Yr. IRS

   1.300%   Morgan Stanley Capital Services, LLC   3M LIBOR   Receive     01/29/16          (42,200,000 )      (244,760 )      (966 )      243,794   

Put - 2 Yr. IRS

   2.500%   Morgan Stanley Capital Services, LLC   3M LIBOR   Pay     05/12/16          (325,100,000 )      (1,095,074 )      (175,164 )      919,910   

Put - 2 Yr. IRS

   2.500%   Morgan Stanley Capital Services, LLC   3M LIBOR   Pay     05/23/16          (758,000,000 )      (2,368,653 )      (456,089 )      1,912,564   

Put - 5 Yr. IRS

   1.900%   Deutsche Bank AG   3M LIBOR   Pay     02/16/16          (74,500,000 )      (301,725 )      (167,252 )      134,473   

Put - 5 Yr. IRS

   1.900%   Morgan Stanley Capital Services, LLC   3M LIBOR   Pay     02/16/16          (321,400,000 )      (1,323,575 )      (721,543 )      602,032   

Put - 5 Yr. IRS

   2.700%   Morgan Stanley Capital Services, LLC   3M LIBOR   Pay     08/21/17          (99,400,000 )      (1,540,700 )      (1,017,955 )      522,745   

Put - 5 Yr. IRS

   2.800%   Morgan Stanley Capital Services, LLC   3M LIBOR   Pay     08/20/18          (45,000,000 )      (1,003,704 )      (762,993 )      240,711   

Put - 5 Yr. IRS

   2.800%   Goldman Sachs Bank USA   3M LIBOR   Pay     08/20/18          (98,200,000 )      (2,287,027 )      (1,665,020 )      622,007   
               

 

 

    

 

 

    

 

 

  

Totals

  

   $ (11,932,688 )    $ (5,590,709 )    $ 6,341,979   
               

 

 

    

 

 

    

 

 

  

Swap Agreements

OTC Interest Rate Swaps

 

Pay/Receive
Floating Rate

    Floating
Rate Index		    Fixed
Rate		     Maturity
Date		   

Counterparty

    Notional
Amount		      Market
Value		     Upfront
Premium
Paid/(Received)		     Unrealized
Appreciation		  

Pay

    28-Day TIIE      5.750 %    06/05/23    Goldman Sachs Bank USA    MXN      200,000       $ (250 )    $ (486 )    $ 236   

Receive

    1-Day CDI      15.105 %    01/04/21    Deutsche Bank AG    BRL      37,600,000         290,094        —        290,094   
                   

 

 

    

 

 

    

 

 

  

Totals

  

    $ 289,844      $ (486 )    $ 290,330   
                   

 

 

    

 

 

    

 

 

  

Centrally Cleared Interest Rate Swaps

 

Pay/Receive Floating Rate

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

Pay

      28-Day TIIE         4.388 %      07/28/17         MXN         576,300,000       $ 93,436   

Pay

      28-Day TIIE         4.975 %      01/16/20         MXN         70,000,000         (38,206 ) 

Pay

      28-Day TIIE         5.010 %      10/10/19         MXN         119,200,000         (9,037 ) 

Pay

      28-Day TIIE         5.270 %      02/05/20         MXN         1,409,900,000         (27,047 ) 

Pay

      28-Day TIIE         5.310 %      10/22/20         MXN         1,550,000,000         (318,852 ) 

Pay

      28-Day TIIE         5.375 %      10/07/22         MXN         6,000,000         (472 ) 

Pay

      28-Day TIIE         5.430 %      11/17/21         MXN         1,237,600,000         (118,622 ) 

Pay

      28-Day TIIE         5.495 %      09/22/20         MXN         413,300,000         45,363   

Pay

      28-Day TIIE         5.608 %      10/08/21         MXN         380,300,000         167,962   

Pay

      28-Day TIIE         5.615 %      06/02/20         MXN         359,600,000         (10,908 ) 

Pay

      28-Day TIIE         5.700 %      01/18/19         MXN         194,000,000         (24,453 ) 

Pay

      28-Day TIIE         5.780 %      10/06/22         MXN         242,600,000         (29,526 ) 

 

See accompanying notes to financial statements.

 

MIST-26

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

Swap Agreements—(Continued)

 

Pay/Receive Floating Rate

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

Pay

      28-Day TIIE         5.795 %      12/10/21         MXN         100,000       $ (7 ) 

Pay

      28-Day TIIE         5.850 %      12/21/21         MXN         141,000,000         (364,515 ) 

Pay

      28-Day TIIE         5.920 %      12/08/21         MXN         53,000,000         (2,770 ) 

Pay

      28-Day TIIE         6.000 %      06/07/22         MXN         185,000,000         (19,347 ) 

Pay

      28-Day TIIE         6.530 %      06/05/25         MXN         111,900,000         (40,475 ) 

Pay

      28-Day TIIE         6.960 %      07/27/20         MXN         926,000,000         (25,057 ) 

Receive

      28-Day TIIE         3.610 %      03/14/16         MXN         12,813,000,000         (71,579 ) 

Receive

      28-Day TIIE         5.940 %      07/13/22         MXN         239,300,000         94,800   

Receive

      3M LIBOR         2.000 %      12/16/19         USD         268,800,000         (2,912,605 ) 

Receive

      3M LIBOR         2.000 %      12/16/20         USD         241,500,000         (4,425,735 ) 

Receive

      3M LIBOR         2.250 %      12/16/22         USD         490,100,000         (14,020,676 ) 

Receive

      3M LIBOR         2.250 %      06/15/26         USD         108,700,000         613,875   

Receive

      3M LIBOR         2.250 %      06/15/26         USD         33,300,000         111,804   

Receive

      3M LIBOR         2.350 %      08/05/25         USD         82,400,000         (1,185,696 ) 

Receive

      3M LIBOR         2.500 %      12/16/25         USD         37,300,000         (1,026,648 ) 

Receive

      3M LIBOR         2.500 %      06/15/46         USD         13,800,000         92,751   

Receive

      3M LIBOR         2.750 %      12/16/45         USD         3,400,000         61,271   

Receive

      3M LIBOR         2.750 %      12/16/45         USD         613,960,000         (34,204,661 ) 

Receive

      6M LIBOR         1.000 %      06/15/18         GBP         68,700,000         347,273   

Receive

      6M LIBOR         1.250 %      09/21/18         GBP         18,900,000         26,577   

Receive

      6M LIBOR         1.500 %      12/16/17         GBP         219,300,000         691,877   

Receive

      6M LIBOR         1.500 %      03/16/18         GBP         308,400,000         (837,822 ) 

Receive

      6M LIBOR         1.500 %      09/21/18         GBP         25,500,000         108,651   

Receive

      6M LIBOR         1.880 %      10/05/17         GBP         41,300,000         117,856   

Receive

     
 
 		 1-Day USD
Federal Funds Rate
Compounded - OIS		   
  
  		      0.500 %      06/17/16         USD         20,000,000         16,749   
                

 

 

  

Net Unrealized Depreciation

                  $ (57,124,471 ) 
                

 

 

  

Centrally Cleared Credit Default Swaps on Credit Indices—Sell Protection (a)

 

Reference Obligation

    Fixed Deal
Receive Rate		      Maturity
Date		     

Implied Credit
Spread at
December 31,
2015(b)

    Notional
Amount(c)		      Unrealized
Appreciation/
(Depreciation)		  

CDX.NA.HY.24

      5.000%         06/20/20       4.036%      USD         9,603,000       $ (20,004)   

CDX.NA.HY.25

      5.000%         12/20/20       4.726%      USD         3,600,000         50,729   

CDX.NA.IG.25

      1.000%         12/20/20       0.885%      USD         11,600,000         39,693   
                 

 

 

  

Net Unrealized Appreciation

  

    $ 70,418   
                 

 

 

  

 

OTC Credit Default Swaps on Corporate and Sovereign Issues—Sell Protection (a)   

Reference Obligation

   Fixed Deal
Receive Rate		     Maturity
Date		    

Counterparty

   Implied Credit
Spread at
December 31,
2015(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
Paid/
(Received)		     Unrealized
Appreciation/
(Depreciation)		  

Brazilian Government International Bond
4.250%, due 01/07/25

     1.000%        03/20/16      Barclays Bank plc     0.000%        USD        25,000,000      $ 2,378      $ (83,901)      $ 86,279   

Brazilian Government International Bond
12.250%, due 03/06/30

     1.000%        06/20/16      Deutsche Bank AG     0.000%        USD        3,500,000        (5,583)        (11,731)        6,148   

Brazilian Government International Bond
4.250%, due 01/07/25

     1.000%        12/20/16      BNP Paribas S.A.     0.000%        USD        15,600,000        (174,057)        (256,458)        82,401   

 

See accompanying notes to financial statements.

 

MIST-27

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

Swap Agreements—(Continued)

 

Reference Obligation

   Fixed Deal
Receive Rate		     Maturity
Date		    

Counterparty

   Implied Credit
Spread at
December 31,
2015(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
Paid/
(Received)		     Unrealized
Appreciation/
(Depreciation)		  

Brazilian Government International Bond
4.250%, due 01/07/25

     1.000%        12/20/16      Goldman Sachs International     0.000%        USD        8,300,000      $ (92,528)      $ (141,100)      $ 48,572   

Chesapeake Energy Corp.
6.630%, due 08/15/20

     5.000%        09/20/18      Morgan Stanley Capital Services, LLC     3.146%        USD        2,600,000        (1,556,516)        (227,661)        (1,328,855)   

China Government International Bond
4.250%, due 10/28/14

     1.000%        12/20/18      Barclays Bank plc     0.885%        USD        800,000        7,714        7,830        (116)   

China Government International Bond
4.250%, due 10/28/14

     1.000%        12/20/18      Citibank N.A.     0.000%        USD        2,200,000        21,213        20,448        765   

Goldman Sachs Group, Inc.
5.950%, due 01/18/18

     1.000%        09/20/20      Barclays Bank plc     0.000%        USD        12,000,000        101,072        (11,456)        112,528   

Goldman Sachs Group, Inc.
5.950%, due 01/18/18

     1.000%        09/20/20      Credit Suisse International     0.000%        USD        10,500,000        88,438        —        88,438   

Goldman Sachs Group, Inc.
5.950%, due 01/18/18

     1.000%        12/20/20      Credit Suisse International     0.000%        USD        8,800,000        55,679        (34,495)        90,174   

Goldman Sachs Group, Inc.
5.950%, due 01/18/18

     1.000%        12/20/20      JPMorgan Chase Bank N.A.     0.000%        USD        9,100,000        57,578        (40,113)        97,691   

Italy Government International Bond
6.875%, due 09/27/23

     1.000%        09/20/16      Deutsche Bank AG     0.000%        USD        7,900,000        44,740        50,080        (5,340)   

Mexico Government International Bond
7.500%, due 04/08/33

     1.000%        06/20/16      Citibank N.A.     0.000%        USD        10,000,000        22,287        (21,564)        43,851   

Mexico Government International Bond
7.500%, due 04/08/33

     1.000%        09/20/16      Goldman Sachs International     0.000%        USD        4,600,000        13,988        (21,933)        35,921   

Mexico Government International Bond
5.950%, due 03/19/19

     1.000%        09/20/16      JPMorgan Chase Bank N.A.     0.000%        USD        2,000,000        6,954        11,531        (4,577)   

Mexico Government International Bond
7.500%, due 04/08/33

     1.000%        09/20/16      Morgan Stanley Capital Services, LLC     0.000%        USD        9,400,000        32,686        (40,540)        73,226   

Mexico Government International Bond
7.500%, due 04/08/33

     1.000%        09/20/16      UBS AG, Stamford     0.000%        USD        4,100,000        12,468        (17,990)        30,458   

Mexico Government International Bond
5.950%, due 03/19/19

     1.000%        12/20/16      Citibank N.A.     0.000%        USD        5,000,000        17,320        65,986        (48,666)   

Mexico Government International Bond
5.950%, due 03/19/19

     1.000%        12/20/16      JPMorgan Chase Bank N.A.     0.000%        USD        1,200,000        4,157        16,197        (12,040)   

Mexico Government International Bond
5.950%, due 03/19/19

     1.000%        06/20/17      Goldman Sachs International     0.000%        USD        2,900,000        5,664        (12,796)        18,460   

Mexico Government International Bond
5.950%, due 03/19/19

     1.000%        12/20/19      Citibank N.A.     0.000%        USD        20,800,000        (352,603)        123,151        (475,754)   

Mexico Government International Bond
5.950%, due 03/19/19

     1.000%        09/20/20      Citibank N.A.     0.000%        USD        9,100,000        (256,393)        (207,144)        (49,249)   

Mexico Government International Bond
5.950%, due 03/19/19

     1.000%        09/20/20      Goldman Sachs International     0.000%        USD        24,500,000        (695,792)        (555,418)        (140,374)   

 

See accompanying notes to financial statements.

 

MIST-28

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

Swap Agreements—(Continued)

 

Reference Obligation

   Fixed Deal
Receive Rate		     Maturity
Date		    

Counterparty

   Implied Credit
Spread at
December 31,
2015(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
Paid/
(Received)		     Unrealized
Appreciation/
(Depreciation)		  

Mexico Government International Bond
5.950%, due 03/19/19

     1.000%        12/20/20      Barclays Bank plc     0.000%        USD        11,400,000      $ (366,326)      $ (424,605)      $ 58,279   

Mexico Government International Bond
5.950% due 03/19/19

     1.000%        12/20/20      Citibank N.A.     0.771%        USD        15,100,000        (485,222)        (643,098)        157,876   

Mexico Government International Bond
5.950%, due 03/19/19

     1.000%        12/20/20      Deutsche Bank AG     0.000%        USD        22,200,000        (713,373)        (856,133)        142,760   

Mexico Government International Bond
5.950%, due 03/19/19

     1.000%        12/20/20      Goldman Sachs International     0.000%        USD        13,100,000        (420,954)        (457,018)        36,064   

Morgan Stanley
6.000%, due 04/28/15

     1.000%        09/20/18      Deutsche Bank AG     0.000%        USD        24,100,000        282,457        298,407        (15,950)   

Petrobras International Finance Co. S.A.
8.375%, due 12/10/18

     1.000%        12/20/19      BNP Paribas S.A.     0.000%        USD        7,900,000        (2,182,659)        (819,205)        (1,363,454)   

Petrobras International Finance Co. S.A.
8.375%, due 12/10/18

     1.000%        12/20/19      Barclays Bank plc     0.000%        USD        5,800,000        (1,598,861)        (719,567)        (879,294)   

Petrobras International Finance Co. S.A.
8.375%, due 12/10/18

     1.000%        12/20/19      Goldman Sachs International     0.000%        USD        2,600,000        (718,343)        (282,685)        (435,658)   

Petrobras International Finance Co. S.A.
8.375%, due 12/10/18

     1.000%        03/20/20      BNP Paribas S.A.     0.000%        USD        1,600,000        (462,174)        (308,005)        (154,169)   

Republic of Indonesia
6.750%, due 03/10/14

     1.000%        06/20/16      Citibank N.A.     0.000%        USD        3,000,000        3,897        (55,608)        59,505   

Tesco plc
6.000%, due 12/14/29

     1.000%        12/20/20      Credit Suisse International     0.000%        EUR        8,000,000        (751,206)        (799,002)        47,796   

Tesco plc
6.000%, due 12/14/29

     1.000%        12/20/20      Goldman Sachs International     1.873%        EUR        3,000,000        (281,702)        (289,905)        8,203   

Verizon Communications, Inc.
5.500%, due 04/01/17

     1.000%        09/20/18      Credit Suisse International     0.000%        USD        500,000        7,695        13,357        (5,662)   

Volkswagen International Finance N.V.
5.380%, due 05/22/18

     1.000%        06/20/16      BNP Paribas S.A.     0.000%        EUR        6,800,000        3,075        (22,756)        25,831   

Volkswagen International Finance N.V.
5.380%, due 05/22/18

     1.000%        12/20/17      JPMorgan Chase Bank N.A.     0.000%        EUR        13,600,000        (88,469)        (308,303)        219,834   
             

 

 

    

 

 

    

 

 

  

Totals

  

   $ (10,411,301)      $ (7,063,203)      $ (3,348,098)   
             

 

 

    

 

 

    

 

 

  

 

OTC Credit Default Swaps on Credit Indices—Sell Protection (a)   

Reference Obligation

   Fixed Deal
Receive Rate		     Maturity
Date		    

Counterparty

   Implied Credit
Spread at
December 31,
2015(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
Paid		     Unrealized
Appreciation		  

CDX.NA.IG.9.V4

     0.553%        12/20/17      JPMorgan Chase Bank N.A.     3.575%        USD        1,928,998      $ 18,653      $ —      $ 18,653   
             

 

 

    

 

 

    

 

 

  

 

(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.

 

See accompanying notes to financial statements.

 

MIST-29

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

 

(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 of purchased protection credit default swap contracts entered into by the Portfolio for the same referenced debt obligation.
(BRL)— Brazilian Real
(CAD)— Canadian Dollar
(CHF)— Swiss Franc
(CNY)— Chinese Yuan
(DKK)— Danish Krone
(EUR)— Euro
(GBP)— British Pound
(ILS)— Israeli Shekel
(INR)— Indian Rupee
(JPY)— Japanese Yen
(KRW)— South Korean Won
(MXN)— Mexican Peso
(MYR)— Malaysian Ringgit
(PHP)— Philippine Peso
(RUB)— Russian Ruble
(SGD)— Singapore Dollar
(THB)— Thai Baht
(TRY)— Turkish Lira
(TWD)— Taiwanese Dollar
(USD)— United States Dollar
(CDI)— Brazil Interbank Deposit Rate
(CDX.NA.HY)— Markit North America High Yield CDS Index
(CDX.NA.IG)— Markit North America Investment Grade CDS Index
(CPURNSA)— U.S. Consumer Price All Urban Non-Seasonally Adjusted
(IRS)— Interest Rate Swap
(LIBOR)— London Interbank Offered Rate
(TIIE)— Mexican Interbank Equilibrium Interest Rate

 

See accompanying notes to financial statements.

 

MIST-30

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2      Level 3      Total  

Total U.S. Treasury & Government Agencies*

    $ —         $ 4,894,225,651       $ —         $ 4,894,225,651   
Corporate Bonds & Notes            

Airlines

      —           6,041,250         —           6,041,250   

Auto Manufacturers

      —           92,144,692         —           92,144,692   

Auto Parts & Equipment

      —           13,105,675         —           13,105,675   

Banks

      —           955,667,132         —           955,667,132   

Biotechnology

      —           5,137,391         —           5,137,391   

Chemicals

      —           5,465,941         —           5,465,941   

Computers

      —           3,789,170         —           3,789,170   

Diversified Financial Services

      —           100,041,816         —           100,041,816   

Electric

      —           44,401,530         —           44,401,530   

Food

      —           2,151,490         —           2,151,490   

Forest Products & Paper

      —           6,560,118         —           6,560,118   

Healthcare-Services

      —           4,533,750         —           4,533,750   

Holding Companies-Diversified

      —           —           4,006,784         4,006,784   

Lodging

      —           14,324,250         —           14,324,250   

Machinery-Diversified

      —           9,893,080         —           9,893,080   

Media

      —           1,521,250         —           1,521,250   

Oil & Gas

      —           149,122,917         —           149,122,917   

Pharmaceuticals

      —           45,737,891         —           45,737,891   

Pipelines

      —           31,981,037         —           31,981,037   

Real Estate Investment Trusts

      —           18,925,403         —           18,925,403   

Retail

      —           1,001,859         —           1,001,859   

Savings & Loans

      —           12,348,094         —           12,348,094   

Telecommunications

      —           135,873,589         —           135,873,589   

Transportation

      —           5,396,256         —           5,396,256   

Trucking & Leasing

      —           10,393,660         —           10,393,660   

Total Corporate Bonds & Notes

      —           1,675,559,241         4,006,784         1,679,566,025   

Total Asset-Backed Securities*

      —           491,019,790         —           491,019,790   

Total Mortgage-Backed Securities*

      —           357,599,434         —           357,599,434   

Total Municipals

      —           257,666,670         —           257,666,670   

Total Foreign Government*

      —           252,137,021         —           252,137,021   

Total Floating Rate Loans*

      —           55,831,568         —           55,831,568   

Total Convertible Bond*

      —           40,400,452         —           40,400,452   

Total Preferred Stock*

      21,818,451         —           —           21,818,451   

Total Convertible Preferred Stock*

      17,937,450         —           —           17,937,450   

 

See accompanying notes to financial statements.

 

MIST-31

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of December 31, 2015

Fair Value Hierarchy—(Continued)

 

Description    Level 1     Level 2     Level 3      Total  
Purchased Options          

Interest Rate Swaptions

    $ —        $ 5,455,036      $ —         $ 5,455,036   

Options on Exchange-Traded Futures Contracts

      43,003        —          —           43,003   

Total Purchased Options

      43,003        5,455,036        —           5,498,039   
Short-Term Investments          

Commercial Paper

      —          6,498,391        —           6,498,391   

Repurchase Agreements

      —          147,933,917        —           147,933,917   

U.S. Treasury

      —          15,881,651        —           15,881,651   

Total Short-Term Investments

      —          170,313,959        —           170,313,959   

Total Investments

    $ 39,798,904      $ 8,200,208,822      $ 4,006,784       $ 8,244,014,510   
                                   

Secured Borrowings (Liability)

    $ —        $ (64,298,977 )    $ —         $ (64,298,977 ) 
Forward Contracts          

Forward Foreign Currency Exchange Contracts (Unrealized Appreciation)

    $ —        $ 136,395,916      $ —         $ 136,395,916   

Forward Foreign Currency Exchange Contracts (Unrealized Depreciation)

      —          (41,726,200 )      —           (41,726,200 ) 

Total Forward Contracts

    $ —        $ 94,669,716      $ —         $ 94,669,716   
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 1,085,858      $ —        $ —         $ 1,085,858   

Futures Contracts (Unrealized Depreciation)

      (13,942,430 )      —          —           (13,942,430 ) 

Total Futures Contracts

    $ (12,856,572 )    $ —        $ —         $ (12,856,572 ) 
Written Options          

Foreign Currency Written Options at Value

    $ —        $ (1,928,079 )    $ —         $ (1,928,079 ) 

Inflation Capped Options at Value

      —          (56,139 )      —           (56,139 ) 

Interest Rate Swaptions at Value

      —          (5,590,709 )      —           (5,590,709 ) 

Total Written Options

    $ —        $ (7,574,927 )    $ —         $ (7,574,927 ) 
Centrally Cleared Swap Contracts          

Centrally Cleared Swap Contracts (Unrealized Appreciation)

    $ —        $ 2,680,667      $ —         $ 2,680,667   

Centrally Cleared Swap Contracts (Unrealized Depreciation)

      —          (59,734,720 )      —           (59,734,720 ) 

Total Centrally Cleared Swap Contracts

    $ —        $ (57,054,053 )    $ —         $ (57,054,053 ) 
OTC Swap Contracts          

OTC Swap Contracts at Value (Assets)

    $ —        $ 1,100,207      $ —         $ 1,100,207   

OTC Swap Contracts at Value (Liabilities)

      —          (11,203,011 )      —           (11,203,011 ) 

Total OTC Swap Contracts

    $ —        $ (10,102,804 )    $ —         $ (10,102,804 ) 

 

* 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,
2014		      Change in
Unrealized
Depreciation		     Purchases      Transfers
into
Level 3		      Balance as of
December 31,
2015		      Change in Unrealized
Depreciation from
Investments Still Held at
December 31, 2015		  
Corporate Bonds & Notes                 

Holding Companies-Diversified

    $ —       $ (1,838 )    $ 352,717       $ 3,655,905       $ 4,006,784       $ (1,838 ) 
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Corporate Bonds & Notes in the amount of $3,655,905 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.

 

See accompanying notes to financial statements.

 

MIST-32

Met Investors Series Trust

PIMCO Total Return Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a)

    $ 8,244,014,510   

Cash

      400,796   

Cash denominated in foreign currencies (b)

      11,136,715   

Cash collateral (c)

      768,000   

OTC swap contracts at market value (d)

      1,100,207   

Unrealized appreciation on forward foreign currency exchange contracts

      136,395,916   

Receivable for:

   

Investments sold

      822,195   

Open OTC swap contracts cash collateral

      2,770,000   

TBA securities sold

      1,354,303,321   

Fund shares sold

      523,907   

Interest

      39,200,181   

Variation margin on futures contracts

      7,623,478   

Interest on OTC swap contracts

      117,271   

Prepaid expenses

      18,879   

Other assets

      215,660   
  

 

 

  

Total Assets

      9,799,411,036   

Liabilities

   

Written options at value (e)

      7,574,927   

Secured borrowings

      64,229,955   

Cash collateral (f)

      105,160,001   

OTC swap contracts at market value (g)

      11,203,011   

Unrealized depreciation on forward foreign currency exchange contracts

      41,726,200   

Payables for:

   

Investments purchased

      5,158,723   

Open OTC swap contracts cash collateral

      1,470,000   

TBA securities purchased

      3,290,282,527   

Fund shares redeemed

      1,855,452   

Deferred dollar roll income

      69,022   

Variation margin on centrally cleared swap contracts

      4,708,572   

Accrued Expenses:

   

Management fees

      2,388,886   

Distribution and service fees

      715,473   

Deferred trustees’ fees

      81,937   

Other expenses

      1,209,911   
  

 

 

  

Total Liabilities

      3,537,834,597   
  

 

 

  

Net Assets

    $ 6,261,576,439   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 6,312,010,950   

Undistributed net investment income

      70,033,330   

Accumulated net realized loss

      (54,641,778 ) 

Unrealized depreciation on investments, written options, futures contracts, swap contracts and foreign currency transactions

      (65,826,063 ) 
  

 

 

  

Net Assets

    $ 6,261,576,439   
  

 

 

  

Net Assets

   

Class A

    $ 2,890,984,316   

Class B

      3,321,842,125   

Class E

      48,749,998   

Capital Shares Outstanding*

   

Class A

      255,353,337   

Class B

      298,628,652   

Class E

      4,343,067   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 11.32   

Class B

      11.12   

Class E

      11.22   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $8,338,743,246.
(b) Identified cost of cash denominated in foreign currencies was $11,470,504.
(c) Includes collateral of $174,000 for futures contracts, and $594,000 for centrally cleared swap contracts.
(d) Net premium paid on OTC swap contracts was $120,684.
(e) Premiums received on written options were $16,143,174.
(f) Includes collateral of $104,810,001 for OTC swap contracts, Forward Foreign Currency Contracts, Swaptions and $350,000 for TBAs.
(g) Net premium paid on OTC swap contracts was $7,184,373.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends

    $ 4,881,537   

Interest (a)

      206,323,384   
  

 

 

  

Total investment income

      211,204,921   

Expenses

   

Management fees

      34,217,228   

Administration fees

      170,666   

Custodian and accounting fees

      1,967,116   

Distribution and service fees—Class B

      8,961,560   

Distribution and service fees—Class E

      79,788   

Interest expense

      146,803   

Audit and tax services

      121,506   

Legal

      28,184   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      369,381   

Insurance

      48,760   

Miscellaneous

      53,263   
  

 

 

  

Total expenses

      46,199,428   

Less management fee waiver

      (2,570,234 ) 
  

 

 

  

Net expenses

      43,629,194   
  

 

 

  

Net Investment Income

      167,575,727   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      (223,118,929 ) 

Futures contracts

      77,585,284   

Written options

      37,260,391   

Swap contracts

      (61,348,080 ) 

Foreign currency transactions

      205,436,103   
  

 

 

  

Net realized gain

      35,814,769   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (125,863,987 ) 

Futures contracts

      (42,890,142 ) 

Written options

      3,757,704   

Swap contracts

      11,309,335   

Foreign currency transactions

      (21,047,475 ) 
  

 

 

  

Net change in unrealized depreciation

      (174,734,565 ) 
  

 

 

  

Net realized and unrealized loss

      (138,919,796 ) 
  

 

 

  

Net Increase in Net Assets From Operations

    $ 28,655,931   
  

 

 

  

 

(a) Net of foreign withholding taxes of $1,369.

 

See accompanying notes to financial statements.

 

MIST-33

Met Investors Series Trust

PIMCO Total Return Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 167,575,727      $ 146,360,628   

Net realized gain

      35,814,769        220,681,265   

Net change in unrealized depreciation

      (174,734,565 )      (2,926,463 ) 
  

 

 

    

 

 

  

Increase in net assets from operations

      28,655,931        364,115,430   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (185,482,515 )      (113,343,451 ) 

Class B

      (188,990,853 )      (93,757,690 ) 

Class E

      (2,822,122 )      (1,475,047 ) 

Net realized capital gains

     

Class A

      (40,407,689 )      0   

Class B

      (43,335,482 )      0   

Class E

      (634,977 )      0   
  

 

 

    

 

 

  

Total distributions

      (461,673,638 )      (208,576,188 ) 
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (1,394,081,215 )      (722,976,956 ) 
  

 

 

    

 

 

  

Total decrease in net assets

      (1,827,098,922 )      (567,437,714 ) 

Net Assets

     

Beginning of period

      8,088,675,361        8,656,113,075   
  

 

 

    

 

 

  

End of period

    $ 6,261,576,439      $ 8,088,675,361   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 70,033,330      $ 268,293,149   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      4,744,480      $ 56,902,540        16,955,506      $ 200,931,838   

Reinvestments

      19,937,353        225,890,204        9,621,685        113,343,451   

Redemptions

      (122,324,158 )      (1,456,495,745 )      (46,143,775 )      (549,895,247 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (97,642,325 )    $ (1,173,703,001 )      (19,566,584 )    $ (235,619,958 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      13,347,300      $ 153,566,339        18,639,838      $ 219,572,207   

Reinvestments

      20,855,147        232,326,335        8,075,598        93,757,690   

Redemptions

      (52,211,693 )      (601,619,610 )      (67,151,454 )      (791,543,544 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (18,009,246 )    $ (215,726,936 )      (40,436,018 )    $ (478,213,647 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      128,617      $ 1,498,420        104,505      $ 1,239,608   

Reinvestments

      307,571        3,457,099        126,072        1,475,047   

Redemptions

      (823,190 )      (9,606,797 )      (997,969 )      (11,858,006 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (387,002 )    $ (4,651,278 )      (767,392 )    $ (9,143,351 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (1,394,081,215 )      $ (722,976,956 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-34

Met Investors Series Trust

PIMCO Total Return Portfolio

Financial Highlights

 

Selected per share data       
     Class A  
     Year Ended December 31,  
     2015     2014     2013     2012     2011  

Net Asset Value, Beginning of Period

    $ 12.09      $ 11.87      $ 12.86      $ 12.14      $ 12.47   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (Loss) from Investment Operations

           

Net investment income (a)

      0.29        0.22        0.21        0.25        0.30   

Net realized and unrealized gain (loss) on investments

      (0.26 )      0.31        (0.41 )      0.89        0.12   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.03        0.53        (0.20 )      1.14        0.42   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less Distributions

           

Distributions from net investment income

      (0.66 )      (0.31 )      (0.55 )      (0.42 )      (0.36 ) 

Distributions from net realized capital gains

      (0.14 )      0.00        (0.24 )      0.00        (0.39 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.80 )      (0.31 )      (0.79 )      (0.42 )      (0.75 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 11.32      $ 12.09      $ 11.87      $ 12.86      $ 12.14   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return (%) (b)

      0.28        4.49        (1.72 )      9.56        3.42   

Ratios/Supplemental Data

           

Gross ratio of expenses to average net assets (%)

      0.52        0.51        0.51        0.51        0.51   

Gross ratio of expenses to average net assets excluding interest expense (%)

      0.52        0.51        0.51        0.51        0.51   

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

      0.48        0.51        0.51        0.51        0.51   

Net ratio of expenses to average net assets excluding interest expense (%) (c)

      0.48        0.51        0.51        0.51        0.51   

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

      2.45        1.85        1.73        1.97        2.47   

Portfolio turnover rate (%)

      430  (d)      283  (d)      352  (d)      424  (d)      516   

Net assets, end of period (in millions)

    $ 2,891.0      $ 4,267.6      $ 4,422.4      $ 5,052.8      $ 5,249.4   
     Class B  
     Year Ended December 31,  
     2015     2014     2013     2012     2011  

Net Asset Value, Beginning of Period

    $ 11.89      $ 11.68      $ 12.66      $ 11.96      $ 12.30   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (Loss) from Investment Operations

           

Net investment income (a)

      0.26        0.19        0.18        0.21        0.27   

Net realized and unrealized gain (loss) on investments

      (0.26 )      0.29        (0.40 )      0.88        0.11   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.00        0.48        (0.22 )      1.09        0.38   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less Distributions

           

Distributions from net investment income

      (0.63 )      (0.27 )      (0.52 )      (0.39 )      (0.33 ) 

Distributions from net realized capital gains

      (0.14 )      0.00        (0.24 )      0.00        (0.39 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.77 )      (0.27 )      (0.76 )      (0.39 )      (0.72 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 11.12      $ 11.89      $ 11.68      $ 12.66      $ 11.96   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return (%) (b)

      0.01        4.19        (1.92 )      9.27        3.17   

Ratios/Supplemental Data

           

Gross ratio of expenses to average net assets (%)

      0.77        0.76        0.76        0.76        0.76   

Gross ratio of expenses to average net assets excluding interest expense (%)

      0.77        0.76        0.76        0.76        0.76   

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

      0.73        0.76        0.76        0.76        0.76   

Net ratio of expenses to average net assets excluding interest expense (%) (c)

      0.73        0.76        0.76        0.76        0.76   

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

      2.24        1.59        1.49        1.72        2.23   

Portfolio turnover rate (%)

      430  (d)      283  (d)      352  (d)      424  (d)      516   

Net assets, end of period (in millions)

    $ 3,321.8      $ 3,764.4      $ 4,169.0      $ 4,626.9      $ 4,436.1   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-35

Met Investors Series Trust

PIMCO Total Return Portfolio

Financial Highlights

 

 

Selected per share data       
     Class E  
     Year Ended December 31,  
     2015     2014     2013     2012     2011  

Net Asset Value, Beginning of Period

    $ 11.99      $ 11.77      $ 12.75      $ 12.05      $ 12.37   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (Loss) from Investment Operations

           

Net investment income (a)

      0.27        0.20        0.19        0.23        0.28   

Net realized and unrealized gain (loss) on investments

      (0.26 )      0.30        (0.40 )      0.86        0.13   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.01        0.50        (0.21 )      1.09        0.41   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less Distributions

           

Distributions from net investment income

      (0.64 )      (0.28 )      (0.53 )      (0.39 )      (0.34 ) 

Distributions from net realized capital gains

      (0.14 )      0.00        (0.24 )      0.00        (0.39 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.78 )      (0.28 )      (0.77 )      (0.39 )      (0.73 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 11.22      $ 11.99      $ 11.77      $ 12.75      $ 12.05   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return (%) (b)

      0.11        4.34        (1.82 )      9.27        3.37   

Ratios/Supplemental Data

           

Gross ratio of expenses to average net assets (%)

      0.67        0.66        0.66        0.66        0.66   

Gross ratio of expenses to average net assets excluding interest expense (%)

      0.67        0.66        0.66        0.66        0.66   

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

      0.63        0.66        0.66        0.66        0.66   

Net ratio of expenses to average net assets excluding interest expense (%) (c)

      0.63        0.66        0.66        0.66        0.66   

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

      2.34        1.69        1.59        1.82        2.31   

Portfolio turnover rate (%)

      430  (d)      283  (d)      352  (d)      424  (d)      516   

Net assets, end of period (in millions)

    $ 48.7      $ 56.7      $ 64.7      $ 78.5      $ 83.2   

 

(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) Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).
(d) Includes mortgage dollar roll and TBA transactions; excluding these transactions the portfolio turnover rate would have been 58%, 112%, 140% and 183% for the years ended December 31, 2015, 2014, 2013 and 2012, respectively.

 

See accompanying notes to financial statements.

 

MIST-36

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 and subject to general oversight by the Board. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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-37

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(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 through an independent pricing service based on the mean between closing bid and ask prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or broker-dealer. These contracts are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

Options, including swaptions, and futures contracts that are traded OTC are generally valued on the basis of quotations provided by broker-dealers or prices provided by 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, yield curves, credit curves, measures of volatility and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts (other than centrally cleared swaps) are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and other pricing services. Such quotations and prices are derived utilizing observable data, including the underlying reference securities or indices, credit spread quotations and expected default recovery rates determined by the pricing service. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or an independent pricing service when the exchange price is not available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third party prices are used to produce daily settlement prices. These securities are categorized as Level 2 within the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates, including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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

 

MIST-38

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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, option transactions, swap transactions, distribution redesignations, premium amortization adjustments, convertible preferred stock interest purchased, convertible preferred stock bond discount, deflationary sell adjustments, dirty price adjustments, paydown reclasses and treasury rolls. These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

Mortgage Dollar Rolls - The Portfolio may enter into mortgage “dollar rolls” in which a Portfolio sells to-be-announced (“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.

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.

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

 

MIST-39

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 sale commitments are valued at the current market value of the underlying securities, according to the procedures described under “Investment Valuation and Fair Value Measurements”.

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.

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 generally 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.

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, 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. The purchase of assignments will typically result in the Portfolio having a direct contractual relationship with the borrower, and the Portfolio may enforce compliance by the borrower with the terms of the loan agreement.

The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments it acquires direct rights against the borrower of the loan. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing.

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.

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 proceeds received from a short sale are recorded as a liability. The Portfolio will realize 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. Conversely, the Portfolio will realize a gain if the security declines in price between those dates. The latter 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

 

MIST-40

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $147,933,917, 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 December 31, 2015.

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 year ended December 31, 2015, the Portfolio entered into secured borrowing transactions involving U.S. Treasury and Federal Agency 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 as 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 year ended December 31, 2015, the Portfolio had an outstanding secured borrowing transaction balance for 319 days. For the year ended December 31, 2015, the Portfolio’s average amount of borrowings was $120,392,709 and the weighted average interest rate was 0.139% during the 319 day period.

At December 31, 2015, the amount of the Portfolio’s outstanding borrowings was $64,229,955. Securities in the amount of $768,832 have been pledged as collateral under the terms of the Master Securities Forward Transaction Agreement (“MSFTA”) as of December 31, 2015. The MSFTA is a master netting agreement (“MNA”) which provides both parties with the rights to set-off in the event of default by either party. The Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized assets and liabilities.

The following table presents the Portfolio’s secured borrowings by counterparty net of amounts available for offset under the MSFTA and net of the related collateral pledged or received by the Portfolio as of December 31, 2015:

 

Counterparty

    Payable for
Secured
Borrowings		   Financial
Instruments
Available
for Offset(a)		      Collateral
Pledged(b)		      Collateral
Received(b)		      Net Amount(c)  

Goldman Sachs & Co.

    $(64,229,955)   $ 63,234,134       $ 768,832       $ —       $ (226,989 ) 
  

 

  

 

 

     

 

 

     

 

 

     

 

 

  
   $(64,229,955)   $ 63,234,134       $ 768,832       $ —       $ (226,989 ) 
  

 

  

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) Represents market value of borrowings as of December 31, 2015.
  (b) Under the terms of the MSFTA agreement, the Portfolio and the counterparties are not permitted to sell, repledge, or use the collateral associated with the transaction.
  (c) Net amount represents the net amount payable due to the counterparty in the event of default. Exposure from borrowings and other financing transactions can only be netted across transactions governed under the same master agreement with the same legal entity.

 

MIST-41

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

The following table provides a breakdown of the collateral received and the remaining contractual maturities for secured borrowing transactions, which are accounted for as secured borrowings.

 

     Remaining Contractual Maturity of the Agreements
As of December 31, 2015		  
      Overnight and
Continuous		      Up to
30 Days		     31 - 90
Days		      Greater than
90 days		      Total  

Secured Borrowing Transactions

              

U.S. Treasury

    $ —       $ (64,229,955 )    $ —       $ —       $ (64,229,955 ) 

Total Borrowings

    $ —       $ (64,229,955 )    $ —       $ —       $ (64,229,955 ) 

Gross amount of recognized liabilities for secured borrowing transactions

  

    $ (64,229,955 ) 
             

 

 

  

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 valuation 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 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 cash 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. If futures contracts are exchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

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 investment exposure to a target asset class or to enhance return. Writing puts or buying calls tends to increase the Portfolio’s exposure to the underlying instrument and writing calls or buying puts tends 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

 

MIST-42

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 is worthless when it expires and the premium paid for the option is considered a realized 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 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 subsequently marked to market to reflect the current value of the option written. 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.

Options on swaps (“swaptions”) are similar to options on securities except that instead of selling or purchasing the right to buy or sell a security, the writer or purchaser of the swaptions is granting or buying the right to enter into a previously agreed upon interest rate or credit default swap agreement (interest rate risk and/or credit risk) at any time before the expiration of the option.

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 either privately negotiated in the OTC market (“OTC swaps”) or 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 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.

Centrally Cleared Swaps: Clearinghouses currently offer clearing derivative transactions which include interest rate and 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.

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 upon entering into the swap agreement 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.

 

MIST-43

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 they are 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 be worthless when it expires 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 involving an entity in the index, the credit event is settled based on that entity’s 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.

 

MIST-44

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 December 31, 2015, 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: The Portfolio may enter into currency swap agreements to gain or mitigate exposure to currency risk. 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: (1) 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”; (2) 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 (3) 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 contract’s remaining life, to the extent that amount is positive.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of 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) (f)    $ 5,498,039         
   OTC swap contracts at market value (b)      290,094       OTC swap contracts at market value (b)    $ 250   
   Unrealized appreciation on centrally cleared swap contracts (c) (d)      2,590,245       Unrealized depreciation on centrally cleared swap contracts (c) (d)      59,714,716   
   Unrealized appreciation on futures contracts (c) (e)      1,085,858       Unrealized depreciation on futures contracts (c) (e)      13,942,430   
         Written options at value      5,646,848   
Credit    OTC swap contracts at market value (b)      810,113       OTC swap contracts at market value (b)      11,202,761   
   Unrealized appreciation on centrally cleared swap contracts (c) (d)      90,422       Unrealized depreciation on centrally cleared swap contracts (c) (d)      20,004   
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts      136,395,916       Unrealized depreciation on forward foreign currency exchange contracts      41,726,200   
         Written options at value      1,928,079   
     

 

 

        

 

 

  
Total       $ 146,760,687          $ 134,181,288   
     

 

 

        

 

 

  

 

  (a) Represents purchased options which are part of investments as shown in the Statement of Assets and Liabilities.
  (b) Excludes OTC swap interest receivable of $117,271.
  (c) Financial instrument not subject to a master netting agreement.
  (d) 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.
  (e) 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.
  (f) Includes exchange traded purchased options with a value of $43,003 that is not subject to a master netting agreement.

 

MIST-45

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

The Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized 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 (“MNA”) (see Note 4), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Assets
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Received†		     Net Amount*  

Barclays Bank plc

    $ 8,686,941       $ (2,048,820 )    $ (6,210,000 )    $ 428,121   

BNP Paribas S.A.

      710,754         (710,754 )      —        —   

Citibank N.A.

      29,064,867         (5,086,450 )      (20,410,000 )      3,568,417   

Credit Suisse International

      498,459         (498,459 )      —        —   

Deutsche Bank AG

      18,289,637         (8,955,543 )      (9,334,094 )      —   

Goldman Sachs Bank USA

      8,300,674         (8,300,674 )      —        —   

Goldman Sachs International

      19,652         (19,652 )      —        —   

JPMorgan Chase Bank N.A.

      58,412,245         (7,222,632 )      (51,189,613 )      —   

Morgan Stanley Capital Services, LLC

      2,868,795         (2,868,795 )      —        —   

Societe Generale Paris

      2,036,260         (2,036,260 )      —        —   

UBS AG, Stamford

      14,062,875         (4,365,073 )      (9,697,802 )      —   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 142,951,159       $ (42,113,112 )    $ (96,841,509 )    $ 3,996,538   
  

 

 

     

 

 

    

 

 

    

 

 

  

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under an MNA, or similar agreement, and net of the related collateral pledged by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Liabilities
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Pledged†		     Net Amount**  

Barclays Bank plc

    $ 2,048,820       $ (2,048,820 )    $ —      $ —   

BNP Paribas S.A.

      3,841,018         (710,754 )      (2,494,090 )      636,174   

Citibank N.A.

      5,086,450         (5,086,450 )      —        —   

Credit Suisse International

      1,452,079         (498,459 )      (701,611 )      252,009   

Deutsche Bank AG

      8,955,543         (8,955,543 )      —        —   

Goldman Sachs Bank USA

      10,604,679         (8,300,674 )      (82,995 )      2,221,010   

Goldman Sachs International

      2,209,319         (19,652 )      (2,149,004 )      40,663   

JPMorgan Chase Bank N.A.

      7,222,632         (7,222,632 )      —        —   

Morgan Stanley Capital Services, LLC

      4,691,331         (2,868,795 )      (1,457,581 )      364,955   

Societe Generale Paris

      10,027,194         (2,036,260 )      (7,990,934 )      —   

UBS AG, Stamford

      4,365,073         (4,365,073 )      —        —   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 60,504,138       $ (42,113,112 )    $ (14,876,215 )    $ 3,514,811   
  

 

 

     

 

 

    

 

 

    

 

 

  

 

  * Net amount represents the net amount receivable from the counterparty in the event of default.
  ** Net amount represents the net amount payable due to the counterparty in the event of default.
  † In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Interest Rate     Credit     Foreign
Exchange		      Total  

Investments (a)

    $ (1,040,428 )    $ —      $ 40,390       $ (1,000,038 ) 

Forward foreign currency transactions

      —        —        196,156,233         196,156,233   

Futures contracts

      77,585,284        —        —         77,585,284   

Swap contracts

      (58,800,110 )      (2,547,970 )      —         (61,348,080 ) 

Written options

      20,105,112        560,691        16,594,588         37,260,391   
  

 

 

    

 

 

    

 

 

     

 

 

  
   $ 37,849,858      $ (1,987,279 )    $ 212,791,211       $ 248,653,790   
  

 

 

    

 

 

    

 

 

     

 

 

  

 

MIST-46

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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

    Interest Rate     Credit     Foreign
Exchange		     Total  

Investments (a)

    $ (5,275,981 )    $ —      $ —      $ (5,275,981 ) 

Forward foreign currency transactions

      —        —        (21,142,947 )      (21,142,947 ) 

Futures contracts

      (42,890,142 )      —        —        (42,890,142 ) 

Swap contracts

      6,504,384        4,804,951        —        11,309,335   

Written options

      4,511,280        (254,198 )      (499,378 )      3,757,704   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ (37,150,459 )    $ 4,550,753      $ (21,642,325 )    $ (54,242,031 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Investments (a)

    $ 648,086,969   

Forward foreign currency transactions

      5,792,149,629   

Futures contracts long

      1,837,624,077   

Futures contracts short

      (5,660,906,796 ) 

Swap contracts

      5,219,622,269   

Written options

      (2,793,257,146 ) 

 

  ‡ Averages are based on activity levels during 2015.
  (a) Represents purchased options which are part of net realized gain (loss) on investments and net change in unrealized appreciation (depreciation) on investments as shown in the Statement of Operations.

Written Options

The Portfolio transactions in written options during the year ended December 31, 2015:

 

Call Options

    Notional
Amount*		      Number of
Contracts		      Premium
Received		  

Options outstanding December 31, 2014

      624,000,000         –       $ 4,192,679   

Options written

      2,660,100,000         24,956         23,605,776   

Options bought back

      (350,600,000 )       (3,724 )       (3,105,154 ) 

Options exercised

      (551,900,000 )       (7,850 )       (5,519,918 ) 

Options expired

      (1,472,800,000 )       (13,382 )       (14,035,622 ) 
  

 

 

     

 

 

     

 

 

  

Options outstanding December 31, 2015

      908,800,000         –       $ 5,137,761   
  

 

 

     

 

 

     

 

 

  

Put Options

    Notional
Amount*		      Number of
Contracts		      Premium
Received		  

Options outstanding December 31, 2014

      1,597,300,000         –       $ 14,803,322   

Options written

      3,400,200,000         16,838         25,319,814   

Options bought back

      (483,100,000 )       (3,600 )       (4,624,459 ) 

Options exercised

      (173,110,000 )       (5,674 )       (3,363,830 ) 

Options expired

      (2,501,390,000 )       (7,564 )       (21,129,434 ) 
  

 

 

     

 

 

     

 

 

  

Options outstanding December 31, 2015

      1,839,900,000         –       $ 11,005,413   
  

 

 

     

 

 

     

 

 

  

 

  * Amount shown is in the currency in which the transaction was denominated.

4. Certain Risks

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”).

Market 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, 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

 

MIST-47

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC 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 (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

Master Securities Forward Transaction Agreements (“MSFTA”) govern the considerations and factors surrounding the settlement of certain forward settling transactions, such as To-Be-Announced securities and delayed-delivery or secured borrowings transactions by and between the Portfolio and select counterparties. The MSFTA maintain provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to Portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may 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-48

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, including mortgage dollar roll and TBA transactions but excluding short-term securities, for the year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$35,272,244,770    $ 1,454,602,743       $ 33,954,690,933       $ 2,600,497,840   

Purchases and sales of mortgage dollar rolls and TBA transactions for the year ended December 31, 2015 were as follows:

 

Purchases

    Sales  
$32,804,783,849    $ 31,882,562,627   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$34,217,228      0.500 %    First $1.2 billion
     0.475 %    Over $1.2 billion

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Pacific Investment Management Company LLC is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

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.

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, for the period May 1, 2015 to April 30, 2016, 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 $3 billion
0.050%    Over $3 billion

An identical agreement was in place for the period January 1, 2015 to April 30, 2015. Amounts waived for the year ended December 31, 2015 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, LLC, 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 year ended December 31, 2015 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-49

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—December 31, 2015—(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 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$377,654,103    $ 208,576,188       $ 84,019,535       $ —       $ 461,673,638       $ 208,576,188   

As of December 31, 2015, 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		     Other
Accumulated
Capital Losses		     Total  
$161,822,532    $ —       $ (196,485,432 )    $ (15,689,673 )    $ (50,352,573 ) 

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, 2015, the Portfolio had post-enactment accumulated short-term capital losses of $15,689,673 and no pre-enactment accumulated capital loss carryforwards.

 

MIST-50

Met Investors Series Trust

PIMCO Total Return Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of PIMCO Total Return 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 PIMCO Total Return Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian, brokers and agent banks; when replies were not received from brokers or agent banks, 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 PIMCO Total Return Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-51

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-52

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-53

Met Investors Series Trust

PIMCO Total Return Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-54

Met Investors Series Trust

PIMCO Total Return Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-55

Met Investors Series Trust

PIMCO Total Return Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

PIMCO Total Return Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Pacific Investment Management Co. LLC regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the one-, three-, and five-year periods ended June 30, 2015. The Board further considered that the Portfolio underperformed its benchmark, the Barclays U.S. Aggregate Bond Index, for the one-, three- and five-year periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-l fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were slightly above the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also took into account that the Portfolio’s contractual sub-advisory fees were above the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size. In addition, the Board considered that the Adviser had negotiated reductions to the Portfolio’s sub-advisory fee schedule and that the Adviser agreed to waive a portion of its advisory fee in order for contractholders to benefit from the lower sub-advisory fee effective January 1, 2015.

 

MIST-56

Met Investors Series Trust

Pioneer Fund Portfolio

Managed by Pioneer Investment Management, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A and B shares of the Pioneer Fund Portfolio returned 0.06% and -0.25%, respectively. The Portfolio’s benchmark, the Standard & Poor’s (“S&P”) 500 Index1, returned 1.38%.

MARKET ENVIRONMENT / CONDITIONS

For much of 2015, U.S. equities were in positive territory with low volatility despite falling commodity prices and global concerns about Greece’s ability to make debt payments. This changed in August due to concerns about slowing growth in China along with a devaluation of the yuan. U.S. equities plunged, resulting in a third quarter total return of -6.4% for the S&P 500 Index. Though equities recovered in the fourth quarter, the S&P 500 Index for the year was essentially flat, with a total return of 1.4% when including dividends. The average stock fell 4% for the year, as strong performance from a few highly valued stocks, sometimes referred to as the FANG (Facebook, Amazon, Netflix, and Google—now Alphabet) offset declines in a number of stocks in commodity and cyclically oriented sectors. Those declines were due to poor economic conditions in the Industrials sector, a rising dollar, and falling commodity prices. In addition, the Federal Reserve’s decision to increase interest rates in December raised concerns that monetary policy could be a headwind for growth going forward.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio benefited from strong sector allocation decisions, as an underweight to the poor performing Energy sector helped benchmark relative returns. This was offset by stock selection decisions, mostly in the Consumer Discretionary and Health Care sectors, which detracted from relative returns.

In Consumer Discretionary, the biggest single detractor to performance relative to the benchmark was Amazon.com, which performed well but was not a holding in the Portfolio due to what we believed was an excessive valuation. In addition, three Portfolio holdings that are classified in the Consumer Discretionary sector, John Wiley & Sons, CBS, and Scripps Networks dropped 22%, 19% and 26%, respectively, as the media industry came under increasing pressure from alternate sources of content such as streaming video on demand.

While the Portfolio’s Health Care stocks were positive contributors from an absolute perspective, they failed to keep pace with the sector overall. One notable detractor was Alder Biopharmaceutical, which was volatile due to clinical trial results and competition in the migraine drug category. We subsequently exited the position.

On the positive side, the Portfolio’s holdings in Information Technology and Energy performed well relative to the benchmark. Alphabet (formerly Google) and Microsoft rose 47% and 23%, respectively, due to strong financial results related to increases in online advertising and cloud computing. In addition, Alphabet hired a new CFO earlier in the year and is increasing financial transparency in its various lines of business, which investors rewarded by pushing the stock higher. Microsoft, meanwhile, is successfully adapting its business model to changes in the software industry such as software as a service and cloud computing. We believe both Alphabet and Microsoft have the potential to perform well over the long term.

Our 2015 trading decisions were based more on bottom-up analysis of company fundamentals and relative valuations than on top-down views of the economy. We were quite active over the year and because of our concern about the sustainability of economic growth, we trimmed the Portfolio significantly, choosing to focus our attention on a more select group of companies we believe can hold up well in what we think may be a more volatile environment.

At the end of the reporting period, we were active from a sector perspective. Financials (20% vs. 17%) and Health Care (18% vs. 15%) were the most overweighted relative to the S&P 500 Index, as we believed the outlook for both sectors was positive. Consumer Discretionary (11% vs. 13%) and Telecomm Services (0% vs. 2%) were the most underweighted, though at year-end the Portfolio retained significant exposure to the Consumer Discretionary sector as we think consumer spending will continue to be strong. Over the reporting period, our strategy remained focused on identifying companies we think have longer-term merit and can withstand pressures that may be exerted by economic turbulence.

John A. Carey

Jeff Kripke

Walter Hunnewell Jr.

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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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

Pioneer Fund Portfolio

 

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

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year        Since Inception2  
Pioneer Fund Portfolio                      

Class A

        0.06           9.34           6.28           —   

Class B

        -0.25           9.05           —           13.63   
S&P 500 Index        1.38           12.57           7.31           —   

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

2 Inception dates of the Class A and Class B shares are 2/4/1994 and 4/28/2009, respectively.

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
Microsoft Corp.      4.6   
General Electric Co.      3.4   
Chevron Corp.      3.4   
Bank of America Corp.      3.2   
Alphabet, Inc. - Class A      3.1   
Apple, Inc.      3.1   
American Electric Power Co., Inc.      3.0   
Wells Fargo & Co.      2.9   
CVS Health Corp.      2.8   
Pfizer, Inc.      2.7   

Top Sectors

 

     % of
Net Assets		  
Financials      19.9   
Information Technology      19.0   
Health Care      18.3   
Consumer Discretionary      10.7   
Consumer Staples      10.6   
Industrials      8.5   
Energy      6.0   
Materials      3.5   
Utilities      3.0   

 

MIST-2

Met Investors Series Trust

Pioneer Fund 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual      0.67%       $ 1,000.00         $ 989.30         $ 3.36   
   Hypothetical*      0.67%       $ 1,000.00         $ 1,021.83         $ 3.41   

Class B(a)

    Actual      0.92 %     $ 1,000.00         $ 987.60         $ 4.61   
   Hypothetical*      0.92%       $ 1,000.00         $ 1,020.57         $ 4.69   

* 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 (184 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

Pioneer Fund Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—99.5% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—0.9%

    

Honeywell International, Inc.

     37,846      $ 3,919,710   
   

 

 

  

Banks—10.2%

    

Bank of America Corp.

     827,770        13,931,369   

Citizens Financial Group, Inc.

     165,720        4,340,207   

PNC Financial Services Group, Inc. (The)

     65,493        6,242,138   

U.S. Bancorp

     176,195        7,518,241   

Wells Fargo & Co.

     238,695        12,975,460   
   

 

 

  
      45,007,415   
   

 

 

  

Beverages—2.6%

    

Coca-Cola Co. (The)

     180,416        7,750,671   

Dr Pepper Snapple Group, Inc.

     42,010        3,915,332   
   

 

 

  
      11,666,003   
   

 

 

  

Biotechnology—3.5%

    

AbbVie, Inc.

     61,851        3,664,053   

Baxalta, Inc.

     114,008        4,449,733   

Celgene Corp. (a)

     62,937        7,537,335   
   

 

 

  
      15,651,121   
   

 

 

  

Building Products—0.2%

    

Allegion plc

     10,149        669,022   
   

 

 

  

Capital Markets—3.0%

    

Charles Schwab Corp. (The)

     84,158        2,771,323   

Morgan Stanley

     207,504        6,600,702   

State Street Corp.

     59,999        3,981,534   
   

 

 

  
      13,353,559   
   

 

 

  

Chemicals—3.5%

    

Dow Chemical Co. (The)

     135,877        6,994,948   

Ecolab, Inc.

     46,063        5,268,686   

Valspar Corp. (The) (b)

     40,064        3,323,309   
   

 

 

  
      15,586,943   
   

 

 

  

Consumer Finance—0.8%

    

American Express Co.

     49,175        3,420,121   
   

 

 

  

Electric Utilities—3.0%

    

American Electric Power Co., Inc.

     230,199        13,413,696   
   

 

 

  

Energy Equipment & Services—1.4%

    

Helmerich & Payne, Inc. (b)

     40,235        2,154,584   

Schlumberger, Ltd.

     59,323        4,137,780   
   

 

 

  
      6,292,364   
   

 

 

  

Food & Staples Retailing—2.8%

    

CVS Health Corp.

     125,853        12,304,648   
   

 

 

  

Food Products—4.5%

    

Campbell Soup Co. (b)

     103,390        5,433,144   

General Mills, Inc.

     89,467        5,158,667   

Hershey Co. (The)

     62,951        5,619,636   

Food Products—(Continued)

    

Mead Johnson Nutrition Co.

     47,763      3,770,889   
   

 

 

  
      19,982,336   
   

 

 

  

Health Care Equipment & Supplies—5.2%

  

Abbott Laboratories

     67,614        3,036,545   

Becton Dickinson & Co.

     41,217        6,351,127   

C.R. Bard, Inc.

     26,456        5,011,825   

Medtronic plc

     112,119        8,624,193   
   

 

 

  
      23,023,690   
   

 

 

  

Health Care Providers & Services—2.0%

    

Aetna, Inc.

     62,781        6,787,882   

McKesson Corp.

     9,516        1,876,840   
   

 

 

  
      8,664,722   
   

 

 

  

Household Products—0.6%

    

Clorox Co. (The) (b)

     20,756        2,632,483   
   

 

 

  

Industrial Conglomerates—3.4%

    

General Electric Co.

     481,063        14,985,112   
   

 

 

  

Insurance—5.9%

    

Chubb Corp. (The)

     85,882        11,391,389   

Hartford Financial Services Group, Inc. (The)

     224,031        9,736,387   

Travelers Cos., Inc. (The)

     41,557        4,690,123   
   

 

 

  
      25,817,899   
   

 

 

  

Internet Software & Services—5.7%

    

Alphabet, Inc. - Class A (a)

     17,656        13,736,544   

Alphabet, Inc. - Class C (a)

     4,536        3,442,280   

eBay, Inc. (a)

     44,750        1,229,730   

Facebook, Inc. - Class A (a)

     63,510        6,646,957   
   

 

 

  
      25,055,511   
   

 

 

  

IT Services—3.5%

    

Automatic Data Processing, Inc.

     64,568        5,470,201   

Fiserv, Inc. (a)

     57,316        5,242,121   

Visa, Inc. - Class A (b)

     60,978        4,728,844   
   

 

 

  
      15,441,166   
   

 

 

  

Life Sciences Tools & Services—1.3%

    

Thermo Fisher Scientific, Inc.

     39,617        5,619,671   
   

 

 

  

Machinery—2.4%

    

Illinois Tool Works, Inc.

     57,402        5,320,017   

Ingersoll-Rand plc

     65,037        3,595,896   

PACCAR, Inc. (b)

     35,342        1,675,211   
   

 

 

  
      10,591,124   
   

 

 

  

Media—4.0%

    

John Wiley & Sons, Inc. - Class A

     52,038        2,343,271   

Scripps Networks Interactive, Inc. - Class A (b)

     130,510        7,205,457   

Walt Disney Co. (The)

     77,910        8,186,783   
   

 

 

  
      17,735,511   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-4

Met Investors Series Trust

Pioneer Fund Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description       
Shares		     Value  

Multiline Retail—2.2%

    

Dollar General Corp.

     133,554      $ 9,598,526   
   

 

 

  

Oil, Gas & Consumable Fuels—4.6%

  

  

Chevron Corp.

     164,427        14,791,853   

EOG Resources, Inc.

     51,795        3,666,568   

Phillips 66

     21,667        1,772,361   
   

 

 

  
      20,230,782   
   

 

 

  

Pharmaceuticals—6.3%

    

AstraZeneca plc (ADR) (b)

     110,110        3,738,234   

Eli Lilly & Co.

     35,945        3,028,726   

Pfizer, Inc.

     374,364        12,084,470   

Zoetis, Inc.

     183,381        8,787,618   
   

 

 

  
      27,639,048   
   

 

 

  

Road & Rail—1.6%

    

Union Pacific Corp.

     90,803        7,100,795   
   

 

 

  

Semiconductors & Semiconductor Equipment—1.3%

  

Analog Devices, Inc.

     102,477        5,669,028   
   

 

 

  

Software—5.5%

    

Check Point Software Technologies, Ltd. (a) (b)

     45,889        3,734,447   

Microsoft Corp.

     367,988        20,415,974   
   

 

 

  
      24,150,421   
   

 

 

  

Specialty Retail—4.5%

    

Home Depot, Inc. (The)

     73,268        9,689,693   

Ross Stores, Inc.

     48,930        2,632,923   

TJX Cos., Inc. (The)

     104,245        7,392,013   
   

 

 

  
      19,714,629   
   

 

 

  

Technology Hardware, Storage & Peripherals—3.1%

  

Apple, Inc.

     129,816        13,664,432   
   

 

 

  

Total Common Stocks
(Cost $342,386,476)

       438,601,488   
   

 

 

  
Short-Term Investments—5.2%   

Mutual Fund—4.1%

    

State Street Navigator Securities Lending MET Portfolio (c)

     18,274,876        18,274,876   
   

 

 

  
Security Description   Principal
Amount*		     Value  

Repurchase Agreement—1.1%

    

Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $4,993,938 on 01/04/16, collateralized by $5,160,000 U.S. Treasury Note at 0.625% due 04/30/18 with a value of $5,095,500.

     4,993,921      4,993,921   
   

 

 

  

Total Short-Term Investments
(Cost $23,268,797)

       23,268,797   
   

 

 

  

Total Investments—104.7%
(Cost $365,655,273) (d)

       461,870,285   

Other assets and liabilities (net)—(4.7)%

       (20,931,483 ) 
   

 

 

  
Net Assets—100.0%     $ 440,938,802   
   

 

 

  

 

* 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 December 31, 2015, the market value of securities loaned was $26,611,836 and the collateral received consisted of cash in the amount of $18,274,876 and non-cash collateral with a value of $9,123,177. 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 on loan as of December 31, 2015.
(d) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $365,687,301. The aggregate unrealized appreciation and depreciation of investments were $99,982,841 and $(3,799,857), respectively, resulting in net unrealized appreciation of $96,182,984 for federal income tax purposes.
(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

Pioneer Fund Portfolio

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2     Level 3      Total  

Total Common Stocks*

    $ 438,601,488       $ —        $ —         $ 438,601,488   
Short-Term Investments           

Mutual Fund

      18,274,876         —          —           18,274,876   

Repurchase Agreement

      —           4,993,921        —           4,993,921   

Total Short-Term Investments

      18,274,876         4,993,921        —           23,268,797   

Total Investments

    $ 456,876,364       $ 4,993,921      $ —         $ 461,870,285   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (18,274,876 )    $ —         $ (18,274,876 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Pioneer Fund Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 461,870,285   

Cash

      18,861   

Receivable for:

   

Fund shares sold

      18,066   

Dividends and interest

      689,835   

Prepaid expenses

      1,251   
  

 

 

  

Total Assets

      462,598,298   

Liabilities

   

Collateral for securities loaned

      18,274,876   

Payables for:

   

Investments purchased

      2,721,909   

Fund shares redeemed

      218,858   

Accrued Expenses:

   

Management fees

      234,953   

Distribution and service fees

      18,521   

Deferred trustees’ fees

      82,670   

Other expenses

      107,709   
  

 

 

  

Total Liabilities

      21,659,496   
  

 

 

  

Net Assets

    $ 440,938,802   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 299,114,896   

Undistributed net investment income

      5,098,356   

Accumulated net realized gain

      40,510,853   

Unrealized appreciation on investments and foreign currency transactions

      96,214,697   
  

 

 

  

Net Assets

    $ 440,938,802   
  

 

 

  

Net Assets

   

Class A

    $ 354,245,966   

Class B

      86,692,836   

Capital Shares Outstanding*

   

Class A

      27,257,892   

Class B

      6,776,789   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 13.00   

Class B

      12.79   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $365,655,273.
(b) Includes securities loaned at value of $26,611,836.

 

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends (a)

    $ 8,573,974   

Interest

      68   

Securities lending income

      41,231   
  

 

 

  

Total investment income

      8,615,273   

Expenses

   

Management fees

      3,128,585   

Administration fees

      11,745   

Custodian and accounting fees

      61,035   

Distribution and service fees—Class B

      219,163   

Audit and tax services

      40,454   

Legal

      30,105   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      32,293   

Insurance

      3,015   

Miscellaneous

      14,224   
  

 

 

  

Total expenses

      3,575,792   

Less management fee waiver

      (232,968 ) 

Less broker commission recapture

      (61,142 ) 
  

 

 

  

Net expenses

      3,281,682   
  

 

 

  

Net Investment Income

      5,333,591   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      40,966,940   

Foreign currency transactions

      (15,547 ) 
  

 

 

  

Net realized gain

      40,951,393   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (46,037,722 ) 

Foreign currency transactions

      (321 ) 
  

 

 

  

Net change in unrealized depreciation

      (46,038,043 ) 
  

 

 

  

Net realized and unrealized loss

      (5,086,650 ) 
  

 

 

  

Net Increase in Net Assets From Operations

    $ 246,941   
  

 

 

  

 

(a) Net of foreign withholding taxes of $19,669.

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Pioneer Fund Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 5,333,591      $ 5,756,434   

Net realized gain

      40,951,393        43,905,868   

Net change in unrealized appreciation (depreciation)

      (46,038,043 )      1,072,376   
  

 

 

    

 

 

  

Increase in net assets from operations

      246,941        50,734,678   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (4,801,969 )      (6,786,696 ) 

Class B

      (924,949 )      (1,198,381 ) 

Net realized capital gains

     

Class A

      (35,466,716 )      (112,709,894 ) 

Class B

      (8,324,538 )      (22,654,500 ) 
  

 

 

    

 

 

  

Total distributions

      (49,518,172 )      (143,349,471 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      5,027,996        91,558,397   
  

 

 

    

 

 

  

Total decrease in net assets

      (44,243,235 )      (1,056,396 ) 

Net Assets

     

Beginning of period

      485,182,037        486,238,433   
  

 

 

    

 

 

  

End of period

    $ 440,938,802      $ 485,182,037   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 5,098,356      $ 5,592,003   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      228,502      $ 3,142,588        298,155      $ 4,394,024   

Reinvestments

      3,009,618        40,268,685        9,170,882        119,496,590   

Redemptions

      (3,477,356 )      (47,778,711 )      (3,933,324 )      (58,681,345 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (239,236 )    $ (4,367,438 )      5,535,713      $ 65,209,269   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      1,280,863      $ 17,497,897        1,389,118      $ 21,148,481   

Reinvestments

      701,250        9,249,487        1,853,370        23,852,881   

Redemptions

      (1,276,627 )      (17,351,950 )      (1,267,672 )      (18,652,234 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      705,486      $ 9,395,434        1,974,816      $ 26,349,128   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 5,027,996        $ 91,558,397   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Pioneer Fund Portfolio

Financial Highlights

Selected per share data  
     Class A  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 14.49       $ 18.69       $ 14.54       $ 13.35       $ 14.15   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.16         0.19         0.22         0.23         0.22   

Net realized and unrealized gain (loss) on investments

      (0.11 )       1.26         4.47         1.18         (0.85 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.05         1.45         4.69         1.41         (0.63 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.18 )       (0.32 )       (0.54 )       (0.22 )       (0.17 ) 

Distributions from net realized capital gains

      (1.36 )       (5.33 )       0.00         0.00         0.00   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (1.54 )       (5.65 )       (0.54 )       (0.22 )       (0.17 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 13.00       $ 14.49       $ 18.69       $ 14.54       $ 13.35   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      0.06         11.16         33.08         10.59         (4.55 ) 

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      0.72         0.72         0.70         0.68         0.69   

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

      0.67         0.67         0.66         0.66         0.68   

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

      1.19         1.24         1.34         1.60         1.56   

Portfolio turnover rate (%)

      53         24         11         49         20   

Net assets, end of period (in millions)

    $ 354.2       $ 398.4       $ 410.4       $ 875.1       $ 789.0   
     Class B  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 14.29       $ 18.50       $ 14.40       $ 13.22       $ 14.04   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.13         0.15         0.18         0.19         0.19   

Net realized and unrealized gain (loss) on investments

      (0.12 )       1.25         4.42         1.18         (0.86 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.01         1.40         4.60         1.37         (0.67 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.15 )       (0.28 )       (0.50 )       (0.19 )       (0.15 ) 

Distributions from net realized capital gains

      (1.36 )       (5.33 )       0.00         0.00         0.00   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (1.51 )       (5.61 )       (0.50 )       (0.19 )       (0.15 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 12.79       $ 14.29       $ 18.50       $ 14.40       $ 13.22   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (0.25 )       10.93         32.71         10.38         (4.87 ) 

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      0.97         0.97         0.95         0.93         0.94   

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

      0.92         0.92         0.91         0.91         0.93   

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

      0.94         0.99         1.09         1.34         1.37   

Portfolio turnover rate (%)

      53         24         11         49         20   

Net assets, end of period (in millions)

    $ 86.7       $ 86.7       $ 75.8       $ 57.1       $ 61.6   

 

(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) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Pioneer Fund Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of

 

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Met Investors Series Trust

Pioneer Fund Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 broker commission recapture, foreign currency transactions and distribution redesignations. These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

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

 

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Met Investors Series Trust

Pioneer Fund Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $4,993,921, 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 December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2015, with a contractual maturity of overnight and continuous.

3. Certain Risks

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”).

Market 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, 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

Pioneer Fund Portfolio

Notes to Financial Statements—December 31, 2015—(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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

 

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 243,221,868       $ 0       $ 282,826,966   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$3,128,585      0.700 %    First $200 million
     0.650 %    $200 million to $500 million
     0.600 %    $500 million to $2 billion
     0.550 %    Over $2 billion

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Pioneer Investment Management, Inc. is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, for the period May 1, 2015 to April 30, 2016, 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 April 28, 2014 to April 30, 2015. Amounts waived for the year ended December 31, 2015 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.

 

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Met Investors Series Trust

Pioneer Fund Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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, LLC, 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 year ended December 31, 2015 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 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$5,888,033    $ 7,985,077       $ 43,630,139       $ 135,364,394       $ 49,518,172       $ 143,349,471   

As of December 31, 2015, 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		      Other
Accumulated
Capital Losses		      Total  
$5,181,025    $ 40,542,881       $ 96,182,669       $ —       $ 141,906,575   

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, 2015, the Portfolio had no post-enactment accumulated capital losses and no pre-enactment accumulated capital loss carryforwards.

8. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes

 

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Met Investors Series Trust

Pioneer Fund Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

9. Subsequent Events

At a meeting held on November 17, 2015, the Board approved the acquisition of the Portfolio by the Metropolitan Series Fund WMC Core Equity Opportunities Portfolio (“WMC Core Equity Opportunities Portfolio”), subject to the approval of shareholders of the Portfolio. On February 26, 2016, the shareholders of the Portfolio will consider the approval of the proposed Agreement and Plan of Reorganization providing for the acquisition of all the assets and assumption of all liabilities of the Portfolio by the WMC Core Equity Opportunities Portfolio in exchange for shares of the WMC Core Equity Opportunities Portfolio. It is anticipated that the reorganization will close on or about April 29, 2016.

 

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Met Investors Series Trust

Pioneer Fund Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Pioneer Fund 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 Pioneer Fund Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 Pioneer Fund Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

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Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-17

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-18

Met Investors Series Trust

Pioneer Fund Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser.

Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-19

Met Investors Series Trust

Pioneer Fund Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

 

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

 

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-20

Met Investors Series Trust

Pioneer Fund Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

Pioneer Fund Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Pioneer Investment Management Inc. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio underperformed the median of its Performance Universe and its Lipper Index for the one-, three-, and five-year periods ended June 30, 2015. The Board further noted that the Portfolio underperformed its benchmark, the S&P 500 Index, for the one-, three-, and five-year periods ended October 31, 2015. The Board took into account management’s discussion of the Portfolio’s performance, including prevailing market conditions.

The Board also considered that the Portfolio’s actual management fees were above the median of the Expense Group, and below the Expense Universe median and Sub-advised Expense Universe median. The Board noted that the Portfolio’s total expenses (exclusive of 12b-1 fees) were equal to the Expense Group median, and below the Expense Universe median and the Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were above the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also took into account that the Portfolio’s contractual sub-advisory fees were above the average of the Sub-advised Expense Group and below the average of the Sub-advised Expense Universe at the Portfolio’s current size.

At the November Meeting, the Board also approved a proposal to reorganize the Portfolio into the WMC Core Equity Opportunities Portfolio, a series of MSF. The Board noted that the Sub-Adviser is expected to continue to manage the Portfolio until the reorganization is completed, which is expected to occur, if approved by shareholders of the Portfolio, on or about May 1, 2016.

 

MIST-21

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Managed by Pioneer Investment Management, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A, B, and E shares of the Pioneer Strategic Income Portfolio returned -1.30%, -1.58%, and -1.46%, respectively. The Portfolio’s benchmark, the Barclays U.S. Universal Index1, returned 0.43%.

MARKET ENVIRONMENT / CONDITIONS

Diverging central bank policies, and diverging growth of developed and emerging market economies, stemming from low oil prices and slower growth in China drove market returns for the year. With U.S. gross domestic product (GDP) improving from a weak start, and employment continuing to strengthen, the Federal Reserve (the “Fed”) finally moved to increase rates, raising the Federal Funds rate by 25 basis points (“bps”) in December, its first rate hike since 2006. This tightening action by the Fed contributed to strong U.S. dollar performance over the year. In contrast, non-U.S. central banks, most notably the European Central Bank (the “ECB”), the People’s Bank of China, and the Bank of Japan, continued on their paths of monetary easing to support economic recovery, or in the case of China, to slow the rate of decline in economic growth. After rallying to $66 per barrel in May, oil prices plummeted to $36 per barrel at year-end, their lowest level since 2008, as Saudi Arabia continued on its path of high production to squeeze out higher cost producers, and excess supply led to record inventory levels. Low oil and low commodities prices, brought on by declining growth in China, hurt commodity-producing economies, particularly those of emerging markets producers, with Brazil and Russia suffering 33% and 20% respective depreciation of their currencies relative to the U.S. dollar. Finally, declining growth in China led to periodic market sell-offs during the year over concerns about the negative impact on global growth.

During the year, the 2-Year Treasury yield breached 1%, rising from 0.68% to 1.06%; the 10-Year yield rose from 2.17% to 2.28%, and the 30-Year yield rose from 2.75% to 3.01%. Overall, U.S. Treasuries returned 0.84%. Higher volatility and increased supply hurt Agency Mortgage-Backed Securities (“MBS”), which returned 1.5% for a -0.05% excess return versus similar-duration Treasuries. Commercial MBS returned 1.0% for -0.3% excess return and Investment Grade Corporate bonds underperformed all other credit asset classes, returning -0.7% for a -1.6% excess return versus similar- duration Treasuries. The sector was weighed down by a heavy new issue calendar and sell-off among Energy and Metals & Mining credits. Within Investment Grade Corporates, Financials outperformed with a 0.5% excess return, compared to a -2.0% excess return for longer-duration Utilities and -2.7% excess return for Industrials. Industrials were hurt by the dramatic -8.0% loss sustained by Energy credits (approximately 10% of investment grade corporates) as well as Mining & Metals credits (2% of investment grade corporates), which were down -15.6%. High Yield Corporates suffered their worst year since 2008, down -4.6%, as spreads widened from 496 bps to 695 bps. Excluding Energy and Metals & Mining, which accounted for an average 13% and 3% of the high yield market, respectively, the High Yield market returned -0.7% for the year, with year-end spreads at 581 bps. High Yield Convertibles were down -10.3%, worse than either High Yield Corporates or the S&P 500 Index, which returned 1.4%. Among floating rate assets, Bank Loans enjoyed strong performance relative to High Yield, returning -0.82%, benefiting from their modest 3.5% Energy exposure and continued Collateralized Loan Obligation (“CLO”) demand. Non-Agency Floating Rate Home Equity Asset-Backed Securities (“ABS”) returned 1.4% and Event-Linked (“Catastrophe”) Bonds represented one of the best fixed income sectors, with its 4.5% return, benefiting from a generally benign hurricane season, and somewhat wider spreads.

German bunds returned 0.33% in local currency terms, and more duration-sensitive Emerging Markets Sovereigns returned 1.8%, while Emerging Market Corporate bonds earned 1.3%. Diverging monetary policies and relative economic strength drove the outperformance of the U.S. Dollar relative to all major developed currencies; the U.S. dollar dramatically outperformed emerging market currencies and also rose 11.4% vs. the euro and 0.4% vs. the yen.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio underperformed its benchmark Index over the year, with Energy exposure the primary detractor from performance and currency exposure also a major detractor. Duration positioning detracted from performance, and relative quality was modestly negative. The average -1.36 year relative short duration position hurt performance during the year. While the Portfolio maintained its shorter duration, rates didn’t rise enough to offset the lost yield associated with our defensive interest rate positioning. The relative short position outperformed in the fourth quarter of the year, as rates rose in expectation of the December rate increase. Yield curve positioning, particularly an underweight to the 2-year Treasury, outperformed, partly offsetting the negative impact of duration positioning, as the yield curve between the 2-year and 10-year maturities flattened.

The Portfolio’s 6.6% exposure to the Energy sector, representing a 3.5% average overweight relative to the Index, detracted from relative performance over the year. A number of individual names hurt performance as well, in particular Diamond Offshore Drilling, the Williams Companies, and Denbury Resources. The latter two credits were downgraded from investment grade to high yield, in the wake of weak energy prices. The impact from foreign currency exposure reflected the negative result of the 0.9% exposure to the Mexican peso, as well as the 0.5% exposure to the Indonesian rupiah, a position which was closed in the second half of the year. In addition, a long Norwegian krone/short euro position underperformed, as the Norwegian krone fell in the wake of declining oil prices.

Overall sector allocation benefit the relative performance of the Portfolio during the year. Non-benchmark exposures, including a 4% allocation to Catastrophe bonds, an 8% exposure to Bank Loans, a 6% allocation to Non-Agency MBS, and a 2% allocation to Preferred Stock, added value as these sectors outperformed. These

 

MIST-1

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Managed by Pioneer Investment Management, Inc.

Portfolio Manager Commentary*—(Continued)

 

benefits were partly offset by the negative impact of the 27% underweight to U.S. Treasuries and the 3% overweight to Investment Grade Industrials.

The strategy used Treasury futures to manage duration and yield curve positioning, and currency forwards to establish active positions in currencies as well as to hedge out currency risk. Over the year, the Portfolio’s futures positions cost nearly 25 bps. The Portfolio also used forwards in developed and emerging market currencies. Non-dollar currency forwards added 51 bps to performance.

The most significant change in positioning over the year was the lengthening of the Portfolio’s duration. As the Fed indicated it would increase rates more gradually than in past rising rate cycles and reduced its view of the long-term nominal neutral rate over the year, the Portfolio lengthened its duration from 3.66 years, representing a relative short duration of -1.76 years, to 4.49 years, representing a relative short duration position of -1.0 years at year-end. The Portfolio added long-duration Treasury Inflation-Protected Securities (“TIPS”), rather than nominal Treasuries, to increase Portfolio duration. In addition, the Portfolio reduced exposure to Agency MBS in favor of newly underwritten high quality, jumbo prime Non-Agency MBS, based on relative value. Finally, the Portfolio modestly reduced exposure to Convertibles, Preferred Stock, and Emerging Market Corporates, to reduce risk, while modestly increasing exposure to select High Yield Corporates to take advantage of spread widening later in the year.

At the end of the period, the Portfolio’s duration stood at 4.49 years, compared to 5.51 years for the Index. The Portfolio continued to hold a barbell flattener, with underweights to the 5-year and 2-year key rate durations as we believed short yields are most vulnerable to a sell-off, if economic growth surprises on the upside. In that circumstance, we would expect the market to price in a quicker increase in the Federal Funds rate by the Fed, which would typically manifest itself via higher 2- and 5-year Treasury rates.

With respect to sector exposures, at year end the Portfolio continued to be positioned for a rising rate environment, with an underweight to developed market government debt, and an overweight to credit sectors, including approximately 39% in diversified non-investment grade sectors. The Portfolio held 5% in U.S. Treasuries, representing a 26% underweight relative to the Index. At year end, we believed U.S. Treasuries offered little value to investors, but may increase our exposure as the Fed increases interest rates. The Portfolio held its largest overweight to High Yield Corporate issuers, which includes 8% in non-benchmark Bank Loans as fundamentals remained relatively strong. Excluding Energy and Metals & Mining, High Yield Corporate bonds offered value with slightly above average spreads and well below average default rates. Leverage has risen, but coverage ratios remain strong. We remained selective with respect to the Portfolio’s Energy exposure, with a focus on investment grade issuers that have manageable cost structures, and those, which are in midstream (pipeline) credits with relatively stable revenue streams. The Portfolio also held an overall overweight to structured credit, with an underweight to Agency MBS and an overweight to Non-Agency MBS, CMBS, and ABS. Non-agency structured credit is attractive, in light of the strong housing and commercial real estate markets in the U.S. The U.S. housing market is strong, benefiting from relatively low mortgage rates, increased household formation, and strong demand from first time homebuyers. The commercial real estate market is benefiting from relatively strong U.S. economic growth. Given our more constructive view of the U.S. dollar and of the U.S. economy, the Portfolio held a net non-U.S. Dollar exposure of 2%, which is significantly lower than its average historical non-Dollar currency position. In addition, the Portfolio continued to hold a relative overweight to U.S. corporate sectors and an underweight to eurozone corporate sectors, with total U.S. exposure at 74%. Through year end, we remained selective with respect to Emerging Markets exposure, in light of the less compelling yield advantage over U.S. assets, stronger U.S. growth, and weaker commodities prices. Emerging Markets country exposure was 11%, for a 3.5% overweight relative to the Index.

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, 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 subject to change at any time based upon economic, market, or other conditions and the advisory 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year        Since Inception2  
Pioneer Strategic Income Portfolio                      

Class A

        -1.30           3.93           6.24           —   

Class B

        -1.58           —           —           1.72   

Class E

        -1.46           3.77           —           6.05   
Barclays U.S. Universal Index        0.43           3.46           4.67           —   

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 dates of the Class A, Class B and Class E shares are 6/16/1994, 7/17/2013 and 4/28/2008, respectively.

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 DECEMBER 31, 2015

Top Sectors

 

     % of
Net Assets		  
Corporate Bonds & Notes      45.5   
U.S. Treasury & Government Agencies      18.0   
Mortgage-Backed Securities      10.6   
Floating Rate Loans      7.6   
Foreign Government      5.6   
Asset-Backed Securities      4.4   
Municipals      3.2   
Convertible Bonds      1.3   
Preferred Stocks      0.9   
Convertible Preferred Stocks      0.6   

 

MIST-3

Met Investors Series Trust

Pioneer Strategic Income 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A

    Actual      0.61 %     $ 1,000.00         $ 977.80         $ 3.04   
   Hypothetical*      0.61 %     $ 1,000.00         $ 1,022.13         $ 3.11   

Class B

    Actual      0.86 %     $ 1,000.00         $ 976.40         $ 4.28   
   Hypothetical*      0.86 %     $ 1,000.00         $ 1,020.87         $ 4.38   

Class E

    Actual      0.76 %     $ 1,000.00         $ 976.70         $ 3.79   
   Hypothetical*      0.76 %     $ 1,000.00         $ 1,021.37         $ 3.87   

* 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 (184 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 December 31, 2015

Corporate Bonds & Notes—45.5% of Net Assets

 

Security Description   Principal
Amount*		     Value  

Agriculture—0.5%

    

Alliance One International, Inc.
9.875%, 07/15/21 (a)

     1,875,000      $ 1,378,125   

MHP S.A.
8.250%, 04/02/20 (144A)

     1,800,000        1,557,000   

Reynolds American, Inc.
3.750%, 05/20/23 (144A)

     800,000        798,165   

Viterra, Inc.
5.950%, 08/01/20 (144A)

     2,760,000        2,346,000   
   

 

 

  
      6,079,290   
   

 

 

  

Airlines—0.7%

  

Air Canada Pass-Through Trust
4.125%, 05/15/25 (144A)

     746,304        745,371   

American Airlines Pass-Through Trust
3.600%, 09/22/27

     1,625,000        1,641,250   

4.400%, 09/22/23

     975,000        967,687   

Delta Air Lines Pass-Through Trust
4.950%, 05/23/19

     378,521        397,448   

6.375%, 01/02/16 (144A)

     725,000        727,719   

Hawaiian Airlines Pass-Through Certificates
3.900%, 01/15/26

     443,671        432,579   

Latam Airlines Pass-Through Trust
4.200%, 11/15/27 (144A) (a)

     2,900,000        2,718,750   

TAM Capital 3, Inc.
8.375%, 06/03/21 (144A) (a)

     460,000        363,860   
   

 

 

  
      7,994,664   
   

 

 

  

Auto Manufacturers—0.1%

  

Hyundai Capital Services, Inc.
3.500%, 09/13/17 (144A) (a)

     660,000        672,249   
   

 

 

  

Auto Parts & Equipment—0.0%

  

Commercial Vehicle Group, Inc.
7.875%, 04/15/19

     235,000        205,625   

Meritor, Inc.
6.250%, 02/15/24 (a)

     265,000        226,575   
   

 

 

  
      432,200   
   

 

 

  

Banks—7.4%

  

Alfa Bank OJSC Via Alfa Bond Issuance plc
7.500%, 09/26/19 (144A) (a)

     2,150,000        2,184,766   

8.625%, 04/26/16 (144A) (RUB)

     41,800,000        565,233   

Australia & New Zealand Banking Group, Ltd.
4.500%, 03/19/24 (144A) (a)

     1,470,000        1,475,221   

Banco de Credito del Peru
6.875%, 09/16/26 (144A) (b)

     1,915,000        2,072,988   

Banco Nacional de Costa Rica
4.875%, 11/01/18 (144A)

     1,000,000        992,500   

Banco Santander S.A.
6.375%, 05/19/19 (b)

     1,400,000        1,330,000   

Bank of America Corp.
6.110%, 01/29/37

     950,000        1,077,965   

6.250%, 09/05/24 (b)

     2,750,000        2,756,875   

6.500%, 10/23/24 (a) (b)

     3,575,000        3,767,156   

Banks—(Continued)

  

Bank of New York Mellon Corp. (The)
4.500%, 06/20/23 (b)

     925,000      846,375   

BBVA Bancomer S.A.
4.375%, 04/10/24 (144A) (a)

     650,000        641,875   

5.350%, 11/12/29 (144A) (a) (b)

     400,000        392,000   

6.500%, 03/10/21 (144A)

     4,110,000        4,356,600   

BNP Paribas S.A.
4.375%, 09/28/25 (144A)

     3,000,000        2,937,966   

Capital One Financial Corp.
5.550%, 06/01/20 (a) (b)

     3,350,000        3,333,250   

Citigroup, Inc.
5.900%, 02/15/23 (a) (b)

     1,275,000        1,252,688   

5.950%, 01/30/23 (b)

     3,016,000        2,951,156   

Credit Agricole S.A.
6.625%, 09/23/19 (144A) (a) (b)

     4,325,000        4,251,475   

7.875%, 01/23/24 (144A) (a) (b)

     1,750,000        1,789,375   

Credit Suisse Group Funding Guernsey, Ltd.
3.800%, 09/15/22 (144A)

     3,600,000        3,597,160   

Goldman Sachs Group, Inc. (The)
5.200%, 12/17/19 (NZD)

     2,480,000        1,753,858   

ING Groep NV
6.500%, 04/16/25 (b)

     4,326,000        4,225,961   

Intesa Sanpaolo S.p.A.
6.500%, 02/24/21 (144A)

     1,175,000        1,332,793   

7.700%, 09/17/25 (144A) (a) (b)

     2,950,000        3,005,312   

JPMorgan Chase & Co.
4.250%, 11/02/18 (NZD)

     2,600,000        1,798,640   

6.750%, 02/01/24 (a) (b)

     5,664,000        6,173,760   

Macquarie Bank, Ltd.
4.875%, 06/10/25 (144A) (a)

     2,100,000        2,072,608   

Morgan Stanley
4.100%, 05/22/23

     2,500,000        2,525,503   

4.875%, 11/01/22

     450,000        477,563   

5.550%, 07/15/20 (b)

     325,000        325,000   

6.625%, 04/01/18

     714,000        782,922   

Nordea Bank AB
4.250%, 09/21/22 (144A) (a)

     3,400,000        3,482,858   

Oversea-Chinese Banking Corp., Ltd.
4.000%, 10/15/24 (144A) (a) (b)

     800,000        813,884   

PNC Financial Services Group, Inc. (The)
6.750%, 08/01/21 (b)

     1,970,000        2,095,588   

Royal Bank of Scotland Group plc
7.500%, 08/10/20 (b)

     2,350,000        2,446,938   

8.000%, 08/10/25 (a) (b)

     1,150,000        1,216,125   

Scotia Bank Peru DPR Finance Co.
3.262%, 03/15/17 (144A) (b)

     263,158        262,997   

Scotiabank Peru S.A.
4.500%, 12/13/27 (144A) (a) (b)

     1,900,000        1,824,000   

Standard Chartered plc
3.950%, 01/11/23 (144A)

     3,275,000        3,150,543   

UBS AG
7.625%, 08/17/22

     2,850,000        3,249,000   

VTB Bank OJSC Via VTB Capital S.A.
6.950%, 10/17/22 (144A) (a)

     700,000        665,000   
   

 

 

  
      86,253,477   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Beverages—0.2%

  

Anheuser-Busch InBev Worldwide, Inc.
7.750%, 01/15/19

     1,254,000      $ 1,449,543   

Constellation Brands, Inc.
4.750%, 11/15/24

     455,000        464,100   
   

 

 

  
      1,913,643   
   

 

 

  

Biotechnology—0.4%

  

Biogen, Inc.
3.625%, 09/15/22

     1,350,000        1,364,953   

4.050%, 09/15/25

     1,625,000        1,632,374   

Gilead Sciences, Inc.
4.600%, 09/01/35

     1,800,000        1,830,299   
   

 

 

  
      4,827,626   
   

 

 

  

Building Materials—0.9%

  

Building Materials Corp. of America
5.375%, 11/15/24 (144A)

     1,640,000        1,635,900   

Cemex Espana S.A.
9.875%, 04/30/19 (144A)

     1,420,000        1,501,650   

Cemex S.A.B. de C.V.
7.250%, 01/15/21 (144A)

     800,000        770,000   

Desarrolladora Homex S.A.B. de C.V.
9.500%, 12/11/19 (144A) (c) (d)

     855,000        12,825   

9.750%, 03/25/20 (144A) (c) (d)

     655,000        9,825   

Holcim U.S. Finance Sarl & Cie SCS
6.000%, 12/30/19 (144A)

     225,000        249,554   

Masco Corp.
5.950%, 03/15/22

     1,425,000        1,539,000   

7.125%, 03/15/20

     2,905,000        3,355,275   

Owens Corning
4.200%, 12/01/24

     1,100,000        1,070,575   

Union Andina de Cementos SAA
5.875%, 10/30/21 (144A) (a)

     770,000        743,050   
   

 

 

  
      10,887,654   
   

 

 

  

Chemicals—1.2%

  

Agrium, Inc.
5.250%, 01/15/45

     4,475,000        4,171,389   

Blue Cube Spinco, Inc.
9.750%, 10/15/23 (144A)

     225,000        242,719   

10.000%, 10/15/25 (144A)

     225,000        247,500   

Eastman Chemical Co.
4.800%, 09/01/42

     740,000        679,411   

EuroChem Mineral & Chemical Co. OJSC via EuroChem Global Investments, Ltd.
5.125%, 12/12/17 (144A)

     600,000        601,500   

Hexion, Inc.
8.875%, 02/01/18 (a)

     285,000        200,925   

Hexion, Inc. / Hexion Nova Scotia Finance ULC
9.000%, 11/15/20

     655,000        250,537   

Ineos Finance plc
4.000%, 05/01/23 (144A) (EUR)

     2,505,000        2,599,804   

Methanex Corp.
4.250%, 12/01/24

     1,225,000        1,086,083   

Chemicals—(Continued)

  

NOVA Chemicals Corp.
5.000%, 05/01/25 (144A) (a)

     645,000      622,425   

Phosagro OAO via Phosagro Bond Funding, Ltd.
4.204%, 02/13/18 (144A)

     900,000        888,525   

Platform Specialty Products Corp.
6.500%, 02/01/22 (144A) (a)

     625,000        540,625   

PSPC Escrow Corp.
6.000%, 02/01/23 (144A) (EUR)

     190,000        176,543   

Rain CII Carbon LLC / CII Carbon Corp.
8.000%, 12/01/18 (144A)

     1,275,000        1,093,312   

Rentech Nitrogen Partners L.P. / Rentech Nitrogen Finance Corp.
6.500%, 04/15/21 (144A)

     360,000        349,200   
   

 

 

  
      13,750,498   
   

 

 

  

Commercial Services—1.0%

  

Amherst College
3.794%, 11/01/42

     400,000        380,096   

Board of Trustees of The Leland Stanford Junior University (The)
4.750%, 05/01/19 (a)

     950,000        1,032,868   

Massachusetts Institute of Technology
5.600%, 07/01/2111

     800,000        978,647   

President and Fellows of Harvard College
2.300%, 10/01/23

     1,000,000        945,047   

Red de Carreteras de Occidente SAPIB de C.V.
9.000%, 06/10/28 (144A) (MXN)

     15,000,000        837,050   

Rent-A-Center, Inc.
6.625%, 11/15/20

     350,000        296,625   

SFX Entertainment, Inc.
9.625%, 02/01/19 (144A)

     2,950,000        1,593,000   

Tufts University
5.017%, 04/15/2112

     2,700,000        2,777,984   

University of Southern California
5.250%, 10/01/2111

     550,000        621,660   

Verisk Analytics, Inc.
5.500%, 06/15/45

     1,730,000        1,651,742   

William Marsh Rice University
4.626%, 05/15/63

     900,000        939,982   
   

 

 

  
      12,054,701   
   

 

 

  

Computers—0.2%

  

Brocade Communications Systems, Inc.
4.625%, 01/15/23

     550,000        522,500   

NCR Corp.
6.375%, 12/15/23 (a)

     1,970,000        1,940,450   
   

 

 

  
      2,462,950   
   

 

 

  

Diversified Financial Services—3.4%

  

Acorn Re, Ltd.
3.663%, 07/17/18 (144A) (b)

     800,000        806,160   

Ally Financial, Inc.
4.625%, 05/19/22

     400,000        402,000   

4.625%, 03/30/25 (a)

     500,000        493,750   

5.750%, 11/20/25

     675,000        683,438   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Diversified Financial Services—(Continued)

  

Atlas Reinsurance VII, Ltd.
8.202%, 01/07/16 (144A) (b)

     250,000      $ 249,850   

Ausdrill Finance Pty, Ltd.
6.875%, 11/01/19 (144A)

     810,000        575,100   

Blackstone Holdings Finance Co. LLC
6.250%, 08/15/42 (144A)

     2,915,000        3,444,303   

Blue Danube II, Ltd.
4.562%, 05/23/16 (144A) (b)

     1,250,000        1,246,625   

BM&FBovespa S.A. - Bolsa de Valores Mercadorias e Futuros
5.500%, 07/16/20 (144A) (a)

     2,000,000        1,965,000   

Cantor Fitzgerald L.P.
7.875%, 10/15/19 (144A)

     2,345,000        2,573,663   

Carlyle Holdings II Finance LLC
5.625%, 03/30/43 (144A)

     3,370,000        3,579,402   

Eden Re II, Ltd.
Zero Coupon, 04/19/18 (144A)

     1,300,000        1,384,500   

Fly Leasing, Ltd.
6.750%, 12/15/20 (a)

     770,000        789,135   

Grain Spectrum Funding II LLC
3.290%, 10/10/19 (144A)

     1,172,892        1,170,546   

ICBCIL Finance Co., Ltd.
2.011%, 11/13/18 (144A) (a) (b)

     2,525,000        2,522,932   

KKR Group Finance Co. II LLC
5.500%, 02/01/43 (144A)

     3,750,000        3,909,585   

Legg Mason, Inc.
5.625%, 01/15/44

     1,150,000        1,142,303   

Macquarie Group, Ltd.
6.000%, 01/14/20 (144A)

     1,400,000        1,545,163   

6.250%, 01/14/21 (144A)

     400,000        446,444   

Magnesita Finance, Ltd.
8.625%, 04/05/17 (144A)

     750,000        405,000   

Mythen Re, Ltd.
9.033%, 01/05/17 (144A) (b)

     1,200,000        1,233,720   

Nationstar Mortgage LLC / Nationstar Capital Corp.
6.500%, 06/01/22

     835,000        722,275   

Neuberger Berman Group LLC / Neuberger Berman Finance Corp.
4.875%, 04/15/45 (144A)

     1,825,000        1,538,800   

Sector Re V, Ltd.
Zero Coupon, 12/01/19 (144A)

     5,666        181,914   

Zero Coupon, 03/01/20 (144A)

     850,000        972,490   

Zero Coupon, 12/01/20 (144A)

     700,000        703,290   

SUAM Finance B.V.
4.875%, 04/17/24 (144A) (a)

     975,000        989,625   

Vita Capital V, Ltd.
2.863%, 01/15/17 (144A) (b)

     500,000        503,250   

3.563%, 01/15/17 (144A) (b)

     3,200,000        3,225,600   
   

 

 

  
      39,405,863   
   

 

 

  

Electric—2.4%

  

Consolidated Edison Co. of New York, Inc.
4.625%, 12/01/54

     3,225,000        3,173,242   

Electric—(Continued)

  

Electricite de France S.A.
5.250%, 01/29/23 (144A) (a) (b)

     950,000      893,000   

6.000%, 01/22/14 (144A)

     4,000,000        3,913,920   

Empresa Electrica Angamos S.A.
4.875%, 05/25/29 (144A)

     1,670,000        1,489,785   

Enel S.p.A.
8.750%, 09/24/73 (144A) (b)

     2,090,000        2,379,987   

FPL Energy American Wind LLC
6.639%, 06/20/23 (144A)

     186,134        186,134   

FPL Energy Wind Funding LLC
6.876%, 06/27/17 (144A)

     71,586        69,439   

Iberdrola International B.V.
6.750%, 07/15/36 (a)

     2,125,000        2,604,226   

Israel Electric Corp., Ltd.
6.700%, 02/10/17 (144A)

     770,000        803,726   

7.250%, 01/15/19 (144A)

     845,000        936,524   

9.375%, 01/28/20 (144A)

     410,000        499,585   

Kiowa Power Partners LLC
5.737%, 03/30/21 (144A)

     610,405        643,977   

NRG Energy, Inc.
6.250%, 05/01/24 (a)

     1,350,000        1,134,270   

Panoche Energy Center LLC
6.885%, 07/31/29 (144A)

     745,359        857,149   

Public Service Co. of New Mexico
7.950%, 05/15/18

     625,000        699,409   

Southern California Edison Co.
6.250%, 02/01/22 (b)

     1,575,000        1,735,256   

Star Energy Geothermal Wayang Windu, Ltd.
6.125%, 03/27/20 (144A)

     1,300,000        1,229,800   

Talen Energy Supply LLC
4.625%, 07/15/19 (144A) (a)

     1,965,000        1,473,750   

6.500%, 06/01/25 (144A) (a)

     1,675,000        1,105,500   

Terraform Global Operating LLC
9.750%, 08/15/22 (144A)

     1,085,000        865,287   

West Penn Power Co.
5.950%, 12/15/17 (144A)

     1,197,000        1,283,037   
   

 

 

  
      27,977,003   
   

 

 

  

Electrical Components & Equipment—0.0%

  

Legrand France S.A.
8.500%, 02/15/25

     20,000        26,569   
   

 

 

  

Electronics—0.2%

  

Flextronics International, Ltd.
4.625%, 02/15/20 (a)

     780,000        806,469   

5.000%, 02/15/23

     1,300,000        1,317,875   
   

 

 

  
      2,124,344   
   

 

 

  

Energy - Alternate Sources—0.2%

  

Alta Wind Holdings LLC
7.000%, 06/30/35 (144A)

     266,455        285,439   

ContourGlobal Power Holdings S.A.
7.125%, 06/01/19 (144A)

     1,165,000        1,106,750   

TerraForm Power Operating LLC
5.875%, 02/01/23 (144A)

     760,000        628,900   
   

 

 

  
      2,021,089   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Engineering & Construction—0.1%

  

Abengoa Finance SAU
8.875%, 11/01/17 (144A)

     500,000      $ 73,750   

Aguila 3 S.A.
7.875%, 01/31/18 (144A)

     400,000        401,000   

Empresas ICA S.A.B. de C.V.
8.375%, 07/24/17 (144A)

     550,000        136,125   

8.900%, 02/04/21 (144A)

     1,500,000        318,750   
   

 

 

  
      929,625   
   

 

 

  

Entertainment—0.2%

  

Mashantucket Western Pequot Tribe
6.500%, 07/01/36 (e) (f)

     22,596        113   

Scientific Games International, Inc.
10.000%, 12/01/22

     2,600,000        1,846,000   
   

 

 

  
      1,846,113   
   

 

 

  

Food—1.2%

  

BRF S.A.
3.950%, 05/22/23 (144A)

     600,000        541,500   

CFG Investment SAC
9.750%, 07/30/19 (144A)

     995,000        467,650   

Darling Global Finance B.V.
4.750%, 05/30/22 (144A) (EUR)

     395,000        414,456   

Grupo Bimbo S.A.B. de C.V.
3.875%, 06/27/24 (144A)

     1,800,000        1,749,398   

JBS Investments GmbH
7.750%, 10/28/20 (144A)

     890,000        854,400   

JBS USA LLC / JBS USA Finance, Inc.
5.750%, 06/15/25 (144A)

     795,000        691,650   

Marfrig Holding Europe B.V.
6.875%, 06/24/19 (144A)

     2,885,000        2,574,863   

8.375%, 05/09/18 (144A)

     1,200,000        1,152,000   

Marfrig Overseas, Ltd.
9.500%, 05/04/20 (144A)

     825,000        808,500   

Minerva Luxembourg S.A.
7.750%, 01/31/23 (144A)

     1,950,000        1,833,000   

12.250%, 02/10/22 (144A)

     800,000        808,000   

Post Holdings, Inc.
6.750%, 12/01/21 (144A)

     1,235,000        1,259,700   

7.750%, 03/15/24 (144A)

     650,000        680,875   
   

 

 

  
      13,835,992   
   

 

 

  

Forest Products & Paper—0.3%

  

International Paper Co.
3.800%, 01/15/26 (a)

     500,000        492,623   

6.000%, 11/15/41

     1,800,000        1,887,710   

Resolute Forest Products, Inc.
5.875%, 05/15/23 (a)

     1,880,000        1,367,700   
   

 

 

  
      3,748,033   
   

 

 

  

Gas—0.2%

  

Nakilat, Inc.
6.067%, 12/31/33 (144A)

     520,000        570,960   

6.267%, 12/31/33 (144A)

     1,200,049        1,320,654   
   

 

 

  
      1,891,614   
   

 

 

  

Hand/Machine Tools—0.1%

  

Stanley Black & Decker, Inc.
5.750%, 12/15/53 (b)

     1,525,000      1,601,250   
   

 

 

  

Healthcare-Services—0.5%

  

HCA, Inc.
6.500%, 02/15/20

     350,000        381,325   

7.690%, 06/15/25

     50,000        53,875   

8.360%, 04/15/24

     50,000        56,500   

Kindred Healthcare, Inc.
6.375%, 04/15/22

     890,000        738,700   

MEDNAX, Inc.
5.250%, 12/01/23 (144A)

     750,000        753,750   

Molina Healthcare, Inc.
5.375%, 11/15/22 (144A)

     1,555,000        1,555,000   

NYU Hospitals Center
4.428%, 07/01/42

     1,800,000        1,710,772   
   

 

 

  
      5,249,922   
   

 

 

  

Home Builders—0.6%

  

Brookfield Residential Properties, Inc. / Brookfield Residential U.S. Corp.
6.125%, 07/01/22 (144A)

     445,000        411,625   

DR Horton, Inc.
5.750%, 08/15/23

     1,375,000        1,465,750   

KB Home
7.000%, 12/15/21

     1,800,000        1,775,250   

Meritage Homes Corp.
7.000%, 04/01/22

     2,500,000        2,618,750   

Toll Brothers Finance Corp.
4.875%, 11/15/25

     575,000        564,938   
   

 

 

  
      6,836,313   
   

 

 

  

Home Furnishings—0.1%

  

Arcelik A/S
5.000%, 04/03/23 (144A) (a)

     1,090,000        993,670   
   

 

 

  

Household Products/Wares—0.2%

  

Controladora Mabe S.A. de C.V.
7.875%, 10/28/19 (144A)

     2,121,000        2,290,680   
   

 

 

  

Insurance—5.4%

    

Alamo Re, Ltd.
6.063%, 06/07/18 (144A) (b)

     400,000        409,640   

Arlington Segregated Account (Kane SAC, Ltd.)
Zero Coupon, 08/31/16 (f)

     300,000        326,640   

AXA S.A.
8.600%, 12/15/30

     1,320,000        1,773,749   

Brown & Brown, Inc.
4.200%, 09/15/24

     3,000,000        2,962,365   

Caelus Re, Ltd.
5.250%, 03/07/16 (144A) (b)

     1,150,000        1,149,540   

7.013%, 04/07/17 (144A) (b)

     1,050,000        1,073,835   

Carnoustie Segregated Account (Kane SAC, Ltd.)
Zero Coupon, 02/19/16 (f)

     1,200,000        1,396,200   

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Insurance—(Continued)

    

Clarendon Segregated Account (Kane SAC, Ltd.)
Zero Coupon, 06/15/16 (f)

     400,000      $ 399,840   

Delphi Financial Group, Inc.
7.875%, 01/31/20

     2,190,000        2,545,991   

East Lane Re V, Ltd.
9.163%, 03/16/16 (144A) (b)

     250,000        252,900   

Exeter Segregated Account (Kane SAC, Ltd.)
Zero Coupon, 01/07/16

     1,644,300        1,800,015   

Galileo Re, Ltd.
7.563%, 01/09/17 (144A) (b)

     1,000,000        1,007,000   

Golden State RE II, Ltd.
2.363%, 01/08/19 (144A) (b)

     1,000,000        992,800   

Gullane Segregated Account (Kane SAC, Ltd.)
Zero Coupon, 04/29/16 (f)

     1,900,000        2,162,390   

Hereford Segregated Account (Kane SAC, Ltd.)
Zero Coupon, 01/07/16

     504,600        600,020   

Ibis Re II, Ltd.
4.163%, 06/28/16 (144A) (b)

     750,000        754,800   

4.663%, 06/28/16 (144A) (b)

     250,000        252,200   

Kilimanjaro Re, Ltd.
3.913%, 11/25/19 (144A) (b)

     1,050,000        1,040,235   

4.663%, 04/30/18 (144A) (b)

     250,000        246,700   

4.913%, 04/30/18 (144A) (b)

     1,900,000        1,888,410   

6.913%, 12/06/19 (144A) (b)

     800,000        801,200   

9.413%, 12/06/19 (144A) (b)

     500,000        501,950   

Liberty Mutual Insurance Co.
7.697%, 10/15/97 (144A)

     2,600,000        3,209,196   

Loma Reinsurance, Ltd.
8.423%, 01/08/18 (144A) (b)

     300,000        308,160   

Longpoint Re, Ltd. III
3.750%, 05/23/18 (144A) (b)

     1,300,000        1,313,130   

4.363%, 05/18/16 (144A) (b)

     2,075,000        2,084,545   

LRE 2015 Segregated Account (Prime Bermuda)
Zero Coupon, 03/30/18 (f)

     750,000        836,100   

Merna Re V, Ltd.
2.163%, 04/07/17 (144A) (b)

     1,000,000        997,800   

Muirfield Segregated Account (Kane SAC, Ltd.)
Zero Coupon, 01/07/16

     800,400        899,970   

Northshore Re, Ltd.
7.413%, 07/05/16 (144A) (b)

     1,100,000        1,113,420   

OneBeacon U.S. Holdings, Inc.
4.600%, 11/09/22

     1,200,000        1,206,125   

Pangaea Re Segregated Account (Kane SAC, Ltd.)
Zero Coupon, 02/01/19 (f)

     1,200,000        1,395,720   

Pangaea Segregated Account (Kane SAC, Ltd.)
Zero Coupon, 11/20/19 (f)

     1,000,000        1,059,600   

PennUnion Re, Ltd.
4.663%, 12/07/18 (144A) (b)

     1,000,000        995,800   

Prudential Financial, Inc.
5.625%, 06/15/43 (b)

     1,750,000        1,789,375   

5.875%, 09/15/42 (b)

     1,200,000        1,247,400   

8.875%, 06/15/38 (b)

     915,000        1,029,375   

Queen Street VII Re, Ltd.
8.763%, 04/08/16 (144A) (b)

     950,000        954,370   

Insurance—(Continued)

    

Queen Street XI Re Dac
6.394%, 06/07/19 (144A) (b)

     500,000      499,650   

Residential Reinsurance 2012, Ltd.
4.663%, 12/06/16 (144A) (b)

     1,400,000        1,408,260   

5.913%, 12/06/16 (144A) (b)

     1,250,000        1,266,375   

8.163%, 06/06/16 (144A) (b)

     950,000        967,480   

10.163%, 06/06/16 (144A) (b)

     800,000        821,600   

Residential Reinsurance 2013, Ltd.
9.413%, 06/06/17 (144A) (b)

     350,000        368,095   

Residential Reinsurance 2015, Ltd.
7.413%, 12/06/19 (144A) (b)

     250,000        248,875   

Sanders Re, Ltd.
3.163%, 05/25/18 (144A) (b)

     500,000        488,300   

3.663%, 05/05/17 (144A) (b)

     500,000        495,850   

4.003%, 06/07/17 (144A) (b)

     750,000        748,050   

4.163%, 05/05/17 (144A) (b)

     1,500,000        1,495,650   

Silverton Re, Ltd.
Zero Coupon, 09/17/18 (144A)

     850,000        850,000   

St. Andrews Segregated Account (Kane SAC, Ltd.)
Zero Coupon, 01/22/16 (f)

     1,200,000        1,350,840   

Tar Heel Re, Ltd.
8.663%, 05/09/16 (144A) (b)

     2,650,000        2,705,385   

Tokio Tralee 2015 Re
Zero Coupon, 07/15/17 (JPY)

     90,479,517        751,794   

Troon Segregated Account (Kane SAC, Ltd.)
Zero Coupon, 01/07/16

     825,900        899,983   

Vitality Re IV, Ltd.
2.913%, 01/09/17 (144A) (b)

     400,000        402,160   

Vitality Re V, Ltd.
1.913%, 01/07/19 (144A) (b)

     250,000        246,925   

2.663%, 01/07/19 (144A) (b)

     250,000        251,350   

Voya Financial, Inc.
5.650%, 05/15/53 (b)

     875,000        861,875   

Wilton Re Finance LLC
5.875%, 03/30/33 (144A) (b)

     1,050,000        1,101,649   
   

 

 

  
      63,008,652   
   

 

 

  

Internet—0.3%

  

Expedia, Inc.
4.500%, 08/15/24

     2,400,000        2,316,360   

5.950%, 08/15/20 (a)

     675,000        736,502   
   

 

 

  
      3,052,862   
   

 

 

  

Investment Company Security—0.1%

  

Gruposura Finance S.A.
5.700%, 05/18/21 (144A)

     915,000        955,031   
   

 

 

  

Iron/Steel—0.4%

  

Allegheny Technologies, Inc.
9.375%, 06/01/19

     1,135,000        908,000   

Evraz, Inc. N.A. Canada
7.500%, 11/15/19 (144A)

     2,050,000        1,916,750   

Metalloinvest Finance, Ltd.
5.625%, 04/17/20 (144A) (a)

     600,000        576,732   

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Iron/Steel—(Continued)

  

Samarco Mineracao S.A.
4.125%, 11/01/22 (144A) (a)

     1,275,000      $ 408,000   

Worthington Industries, Inc.
4.550%, 04/15/26

     710,000        701,415   
   

 

 

  
      4,510,897   
   

 

 

  

Leisure Time—0.2%

  

NCL Corp., Ltd.
4.625%, 11/15/20 (144A)

     1,090,000        1,067,350   

5.250%, 11/15/19 (144A)

     700,000        715,316   
   

 

 

  
      1,782,666   
   

 

 

  

Lodging—0.2%

  

MGM Resorts International
6.000%, 03/15/23 (a)

     2,085,000        2,069,363   

Wynn Macau, Ltd.
5.250%, 10/15/21 (144A) (a)

     479,000        421,520   
   

 

 

  
      2,490,883   
   

 

 

  

Machinery - Construction & Mining—0.0%

  

Ormat Funding Corp.
8.250%, 12/30/20

     572,856        572,856   
   

 

 

  

Machinery - Diversified—0.2%

  

Cummins, Inc.
5.650%, 03/01/98

     2,375,000        2,479,586   
   

 

 

  

Media—0.9%

  

Altice Financing S.A.
6.500%, 01/15/22 (144A)

     1,250,000        1,237,500   

CCO Safari LLC
6.384%, 10/23/35 (144A)

     3,135,000        3,167,388   

DIRECTV Holdings LLC / DIRECTV Financing Co., Inc.
3.950%, 01/15/25 (a)

     4,723,000        4,655,980   

Globo Comunicacao e Participacoes S.A.
4.843%, 06/08/25 (144A)

     715,000        643,500   

Numericable-SFR SAS
6.000%, 05/15/22 (144A)

     975,000        945,750   
   

 

 

  
      10,650,118   
   

 

 

  

Metal Fabricate/Hardware—0.1%

  

Elementia S.A.B. de C.V.
5.500%, 01/15/25 (144A)

     1,530,000        1,399,950   

Valmont Industries, Inc.
6.625%, 04/20/20

     314,000        347,897   
   

 

 

  
      1,747,847   
   

 

 

  

Mining—0.8%

  

Freeport-McMoRan, Inc.
3.875%, 03/15/23 (a)

     1,605,000        914,850   

Fresnillo plc
5.500%, 11/13/23 (144A)

     1,275,000        1,281,375   

Mining—(Continued)

  

Glencore Funding LLC
4.125%, 05/30/23 (144A)

     875,000      645,321   

Gold Fields Orogen Holding BVI, Ltd.
4.875%, 10/07/20 (144A)

     3,310,000        2,465,950   

MMC Norilsk Nickel OJSC via MMC Finance, Ltd.
5.550%, 10/28/20 (144A)

     1,400,000        1,401,708   

6.625%, 10/14/22 (144A)

     700,000        712,600   

Vedanta Resources plc
6.000%, 01/31/19 (144A)

     1,150,000        727,878   

9.500%, 07/18/18 (144A)

     725,000        536,464   

Volcan Cia Minera SAA
5.375%, 02/02/22 (144A)

     340,000        215,900   
   

 

 

  
      8,902,046   
   

 

 

  

Multi-National—1.3%

  

Africa Finance Corp.
4.375%, 04/29/20 (144A)

     1,950,000        1,955,421   

European Bank for Reconstruction & Development 6.000%, 03/03/16 (INR)

     227,300,000        3,430,377   

Inter-American Development Bank
6.000%, 09/05/17 (INR)

     37,550,000        559,292   

International Bank for Reconstruction & Development
4.625%, 10/06/21 (NZD)

     1,930,000        1,378,320   

5.750%, 10/21/19 (AUD)

     1,600,000        1,294,177   

International Finance Corp.
6.300%, 11/25/24 (INR)

     47,580,000        671,801   

7.750%, 12/03/16 (INR)

     189,120,000        2,869,916   

8.250%, 06/10/21 (INR)

     190,030,000        3,008,509   
   

 

 

  
      15,167,813   
   

 

 

  

Municipal—0.2%

  

Brazil Minas SPE via State of Minas Gerais
5.333%, 02/15/28 (144A)

     3,000,000        2,257,500   
   

 

 

  

Oil & Gas—2.5%

  

Antero Resources Corp.
5.375%, 11/01/21

     1,465,000        1,172,000   

Blue Racer Midstream LLC / Blue Racer Finance Corp.
6.125%, 11/15/22 (144A)

     1,875,000        1,293,750   

Bonanza Creek Energy, Inc.
5.750%, 02/01/23

     840,000        436,800   

Calumet Specialty Products Partners L.P. / Calumet Finance Corp.
6.500%, 04/15/21

     1,073,000        933,510   

Carrizo Oil & Gas, Inc.
7.500%, 09/15/20

     830,000        725,212   

Denbury Resources, Inc.
4.625%, 07/15/23 (a)

     1,845,000        593,869   

5.500%, 05/01/22 (a)

     775,000        257,285   

Dolphin Energy, Ltd.
5.500%, 12/15/21 (144A)

     470,000        516,887   

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Oil & Gas—(Continued)

  

Ensco plc
4.500%, 10/01/24 (a)

     2,550,000      $ 1,755,346   

EP Energy LLC / Everest Acquisition Finance, Inc.
7.750%, 09/01/22

     30,000        15,300   

9.375%, 05/01/20

     1,575,000        1,004,062   

Gazprom OAO Via Gaz Capital S.A.
4.950%, 07/19/22 (144A)

     200,000        187,202   

8.146%, 04/11/18 (144A)

     190,000        204,468   

Hilcorp Energy I L.P. / Hilcorp Finance Co.
5.750%, 10/01/25 (144A)

     1,505,000        1,309,350   

KazMunayGas National Co. JSC
4.400%, 04/30/23 (144A)

     600,000        557,916   

Linn Energy LLC / Linn Energy Finance Corp.
6.250%, 11/01/19

     287,000        47,355   

8.625%, 04/15/20 (a)

     825,000        141,281   

12.000%, 12/15/20 (144A)

     544,000        272,000   

Newfield Exploration Co.
5.625%, 07/01/24

     1,625,000        1,385,312   

Noble Energy, Inc.
5.625%, 05/01/21

     755,000        738,531   

5.875%, 06/01/22 (a)

     1,160,000        1,103,508   

Novatek OAO via Novatek Finance, Ltd.
4.422%, 12/13/22 (144A)

     2,600,000        2,298,270   

Pacific Exploration and Production Corp.
5.375%, 01/26/19 (144A)

     710,000        134,900   

Petrobras Global Finance B.V.
3.000%, 01/15/19 (a)

     2,375,000        1,805,000   

Petroleos Mexicanos
7.190%, 09/12/24 (144A) (MXN)

     2,715,000        145,840   

Rosneft Finance S.A.
6.625%, 03/20/17 (144A)

     375,000        383,812   

7.500%, 07/18/16 (144A)

     1,090,000        1,114,525   

Rowan Cos., Inc.
4.750%, 01/15/24 (a)

     3,125,000        2,222,244   

5.850%, 01/15/44

     1,305,000        787,497   

SM Energy Co.
5.000%, 01/15/24 (a)

     210,000        136,500   

5.625%, 06/01/25 (a)

     695,000        458,700   

6.500%, 01/01/23

     195,000        143,325   

Swift Energy Co.
7.875%, 03/01/22 (f)

     1,130,000        90,400   

Tesoro Corp.
5.375%, 10/01/22 (a)

     1,630,000        1,634,075   

Valero Energy Corp.
9.375%, 03/15/19

     1,230,000        1,453,159   

WPX Energy, Inc.
7.500%, 08/01/20 (a)

     1,675,000        1,356,750   
   

 

 

  
      28,815,941   
   

 

 

  

Oil & Gas Services—0.5%

  

Freeport-McMoran Oil & Gas LLC / FCX Oil & Gas, Inc.
6.750%, 02/01/22

     2,278,000        1,400,970   

SESI LLC
7.125%, 12/15/21

     1,274,000        1,133,860   

Oil & Gas Services—(Continued)

  

Weatherford International, Ltd.
5.950%, 04/15/42

     3,575,000      2,511,437   

9.625%, 03/01/19

     1,209,000        1,177,264   
   

 

 

  
      6,223,531   
   

 

 

  

Packaging & Containers—0.4%

  

AEP Industries, Inc.
8.250%, 04/15/19

     290,000        297,975   

Ardagh Packaging Finance plc
9.125%, 10/15/20 (144A)

     2,325,000        2,394,750   

9.250%, 10/15/20 (144A) (EUR)

     400,000        454,288   

Ardagh Packaging Finance plc / Ardagh Holdings USA, Inc.
6.750%, 01/31/21 (144A)

     300,000        288,000   

7.000%, 11/15/20 (144A)

     211,765        208,059   

Owens-Brockway Glass Container, Inc.
5.875%, 08/15/23 (144A) (a)

     355,000        360,325   

Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC
9.875%, 08/15/19

     705,000        710,287   
   

 

 

  
      4,713,684   
   

 

 

  

Pharmaceuticals—0.2%

  

Endo Finance Co.
5.750%, 01/15/22 (144A)

     1,000,000        970,000   

Endo Finance LLC / Endo Finco, Inc.
5.875%, 01/15/23 (144A)

     480,000        470,400   

Endo Finance LLC / Endo, Ltd. / Endo Finco, Inc.
6.000%, 02/01/25 (144A)

     495,000        487,575   

Valeant Pharmaceuticals International, Inc.
5.875%, 05/15/23 (144A)

     675,000        602,438   
   

 

 

  
      2,530,413   
   

 

 

  

Pipelines—3.6%

  

Boardwalk Pipelines L.P.
4.950%, 12/15/24

     2,450,000        2,130,348   

Buckeye Partners L.P.
6.050%, 01/15/18

     505,000        524,250   

DCP Midstream LLC
5.850%, 05/21/43 (144A) (b)

     2,071,000        1,584,315   

9.750%, 03/15/19 (144A)

     1,267,000        1,290,121   

DCP Midstream Operating L.P.
5.600%, 04/01/44

     650,000        394,759   

Enbridge Energy Partners L.P.
7.375%, 10/15/45

     3,400,000        3,257,462   

EnLink Midstream Partners L.P.
4.400%, 04/01/24

     1,869,000        1,479,870   

Enterprise Products Operating LLC
3.700%, 02/15/26

     500,000        448,501   

3.750%, 02/15/25 (a)

     1,375,000        1,257,722   

8.375%, 08/01/66 (b)

     1,059,000        947,805   

Genesis Energy L.P. / Genesis Energy Finance Corp.
6.750%, 08/01/22 (a)

     2,750,000        2,337,500   

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Pipelines—(Continued)

  

Kinder Morgan, Inc.
5.050%, 02/15/46 (a)

     3,125,000      $ 2,317,537   

5.550%, 06/01/45

     4,130,000        3,224,002   

MPLX L.P.
4.875%, 12/01/24 (144A)

     3,090,000        2,773,275   

ONEOK, Inc.
6.875%, 09/30/28

     1,850,000        1,332,000   

Plains All American Pipeline L.P. / PAA Finance Corp.
4.650%, 10/15/25 (a)

     2,050,000        1,789,550   

6.125%, 01/15/17

     1,467,000        1,507,271   

Questar Pipeline Co.
5.830%, 02/01/18

     1,441,000        1,547,359   

Sabine Pass Liquefaction LLC
5.625%, 02/01/21

     2,150,000        1,978,000   

5.625%, 03/01/25 (144A)

     600,000        507,750   

Spectra Energy Capital LLC
6.200%, 04/15/18

     1,109,000        1,173,788   

6.750%, 07/15/18

     600,000        645,178   

Sunoco Logistics Partners Operations L.P.
6.100%, 02/15/42

     1,700,000        1,357,714   

Targa Resources Partners L.P. / Targa Resources Partners Finance Corp.
5.000%, 01/15/18 (144A)

     1,400,000        1,295,000   

Williams Cos., Inc. (The)
5.750%, 06/24/44

     5,525,000        3,280,502   

7.500%, 01/15/31

     1,450,000        1,003,178   

7.750%, 06/15/31

     1,549,000        1,097,013   
   

 

 

  
      42,481,770   
   

 

 

  

Real Estate Investment Trusts—1.2%

  

Alexandria Real Estate Equities, Inc.
2.750%, 01/15/20

     1,575,000        1,548,371   

3.900%, 06/15/23

     811,000        800,979   

4.600%, 04/01/22

     575,000        596,530   

Communications Sales & Leasing, Inc. / CSL Capital LLC
6.000%, 04/15/23 (144A)

     1,300,000        1,228,500   

CubeSmart L.P.
4.800%, 07/15/22 (a)

     550,000        585,682   

DCT Industrial Operating Partnership L.P.
4.500%, 10/15/23

     1,250,000        1,250,915   

Equinix, Inc.
5.375%, 01/01/22

     900,000        922,500   

5.750%, 01/01/25

     1,100,000        1,124,750   

5.875%, 01/15/26

     445,000        458,350   

Healthcare Realty Trust, Inc.
5.750%, 01/15/21

     630,000        694,906   

Highwoods Realty L.P.
3.625%, 01/15/23

     1,525,000        1,477,454   

Omega Healthcare Investors, Inc.
4.950%, 04/01/24

     1,880,000        1,898,663   

Piedmont Operating Partnership L.P.
3.400%, 06/01/23

     1,880,000        1,762,831   
   

 

 

  
      14,350,431   
   

 

 

  

Retail—0.5%

  

CVS Pass-Through Trust
5.773%, 01/10/33 (144A) (a)

     818,084      880,515   

DriveTime Automotive Group, Inc. / DT Acceptance Corp.
8.000%, 06/01/21 (144A)

     695,000        618,550   

Outerwall, Inc.
6.000%, 03/15/19 (a)

     965,000        858,850   

QVC, Inc.
4.450%, 02/15/25 (a)

     3,250,000        3,014,157   
   

 

 

  
      5,372,072   
   

 

 

  

Semiconductors—0.6%

  

Advanced Micro Devices, Inc.
7.000%, 07/01/24

     700,000        455,000   

Intel Corp.
4.900%, 07/29/45

     4,375,000        4,624,209   

Micron Technology, Inc.
5.250%, 08/01/23 (144A)

     2,485,000        2,230,287   
   

 

 

  
      7,309,496   
   

 

 

  

Shipbuilding—0.0%

  

Huntington Ingalls Industries, Inc.
5.000%, 11/15/25 (144A)

     440,000        446,600   
   

 

 

  

Software—0.3%

  

Activision Blizzard, Inc.
5.625%, 09/15/21 (144A)

     1,100,000        1,152,250   

Audatex North America, Inc.
6.000%, 06/15/21 (144A)

     2,350,000        2,367,625   
   

 

 

  
      3,519,875   
   

 

 

  

Sovereign—0.3%

  

Instituto Costarricense de Electricidad
6.375%, 05/15/43 (144A)

     850,000        637,500   

6.950%, 11/10/21 (144A)

     1,520,000        1,514,300   

IPIC GMTN, Ltd.
5.500%, 03/01/22 (144A)

     1,680,000        1,883,364   
   

 

 

  
      4,035,164   
   

 

 

  

Telecommunications—2.5%

  

AT&T, Inc.
4.750%, 05/15/46

     1,250,000        1,144,495   

CenturyLink, Inc.
6.450%, 06/15/21

     700,000        682,500   

7.600%, 09/15/39

     700,000        535,500   

Crown Castle Towers LLC
4.883%, 08/15/20 (144A)

     1,600,000        1,710,434   

6.113%, 01/15/20 (144A)

     785,000        856,164   

Digicel, Ltd.
6.000%, 04/15/21 (144A) (a)

     1,340,000        1,128,950   

Frontier Communications Corp.
7.125%, 01/15/23

     277,000        238,913   

8.500%, 04/15/20 (a)

     1,498,000        1,501,745   

8.750%, 04/15/22 (a)

     1,950,000        1,803,750   

8.875%, 09/15/20 (144A)

     50,000        50,625   

10.500%, 09/15/22 (144A)

     50,000        49,813   

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Telecommunications—(Continued)

  

GTP Acquisition Partners I LLC
2.350%, 06/15/20 (144A)

     2,000,000      $ 1,939,480   

GTP Cellular Sites LLC
3.721%, 03/15/17 (144A)

     572,327        579,046   

Level 3 Financing, Inc.
5.375%, 01/15/24 (144A)

     835,000        839,175   

Sprint Corp.
7.250%, 09/15/21

     1,850,000        1,396,195   

T-Mobile USA, Inc.
6.542%, 04/28/20

     900,000        938,250   

6.625%, 11/15/20

     875,000        909,554   

Unison Ground Lease Funding LLC
2.981%, 03/15/20 (144A)

     1,100,000        1,093,979   

Verizon Communications, Inc.
5.012%, 08/21/54

     1,652,000        1,512,556   

6.550%, 09/15/43

     4,599,000        5,459,979   

VimpelCom Holdings B.V.
7.504%, 03/01/22 (144A)

     2,500,000        2,500,000   

9.000%, 02/13/18 (144A) (RUB)

     34,300,000        444,843   

Windstream Services LLC
6.375%, 08/01/23 (a)

     265,000        190,800   

7.750%, 10/15/20 (a)

     1,615,000        1,360,637   
   

 

 

  
      28,867,383   
   

 

 

  

Textiles—0.0%

  

Mohawk Industries, Inc.
3.850%, 02/01/23

     575,000        582,179   
   

 

 

  

Transportation—0.3%

  

Far East Capital, Ltd. S.A.
8.000%, 05/02/18

     400,000        244,000   

Golar LNG Partners L.P.
6.310%, 10/12/17 (NOK) (b)

     6,000,000        682,924   

Inversiones Alsacia S.A.
8.000%, 12/31/18 (144A)

     1,389,035        305,588   

Pelabuhan Indonesia II PT
4.250%, 05/05/25 (144A)

     1,935,000        1,718,957   
   

 

 

  
      2,951,469   
   

 

 

  

Trucking & Leasing—0.2%

  

GATX Corp.
6.000%, 02/15/18

     1,896,000        2,031,530   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $565,298,278)

       529,917,327   
   

 

 

  
U.S. Treasury & Government Agencies—18.0%   

Agency Sponsored Mortgage-Backed—13.6%

  

Fannie Mae 15 Yr. Pool
2.500%, 07/01/30

     2,625,476        2,649,816   

4.000%, 07/01/18

     71,467        74,504   

4.000%, 08/01/18

     87,545        91,265   

4.000%, 03/01/19

     97,868        102,027   

5.000%, 02/01/20

     45,315        47,325   

Agency Sponsored Mortgage-Backed—(Continued)

  

Fannie Mae 15 Yr. Pool
5.000%, 10/01/20

     222,670      236,362   

5.000%, 12/01/21

     24,736        26,576   

5.000%, 02/01/22

     8,116        8,712   

5.000%, 06/01/22

     22,998        24,758   

5.000%, 09/01/22

     198,460        205,492   

5.000%, 07/01/23

     149,372        160,562   

Fannie Mae 30 Yr. Pool
3.500%, 11/01/40

     2,618,544        2,707,842   

3.500%, 08/01/42

     10,526,686        10,877,542   

3.500%, 12/01/42

     916,215        949,093   

3.500%, TBA (g)

     7,500,000        7,737,924   

4.000%, 10/01/39

     47,683        50,583   

4.000%, 12/01/40

     980,194        1,049,460   

4.000%, 07/01/41

     935,138        993,821   

4.000%, 12/01/41

     570,554        605,296   

4.000%, 01/01/42

     686,838        728,365   

4.000%, 04/01/42

     1,068,313        1,133,240   

4.000%, 06/01/42

     847,478        898,157   

4.000%, 07/01/42

     3,470,935        3,695,347   

4.000%, 08/01/42

     3,117,346        3,309,245   

4.000%, 12/01/42

     117,432        124,597   

4.000%, 05/01/44

     2,037,343        2,156,604   

4.000%, 07/01/44

     2,691,884        2,849,461   

4.000%, 08/01/44

     527,341        558,232   

4.000%, 09/01/44

     57,858        61,379   

4.000%, 10/01/44

     137,141        145,168   

4.000%, 11/01/44

     5,386,465        5,702,373   

4.000%, 12/01/44

     332,103        351,552   

4.000%, 01/01/45

     131,825        139,556   

4.000%, 02/01/45

     58,998        62,688   

4.500%, 03/01/35

     42,919        46,581   

4.500%, 07/01/35

     106,218        115,099   

4.500%, 05/01/39

     2,638,229        2,893,624   

4.500%, 08/01/40

     7,958,660        8,613,496   

4.500%, 11/01/40

     4,089,182        4,425,699   

4.500%, 12/01/40

     660,610        718,387   

4.500%, 05/01/41

     5,410,028        5,853,649   

4.500%, 07/01/41

     3,125,418        3,399,285   

4.500%, 11/01/41

     362,332        391,328   

4.500%, 12/01/41

     84,869        91,818   

4.500%, 11/01/43

     4,829,542        5,241,400   

4.500%, 08/01/44

     1,496,850        1,620,809   

5.000%, 01/01/38

     3,837,470        4,238,467   

5.000%, 01/01/39

     552,093        607,224   

5.000%, 06/01/40

     283,709        312,883   

5.000%, 07/01/40

     221,398        244,219   

6.000%, 03/01/32

     566        646   

6.000%, 07/01/37

     37,412        42,296   

6.000%, 07/01/38

     352,194        398,179   

6.500%, 10/01/31

     588        672   

6.500%, 02/01/32

     422        483   

6.500%, 12/01/36

     1,804        2,061   

6.500%, 03/01/37

     51,600        58,971   

6.500%, 10/01/37

     34,176        39,058   

7.000%, 09/01/29

     221        245   

7.500%, 01/01/30

     619        752   

7.500%, 10/01/30

     96        108   

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

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

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage-Backed—(Continued)

  

Fannie Mae REMICS (CMO)
3.500%, 01/25/29 (h)

     209,671      $ 10,470   

4.500%, 06/25/29

     434,278        464,106   

Freddie Mac 15 Yr. Gold Pool
2.500%, 01/01/30

     174,303        176,152   

2.500%, 04/01/30

     99,570        100,628   

3.500%, 11/01/28

     1,486,757        1,564,462   

4.500%, 11/01/18

     44,012        45,551   

5.000%, 12/01/21

     80,173        86,080   

5.500%, 10/01/16

     329        329   

6.000%, 06/01/17

     4,327        4,429   

Freddie Mac 30 Yr. Gold Pool
3.500%, 10/01/40

     586,116        604,527   

3.500%, 08/01/43

     3,160,739        3,257,194   

3.500%, 03/01/45

     1,892,750        1,949,960   

3.500%, 07/01/45

     94,145        97,256   

4.000%, 01/01/44

     2,666,991        2,820,000   

4.000%, 02/01/44

     423,883        449,773   

4.000%, 07/01/44

     5,572,693        5,901,637   

4.500%, 04/01/41

     1,705,419        1,843,704   

5.000%, 05/01/34

     310,008        340,302   

5.000%, 06/01/35

     53,830        58,931   

5.000%, 05/01/37

     265,519        290,581   

5.000%, 09/01/38

     46,576        50,846   

5.000%, 10/01/38

     112,371        122,639   

5.000%, 11/01/39

     974,610        1,067,934   

5.000%, 12/01/39

     252,380        281,568   

5.500%, 06/01/41

     731,237        813,043   

6.000%, 06/01/35

     24,415        27,405   

6.000%, 12/01/36

     24,545        27,808   

Ginnie Mae I 15 Yr. Pool
5.000%, 10/15/18

     54,651        57,398   

5.500%, 08/15/19

     20,076        20,825   

5.500%, 10/15/19

     103,729        108,762   

6.000%, 05/15/17

     171        172   

6.000%, 06/15/17

     488        496   

6.000%, 08/15/19

     5,318        5,525   

Ginnie Mae I 30 Yr. Pool
3.500%, 07/15/42

     3,423,306        3,565,167   

3.500%, TBA (g)

     9,115,000        9,482,973   

4.000%, 06/15/39

     12,064        12,803   

4.000%, 09/15/39

     643,698        683,249   

4.000%, 06/15/40

     55,345        58,757   

4.000%, 12/15/40

     71,669        76,098   

4.000%, 02/15/41

     606,502        654,794   

4.000%, 06/15/41

     13,459        14,358   

4.000%, 07/15/41

     397,594        422,103   

4.000%, 01/15/42

     13,937        14,790   

4.000%, 02/15/42

     12,325        13,085   

4.000%, 04/15/42

     8,672        9,204   

4.000%, 08/15/43

     34,228        36,327   

4.000%, 03/15/44

     1,768,314        1,876,785   

4.000%, 05/15/44

     216,963        230,241   

4.000%, 08/15/44

     481,565        511,666   

4.000%, 09/15/44

     2,224,247        2,360,721   

4.000%, 11/15/44

     2,159,671        2,293,412   

Agency Sponsored Mortgage-Backed—(Continued)

  

Ginnie Mae I 30 Yr. Pool
4.000%, 12/15/44

     874,297      929,299   

4.000%, 01/15/45

     3,291,295        3,498,285   

4.000%, 02/15/45

     908,220        965,609   

4.000%, 06/15/45

     631,457        671,123   

4.500%, 09/15/33

     115,359        126,000   

4.500%, 05/15/34

     251,614        273,256   

4.500%, 12/15/34

     51,233        55,512   

4.500%, 04/15/35

     185,081        199,783   

4.500%, 10/15/35

     78,380        84,885   

4.500%, 04/15/39

     1,709,135        1,848,672   

4.500%, 01/15/40

     2,621,629        2,853,843   

4.500%, 09/15/40

     351,489        383,479   

4.500%, 07/15/41

     485,588        524,327   

4.500%, 08/15/41

     496,248        535,089   

5.000%, 05/15/34

     883,135        984,188   

5.000%, 04/15/35

     13,901        15,580   

5.500%, 01/15/34

     73,683        83,222   

5.500%, 04/15/34

     25,256        28,720   

5.500%, 07/15/34

     132,670        150,732   

5.500%, 10/15/34

     113,418        128,541   

5.500%, 06/15/35

     39,337        43,766   

5.500%, 11/15/35

     58,566        65,919   

5.750%, 10/15/38

     102,073        114,647   

6.000%, 02/15/24

     958        1,075   

6.000%, 11/15/28

     596        669   

6.000%, 02/15/33

     2,313        2,672   

6.000%, 03/15/33

     9,393        10,787   

6.000%, 06/15/33

     6,489        7,521   

6.000%, 07/15/33

     8,906        10,316   

6.000%, 09/15/33

     9,578        10,847   

6.000%, 10/15/33

     3,929        4,528   

6.000%, 08/15/34

     40,747        46,533   

6.500%, 03/15/29

     3,893        4,454   

6.500%, 02/15/32

     1,383        1,606   

6.500%, 03/15/32

     1,393        1,594   

6.500%, 11/15/32

     4,892        5,666   

7.000%, 03/15/31

     330        369   

Ginnie Mae II 30 Yr. Pool
3.500%, 03/20/45

     480,029        501,384   

3.500%, 04/20/45

     753,965        788,075   

3.500%, 08/20/45

     2,281,189        2,381,542   

4.000%, 10/20/44

     1,791,063        1,903,141   

4.500%, 09/20/41

     588,565        641,132   

5.000%, 08/20/34

     96,442        106,674   

5.500%, 03/20/34

     11,536        12,871   

6.000%, 05/20/32

     16,021        18,416   

6.000%, 11/20/33

     19,086        21,701   

Government National Mortgage Association (CMO)
3.000%, 04/20/41

     1,000,000        1,028,083   

4.500%, 09/20/39

     1,775,204        1,905,500   
   

 

 

  
      158,821,022   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

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

 

Security Description   Principal
Amount*		     Value  

U.S. Treasury—4.4%

  

U.S. Treasury Inflation Indexed Bond
0.750%, 02/15/45 (i)

     21,372,023      $ 18,638,734   

U.S. Treasury Inflation Indexed Note
0.125%, 07/15/24 (i)

     33,831,404        32,130,598   
   

 

 

  
      50,769,332   
   

 

 

  

Total U.S. Treasury & Government Agencies
(Cost $209,992,173)

       209,590,354   
   

 

 

  
Mortgage-Backed Securities—10.6%   

Collateralized Mortgage Obligations—6.7%

  

Alternative Loan Trust
1.062%, 07/25/35 (b)

     1,300,000        1,184,654   

Banc of America Alternative Loan Trust
5.750%, 04/25/33

     491,712        509,182   

6.000%, 11/25/34

     324,065        327,086   

Banc of America Mortgage Securities, Inc.
5.750%, 01/25/35

     414,961        424,002   

Bear Stearns Adjustable Rate Mortgage Trust
3.169%, 02/25/35 (b)

     186,289        184,730   

Bear Stearns ALT-A Trust
1.172%, 01/25/35 (b)

     1,515,000        1,278,500   

1.172%, 03/25/35 (b)

     1,330,000        1,146,947   

1.322%, 09/25/34 (b)

     752,770        629,163   

1.352%, 01/25/35 (b)

     1,370,462        1,155,084   

CIM Trust
2.244%, 10/25/57 (144A) (b)

     194,179        191,011   

Citigroup Mortgage Loan Trust, Inc.
5.500%, 08/25/34

     672,661        723,170   

Countrywide Alternative Loan Trust
5.250%, 09/25/33

     529,087        557,070   

5.750%, 12/25/33

     931,475        948,695   

Countrywide Home Loan Mortgage Pass-Through Trust
3.029%, 09/25/33 (b)

     4,124        3,882   

Credit Suisse First Boston Mortgage Securities Corp.
1.122%, 10/25/34 (b)

     2,779,810        2,335,008   

5.000%, 08/25/20

     78,529        78,329   

Credit Suisse Mortgage Capital Certificates Trust
3.500%, 10/25/44 (144A) (b)

     3,561,726        3,628,021   

3.500%, 02/25/45 (144A)

     915,813        917,816   

CSMLT Trust
3.500%, 08/25/45 (144A) (b)

     1,746,916        1,745,551   

EverBank Mortgage Loan Trust
2.500%, 03/25/43 (144A) (b)

     1,362,460        1,282,256   

Freddie Mac Whole Loan Securities Trust
3.500%, 05/25/45

     1,140,877        1,152,714   

Global Mortgage Securitization, Ltd.
0.692%, 04/25/32 (b)

     1,007,011        964,677   

5.250%, 04/25/32

     433,695        419,575   

GSR Mortgage Loan Trust
6.000%, 12/25/34

     584,605        599,986   

Homestar Mortgage Acceptance Corp.
1.522%, 01/25/35 (b)

     1,705,000        1,659,866   

Collateralized Mortgage Obligations—(Continued)

  

Impac CMB Trust
1.062%, 09/25/34 (b)

     898,795      858,631   

1.222%, 10/25/34 (b)

     425,197        405,299   

JPMorgan Alternative Loan Trust
1.062%, 01/25/36 (b)

     180,748        166,559   

JPMorgan Mortgage Trust
2.500%, 03/25/43 (144A) (b)

     5,070,313        5,023,823   

3.000%, 10/25/29 (144A) (b)

     2,874,434        2,912,610   

3.000%, 06/25/45 (144A) (b)

     2,994,156        2,891,622   

3.455%, 07/25/43 (144A) (b)

     1,826,698        1,777,681   

3.500%, 05/25/43 (144A) (b)

     995,889        1,002,270   

3.500%, 01/25/44 (144A) (b)

     751,139        759,491   

LSTAR Securities Investment Trust
2.244%, 01/01/20 (144A) (b)

     2,288,095        2,259,127   

Morgan Stanley Mortgage Loan Trust
0.882%, 11/25/35 (b)

     708,000        615,079   

0.922%, 09/25/35 (b)

     719,000        651,280   

Morgan Stanley Residential Mortgage Loan Trust
2.988%, 06/25/44 (144A) (b)

     3,276,537        3,194,607   

Nomura Asset Acceptance Corp. Alternative Loan Trust
5.500%, 08/25/33

     362,635        377,219   

NRP Mortgage Trust
3.250%, 07/25/43 (144A) (b)

     798,046        797,093   

Opteum Mortgage Acceptance Corp. Asset-Backed Pass-Through Certificates
0.882%, 07/25/35 (b)

     1,274,000        1,116,890   

0.902%, 07/25/35 (b)

     1,200,000        1,028,547   

Opteum Mortgage Acceptance Corp. Trust
0.912%, 11/25/35 (b)

     1,936,000        1,571,080   

RESI Finance L.P.
1.693%, 09/10/35 (144A) (b)

     1,963,675        1,786,360   

Residential Accredit Loans, Inc. Trust
0.972%, 07/25/33 (b)

     500,471        463,143   

4.750%, 04/25/34

     142,029        144,699   

5.000%, 03/25/19

     45,947        46,433   

RFMSI Trust
5.250%, 04/25/34

     1,173,741        1,058,817   

Sequoia Mortgage Trust
1.152%, 07/20/34 (b)

     1,563,447        1,256,109   

2.250%, 06/25/43 (b)

     459,062        441,166   

2.500%, 04/25/43 (b)

     1,402,532        1,334,871   

2.500%, 05/25/43 (144A) (b)

     1,079,448        1,016,579   

2.500%, 05/25/43 (b)

     2,820,077        2,701,657   

3.000%, 06/25/43 (b)

     1,500,029        1,460,898   

3.500%, 07/25/43 (144A)

     1,519,759        1,490,933   

3.500%, 07/25/45 (144A) (b)

     1,545,570        1,540,499   

3.533%, 03/25/43 (b)

     872,350        858,749   

3.636%, 02/25/43 (b)

     907,514        911,664   

3.734%, 07/25/45 (144A) (b)

     1,879,551        1,819,258   

Structured Adjustable Rate Mortgage Loan Trust
1.190%, 11/25/34 (b)

     1,797,458        1,651,710   

2.598%, 02/25/34 (b)

     201,646        202,240   

2.946%, 03/25/34 (b)

     128,806        127,854   

Structured Asset Securities Corp. Mortgage Certificates
2.588%, 10/25/33 (b)

     428,644        425,261   

 

See accompanying notes to financial statements.

 

MIST-15

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

Mortgage-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Collateralized Mortgage Obligations—(Continued)

  

Thornburg Mortgage Securities Trust
2.255%, 06/25/43 (b)

     474,993      $ 469,487   

Towd Point Mortgage Trust
3.750%, 11/25/57 (144A) (b)

     787,000        785,315   

WaMu Mortgage Pass-Through Certificates Trust
2.484%, 08/25/33 (b)

     2,457,447        2,358,916   

WinWater Mortgage Loan Trust
3.500%, 01/20/45 (144A) (b)

     1,167,029        1,177,606   

3.500%, 08/20/45 (144A) (b)

     848,655        847,992   
   

 

 

  
      77,834,099   
   

 

 

  

Commercial Mortgage-Backed Securities—3.9%

  

A10 Securitization LLC
2.400%, 11/15/25 (144A)

     254,694        254,749   

Banc of America Merrill Lynch Commercial Mortgage, Inc.
4.939%, 07/10/43 (144A) (b)

     279,000        279,101   

Bayview Commercial Asset Trust
Zero Coupon, 07/25/37 (144A) (h)

     4,478,106        0   

City Center Trust
4.981%, 07/15/28 (144A) (b)

     850,000        854,187   

Commercial Mortgage Pass-Through Certificates
2.822%, 10/15/45

     720,000        711,822   

Commercial Mortgage Trust
2.267%, 07/13/31 (144A) (b)

     573,612        567,045   

2.436%, 10/15/45

     690,000        686,689   

2.941%, 01/10/46

     1,350,000        1,342,681   

3.147%, 08/15/45

     2,400,000        2,422,285   

3.685%, 05/10/48 (144A) (b)

     500,000        463,040   

4.934%, 12/10/44 (b)

     330,000        356,953   

DBUBS Mortgage Trust
5.465%, 08/10/44 (144A) (b)

     1,400,000        1,559,662   

5.663%, 11/10/46 (144A) (b)

     600,000        660,333   

Del Coronado Trust
2.281%, 03/15/26 (144A) (b)

     484,000        483,651   

EQTY Mortgage Trust
3.726%, 05/08/31 (144A) (b)

     750,000        743,027   

FREMF Mortgage Trust
3.165%, 04/25/46 (144A) (b)

     600,000        596,527   

3.180%, 03/25/45 (144A) (b)

     700,000        705,358   

3.397%, 11/25/46 (144A) (b)

     800,000        804,175   

3.741%, 04/25/45 (144A) (b)

     1,000,000        1,018,028   

4.027%, 11/25/44 (144A) (b)

     535,000        548,577   

4.344%, 01/25/46 (144A) (b)

     765,000        797,845   

4.766%, 04/25/44 (144A) (b)

     1,500,000        1,560,225   

4.881%, 07/25/44 (144A) (b)

     900,000        938,844   

5.200%, 09/25/45 (144A) (b)

     900,000        971,088   

5.249%, 09/25/43 (144A) (b)

     400,000        431,843   

5.441%, 04/25/20 (144A) (b)

     600,000        651,507   

GAHR Commericial Mortgage Trust
3.382%, 12/15/19 (144A) (b)

     2,100,000        2,049,666   

GS Mortgage Securities Corp. II
3.682%, 02/10/46 (144A)

     750,000        740,501   

GS Mortgage Securities Trust
2.081%, 07/15/31 (144A) (b)

     885,000        881,134   

3.377%, 05/10/45

     1,000,000        1,023,316   

Commercial Mortgage-Backed Securities—(Continued)

  

Irvine Core Office Trust
3.173%, 05/15/48 (144A) (b)

     1,250,000      1,242,587   

JPMorgan Chase Commercial Mortgage Securities Trust
0.691%, 11/15/18 (144A) (b)

     602,399        594,951   

3.070%, 12/15/46

     1,925,000        1,965,109   

3.668%, 04/27/44 (144A)

     500,000        480,067   

3.977%, 10/15/45 (144A) (b)

     700,000        709,001   

5.551%, 11/15/43 (144A) (b)

     300,000        319,627   

5.623%, 05/12/45

     730,000        700,416   

6.009%, 02/15/51 (b)

     1,350,000        1,362,817   

Lehman Brothers Small Balance Commercial Mortgage Trust
0.622%, 09/25/36 (144A) (b)

     256,043        242,603   

1.372%, 10/25/37 (144A) (b)

     131,209        130,633   

LSTAR Commercial Mortgage Trust
3.326%, 04/20/48 (144A) (b)

     500,000        485,250   

Morgan Stanley Bank of America Merrill Lynch Trust
2.979%, 04/15/47

     920,000        938,297   

Morgan Stanley Capital Trust
5.569%, 12/15/44

     906,915        943,743   

ORES NPL LLC
3.081%, 09/25/25 (144A)

     144,314        144,170   

RAIT Trust
2.481%, 05/13/31 (144A) (b)

     500,000        489,205   

Resource Capital Corp. Ltd.
2.501%, 12/15/28 (144A) (b)

     332,968        332,982   

Timberstar Trust
5.668%, 10/15/36 (144A)

     540,000        553,836   

7.530%, 10/15/36 (144A)

     1,549,000        1,562,770   

UBS Commercial Mortgage Trust
3.400%, 05/10/45

     1,000,000        1,018,303   

Velocity Commercial Capital Loan Trust
2.422%, 09/25/44 (144A) (b)

     648,672        626,877   

Wells Fargo Commercial Mortgage Trust
2.819%, 08/15/50

     400,000        406,190   

3.477%, 08/15/50

     1,250,000        1,278,445   

5.612%, 11/15/43 (144A) (b)

     950,000        1,017,553   

WF-RBS Commercial Mortgage Trust
2.862%, 03/15/47

     1,550,000        1,575,676   

3.998%, 03/15/44 (144A)

     520,000        540,687   

5.265%, 06/15/44 (144A) (b)

     400,000        410,680   

5.392%, 02/15/44 (144A) (b)

     250,000        265,039   
   

 

 

  
      45,441,373   
   

 

 

  

Total Mortgage-Backed Securities
(Cost $122,891,386)

       123,275,472   
   

 

 

  
Floating Rate Loans(j)—7.6%   

Advertising—0.1%

  

Affinion Group, Inc.
Term Loan B, 6.750%, 04/30/18

     1,325,859        1,228,077   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-16

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

Floating Rate Loans(j)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Aerospace/Defense—0.3%

  

DigitalGlobe, Inc.
Term Loan B, 4.750%, 01/31/20

     925,820      $ 910,625   

DynCorp International LLC
Term Loan B, 6.250%, 07/07/16

     154,176        148,395   

TASC, Inc.
Term Loan B, 7.000%, 05/30/20

     1,519,284        1,523,702   

Vencore, Inc.
1st Lien Term Loan, 11/23/19 (k)

     423,906        423,111   
   

 

 

  
      3,005,833   
   

 

 

  

Airlines—0.1%

  

Delta Air Lines, Inc.
Term Loan B1, 3.250%, 10/18/18

     970,000        968,485   
   

 

 

  

Auto Components—0.1%

  

Federal-Mogul Holdings Corp.
Term Loan C, 4.750%, 04/15/21

     759,555        671,826   

MPG Holdco I, Inc.
Term Loan B, 3.750%, 10/20/21

     604,523        591,893   
   

 

 

  
      1,263,719   
   

 

 

  

Auto Manufacturers—0.3%

  

Chrysler Group LLC
Term Loan B, 3.500%, 05/24/17

     2,974,825        2,969,545   

Navistar International Corp.
Term Loan B, 6.500%, 08/07/20

     500,000        442,500   
   

 

 

  
      3,412,045   
   

 

 

  

Auto Parts & Equipment—0.3%

  

Goodyear Tire & Rubber Co. (The)
2nd Lien Term Loan, 3.750%, 04/30/19

     375,000        375,778   

TI Group Automotive Systems LLC
Term Loan, 4.500%, 06/30/22

     791,795        775,959   

Tower Automotive Holdings USA LLC
Term Loan, 4.000%, 04/23/20

     2,332,210        2,238,921   
   

 

 

  
      3,390,658   
   

 

 

  

Biotechnology—0.1%

  

Concordia Healthcare Corp.
Term Loan, 5.250%, 10/21/21

     1,000,000        955,000   
   

 

 

  

Building Materials—0.0%

  

U.S. Silica Co.
Term Loan B, 4.000%, 07/23/20

     358,313        329,648   
   

 

 

  

Chemicals—0.3%

  

Axalta Coating Systems U.S. Holdings, Inc.
Term Loan, 3.750%, 02/01/20

     1,568,012        1,557,652   

Chemtura Corp.
Term Loan B, 3.500%, 08/27/16

     81,429        81,361   

Huntsman International LLC
Term Loan B1, 3.318%, 04/19/19

     150,051        148,300   

Univar, Inc.
Term Loan, 4.250%, 07/01/22

     922,688        896,242   

Chemicals—(Continued)

  

WR Grace & Co. Delayed Draw
Term Loan, 2.750%, 02/03/21

     190,646      189,455   

Term Loan, 2.750%, 02/03/21

     529,765        526,454   
   

 

 

  
      3,399,464   
   

 

 

  

Commercial Services—0.3%

  

Albany Molecular Research, Inc.
Term Loan B, 5.750%, 07/16/21

     573,563        570,695   

Laureate Education, Inc.
Term Loan B, 5.000%, 06/15/18

     470,212        394,978   

Monitronics International, Inc.
Term Loan B, 4.250%, 03/23/18

     309,905        301,383   

ON Assignment, Inc.
Term Loan, 3.750%, 06/03/22

     389,239        387,942   

Truven Health Analytics, Inc.
Term Loan B, 4.500%, 06/06/19

     1,254,768        1,204,577   

WCA Waste Corp.
Term Loan, 4.000%, 03/23/18

     640,063        633,662   
   

 

 

  
      3,493,237   
   

 

 

  

Computers—0.2%

  

Expert Global Solutions, Inc.
Term Loan B, 8.500%, 04/03/18

     786,140        782,210   

SkillSoft Corp. 1st Lien
Term Loan, 5.750%, 04/28/21

     1,678,750        1,309,425   
   

 

 

  
      2,091,635   
   

 

 

  

Cosmetics/Personal Care—0.1%

  

Revlon Consumer Products Corp.
Term Loan B, 3.250%, 11/20/17

     652,841        652,331   
   

 

 

  

Distribution/Wholesale—0.1%

  

WESCO Distribution, Inc.
Term Loan B, 3.750%, 12/12/19

     787,623        785,654   
   

 

 

  

Diversified Consumer Services—0.1%

  

Knowledge Universe Education LLC
1st Lien Term Loan, 6.000%, 07/28/22

     997,500        972,563   
   

 

 

  

Diversified Financial Services—0.2%

  

Ocwen Financial Corp.
Term Loan, 5.500%, 02/15/18

     855,143        855,411   

RPI Finance Trust
Term Loan B3, 3.250%, 11/09/18

     1,343,672        1,341,488   
   

 

 

  
      2,196,899   
   

 

 

  

Electric—0.3%

  

Calpine Construction Finance Co. L.P.
Term Loan B1, 3.000%, 05/03/20

     1,145,625        1,087,389   

Calpine Corp.
Term Loan B5, 3.500%, 05/27/22

     1,174,100        1,118,698   

NRG Energy, Inc.
Term Loan B, 2.750%, 07/02/18

     883,820        863,106   

 

See accompanying notes to financial statements.

 

MIST-17

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

Floating Rate Loans(j)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Electric—(Continued)

  

NSG Holdings LLC
Term Loan, 3.750%, 12/11/19

     628,995      $ 619,561   
   

 

 

  
      3,688,754   
   

 

 

  

Electrical Components & Equipment—0.0%

  

Pelican Products, Inc.
Term Loan, 5.250%, 04/10/20

     273,653        269,206   
   

 

 

  

Energy - Alternate Sources—0.1%

  

Exgen Renewables I LLC
Term Loan, 5.250%, 02/08/21

     578,276        582,614   

TerraForm AP Acquisition Holdings LLC
Term Loan B, 5.000%, 06/26/22

     1,177,294        1,118,429   
   

 

 

  
      1,701,043   
   

 

 

  

Entertainment—0.1%

  

Pinnacle Entertainment, Inc.
Term Loan B2, 3.750%, 08/13/20

     212,948        212,632   

Six Flags Theme Parks, Inc.
Term Loan B, 3.500%, 06/30/22

     696,500        695,339   
   

 

 

  
      907,971   
   

 

 

  

Environmental Control—0.0%

  

Waste Industries USA, Inc.
Term Loan B, 4.250%, 02/27/20

     516,100        514,487   
   

 

 

  

Food—0.2%

  

AdvancePierre Foods, Inc.
Term Loan, 5.750%, 07/10/17

     169,136        169,094   

JBS USA LLC Incremental
Term Loan, 3.750%, 09/18/20

     853,708        848,906   

Pinnacle Foods Finance LLC
Term Loan G, 3.000%, 04/29/20

     856,153        843,952   
   

 

 

  
      1,861,952   
   

 

 

  

Forest Products & Paper—0.1%

  

Appvion, Inc.
Term Loan, 5.750%, 06/28/19

     897,821        839,463   

Coveris Holdings S.A.
Term Loan B1, 4.500%, 05/08/19

     637,052        621,125   
   

 

 

  
      1,460,588   
   

 

 

  

Healthcare - Products—0.2%

  

Immucor, Inc.
Term Loan B2, 5.000%, 08/17/18

     1,364,231        1,299,430   

Kinetic Concepts, Inc.
Term Loan E1, 4.500%, 05/04/18

     1,187,879        1,145,314   
   

 

 

  
      2,444,744   
   

 

 

  

Healthcare - Services—0.7%

  

Alliance Healthcare Services, Inc.
Term Loan B, 4.250%, 06/03/19

     723,009        690,474   

Ardent Legacy Acquisitions, Inc.
Term Loan B, 6.500%, 07/21/21

     144,391        143,669   

Healthcare - Services—(Continued)

  

Concentra, Inc. 1st Lien
Term Loan, 4.001%, 06/01/22

     1,119,375      1,113,778   

HCA, Inc. Extended
Term Loan B4, 3.357%, 05/01/18

     102,452        102,466   

Term Loan B5, 3.174%, 03/31/17

     245,700        245,683   

Iasis Healthcare LLC
Term Loan B2, 4.500%, 05/03/18

     690,943        679,543   

IMS Health, Inc.
Term Loan, 3.500%, 03/17/21

     627,934        611,189   

Kindred Healthcare, Inc.
Term Loan, 4.250%, 04/09/21

     1,556,017        1,501,556   

Lantheus Medical Imaging, Inc.
Term Loan, 7.000%, 06/30/22

     696,500        640,780   

MMM Holdings, Inc.
Term Loan, 9.750%, 12/12/17

     302,432        166,338   

MSO of Puerto Rico, Inc.
Term Loan, 9.750%, 12/12/17

     219,867        120,927   

Select Medical Corp.
Term Loan B, 5.000%, 06/01/18

     374,613        373,442   

Surgical Care Affiliates, Inc.
Term Loan B, 4.250%, 03/17/22

     2,118,772        2,112,150   
   

 

 

  
      8,501,995   
   

 

 

  

Home Furnishings—0.0%

  

Tempur-Pedic International, Inc.
Term Loan B, 3.500%, 03/18/20

     195,628        195,597   
   

 

 

  

Industrial Conglomerates—0.1%

  

Mirror BidCo Corp.
Term Loan, 4.250%, 12/28/19

     1,193,346        1,183,402   
   

 

 

  

Insurance—0.7%

  

Alliant Holdings I, Inc.
Term Loan B, 4.500%, 08/12/22

     144,249        141,499   

Confie Seguros Holding II Co.
1st Lien Term Loan, 5.750%, 11/09/18

     3,311,089        3,269,701   

USI, Inc.
Term Loan B, 4.250%, 12/27/19

     4,472,478        4,322,932   
   

 

 

  
      7,734,132   
   

 

 

  

Lodging—0.0%

  

MGM Resorts International
Term Loan B, 3.500%, 12/20/19

     496,164        490,737   
   

 

 

  

Machinery - Construction & Mining—0.1%

  

Terex Corp.
Term Loan, 12/07/22 (k)

     310,727        306,066   

Term Loan, 3.500%, 08/13/21

     310,727        307,037   
   

 

 

  
      613,103   
   

 

 

  

Machinery - Diversified—0.2%

  

NN, Inc.
Term Loan B, 5.750%, 10/19/22

     2,293,343        2,270,410   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-18

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

Floating Rate Loans(j)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Media—0.3%

  

Charter Communications Operating LLC Bridge
Term Loan, 05/23/16 (k)

     1,230,072      $ 1,230,072   

Term Loan F, 3.000%, 01/04/21

     1,096,875        1,077,908   

Houghton Mifflin Harcourt Publishing Co.
Term Loan B, 4.000%, 05/31/21

     298,500        290,291   

Kasima LLC
Term Loan B, 3.250%, 05/17/21

     326,953        325,046   

Sinclair Television Group Inc.
Term Loan B1, 3.500%, 07/30/21

     398,000        395,346   
   

 

 

  
      3,318,663   
   

 

 

  

Mining—0.1%

  

FMG Resources (August 2006) Pty, Ltd.
Term Loan B, 4.250%, 06/30/19

     477,557        358,499   

Novelis, Inc.
Term Loan B, 4.000%, 06/02/22

     796,000        761,922   
   

 

 

  
      1,120,421   
   

 

 

  

Oil & Gas—0.0%

  

Drillships Financing Holdings, Inc.
Term Loan B1, 6.000%, 03/31/21

     668,820        266,413   

Glenn Pool Oil & Gas Trust
Term Loan, 4.500%, 05/02/16

     194,057        193,572   
   

 

 

  
      459,985   
   

 

 

  

Packaging & Containers—0.1%

  

BWAY Holding Co., Inc.
Term Loan B, 5.500%, 08/14/20

     570,852        552,775   

Ranpak Corp.
Term Loan, 4.250%, 10/01/21

     364,715        362,664   

Reynolds Group Holdings, Inc.
Term Loan, 4.500%, 12/01/18

     238,819        236,785   

Tekni-Plex, Inc.
Term Loan B, 4.500%, 06/01/22

     646,750        640,444   
   

 

 

  
      1,792,668   
   

 

 

  

Pharmaceuticals—0.2%

  

Endo Luxembourg Finance Co. I S.a.r.l.
Term Loan B, 3.750%, 09/26/22

     398,225        393,662   

Grifols Worldwide Operations USA, Inc.
Term Loan B, 3.424%, 02/27/21

     1,002,150        994,133   

Valeant Pharmaceuticals International, Inc.
Term Loan B, 3.750%, 12/11/19

     341,117        329,285   

Term Loan B, 3.750%, 08/05/20

     1,094,770        1,053,032   
   

 

 

  
      2,770,112   
   

 

 

  

Real Estate—0.1%

  

DTZ U.S. Borrower LLC 1st Lien
Term Loan, 4.250%, 11/04/21

     895,500        875,351   
   

 

 

  

Retail—0.2%

    

CWGS Group LLC
Term Loan, 5.750%, 02/20/20

     1,156,250        1,149,023   

Retail—(Continued)

    

Dollar Tree, Inc.
Term Loan B1, 3.500%, 07/06/22

     443,333      442,700   

Michaels Stores, Inc. Incremental
Term Loan B2, 4.000%, 01/28/20

     567,721        565,325   

Pilot Travel Centers LLC
Term Loan B, 3.750%, 10/01/21

     358,997        360,344   
   

 

 

  
      2,517,392   
   

 

 

  

Semiconductors—0.1%

  

Microsemi Corp.
Term Loan B, 12/02/22 (k)

     312,259        307,478   

Term Loan B1, 3.250%, 02/19/20

     312,259        311,869   
   

 

 

  
      619,347   
   

 

 

  

Software—0.3%

  

Cinedigm Digital Funding I LLC
Term Loan, 3.750%, 02/28/18

     115,315        115,026   

Epiq Systems, Inc.
Term Loan B, 4.500%, 08/27/20

     683,126        666,048   

First Data Corp. Extended
Term Loan, 3.918%, 03/24/18

     372,933        368,737   

MedAssets, Inc.
Term Loan B, 4.000%, 12/13/19

     250,167        248,916   

Rovi Solutions Corp.
Term Loan B, 3.750%, 07/02/21

     602,337        572,220   

Verint Systems, Inc.
Term Loan, 3.500%, 09/06/19

     782,837        780,685   

Vertafore, Inc. 1st Lien
Term Loan, 4.250%, 10/03/19

     359,455        356,888   
   

 

 

  
      3,108,520   
   

 

 

  

Telecommunications—0.8%

  

Cincinnati Bell, Inc.
Term Loan B, 4.000%, 09/10/20

     1,412,488        1,368,347   

CommScope, Inc.
Term Loan B4, 3.313%, 01/14/18

     166,228        165,813   

MCC Iowa LLC
Term Loan H, 3.250%, 01/29/21

     936,000        925,470   

Securus Technologies Holdings, Inc. Incremental
Term Loan B2, 5.250%, 04/30/20

     750,000        545,625   

Telesat Canada
Term Loan B2, 3.500%, 03/28/19

     2,509,536        2,478,167   

Virgin Media Investment Holdings, Ltd.
Term Loan F, 3.500%, 06/30/23

     2,885,181        2,828,681   

Ziggo Financing Partnership
Term Loan B1, 3.500%, 01/15/22

     471,479        458,771   

Term Loan B2A, 3.500%, 01/15/22

     303,830        295,641   

Term Loan B3, 3.500%, 01/15/22

     499,691        486,223   
   

 

 

  
      9,552,738   
   

 

 

  

Transportation—0.0%

  

Navios Partners Finance (U.S.), Inc.
Term Loan B, 5.250%, 06/27/18

     500,000        490,000   
   

 

 

  

Total Floating Rate Loans
(Cost $91,186,778)

       88,608,566   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-19

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

Foreign Government—5.6%

 

Security Description   Principal
Amount*		     Value  

Municipal—0.1%

  

Province of Salta Argentina
9.500%, 03/16/22 (144A) (i)

     661,860      $ 651,932   
   

 

 

  

Regional Government—0.2%

  

Queensland Treasury Corp.
5.500%, 06/21/21 (AUD)

     3,630,000        3,011,086   
   

 

 

  

Sovereign—5.3%

  

Australia Government Bond
3.250%, 04/21/25 (AUD)

     15,450,000        11,645,883   

China Government Bonds
3.000%, 11/21/19 (CNY)

     11,000,000        1,665,153   

3.380%, 11/21/24 (CNY)

     8,000,000        1,215,877   

Croatia Government International Bond
5.500%, 04/04/23 (144A)

     1,300,000        1,319,760   

Ivory Coast Government International Bond
6.375%, 03/03/28 (144A)

     860,000        782,669   

Kenya Government International Bond
5.875%, 06/24/19 (144A)

     735,000        692,738   

Mexican Bonos
6.500%, 06/09/22 (MXN)

     53,750,000        3,209,122   

7.500%, 06/03/27 (MXN)

     56,500,000        3,558,653   

Mexican Udibonos
2.000%, 06/09/22 (MXN) (i)

     19,533,665        1,059,316   

3.500%, 12/14/17 (MXN) (i)

     26,798,252        1,602,180   

Namibia International Bond
5.250%, 10/29/25 (144A)

     1,730,000        1,608,900   

New Zealand Government Bond
4.500%, 04/15/27 (NZD)

     8,320,000        6,164,150   

Norwegian Government Bonds
2.000%, 05/24/23 (144A) (NOK)

     10,000,000        1,186,558   

4.250%, 05/19/17 (144A) (NOK)

     115,000,000        13,624,635   

4.500%, 05/22/19 (144A) (NOK)

     17,550,000        2,231,706   

Romania Government Bonds
5.850%, 04/26/23 (RON)

     7,030,000        1,949,135   

5.950%, 06/11/21 (RON)

     3,650,000        1,014,494   

Russian Federal Bond - OFZ
7.000%, 08/16/23 (RUB)

     361,388,000        4,278,537   

Russian Foreign Bond - Eurobond
7.500%, 03/31/30 (144A) (a) (i)

     712,513        853,651   

Sri Lanka Government International Bond
6.850%, 11/03/25 (144A) (a)

     1,655,000        1,558,972   

Zambia Government International Bond
5.375%, 09/20/22 (144A)

     800,000        577,280   
   

 

 

  
      61,799,369   
   

 

 

  

Total Foreign Government
(Cost $74,501,261)

       65,462,387   
   

 

 

  
Asset-Backed Securities—4.4%   

Asset-Backed - Automobile—0.4%

  

Capital Auto Receivables Asset Trust
2.190%, 09/20/21

     500,000        498,553   

Capital Automotive REIT
3.660%, 10/15/44 (144A)

     1,900,000        1,908,993   

Asset-Backed - Automobile—(Continued)

  

First Investors Auto Owner Trust
2.530%, 01/15/20 (144A)

     275,000      273,644   

Flagship Credit Auto Trust
5.380%, 07/15/20 (144A)

     1,000,000        1,007,423   

Santander Drive Auto Receivables Trust
2.700%, 08/15/18

     487,576        490,039   

Skopos Auto Receivables Trust
3.100%, 12/15/23 (144A)

     327,668        326,203   

Tidewater Auto Receivables Trust
2.830%, 10/15/19 (144A)

     477,525        477,576   
   

 

 

  
      4,982,431   
   

 

 

  

Asset-Backed - Home Equity—0.3%

  

Accredited Mortgage Loan Trust
0.572%, 09/25/36 (b)

     486,482        480,846   

GSAA Home Equity Trust
0.792%, 10/25/35 (b)

     304,628        280,918   

4.844%, 06/25/34 (b)

     1,297,891        1,206,454   

Home Equity Asset Trust
0.532%, 03/25/37 (b)

     165,255        163,944   

Nationstar Home Equity Loan Trust
0.572%, 03/25/37 (b)

     140,304        137,729   

Option One Mortgage Loan Trust Asset-Backed Certificates
0.682%, 11/25/35 (b)

     194,837        193,260   

Truman Capital Mortgage Loan Trust
2.122%, 01/25/34 (144A) (b)

     463,049        453,809   
   

 

 

  
      2,916,960   
   

 

 

  

Asset-Backed - Manufactured Housing—0.1%

  

Conseco Financial Corp.
6.240%, 12/01/28 (b)

     27,136        27,852   

Greenpoint Manufactured Housing
8.450%, 06/20/31 (b)

     107,843        109,281   

Lehman ABS Manufactured Housing Contract Trust
5.873%, 04/15/40

     116,907        122,716   

Madison Avenue Manufactured Housing Contract Trust
3.672%, 03/25/32 (b)

     245,943        248,916   

Mid-State Capital Trust
5.250%, 12/15/45 (144A)

     365,108        381,072   

Mid-State Trust
7.540%, 02/15/36

     39,987        43,324   

Origen Manufactured Housing Contract Trust
5.460%, 11/15/35 (b)

     231,100        233,997   

5.910%, 01/15/35 (b)

     352,186        366,782   
   

 

 

  
      1,533,940   
   

 

 

  

Asset-Backed - Other—3.6%

  

American Homes 4 Rent
1.701%, 06/17/31 (144A) (b)

     500,000        487,095   

4.110%, 04/17/52 (144A)

     600,000        559,700   

 

See accompanying notes to financial statements.

 

MIST-20

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

Asset-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Asset-Backed - Other—(Continued)

  

American Homes 4 Rent Trust
4.596%, 12/17/36 (144A)

     1,000,000      $ 971,130   

5.040%, 12/17/36 (144A)

     1,000,000        988,916   

5.149%, 10/17/36 (144A)

     500,000        498,818   

Applebee’s Funding LLC / IHOP Funding LLC
4.277%, 09/05/44 (144A)

     1,900,000        1,924,024   

Axis Equipment Finance Receivables III LLC
4.050%, 05/20/20 (144A)

     199,997        199,227   

B2R Mortgage Trust
4.831%, 05/15/48 (144A) (b)

     200,000        186,372   

Bayview Opportunity Master Fund IIa Trust
3.721%, 02/28/35 (144A) (b)

     440,536        440,064   

3.721%, 08/28/44 (144A)

     386,027        387,569   

Bayview Opportunity Master Fund Trust IIIa
3.623%, 07/28/19 (144A)

     124,532        123,524   

Carrington Mortgage Loan Trust
0.822%, 09/25/35 (b)

     3,141        3,137   

Citicorp Residential Mortgage Trust
5.821%, 03/25/37

     975,000        851,658   

5.908%, 09/25/36

     978,000        931,644   

CKE Restaurant Holdings, Inc.
4.474%, 03/20/43 (144A)

     2,972,125        2,955,135   

Colony American Homes
2.426%, 07/17/31 (144A) (b)

     1,000,000        968,243   

Conn’s Receivables Funding LLC
4.565%, 09/15/20 (144A)

     326,734        324,284   

Countrywide Asset-Backed Certificates
0.602%, 06/25/36 (b)

     211,899        207,917   

0.672%, 04/25/36 (b)

     81,493        81,093   

Credit-Based Asset Servicing and Securitization LLC
0.512%, 04/25/37 (b)

     258,994        221,125   

DB Master Finance LLC
3.980%, 02/20/45 (144A)

     2,133,875        2,127,342   

Dominos Pizza Master Issuer LLC
3.484%, 10/25/45 (144A)

     1,500,000        1,470,000   

5.216%, 01/25/42 (144A)

     1,418,711        1,459,331   

Drug Royalty II L.P. 2
3.139%, 07/15/23 (144A) (b)

     602,780        609,898   

Ellington Loan Acquisition Trust
1.322%, 05/28/37 (144A) (b)

     537,775        532,070   

GCAT LLC
3.625%, 05/26/20 (144A)

     542,872        537,846   

GLC Trust
3.000%, 07/15/21 (144A)

     548,140        546,660   

GMAT Trust
3.967%, 11/25/43 (144A)

     690,145        697,250   

HOA Funding LLC
4.846%, 08/20/44 (144A)

     2,242,500        2,038,502   

Icon Brands Holdings LLC
4.229%, 01/25/43 (144A)

     961,351        887,693   

JPMorgan Mortgage Acquisition Trust
0.572%, 05/25/36 (b)

     55,613        55,339   

Leaf Receivables Funding LLC
2.670%, 09/15/20 (144A)

     538,712        539,606   

2.740%, 03/15/21 (144A)

     200,000        196,089   

Asset-Backed - Other—(Continued)

  

Leaf Receivables Funding LLC
3.740%, 05/17/21 (144A)

     300,000      291,771   

5.110%, 09/15/21 (144A)

     531,000        539,653   

5.500%, 09/15/20 (144A)

     367,451        369,802   

Progreso Receivables Funding LLC
3.000%, 07/28/20 (144A)

     800,000        790,827   

Residential Asset Mortgage Products Trust
5.665%, 01/25/34

     197,872        179,636   

RMAT LLC
4.090%, 07/27/20 (144A)

     469,368        466,083   

Sierra Timeshare Receivables Funding LLC
1.870%, 08/20/29 (144A)

     116,570        115,911   

Silver Bay Realty Trust
2.356%, 09/17/31 (144A) (b)

     1,000,000        971,424   

Spirit Master Funding LLC
3.887%, 12/20/43 (144A)

     400,000        407,929   

4.629%, 01/20/45 (144A)

     1,600,000        1,630,406   

5.740%, 03/20/42 (144A)

     178,291        190,417   

Springleaf Funding Trust
2.410%, 12/15/22 (144A)

     900,000        897,443   

STORE Master Funding I LLC
3.750%, 04/20/45 (144A)

     1,245,833        1,236,011   

STORE Master Funding LLC
4.160%, 03/20/43 (144A)

     191,149        194,859   

4.210%, 04/20/44 (144A)

     595,250        609,250   

Structured Asset Investment Loan Trust
0.622%, 01/25/36 (b)

     204,687        200,665   

Structured Asset Securities Corp. Mortgage Loan Trust
0.552%, 03/25/37 (b)

     74,435        74,132   

TAL Advantage V LLC
3.510%, 02/22/39 (144A)

     1,041,250        1,025,229   

U.S. Residential Opportunity Fund Trust
3.721%, 01/27/35 (144A)

     1,119,666        1,112,392   

Vericrest Opportunity Loan Trust XXXVI LLC
3.625%, 07/25/45 (144A)

     1,002,159        987,918   

Vericrest Opportunity Loan Trust XIX LLC
3.875%, 04/25/55 (144A)

     402,978        401,133   

Vericrest Opportunity Loan Trust XXV LLC
3.500%, 06/26/45 (144A)

     703,822        693,544   

Vericrest Opportunity Loan Trust XXXIII LLC
3.500%, 03/25/55 (144A)

     685,047        673,075   

Westgate Resorts LLC
2.150%, 12/20/26 (144A)

     496,394        487,608   

2.250%, 08/20/25 (144A)

     201,246        201,113   

2.500%, 03/20/25 (144A)

     69,196        69,185   

2.750%, 05/20/27 (144A)

     940,701        930,698   

3.250%, 12/20/26 (144A)

     1,058,974        1,045,207   

3.750%, 08/20/25 (144A)

     79,859        79,755   
   

 

 

  
      41,881,377   
   

 

 

  

Total Asset-Backed Securities
(Cost $51,505,408)

       51,314,708   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-21

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

Municipals—3.2%

 

Security Description   Principal
Amount*		     Value  

Baylor University
4.313%, 03/01/42

     800,000      $ 774,176   

Brazos River Harbor, TX Navigation District Revenue Bonds Dow Chemical Co. Project
5.950%, 05/15/33

     3,360,000        3,686,323   

Gulf Coast Waste Disposal Authority
5.200%, 05/01/28

     945,000        966,064   

Indianapolis Airport Authority Federal Express Corp. Project
5.100%, 01/15/17

     660,000        686,321   

JobsOhio Beverage System
3.985%, 01/01/29

     2,990,000        3,109,062   

4.532%, 01/01/35

     760,000        808,351   

Louisiana Local Government Environmental Facilities Community Development Authority Revenue Westlake Chemical Corp. Projects
6.750%, 11/01/32

     1,550,000        1,678,231   

Massachusetts State Development Finance Agency Revenue Board Institute, Inc.
5.250%, 04/01/37

     1,350,000        1,538,203   

5.375%, 04/01/41

     400,000        456,520   

Massachusetts State Health & Educational Facilities Authority Revenue Massachusetts Institute of Technology
5.500%, 07/01/32

     950,000        1,319,028   

New Hampshire Health & Educational Facilities Authority Revenue, Wentworth Douglas Hospital
6.500%, 01/01/41

     600,000        711,540   

New Jersey Economic Development Authority Lease Revenue
Zero Coupon, 02/15/18

     3,400,000        3,196,034   

New Jersey State Transportation Trust Fund Authority Transportation Systems
5.500%, 06/15/41

     2,000,000        2,188,300   

Port Authority of New York & New Jersey
4.458%, 10/01/62

     460,000        442,092   

Port of Corpus Christi Authority TX Celanese Project
6.700%, 11/01/30

     1,500,000        1,503,405   

Selma AL, Industrial Development Board Revenue Gulf Opportunity Zone, International Paper Co. Projects
6.250%, 11/01/33

     800,000        926,960   

St. John Baptist Parish LA, Revenue Bond Marathon Oil Corp.
5.125%, 06/01/37

     1,710,000        1,732,657   

Texas A&M University Permanent University Fund
5.000%, 07/01/30

     530,000        644,279   

Texas Brazos Harbor Industrial Development Corp., Environmental Facilities Revenue Dow Chemical Project.
5.900%, 05/01/38 (b)

     1,505,000        1,611,810   

Texas Municipal Gas Acquisition & Supply Corp. III
5.000%, 12/15/30

     750,000        820,718   

5.000%, 12/15/31

     1,550,000        1,688,167   

University of California CA, Revenue
3.380%, 05/15/28

     1,200,000      1,182,048   

University of Texas System
5.000%, 08/15/43

     395,000        451,564   

Virginia Commonwealth Transportation Board
4.000%, 05/15/31

     1,300,000        1,413,477   

4.000%, 05/15/32

     1,300,000        1,408,446   

Washington Suburban Sanitary Commission
4.000%, 06/01/43

     960,000        1,005,350   

4.000%, 06/01/44

     930,000        973,236   

Yavapai County AZ, Industrial Development Authority Solid Waste Disposal Revenue Waste Management, Inc. Project
4.900%, 03/01/28

     300,000        304,578   
   

 

 

  

Total Municipals
(Cost $33,227,867)

       37,226,940   
   

 

 

  
Convertible Bonds—1.3%                

Biotechnology—0.0%

  

Medicines Co. (The)
2.500%, 01/15/22 (144A)

     180,000      $ 228,150   
   

 

 

  

Commercial Services—0.1%

  

Cardtronics, Inc.
1.000%, 12/01/20 (a)

     465,000        431,578   
   

 

 

  

Electrical Components & Equipment—0.1%

  

General Cable Corp.
4.500%, 11/15/29 (l)

     2,420,000        1,483,762   
   

 

 

  

Electronics—0.2%

  

Vishay Intertechnology, Inc.
2.250%, 05/15/41

     2,545,000        1,945,334   
   

 

 

  

Energy - Alternate Sources—0.0%

  

LDK Solar Co., Ltd.
Zero Coupon, 12/31/18

     9,209        1,382   

5.535%, 12/31/18 (e)

     332,761        49,914   

SolarCity Corp.
1.625%, 11/01/19

     360,000        290,700   
   

 

 

  
      341,996   
   

 

 

  

Engineering & Construction—0.2%

  

Dycom Industries, Inc.
0.750%, 09/15/21 (144A) (a)

     2,200,000        2,161,500   
   

 

 

  

Healthcare - Products—0.1%

  

Cepheid, Inc.
1.250%, 02/01/21 (a)

     855,000        760,416   
   

 

 

  

Home Builders—0.3%

  

CalAtlantic Group, Inc.
0.250%, 06/01/19

     1,095,000        979,341   

1.250%, 08/01/32

     1,210,000        1,343,100   

 

See accompanying notes to financial statements.

 

MIST-22

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

Convertible Bonds—(Continued)

 

Security Description  

Shares/

Principal
Amount*

     Value  

Home Builders—(Continued)

  

KB Home
1.375%, 02/01/19

     1,275,000      $ 1,140,328   
   

 

 

  
      3,462,769   
   

 

 

  

Internet—0.1%

  

WebMD Health Corp.
2.500%, 01/31/18 (a)

     1,035,000        1,064,756   
   

 

 

  

Mining—0.1%

  

Mirabela Nickel, Ltd.
9.500%, 06/24/19 (144A) (d) (e)

     343,664        199,325   

Vedanta Resources Jersey, Ltd.
5.500%, 07/13/16

     1,400,000        1,134,000   
   

 

 

  
      1,333,325   
   

 

 

  

Oil & Gas—0.0%

  

Ascent Resources - Utica LLC
3.500%, 03/01/21 (144A) (d) (e)

     875,050        8,751   

Cobalt International Energy, Inc.
2.625%, 12/01/19

     70,000        39,244   

SandRidge Energy, Inc.
8.125%, 10/16/22

     486,000        93,251   
   

 

 

  
      141,246   
   

 

 

  

Pharmaceuticals—0.0%

  

Impax Laboratories, Inc.
2.000%, 06/15/22 (144A) (a)

     360,000        352,800   
   

 

 

  

Telecommunications—0.1%

  

Finisar Corp.
0.500%, 12/15/33 (a)

     1,300,000        1,207,375   
   

 

 

  

Transportation—0.0%

  

Golar LNG, Ltd.
3.750%, 03/07/17

     300,000        265,020   
   

 

 

  

Total Convertible Bonds
(Cost $17,699,040)

       15,180,027   
   

 

 

  
Preferred Stocks—0.9%   

Air Freight & Logistics—0.0%

  

CEVA Group plc - Series A2 (f)

     864        388,674   
   

 

 

  

Banks—0.5%

  

Citigroup Capital XIII, 6.692% (b)

     30,810        800,752   

Citigroup, Inc., 7.125% (a) (b)

     121,710        3,409,097   

GMAC Capital Trust I, 8.125% (b)

     56,000        1,420,160   

Morgan Stanley, 6.375% (a) (b)

     17,598        467,051   
   

 

 

  
      6,097,060   
   

 

 

  

Capital Markets—0.1%

  

State Street Corp., 5.900% (a) (b)

     43,000        1,190,240   
   

 

 

  

Telecommunications—0.3%

  

Qwest Corp., 7.375% (a)

     109,000      2,771,870   
   

 

 

  

Total Preferred Stocks
(Cost $10,754,368)

       10,447,844   
   

 

 

  
Convertible Preferred Stocks—0.6%   

Banks—0.6%

  

Bank of America Corp.
7.250%, 12/31/49

     462        505,091   

Wells Fargo & Co., Series L
7.500%, 12/31/49

     4,965        5,764,365   
   

 

 

  

Total Convertible Preferred Stocks
(Cost $6,106,269)

       6,269,456   
   

 

 

  
Common Stocks—0.0%                

Air Freight & Logistics—0.0%

  

CEVA Group plc (f) (m)

     399        179,550   
   

 

 

  

Commercial Services—0.0%

  

Comdisco Holding Co., Inc. (m)

     83        355   
   

 

 

  

Media—0.0%

    

Cengage Learning, Inc. (m)

     10,995        258,438   
   

 

 

  

Metals & Mining—0.0%

  

Mirabela Nickel, Ltd. (f) (m) (n)

     1,370,320        0   
   

 

 

  

Semiconductors & Semiconductor Equipment—0.0%

  

LDK Solar Co., Ltd. (ADR) (m)

     22,685        1,270   
   

 

 

  

Total Common Stocks
(Cost $1,227,908)

       439,613   
   

 

 

  
Warrant—0.0%                

Sovereign—0.0%

  

Venezuela Government Oil-Linked Payment Obligation, Expires 04/15/20 (f) (m)
(Cost $0)

     1,700        11,050   
   

 

 

  
Escrow Shares—0.0%   

Forest Products & Paper—0.0%

  

Sino-Forest Corp. (f) (n)

     1,246,000        0   

Sino-Forest Corp. (f) (n)

     500,000        0   
   

 

 

  

Total Escrow Shares
(Cost $0)

       0   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-23

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

Short-Term Investments—6.8%

 

Security Description  

Shares/

Principal
Amount*

     Value  

Mutual Fund—4.3%

  

State Street Navigator Securities Lending MET Portfolio (o)

     49,932,885      $ 49,932,885   
   

 

 

  

Repurchase Agreement—2.5%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/15 at
0.030% to be repurchased at $29,342,219 on 01/04/16, collateralized by $30,310,000 U.S. Treasury Note at 0.625% due 04/30/18 with a value of $29,931,125.

     29,342,122        29,342,122   
   

 

 

  

Total Short-Term Investments
(Cost $79,275,007)

       79,275,007   
   

 

 

  

Total Investments—104.5%
(Cost $1,263,665,743) (p)

       1,217,018,751   

Other assets and liabilities (net)—(4.5)%

       (52,436,135 ) 
   

 

 

  
Net Assets—100.0%     $ 1,164,582,616   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of December 31, 2015, the market value of securities loaned was $62,475,907 and the collateral received consisted of cash in the amount of $49,932,885 and non-cash collateral with a value of $15,430,445. 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 December 31, 2015. Maturity date shown for callable securities reflects the earliest possible call date.
(c) Non-income producing; security is in default and/or issuer is in bankruptcy.
(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 December 31, 2015, the market value of restricted securities was $230,726, which is 0.0% of net assets. See details shown in the Restricted Securities table that follows.
(e) Payment-in-kind security for which part of the income earned may be paid as additional principal.
(f) Illiquid security. As of December 31, 2015, these securities represent 0.8% of net assets.
(g) 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.
(h) Interest only security.
(i) Principal amount of security is adjusted for inflation.
(j) 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.
(k) This loan will settle after December 31, 2015, at which time the interest rate will be determined.
(l) Security is a “step-down” bond where the coupon decreases or steps down at a predetermined date. Rate shown is current coupon rate.
(m) Non-income producing security.
(n) Security was valued in good faith under procedures approved by the Board of Trustees. As of December 31, 2015, these securities represent 0.0% of net assets.
(o) Represents investment of cash collateral received from securities on loan as of December 31, 2015.
(p) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $1,270,739,942. The aggregate unrealized appreciation and depreciation of investments were $20,264,897 and $(73,986,088), respectively, resulting in net unrealized depreciation of $(53,721,191) for federal income tax purposes.
(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 December 31, 2015, the market value of 144A securities was $394,147,062, which is 33.8% 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
(CMO)— Collateralized Mortgage Obligation
(CNY)— Chinese Yuan
(EUR)— Euro
(INR)— Indian Rupee
(JPY)— Japanese Yen
(MXN)— Mexican Peso
(NOK)— Norwegian Krone
(NZD)— New Zealand Dollar
(REMIC)— Real Estate Mortgage Investment Conduit
(RON)— New Romanian Leu
(RUB)— Russian Ruble

 

See accompanying notes to financial statements.

 

MIST-24

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

 

 

Restricted Securities

    Acquisition
Date		      Principal
Amount		      Cost      Value  

Ascent Resources - Utica LLC 3.500%, 03/01/21

      02/20/14       $ 875,050       $ 875,050       $ 8,751   

Desarrolladora Homex S.A.B. de C.V. 9.500%, 12/11/19.

      12/11/09         855,000         848,143         12,825   

Desarrolladora Homex S.A.B. de C.V. 9.750%, 03/25/20.

      02/02/12         655,000         649,308         9,825   

Mirabela Nickel, Ltd. 9.500%, 06/24/19.

      06/30/14         343,664         343,664         199,325   
           

 

 

  
            $ 230,726   
           

 

 

  

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy

     

Counterparty

    Settlement
Date		      In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
CNY     19,000,000      

JPMorgan Chase Bank N.A.

      01/06/16       $ 2,926,679       $ (914 ) 
RUB     250,555,000      

JPMorgan Chase Bank N.A.

      01/11/16         3,542,916         (110,656 ) 
RUB     209,000,000      

JPMorgan Chase Bank N.A.

      01/25/16         2,942,833         (90,248 ) 

Contracts to Deliver

                            
AUD     22,196,422      

Brown Brothers Harriman & Co.

      02/17/16         15,868,777         (271,484 ) 
CAD     3,532,147      

JPMorgan Chase Bank N.A.

      02/29/16         2,545,155         (7,917 ) 
CNY     19,000,000      

JPMorgan Chase Bank N.A.

      01/06/16         2,945,052         19,287   
CNY     19,000,000      

JPMorgan Chase Bank N.A.

      02/04/16         2,894,576         (25,959 ) 
EUR     19,046,340      

JPMorgan Chase Bank N.A.

      03/03/16         20,378,603         (349,745 ) 
JPY     88,407,457      

JPMorgan Chase Bank N.A.

      02/25/16         721,076         (15,228 ) 
MXN     84,360,000      

JPMorgan Chase Bank N.A.

      01/25/16         5,056,245         168,498   
NZD     16,520,359      

JPMorgan Chase Bank N.A.

      02/17/16         11,113,502         (156,156 ) 
RUB     250,555,000      

JPMorgan Chase Bank N.A.

      01/11/16         3,729,218         296,958   
             

 

 

  
Net Unrealized Depreciation       $ (543,564 ) 
             

 

 

  

Futures Contracts

 

Futures Contracts—Long

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

U.S. Treasury Ultra Long Bond Futures

      03/21/16         233        USD         36,825,528      $ 148,660   

Futures Contracts—Short

                    

U.S. Treasury Long Bond Futures

      03/21/16         (33 )      USD         (5,069,647 )      (4,103 ) 

U.S. Treasury Note 10 Year Futures

      03/21/16         (1,375 )      USD         (173,624,264 )      503,170   

U.S. Treasury Note 2 Year Futures

      03/31/16         (36 )      USD         (7,831,588 )      11,150   

U.S. Treasury Note 5 Year Futures

      03/31/16         (653 )      USD         (77,445,011 )      181,847   
            

 

 

  

Net Unrealized Appreciation

  

   $ 840,724   
            

 

 

  

Swap Agreements

Centrally Cleared Credit Default Swaps on Credit Indices—Sell Protection (a)

 

Reference Obligation

    Fixed Deal
Receive Rate		      Maturity
Date		     

Implied Credit
Spread at
December 31,
2015(b)

    Notional
Amount (c)		      Unrealized
Depreciation		  

CDX.NA.HY.23.V3

      5.000%         12/20/19      

N/A

      USD         12,617,787       $ (28,654)   
                 

 

 

  

 

See accompanying notes to financial statements.

 

MIST-25

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

Swap Agreements—(Continued)

 

OTC Credit Default Swaps on Corporate Issues—Sell Protection (a)

 

Reference Obligation

   Fixed Deal
Receive Rate		     Maturity
Date		    

Counterparty

   Implied Credit
Spread at
December 31,
2015(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
(Received)		     Unrealized
Depreciation		  

Diamond Offshore Drilling, Inc.
4.875%, due 07/01/15

     1.000%        12/20/19      Morgan Stanley Capital Services LLC     4.972%        USD        2,525,000      $ (348,388)      $ (92,038)      $ (256,350)   
             

 

 

    

 

 

    

 

 

  

 

(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 of purchased protection credit default swap contracts entered into by the Portfolio for the same referenced debt obligation.
(AUD)— Australian Dollar
(CAD)— Canadian Dollar
(CNY)— Chinese Yuan
(EUR)— Euro
(JPY)— Japanese Yen
(MXN)— Mexican Peso
(NZD)— New Zealand Dollar
(RUB)— Russian Ruble
(USD)— United States Dollar
(CDX.NA.HY)— Markit North America High Yield CDS Index

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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.

 

See accompanying notes to financial statements.

 

MIST-26

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

Fair Value Hierarchy—(Continued)

 

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of December 31, 2015:

 

Description    Level 1      Level 2      Level 3      Total  
Corporate Bonds & Notes            

Agriculture

    $ —         $ 6,079,290       $ —         $ 6,079,290   

Airlines

      —           7,994,664         —           7,994,664   

Auto Manufacturers

      —           672,249         —           672,249   

Auto Parts & Equipment

      —           432,200         —           432,200   

Banks

      —           86,253,477         —           86,253,477   

Beverages

      —           1,913,643         —           1,913,643   

Biotechnology

      —           4,827,626         —           4,827,626   

Building Materials

      —           10,887,654         —           10,887,654   

Chemicals

      —           13,750,498         —           13,750,498   

Commercial Services

      —           12,054,701         —           12,054,701   

Computers

      —           2,462,950         —           2,462,950   

Diversified Financial Services

      —           39,405,863         —           39,405,863   

Electric

      —           27,977,003         —           27,977,003   

Electrical Components & Equipment

      —           26,569         —           26,569   

Electronics

      —           2,124,344         —           2,124,344   

Energy-Alternate Sources

      —           2,021,089         —           2,021,089   

Engineering & Construction

      —           929,625         —           929,625   

Entertainment

      —           1,846,113         —           1,846,113   

Food

      —           13,835,992         —           13,835,992   

Forest Products & Paper

      —           3,748,033         —           3,748,033   

Gas

      —           1,891,614         —           1,891,614   

Hand/Machine Tools

      —           1,601,250         —           1,601,250   

Healthcare-Services

      —           5,249,922         —           5,249,922   

Home Builders

      —           6,836,313         —           6,836,313   

Home Furnishings

      —           993,670         —           993,670   

Household Products/Wares

      —           2,290,680         —           2,290,680   

Insurance

      —           48,279,540         14,729,112         63,008,652   

Internet

      —           3,052,862         —           3,052,862   

Investment Company Security

      —           955,031         —           955,031   

Iron/Steel

      —           4,510,897         —           4,510,897   

Leisure Time

      —           1,782,666         —           1,782,666   

Lodging

      —           2,490,883         —           2,490,883   

Machinery-Construction & Mining

      —           572,856         —           572,856   

Machinery-Diversified

      —           2,479,586         —           2,479,586   

Media

      —           10,650,118         —           10,650,118   

Metal Fabricate/Hardware

      —           1,747,847         —           1,747,847   

Mining

      —           8,902,046         —           8,902,046   

Multi-National

      —           15,167,813         —           15,167,813   

Municipal

      —           2,257,500         —           2,257,500   

Oil & Gas

      —           28,815,941         —           28,815,941   

Oil & Gas Services

      —           6,223,531         —           6,223,531   

Packaging & Containers

      —           4,713,684         —           4,713,684   

Pharmaceuticals

      —           2,530,413         —           2,530,413   

Pipelines

      —           42,481,770         —           42,481,770   

Real Estate Investment Trusts

      —           14,350,431         —           14,350,431   

Retail

      —           5,372,072         —           5,372,072   

Semiconductors

      —           7,309,496         —           7,309,496   

Shipbuilding

      —           446,600         —           446,600   

Software

      —           3,519,875         —           3,519,875   

Sovereign

      —           4,035,164         —           4,035,164   

Telecommunications

      —           28,867,383         —           28,867,383   

Textiles

      —           582,179         —           582,179   

Transportation

      —           2,951,469         —           2,951,469   

Trucking & Leasing

      —           2,031,530         —           2,031,530   

Total Corporate Bonds & Notes

      —           515,188,215         14,729,112         529,917,327   

 

See accompanying notes to financial statements.

 

MIST-27

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

Fair Value Hierarchy—(Continued)

 

Description    Level 1     Level 2     Level 3      Total  

Total U.S. Treasury & Government Agencies*

    $ —        $ 209,590,354      $ —         $ 209,590,354   

Total Mortgage-Backed Securities*

      —          123,275,472        —           123,275,472   

Total Floating Rate Loans*

      —          88,608,566        —           88,608,566   

Total Foreign Government*

      —          65,462,387        —           65,462,387   

Total Asset-Backed Securities*

      —          51,314,708        —           51,314,708   

Total Municipals

      —          37,226,940        —           37,226,940   

Total Convertible Bonds*

      —          15,180,027        —           15,180,027   
Preferred Stocks          

Air Freight & Logistics

      —          388,674        —           388,674   

Banks

      6,097,060        —          —           6,097,060   

Capital Markets

      1,190,240        —          —           1,190,240   

Telecommunications

      2,771,870        —          —           2,771,870   

Total Preferred Stocks

      10,059,170        388,674        —           10,447,844   

Total Convertible Preferred Stocks*

      6,269,456        —          —           6,269,456   
Common Stocks          

Air Freight & Logistics

      —          179,550        —           179,550   

Commercial Services

      355        —          —           355   

Media

      —          258,438        —           258,438   

Metals & Mining

      —          —          0         0   

Semiconductors & Semiconductor Equipment

      1,270        —          —           1,270   

Total Common Stocks

      1,625        437,988        0         439,613   

Total Warrant*

      —          11,050        —           11,050   

Total Escrow Shares*

      —          —          0         0   
Short-Term Investments          

Mutual Fund

      49,932,885        —          —           49,932,885   

Repurchase Agreement

      —          29,342,122        —           29,342,122   

Total Short-Term Investments

      49,932,885        29,342,122        —           79,275,007   

Total Investments

    $ 66,263,136      $ 1,136,026,503      $ 14,729,112       $ 1,217,018,751   
                                   

Collateral for Securities Loaned (Liability)

    $ —        $ (49,932,885 )    $ —         $ (49,932,885 ) 
Forward Contracts          

Forward Foreign Currency Exchange Contracts (Unrealized Appreciation)

    $ —        $ 484,743      $ —         $ 484,743   

Forward Foreign Currency Exchange Contracts (Unrealized Depreciation)

      —          (1,028,307 )      —           (1,028,307 ) 

Total Forward Contracts

    $ —        $ (543,564 )    $ —         $ (543,564 ) 
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 844,827      $ —        $ —         $ 844,827   

Futures Contracts (Unrealized Depreciation)

      (4,103 )      —          —           (4,103 ) 

Total Futures Contracts

    $ 840,724      $   —      $ —         $ 840,724   
Centrally Cleared Swap Contracts          

Centrally Cleared Swap Contracts (Unrealized Depreciation)

    $ —        $ (28,654 )    $ —         $ (28,654 ) 
OTC Swap Contracts          

OTC Swap Contracts at Value (Liabilities)

    $ —        $ (348,388 )    $ —         $ (348,388 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-28

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of December 31, 2015

Fair Value Hierarchy—(Continued)

 

Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

 

Invest
ments in
Securities

   Balance
as of
December
31,
2014		     Accrued
Discounts/
(Premiums)		     Realized
Gain		     Change in
Unrealized
Appreciation/
(Depreciation)		     Purchases     Sales     Transfers
into
Level 3		     Transfers
out of
Level 3		     Balance as of
December 31,
2015		     Change in
Unrealized
Appreciation/
Depreciation
from
Investments
Still Held at
December 31,
2015		  
Corporate Bonds & Notes                    

Insurance

   $ 1,881,430      $ 10,579      $ 265,574      $ 1,281,229      $ 4,258,174      $ (2,003,074 )    $ 9,035,200      $ —      $ 14,729,112      $ 1,425,159   
Common Stocks                    

Metals & Mining

     56,119        —        85,726        (31,619 )      —        (110,226 )      —        —        0        (32,444 ) 
Convertible Bonds                    

Energy-Alter
native Sources

     0        —        —        0        —        —        —        0        —        —   
Escrow
Share		                    

Forest Products & Paper

     0        —        —        0        —        —        —        —        0        0   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 1,937,549      $ 10,579      $ 351,300      $ 1,249,610      $ 4,258,174      $ (2,113,300 )    $ 9,035,200      $ 0      $ 14,729,112      $ 1,392,715   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Corporate Bonds & Notes in the amount of $9,035,200 were transferred into level 3 due to a lack of observable market inputs that determine price.

Convertible Bonds in the amount of $0 were transferred out of level 3 due to the initiation of a vendor or broker providing prices that are based on market activity which has been determined to be significant observable inputs.

 

See accompanying notes to financial statements.

 

MIST-29

Met Investors Series Trust

Pioneer Strategic Income Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 1,217,018,751   

Cash

      4,561,650   

Cash denominated in foreign currencies (c)

      641,078   

Cash collateral (d)

      3,195,482   

Unrealized appreciation on forward foreign currency exchange contracts

      484,743   

Receivable for:

   

Investments sold

      379,739   

Fund shares sold

      168,585   

Dividends and interest

      10,643,420   

Interest on OTC swap contracts

      772   

Variation margin on centrally cleared swap contracts

      9,359   

Prepaid expenses

      3,363  
  

 

 

  

Total Assets

      1,237,106,942   

Liabilities

   

OTC swap contracts at market value (e)

      348,388   

Unrealized depreciation on forward foreign currency exchange contracts

      1,028,307   

Collateral for securities loaned

      49,932,885   

Payables for:

   

Investments purchased

      2,419,557   

TBA securities purchased

      17,248,628   

Fund shares redeemed

      286,180   

Variation margin on futures contracts

      285,209   

Accrued Expenses:

   

Management fees

      565,552   

Distribution and service fees

      49,775   

Deferred trustees’ fees

      81,937   

Other expenses

      277,908  
  

 

 

  

Total Liabilities

      72,524,326   
  

 

 

  

Net Assets

    $ 1,164,582,616  
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 1,182,389,713   

Undistributed net investment income

      41,419,428   

Accumulated net realized loss

      (12,531,666 ) 

Unrealized depreciation on investments, futures contracts, swap contracts and foreign currency transactions

      (46,694,859 )
  

 

 

  

Net Assets

    $ 1,164,582,616  
  

 

 

  

Net Assets

   

Class A

    $ 838,345,496   

Class B

      96,401,223   

Class E

      229,835,897   

Capital Shares Outstanding*

   

Class A

      82,598,924   

Class B

      9,709,953   

Class E

      22,808,401   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 10.15   

Class B

      9.93   

Class E

      10.08   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,263,665,743.
(b) Includes securities loaned at value of $62,475,907.
(c) Identified cost of cash denominated in foreign currencies was $653,646.
(d) Includes collateral of $330,000 for OTC swap contracts, $745,000 for centrally cleared swap contracts and $2,120,482 for futures contracts.
(e) Net premium received on OTC swap contracts was $92,038.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends

    $ 1,564,221   

Interest (a)

      51,998,375   

Securities lending income

      274,606  
  

 

 

  

Total investment income

      53,837,202  

Expenses

   

Management fees

      7,031,997   

Administration fees

      30,081   

Custodian and accounting fees

      321,962   

Distribution and service fees—Class B

      212,615   

Distribution and service fees—Class E

      367,973   

Audit and tax services

      68,444   

Legal

      30,237   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      89,057   

Insurance

      8,084   

Miscellaneous

      17,213  
  

 

 

  

Total expenses

      8,212,836  
  

 

 

  

Net Investment Income

      45,624,366  
  

 

 

  

Net Realized and Unrealized Loss

   
Net realized gain (loss) on:   

Investments

      (8,938,230 ) 

Futures contracts

      (4,847,185 ) 

Swap contracts

      551,771   

Foreign currency transactions

      3,966,161  
  

 

 

  

Net realized loss

      (9,267,483 )
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (52,995,061 ) 

Futures contracts

      1,643,633   

Swap contracts

      (221,672 ) 

Foreign currency transactions

      (757,474 )
  

 

 

  

Net change in unrealized depreciation

      (52,330,574 )
  

 

 

  

Net realized and unrealized loss

      (61,598,057 )
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (15,973,691 )
  

 

 

  

 

(a) Net of foreign withholding taxes of $17,976.

 

See accompanying notes to financial statements.

 

MIST-30

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 45,624,366      $ 52,852,090   

Net realized gain (loss)

      (9,267,483 )      22,966,759   

Net change in unrealized depreciation

      (52,330,574 )     (18,436,835 )
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (15,973,691 )     57,382,014  
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (47,291,030 )      (50,319,138 ) 

Class B

      (4,245,871 )      (1,930,820 ) 

Class E

      (12,345,013 )      (11,977,710 ) 

Net realized capital gains

     

Class A

      (9,207,103 )      (10,046,356 ) 

Class B

      (869,732 )      (405,931 ) 

Class E

      (2,478,014 )     (2,468,525 )
  

 

 

    

 

 

  

Total distributions

      (76,436,763 )     (77,148,480 )
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      (8,099,921 )     24,033,362  
  

 

 

    

 

 

  

Total increase (decrease) in net assets

      (100,510,375 )      4,266,896   

Net Assets

     

Beginning of period

      1,265,092,991       1,260,826,095  
  

 

 

    

 

 

  

End of period

    $ 1,164,582,616      $ 1,265,092,991   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 41,419,428      $ 57,208,673   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      1,295,922      $ 13,972,876        2,351,317      $ 26,108,142   

Reinvestments

      5,427,295        56,498,133        5,589,398        60,365,494   

Redemptions

      (11,095,751 )      (117,492,921 )      (10,101,024 )      (111,845,559 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (4,372,534 )    $ (47,021,912 )      (2,160,309 )    $ (25,371,923 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      3,505,762      $ 36,772,121        4,387,077      $ 47,717,865   

Reinvestments

      502,022        5,115,603        220,448        2,336,751   

Redemptions

      (550,968 )      (5,689,694 )      (601,273 )      (6,536,301 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      3,456,816      $ 36,198,030        4,006,252      $ 43,518,315   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      3,998,376      $ 42,722,748        4,191,650      $ 46,087,571   

Reinvestments

      1,433,562        14,823,027        1,345,087        14,446,235   

Redemptions

      (5,175,723 )      (54,821,814 )      (4,964,094 )      (54,646,836 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      256,215      $ 2,723,961        572,643      $ 5,886,970   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ (8,099,921 )      $ 24,033,362   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-31

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Financial Highlights

 

Selected per share data                                 
     Class A  
     Year Ended December 31,  
     2015     2014     2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 10.95      $ 11.14     $ 11.57       $ 10.95       $ 11.15  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

             

Net investment income (a)

      0.40        0.46        0.55         0.57         0.62   

Net realized and unrealized gain (loss) on investments

      (0.52 )     0.05       (0.37 )      0.66        (0.22 )
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.12 )     0.51       0.18        1.23        0.40  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Less Distributions

             

Distributions from net investment income

      (0.57 )      (0.58 )      (0.58 )       (0.57 )       (0.53 ) 

Distributions from net realized capital gains

      (0.11 )     (0.12 )     (0.03 )      (0.04 )      (0.07 )
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Total distributions

      (0.68 )     (0.70 )     (0.61 )      (0.61 )      (0.60 )
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.15      $ 10.95     $ 11.14       $ 11.57       $ 10.95  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (1.30 )     4.58       1.54        11.62        3.63  

Ratios/Supplemental Data

             

Ratio of expenses to average net assets (%)

      0.61        0.62        0.63         0.63         0.64   

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

      3.72        4.15        4.88         5.12         5.61   

Portfolio turnover rate (%)

      66  (c)      82  (c)      29         23         30   

Net assets, end of period (in millions)

    $ 838.3      $ 952.7      $ 993.0       $ 920.1       $ 743.2   

 

     Class B  
     Year Ended December 31,  
     2015     2014     2013(d)  

Net Asset Value, Beginning of Period

    $ 10.73      $ 10.92     $ 10.76   
  

 

 

    

 

 

    

 

 

  

Income (Loss) from Investment Operations

       

Net investment income (a)

      0.36        0.41        0.23   

Net realized and unrealized gain (loss) on investments

      (0.51 )     0.07       (0.07 )
  

 

 

    

 

 

    

 

 

  

Total from investment operations

      (0.15 )     0.48       0.16  
  

 

 

    

 

 

    

 

 

  

Less Distributions

       

Distributions from net investment income

      (0.54 )      (0.55 )      0.00   

Distributions from net realized capital gains

      (0.11 )     (0.12 )     0.00  
  

 

 

    

 

 

    

 

 

  

Total distributions

      (0.65 )     (0.67 )     0.00  
  

 

 

    

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 9.93      $ 10.73     $ 10.92   
  

 

 

    

 

 

    

 

 

  

Total Return (%) (b)

      (1.58 )     4.40       1.49  (e)

Ratios/Supplemental Data

       

Ratio of expenses to average net assets (%)

      0.86        0.87        0.88  (f) 

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

      3.48        3.83        4.71  (f) 

Portfolio turnover rate (%)

      66  (c)      82  (c)      29   

Net assets, end of period (in millions)

    $ 96.4      $ 67.1      $ 24.5   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-32

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Financial Highlights

 

 

Selected per share data                                 
     Class E  
     Year Ended December 31,  
     2015     2014     2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 10.88      $ 11.07     $ 11.50       $ 10.89       $ 11.10  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

             

Net investment income (a)

      0.38        0.44        0.53         0.55         0.60   

Net realized and unrealized gain (loss) on investments

      (0.52 )     0.05       (0.37 )      0.65        (0.22 )
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.14 )     0.49       0.16        1.20        0.38  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Less Distributions

             

Distributions from net investment income

      (0.55 )      (0.56 )      (0.56 )       (0.55 )       (0.52 ) 

Distributions from net realized capital gains

      (0.11 )     (0.12 )     (0.03 )      (0.04 )      (0.07 )
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Total distributions

      (0.66 )     (0.68 )     (0.59 )      (0.59 )      (0.59 )
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.08      $ 10.88     $ 11.07       $ 11.50       $ 10.89  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (1.46 )     4.44       1.41        11.45        3.46  

Ratios/Supplemental Data

             

Ratio of expenses to average net assets (%)

      0.76        0.77        0.78         0.78         0.79   

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

      3.57        3.99        4.73         4.97         5.46   

Portfolio turnover rate (%)

      66  (c)      82  (c)      29         23         30   

Net assets, end of period (in millions)

    $ 229.8      $ 245.3      $ 243.3       $ 259.6       $ 213.6   

 

(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) Includes mortgage dollar roll and TBA transactions; excluding these transactions the portfolio turnover rate would have been 49% and 44% for the years ended December 31, 2015 and 2014, respectively.
(d) Commencement of operations was July 17, 2013.
(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-33

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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, 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946- Financial Services- Investment Companies. 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, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 and subject to general oversight by the Board. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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

 

MIST-34

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 through an independent pricing service based on the mean between closing bid and ask prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or broker-dealer. These contracts are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

Options, including swaptions, and futures contracts that are traded OTC are generally valued on the basis of quotations provided by broker-dealers or prices provided by 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, yield curves, credit curves, measures of volatility and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts (other than centrally cleared swaps) are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and other pricing services. Such quotations and prices are derived utilizing observable data, including the underlying reference securities or indices, credit spread quotations and expected default recovery rates determined by the pricing service. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or an independent pricing service when the exchange price is not available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third party prices are used to produce daily settlement prices. These securities are categorized as Level 2 within the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates, including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar are translated into U.S. dollars based

 

MIST-35

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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, paydown reclasses, defaulted bonds, swap transactions, convertible preferred stock interest purchased, distributions re-designations, passive foreign investment companies (PFICs), convertible bond adjustments, contingent payment debt instruments and premium amortization adjustments. These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

Mortgage Dollar Rolls - The Portfolio may enter into mortgage “dollar rolls” in which a Portfolio sells to-be-announced (“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.

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.

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.

 

MIST-36

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 sale commitments are valued at the current market value of the underlying securities, according to the procedures described under “Investment Valuation and Fair Value Measurements”.

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 December 31, 2015, 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.

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 generally 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.

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, 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. The purchase of assignments will typically result in the Portfolio having a direct contractual relationship with the borrower, and the Portfolio may enforce compliance by the borrower with the terms of the loan agreement.

The Portfolio may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. When the Portfolio purchases assignments it acquires direct rights against the borrower of the loan. These loans may include participations in bridge loans, which are loans taken out by borrowers for a short period (typically less than one year) pending arrangement of more permanent financing.

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.

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 December 31, 2015, the Portfolio had no open unfunded loan commitments.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to

 

MIST-37

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

resell the securities at an agreed-upon time and at an agreed-upon price. The Portfolio, through the custodian or a subcustodian, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $29,342,122, 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 December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

The following table provides a breakdown of the collateral received and the remaining contractual maturities for securities lending transactions, which are accounted for as secured borrowings.

 

     Remaining Contractual Maturity of the Agreements
As of December 31, 2015		  
      Overnight and
Continuous		     Up to
30 Days		      31 - 90
Days		      Greater than
90 days		     Total  

Securities Lending Transactions

             

Convertible Bonds

    $ (3,991,790 )    $ —       $ —       $ —      $ (3,991,790 ) 

Corporate Bonds & Notes

      (40,473,703 )      —         —         —        (40,473,703 ) 

Foreign Government

      (2,385,293 )      —         —         —        (2,385,293 ) 

Preferred Stocks

      (3,082,099 )      —         —         —        (3,082,099 ) 

Total

    $ (49,932,885 )    $ —       $ —       $ —      $ (49,932,885 ) 

Total Borrowings

    $ (49,932,885 )    $ —       $ —       $ —      $ (49,932,885 ) 

Gross amount of recognized liabilities for securities lending transactions

  

   $ (49,932,885 ) 

 

MIST-38

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Notes to Financial Statements—December 31, 2015—(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 valuation 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 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 cash 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. If futures contracts are exchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

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 either privately negotiated in the OTC market (“OTC swaps”) or 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 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.

Centrally Cleared Swaps: Clearinghouses currently offer clearing derivative transactions which include interest rate and 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.

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 upon entering into the swap agreement compensate for differences between the stated

 

MIST-39

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 they are 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 be worthless when it expires 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 involving an entity in the index, the credit event is settled based on that entity’s 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

 

MIST-40

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 December 31, 2015, 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.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of 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) (b)    $ 844,827       Unrealized depreciation on futures contracts (a) (b)    $ 4,103   
Credit          OTC swap contracts at market value (c)      348,388   
         Unrealized depreciation on centrally cleared swap contracts (b) (d)      28,654   
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts    $ 484,743       Unrealized depreciation on forward foreign currency exchange contracts    $ 1,028,307   
     

 

 

        

 

 

  
Total       $ 1,329,570          $ 1,409,452   
     

 

 

        

 

 

  

 

  (a) 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.
  (b) Financial instrument not subject to a master netting agreement.
  (c) Excludes OTC swap interest receivable of $772.
  (d) 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 Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized 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 (“MNA”) (see Note 4), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Assets
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Received†		      Net Amount*  

JPMorgan Chase Bank N.A.

    $ 484,743       $ (484,743 )    $ —       $ —   
  

 

 

     

 

 

    

 

 

     

 

 

  

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under an MNA, or similar agreement, and net of the related collateral pledged by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Liabilities
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Pledged†		     Net Amount**  

Brown Brothers Harriman & Co.

    $ 271,484       $ —      $ —      $ 271,484   

JPMorgan Chase Bank N.A.

      756,823         (484,743 )      —        272,080   

Morgan Stanley Capital Services LLC

      348,388         —        (330,000 )      18,388   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 1,376,695       $ (484,743 )    $ (330,000 )    $ 561,952   
  

 

 

     

 

 

    

 

 

    

 

 

  

 

  * Net amount represents the net amount receivable from the counterparty in the event of default.
  ** Net amount represents the net amount payable due to the counterparty in the event of default.
  † In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.

 

MIST-41

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Interest
Rate		     Credit     Foreign
Exchange		     Total  

Forward foreign currency transactions

    $ —      $ —      $ 8,516,172      $ 8,516,172   

Futures contracts

      (4,847,185 )      —        —        (4,847,185 ) 

Swap contracts

      —        551,771        —        551,771   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ (4,847,185 )    $ 551,771      $ 8,516,172      $ 4,220,758   
  

 

 

    

 

 

    

 

 

    

 

 

  

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

    Interest
Rate		     Credit     Foreign
Exchange		     Total  

Forward foreign currency transactions

    $ —      $ —      $ (2,404,474 )    $ (2,404,474 ) 

Futures contracts

      1,643,633        —        —        1,643,633   

Swap contracts

      —        (221,672 )      —        (221,672 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 1,643,633      $ (221,672 )    $ (2,404,474 )    $ (982,513 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Forward foreign currency transactions

    $ 64,026,898   

Futures contracts long

      18,900,000   

Futures contracts short

      (230,166,667 ) 

Swap contracts

      19,114,245   

 

  ‡ Averages are based on activity levels during 2015.

4. Certain Risks

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”).

Market 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, 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC 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

 

MIST-42

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to Portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may 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 but excluding short-term securities, for the year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$443,680,751    $ 356,454,595       $ 496,769,962       $ 350,875,801   

Purchases and sales of mortgage dollar rolls and TBA transactions for the year ended December 31, 2015 were as follows:

 

Purchases

    Sales  
$202,517,134    $ 262,712,246   

The Portfolio engaged in security transactions with other accounts managed by Pioneer Investment Management, Inc. that amounted to $3,766,749 in purchases and $274,500 in sales of investments, which are included above.

 

MIST-43

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$7,031,997      0.600 %    First $500 million
     0.550 %    $500 million to $1 billion
     0.530 %    Over $1 billion

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Pioneer Investment Management, Inc. is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

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, LLC, 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 year ended December 31, 2015 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 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$64,027,181    $ 66,587,121       $ 12,409,582       $ 10,561,359       $ 76,436,763       $ 77,148,480   

 

MIST-44

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

As of December 31, 2015, 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		     Other
Accumulated
Capital Losses		     Total  
$46,392,329    $ —       $ (53,781,214 )    $ (10,336,275 )    $ (17,725,160 ) 

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, 2015, the Portfolio had post-enactment accumulated short term capital losses of $2,970,329 and post-enactment accumulated long term capital losses of $7,365,946 and no pre-enactment accumulated capital loss carryforwards.

9. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

10. Subsequent Events

At a meeting held on November 17, 2015, the Board approved the acquisition of the Portfolio by the Metropolitan Series Fund Western Asset Management Strategic Bond Opportunities Portfolio (“Western Asset Management Strategic Bond Opportunities Portfolio”), subject to the approval of shareholders of the Portfolio. On February 26, 2016, the shareholders of the Portfolio will consider the approval of the proposed Agreement and Plan of Reorganization providing for the acquisition of all the assets and assumption of all liabilities of the Portfolio by the Western Asset Management Strategic Bond Opportunities Portfolio in exchange for shares of the Western Asset Management Strategic Bond Opportunities Portfolio. It is anticipated that the reorganization will close on or about April 29, 2016.

 

MIST-45

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Pioneer Strategic Income 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 Pioneer Strategic Income Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian, brokers and agent banks; when replies were not received from brokers or agent banks, 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 Pioneer Strategic Income Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-46

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-47

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-48

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-49

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-50

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

Pioneer Strategic Income Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Pioneer Investment Management Inc. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the one-, three- and five-year periods ended June 30, 2015. The Board further noted that the Portfolio underperformed its benchmark, the Barclays U.S. Universal Bond Index, for the one-year period ended October 31, 2015, and outperformed its benchmark for the three- and five-year periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees were below the Expense Group median and the Expense Universe median, and equal to the Sub-advised Expense Universe median. The Board also considered that the Portfolio’s total expenses (exclusive of 12b-1 fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also took into account that the Portfolio’s contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and Sub-advised Expense Universe at the Portfolio’s current size.

At the November Meeting, the Board also approved a proposal to reorganize the Portfolio into the Western Asset Management Strategic Bond Opportunities Portfolio, a series of MSF. The Board noted that the Sub-Adviser is expected to continue to manage the Portfolio until the reorganization is completed, which is expected to occur, if approved by shareholders of the Portfolio, on or about May 1, 2016.

 

MIST-51

Met Investors Series Trust

Pyramis Government Income Portfolio

Managed by FIAM, LLC (formerly known as Pyramis Global Advisors, LLC)

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class B shares of the Pyramis Government Income Portfolio returned 0.43%. The Portfolio’s benchmark, the Barclays U.S. Government Bond Index1, returned 0.86%. The Portfolio’s Custom Benchmark2 returned 1.12%.

MARKET ENVIRONMENT / CONDITIONS

For the twelve months ending December 31, 2015, the U.S. investment-grade bond market earned a return of 0.55%, as measured by the Barclays U.S. Aggregate Bond Index. The market environment during the year was characterized by rising interest rates, a flattening U.S. Treasury yield curve, collapsing oil prices, declining inflation expectations, generally widening yield spreads, and periodic spikes in volatility, all of which combined to generate a positive return for the Index, albeit a modest one. Shorter-dated bonds generally performed better than longer-dated ones, and higher-quality bonds generally performed better than those of lower quality.

U.S. Treasury yields rose during the year across all maturities. The rise was slight—only 10 to 12 basis points—for the shortest-term maturities (1-month and 3-month) and for intermediate-term maturities (5 years to 10 years). The rise was more significant for 6-month maturities out to 3-year maturities, where yields rose 21 to 40 basis points, and for 20-year maturities out to 30-year maturities, where yields rose 20 to 26 basis points. All of these changes led to a slight flattening of the yield curve, especially in the second half of the year. The 10-year U.S. Treasury note ended the year trading at a yield of 2.27%, 10 basis points higher than it had traded at the beginning of the year.

U.S. Treasury yields rose and fell in response to a host of factors. Yields fell in the first quarter based on the launch of the European Central Bank’s quantitative easing program and a first-quarter contraction in the U.S. economy, which was attributed primarily to harsh winter weather, a strike-induced disruption in West Coast port operations, and the strength of the U.S. dollar in foreign exchange markets. Yields rose in the second quarter based on an uptick in Eurozone inflation, which triggered a massive global bond sell-off, and signs of a rebound in the U.S. economy—especially in the labor market—which fueled hopes that the U.S. recovery was finally gaining momentum.

Yields fell again in the third quarter as volatility spiked, driven by a divergence in growth prospects between the developed world and the developing world, and underscored by weak economic data emanating from China, a plunge in Chinese stock prices, and the surprise devaluation of the Chinese yuan. This worrisome news cascaded all the way back through China’s economic supply chain, roiling commodity markets, foreign exchange markets, and the stock markets of emerging market countries along the way. Those most affected were the commodity producers and capital equipment makers that have supplied China with the raw materials and capital goods necessary to sustain its unprecedented economic boom over the last decade. Volatility subsided in the fourth quarter, at least in the U.S. investment-grade bond market, driven by the realization that, despite the economic slowdown in China and all of its knock-on effects, the U.S. economy still appeared to be basically sound, expanding as it was at a moderate pace of 2.0% to 2.5% per year. This point was driven home by the most recent jobs report from the U.S. Labor Department, which noted that employers hired an additional 292,00 people in December; it was also underscored by the Federal Reserve’s recent decision to raise the Federal Funds rate by 25 basis points and begin the process of rate normalization.

U.S. Treasuries were one of the best-performing sectors in the U.S. investment-grade bond market during the year, posting a return of 0.84%. Within Treasuries, there was wide disparity in performance by maturity, with intermediate-term Treasuries producing a solid return of 1.18%, and long-dated Treasuries actually losing ground, earning a return of -1.21%. U.S. Treasury Inflation-Protected Securities (“TIPS”) also proved to be a laggard, earning a return of only -1.44%, as the decline in inflation expectations throughout the year made the need for inflation protection less relevant.

Among the spread sectors, U.S. Agency debentures posted a total return of 1.01%, but after adjusting for duration, they outperformed comparable U.S. Treasuries by only 8 basis points.

Asset-backed securities (“ABS”) were the top-performing sector on a relative basis, producing a total return of 1.25% and outperforming similar-duration U.S. Treasuries by 44 basis points. Performance in this sector was strongest among stranded-cost utility bonds and those bonds backed by credit card receivables and automobile loans.

Agency mortgage-backed securities (“MBS”) were the top-performing sector on an absolute basis, producing a total return of 1.51% but underperforming similar-duration U.S. Treasuries by 5 basis points. Within this sector, the fixed-rate mortgages issued by the Federal National Mortgage Association (FNMA, or Fannie Mae) were the strongest performers (+8 basis points on an excess return, duration-adjusted basis), followed by the fixed-rate mortgages issued by the Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac) (+4 basis points). The fixed-rate mortgages issued by the Government National Mortgage Association (GNMA, or Ginnie Mae) actually underperformed similar-duration U.S. Treasuries (-38 basis points), although they produced a positive total return of 1.39%.

Commercial mortgage-backed securities (“CMBS”) were the worst-performing sector during the period, at least among the securitized debt products, producing a total return of only 0.97%, while underperforming similar-duration U.S. Treasuries by 28 basis points. CMBS has been a top-performing sector in recent years, and it still features superior fundamentals, but its performance this year was hurt by excessive new issuance and widening yield spreads.

 

MIST-1

Met Investors Series Trust

Pyramis Government Income Portfolio

Managed by FIAM, LLC (formerly known as Pyramis Global Advisors, LLC)

Portfolio Manager Commentary*—(Continued)

 

 

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio lagged the return of its custom benchmark over the one year period. Portfolio returns were generally driven by three factors: unfavorable security selection, favorable yield-curve positioning, and favorable sector allocation.

The largest detractor from relative performance was the Portfolio’s exposure to TIPS, which performed poorly in the second half of the year, as inflation expectations ratcheted down following another precipitous drop in oil prices. This relative loss was offset to some extent by the Portfolio’s large underweight to nominal U.S. Treasuries, which generally underperformed securitized debt instruments during the course of the year on a relative return basis. Finally, the Portfolio’s large underweight to U.S. Agencies detracted from relative performance, as U.S. Agencies were one of the better-performing sectors in the investment universe during the period.

Security selection made a negative contribution to excess return during the year, although there was evidence of both astute and adverse bond-picking. Security selection worked particularly well in two areas: Agency MBS and U.S. Agency debentures. Within the Agency MBS category, the Portfolio’s holdings in 30-year Ginnie Mae and 30-year Fannie Mae paper were standouts. Many of these securities had certain structural or idiosyncratic features that made them prepay more slowly than the market as a whole, thus allowing the Portfolio to collect premium coupon income for a longer period of time than would otherwise be the case. Within the U.S. Agency space, the Portfolio pursued a strategy of underweighting the large, liquid issues in favor of the smaller, less liquid issues, and this strategy paid off in the form of a small positive contribution to excess return. That said, security selection also detracted from relative performance, and it did so for the most part in only one sector: nominal U.S. Treasuries. Within the U.S. Treasury space, the Portfolio generally held longer-dated issues to help manage its duration target and yield-curve exposures, and such issues naturally underperformed in a rising interest-rate environment. All told, these relative gains and losses combined to have a negative effect on excess return, and a meaningful one.

The Portfolio’s relative performance was positively affected by changes in the level, slope, and shape of the U.S. Treasury yield curve. The Portfolio maintained a slightly shorter-than-benchmark duration during the first half of the year, and a nearly neutral duration posture in the second half of the year, and this strategy proved to be effective, as yields rose across the curve, especially for short-intermediate and long-term maturities. In addition, the Portfolio’s yield-curve positioning strategy made a modestly positive contribution to excess return. In the first half of the year, the Portfolio’s key-rate durations were fairly neutral relative to those of its benchmark, except at the 10-year node and 30-year node, where the Portfolio was slightly long duration, and at the 20-year node, where the Portfolio was slightly short duration. This duration posture proved to be beneficial in the first quarter, when yields drifted lower, but detrimental in the second quarter, when yields ratcheted higher. In the second half of the year, the Portfolio was slightly short duration at the short end of the curve (i.e., the 1-year node out to the 5-year node) and slightly long duration in the belly and long end of the curve (i.e., the 7-year node out to the 30-year node), all during a period when the yield curve flattened considerably. The net result of all this yield-curve positioning was a slightly positive contribution to excess return.

The Portfolio made effective use of derivatives—in particular, interest-rate futures contracts and interest-rate swaps—in managing its duration posture and its yield-curve positioning strategy throughout the year. The notional value of these instruments represented only about 3% of the Portfolio’s net assets, on average, so the use of these instruments was fairly modest. Nevertheless, they played an important role in insuring that the Portfolio’s duration posture and yield-curve positioning came close to matching those of the benchmark.

In the sector allocation category, the Portfolio pursued a simple but effective strategy: overweighting those sectors of the investment universe that offer the highest option-adjusted yield spreads, and underweighting those sectors that offer the lowest ones. In practice, this strategy expressed itself as a large overweight to securitized debt products, a large underweight to U.S. Treasuries, and a large underweight to U.S. Agency debentures. Within the securitized debt space, the Portfolio maintained a small overweight to in-benchmark securities—i.e., fixed-rate Agency mortgage pass-throughs and hybrid adjustable-rate mortgages (“ARMS”)—and a large overweight to out-of-benchmark securities—i.e., collateralized mortgage obligations (“CMOs”), both Agency and Non-Agency; CMBS, both Agency and Non-Agency; and ABS. Within U.S. Treasuries, the Portfolio pursued a strategy of maintaining a large underweight to nominal U.S. Treasuries, but a small overweight to TIPS—i.e., “small” in terms of assets as a percentage of total Portfolio assets, but actually quite significant in terms of return potential, since all of the TIPS in the Portfolio had maturities of 30 years, and were thus quite sensitive to changes in interest rates and inflation expectations. Within U.S. Agencies, the Portfolio pursued a strategy of maintaining a large underweight to the largest issuers—e.g., Fannie Mae, Freddie Mac, the Federal Home Loan Bank, the Federal Farm Credit Bank—and a small overweight to certain niche issuers—e.g., the U.S. Agency for International Development, the National Credit Union Administration, and the Tennessee Valley Authority. This sector allocation strategy worked out well for the most part, enhancing the relative performance of the Portfolio, but only to a modest degree.

The largest positive contributor to excess return was the Portfolio’s small overweight to in-benchmark MBS, as Fannie Mae and Freddie Mac residential mortgage pass-throughs were among the best-performing sectors in the investment universe during the year just past. The Portfolio further enhanced its relative gains by overweighting the best-performing securities in the Agency MBS space

 

MIST-2

Met Investors Series Trust

Pyramis Government Income Portfolio

Managed by FIAM, LLC (formerly known as Pyramis Global Advisors, LLC)

Portfolio Manager Commentary*—(Continued)

 

(i.e., the 30-year paper) and underweighting the worst-performing ones (i.e., the 15-year paper), although the Portfolio’s small exposure to hybrid ARMs did detract slightly from relative performance.

Another positive contributor to excess return was the Portfolio’s large overweight to out-of-benchmark securities. The large overweight to CMBS worked out especially well, as the Portfolio held positions in securities of superior credit quality—i.e., the so-called super-senior tranches—and such securities were well-rewarded in the volatile market environment of 2015. The large overweight to CMOs produced more mixed results. The Portfolio held a sizable stake in Ginnie Mae Reverse MBS, which outperformed nicely during the period in question, in part due to their superior yields. The Portfolio also held a sizable stake in floating-rate CMOs, which actually detracted from relative performance during the period, primarily due to spread widening. Finally, the Portfolio’s small overweight to ABS had a negligible effect on excess return.

At the end of December, the Portfolio maintained a neutral duration and neutral yield-curve positioning posture relative to its custom benchmark. At the sector level, the Portfolio continued to maintain a large overweight to securitized debt products, a large underweight to U.S. Treasuries, and a large underweight to U.S. Agency debentures. Within the securitized debt space, the Portfolio maintained a small overweight to in-benchmark securities—i.e., Agency mortgage pass-throughs and hybrid ARMS; a large overweight to out-of-benchmark securities—i.e., CMOs (both Agency and Non-Agency) and CMBS (both Agency and Non-Agency); and a small overweight to ABS. At the security level, the Portfolio continued to maintain sizable positions in Agency mortgage pass-throughs that offer premium coupon income and significant protection against faster prepayments. The Portfolio also held positions in floating-rate CMOs, including Ginnie Mae Reverse MBS, which offer some measure of protection in the event of rising interest rates; and high-quality CMBS, which offer some measure of protection in scenarios where volatility spikes and spreads widen. Finally, the Portfolio continued to maintain its exposure to longer-maturity TIPS, and its bias in favor of smaller, less liquid debentures in the U.S. Agency sector.

William Irving

Franco Castagliuolo

Portfolio Managers

FIAM, 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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-3

Met Investors Series Trust

Pyramis Government Income Portfolio

A $10,000 INVESTMENT COMPARED TO THE BARCLAYS U.S. GOVERNMENT BOND INDEX & THE CUSTOM BENCHMARK

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        Since Inception3  
Pyramis Government Income Portfolio            

Class B

        0.43           3.14   
Barclays U.S. Government Bond Index        0.86           2.75   
Custom Benchmark        1.12           3.61   

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 The Custom Benchmark is a blended benchmark comprised of the Barclays 5+ Year Treasury Index (40%), the Barclays U.S. MBS Index (35%) and the Barclays U.S. Agency Bond Index (25%)

3 Inception date of the Class B shares is 5/2/2011. Index since inception return is based on the Portfolio’s inception date.

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 DECEMBER 31, 2015

Top Sectors

 

     % of
Net Assets		  
U.S. Treasury & Government Agencies      87.5   
Mortgage-Backed Securities      4.7   
Foreign Government      4.0   
Asset-Backed Securities      2.3   
Corporate Bonds & Notes      1.3   

 

MIST-4

Met Investors Series Trust

Pyramis Government Income 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		      Ending
Account Value
December 31,
2015		      Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class B

    Actual     0.70 %    $ 1,000.00       $ 1,006.70       $ 3.54   
   Hypothetical*     0.70 %    $ 1,000.00       $ 1,021.68       $ 3.57   

* 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 (184 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

 

MIST-5

Met Investors Series Trust

Pyramis Government Income Portfolio

Schedule of Investments as of December 31, 2015

U.S. Treasury & Government Agencies—87.5% of Net Assets

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage - Backed—58.9%

  

Fannie Mae 15 Yr. Pool

    

2.500%, 05/01/27

     82,386      $ 83,714   

2.500%, 09/01/27

     173,805        176,612   

2.500%, 01/01/28

     259,001        262,434   

2.500%, 06/01/28

     87,113        88,265   

2.500%, 09/01/28

     346,651        351,231   

2.500%, 07/01/29

     2,076,474        2,099,855   

2.500%, 08/01/29

     439,458        443,443   

2.500%, 09/01/29

     323,136        326,781   

2.500%, 10/01/29

     1,181,664        1,194,990   

2.500%, TBA (a)

     300,000        302,372   

3.500%, 12/01/25

     45,137        47,357   

3.500%, 12/01/28

     270,989        283,970   

3.500%, 12/01/29

     344,729        361,385   

3.500%, 07/01/30

     4,692,405        4,943,012   

3.500%, 08/01/30

     5,555,368        5,852,246   

3.500%, 09/01/30

     3,319,516        3,496,613   

4.000%, 09/01/26

     572,068        606,842   

4.000%, 11/01/26

     577,561        612,733   

4.000%, 05/01/27

     738,720        783,404   

4.500%, 12/01/23

     137,039        141,951   

5.000%, 03/01/23

     24,364        26,236   

Fannie Mae 20 Yr. Pool

    

3.500%, 01/01/34

     3,678,594        3,844,882   

4.000%, 08/01/32

     1,800,336        1,926,516   

5.500%, 01/01/29

     874,752        974,091   

Fannie Mae 30 Yr. Pool

    

2.500%, 01/01/43

     3,434,000        3,318,434   

3.000%, 11/01/42

     149,188        149,831   

3.000%, 12/01/42

     1,943,826        1,952,444   

3.000%, 01/01/43

     1,067,007        1,071,800   

3.000%, 02/01/43

     5,942,727        5,973,385   

3.000%, 03/01/43

     2,204,070        2,209,065   

3.000%, 04/01/43

     249,262        250,382   

3.000%, 05/01/43

     202,350        203,259   

3.000%, 06/01/43

     105,672        106,146   

3.000%, 07/01/43

     67,199        67,500   

3.000%, 08/01/43

     265,302        266,494   

3.000%, 03/01/44

     75,371        75,710   

3.000%, 01/01/45

     319,780        320,486   

3.000%, 02/01/45

     229,008        229,207   

3.000%, 03/01/45

     771,269        772,589   

3.000%, 08/01/45

     1,382,501        1,383,701   

3.000%, 09/01/45

     727,898        728,530   

3.000%, 10/01/45

     299,970        300,231   

3.000%, 11/01/45

     9,632,535        9,640,893   

3.000%, 12/01/45

     14,365,073        14,377,538   

3.500%, 08/01/42

     3,094,754        3,199,407   

3.500%, 04/01/43

     7,097,950        7,333,887   

3.500%, 05/01/43

     597,147        618,231   

3.500%, 06/01/43

     1,798,404        1,857,800   

3.500%, 08/01/43

     8,041,847        8,325,923   

3.500%, 03/01/45

     736,836        761,636   

3.500%, 04/01/45

     445,959        460,642   

3.500%, 05/01/45

     2,489,649        2,573,446   

3.500%, 06/01/45

     16,543,171        17,093,782   
Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage - Backed—(Continued)

  

Fannie Mae 30 Yr. Pool

    

3.500%, 08/01/45

     591,298      $ 611,050   

3.500%, 09/01/45

     2,717,205        2,805,508   

3.500%, 10/01/45

     5,000,004        5,162,429   

3.500%, 11/01/45

     8,383,522        8,666,328   

3.500%, 12/01/45

     600,000        619,498   

3.500%, TBA (a)

     5,900,000        6,087,167   

4.000%, 09/01/40

     453,522        481,084   

4.000%, 10/01/40

     373,280        395,570   

4.000%, 11/01/40

     9,814,939        10,415,510   

4.000%, 12/01/40

     71,944        76,155   

4.000%, 11/01/41

     172,891        184,076   

4.000%, 12/01/41

     91,137        97,026   

4.000%, 02/01/42

     64,219        68,377   

4.000%, 03/01/42

     3,100,066        3,300,705   

4.000%, 04/01/42

     2,368,820        2,517,360   

4.000%, 05/01/42

     561,439        597,795   

4.000%, 06/01/42

     501,345        534,306   

4.000%, 07/01/42

     188,453        200,573   

4.000%, 10/01/42

     477,946        508,746   

4.000%, 11/01/42

     358,860        381,386   

4.000%, 04/01/43

     320,798        341,025   

4.000%, 05/01/43

     23,906        25,400   

4.000%, 06/01/43

     1,446,087        1,538,112   

4.000%, 07/01/43

     78,022        82,898   

4.000%, 08/01/43

     65,667        69,771   

4.000%, 09/01/43

     5,839,420        6,204,351   

4.000%, 10/01/43

     147,818        157,057   

4.000%, 12/01/43

     32,691        34,734   

4.000%, 01/01/44

     4,510,165        4,793,548   

4.000%, 02/01/44

     193,964        205,380   

4.000%, 03/01/44

     24,562        26,106   

4.000%, 04/01/44

     284,407        301,137   

4.000%, 05/01/44

     24,431        25,967   

4.000%, 02/01/45

     283,161        299,803   

4.000%, 04/01/45

     64,248        68,009   

4.000%, 06/01/45

     669,232        708,619   

4.500%, 12/01/40

     3,205,387        3,478,655   

4.500%, 05/01/41

     2,074,349        2,245,188   

4.500%, 07/01/41

     492,971        536,168   

4.500%, 08/01/41

     274,342        298,382   

4.500%, 10/01/41

     2,662,279        2,881,003   

4.500%, 11/01/41

     6,593,689        7,174,370   

4.500%, 08/01/42

     700,793        757,951   

4.500%, 09/01/42

     3,013,862        3,271,922   

4.500%, 01/01/43

     321,417        347,746   

4.500%, 12/01/43

     477,758        515,992   

4.500%, 10/01/44

     5,080,893        5,531,635   

4.500%, 02/01/45

     4,535,123        4,936,725   

4.500%, TBA (a)

     800,000        863,900   

5.000%, 07/01/35

     2,871,612        3,175,095   

5.000%, 12/01/39

     739,997        834,364   

5.000%, 01/01/40

     1,557,120        1,756,114   

5.000%, 04/01/41

     38,052        41,866   

5.000%, 06/01/41

     73,985        81,677   

5.000%, 08/01/41

     200,448        221,122   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Pyramis Government Income Portfolio

Schedule of Investments as of December 31, 2015

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

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage - Backed—(Continued)

  

Fannie Mae 30 Yr. Pool
5.500%, 03/01/41

     669,520      $ 753,015   

6.000%, 10/01/34

     236,083        271,046   

6.000%, 05/01/37

     914,849        1,035,929   

6.000%, 09/01/37

     69,219        79,411   

6.000%, 10/01/37

     746,874        855,500   

6.000%, 01/01/38

     735,878        844,033   

6.000%, 03/01/38

     248,639        284,951   

6.000%, 07/01/38

     140,815        160,556   

6.000%, 01/01/40

     678,279        778,591   

6.000%, 05/01/40

     988,829        1,134,323   

6.000%, 07/01/41

     981,242        1,107,300   

6.000%, 01/01/42

     90,100        101,692   

6.500%, 07/01/32

     169,126        195,793   

6.500%, 12/01/32

     50,541        58,247   

6.500%, 07/01/35

     57,715        67,933   

6.500%, 12/01/35

     523,491        607,813   

6.500%, 08/01/36

     889,003        1,022,433   

Fannie Mae ARM Pool
2.551%, 06/01/42 (b)

     150,511        154,266   

2.689%, 02/01/42 (b)

     913,768        948,454   

2.951%, 11/01/40 (b)

     95,900        100,269   

2.974%, 09/01/41 (b)

     110,377        114,984   

2.992%, 10/01/41 (b)

     50,054        52,299   

3.249%, 07/01/41 (b)

     172,284        180,809   

3.347%, 10/01/41 (b)

     87,454        91,635   

3.553%, 07/01/41 (b)

     199,162        210,079   

Fannie Mae REMICS (CMO)
1.342%, 03/25/36 (b)

     691,684        710,250   

1.352%, 06/25/36 (b)

     1,060,550        1,090,441   

2.500%, 07/25/45

     3,434,785        3,458,086   

3.000%, 06/25/43

     12,295,827        12,731,203   

3.000%, 11/25/45

     12,652,102        12,948,331   

4.250%, 03/25/42

     2,238,009        2,410,594   

5.000%, 12/25/23

     383,495        411,432   

5.000%, 12/25/34

     575,292        635,916   

5.000%, 03/25/35

     453,012        500,858   

5.000%, 08/25/39

     688,536        760,826   

5.500%, 05/25/34

     503,248        516,992   

5.500%, 07/25/34

     355,840        379,786   

5.500%, 06/25/35

     353,608        377,591   

5.500%, 08/25/35

     1,733,346        1,924,460   

Freddie Mac 15 Yr. Gold Pool
4.000%, 06/01/24

     536,621        566,839   

4.000%, 07/01/24

     431,301        455,416   

4.000%, 09/01/25

     363,128        383,521   

6.000%, 01/01/24

     502,891        549,721   

Freddie Mac 20 Yr. Gold Pool
4.000%, 06/01/33

     2,520,762        2,699,128   

Freddie Mac 30 Yr. Gold Pool
3.000%, 11/01/42

     267,071        267,318   

3.000%, 01/01/43

     290,455        290,652   

3.000%, 02/01/43

     1,528,245        1,529,279   

3.000%, 03/01/43

     15,371,158        15,381,530   

3.000%, 06/01/43

     4,762,232        4,763,605   

3.500%, 02/01/42

     106,584        109,945   
Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage - Backed—(Continued)

  

Freddie Mac 30 Yr. Gold Pool
3.500%, 04/01/42

     1,032,330      $ 1,066,633   

3.500%, 05/01/42

     154,702        159,445   

3.500%, 06/01/42

     1,090,838        1,124,165   

3.500%, 07/01/42

     202,974        209,311   

3.500%, 08/01/42

     6,393,807        6,589,918   

3.500%, 09/01/42

     65,692        67,727   

3.500%, 10/01/42

     2,538,257        2,617,676   

3.500%, 01/01/43

     1,217,361        1,255,197   

3.500%, 02/01/43

     544,758        561,858   

3.500%, 03/01/43

     270,453        278,743   

3.500%, 04/01/43

     9,616,624        9,917,374   

3.500%, 05/01/43

     3,227,915        3,326,878   

3.500%, 11/01/44

     751,170        773,875   

4.000%, 09/01/41

     3,330,415        3,531,880   

4.000%, 10/01/41

     1,002,645        1,063,885   

4.000%, 11/01/41

     30,160        32,048   

4.000%, 01/01/42

     3,996,183        4,235,521   

4.000%, 03/01/42

     380,195        404,144   

4.000%, 04/01/42

     4,866,924        5,173,349   

4.000%, 09/01/42

     181,277        192,974   

4.000%, 10/01/42

     175,268        186,166   

4.000%, 11/01/42

     727,490        773,898   

4.000%, 12/01/42

     286,004        303,447   

4.000%, 01/01/43

     76,851        81,637   

4.000%, 02/01/43

     429,316        456,050   

4.000%, 03/01/43

     168,687        179,192   

4.000%, 04/01/43

     59,028        62,703   

4.000%, 05/01/43

     897,677        955,047   

4.000%, 06/01/43

     54,301        57,682   

4.000%, 07/01/43

     686,846        730,156   

4.000%, 08/01/43

     501,745        533,093   

4.000%, 09/01/43

     832,630        884,486   

4.000%, 10/01/43

     786,610        836,945   

4.000%, 11/01/43

     44,910        47,708   

4.000%, 01/01/44

     895,974        953,734   

4.000%, 02/01/44

     141,687        150,559   

4.000%, 03/01/44

     89,767        95,389   

4.000%, 04/01/44

     92,971        98,895   

4.000%, 12/01/44

     35,787        37,863   

4.000%, 04/01/45

     224,753        237,722   

4.000%, 05/01/45

     214,575        227,020   

4.500%, 05/01/39

     1,976,681        2,166,322   

4.500%, 06/01/39

     1,649,927        1,809,119   

4.500%, 07/01/40

     4,328,575        4,668,978   

4.500%, 02/01/41

     147,419        160,082   

4.500%, 08/01/41

     1,345,601        1,458,290   

4.500%, 09/01/41

     151,406        165,251   

4.500%, 10/01/41

     344,290        375,776   

4.500%, 02/01/44

     86,552        93,371   

5.000%, 01/01/35

     334,579        371,614   

5.000%, 05/01/35

     210,778        232,347   

5.000%, 07/01/35

     2,504,868        2,763,741   

5.000%, 11/01/35

     1,919,643        2,158,674   

5.000%, 06/01/41

     3,344,184        3,731,871   

5.000%, 07/01/41

     845,365        930,606   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Pyramis Government Income Portfolio

Schedule of Investments as of December 31, 2015

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

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage - Backed—(Continued)

  

Freddie Mac 30 Yr. Gold Pool
5.500%, 03/01/34

     2,662,610      $ 2,963,571   

5.500%, 07/01/35

     1,857,607        2,068,918   

Freddie Mac ARM Non-Gold Pool
2.367%, 10/01/42 (b)

     912,970        947,319   

3.086%, 09/01/41 (b)

     966,573        1,007,905   

3.211%, 09/01/41 (b)

     115,749        121,055   

3.216%, 04/01/41 (b)

     113,759        118,920   

3.297%, 06/01/41 (b)

     130,978        137,914   

3.428%, 12/01/40 (b)

     3,436,200        3,602,258   

3.443%, 05/01/41 (b)

     95,063        99,372   

3.617%, 06/01/41 (b)

     182,886        192,208   

3.717%, 05/01/41 (b)

     151,258        159,640   

Freddie Mac Multifamily Structured Pass-Through Certificates (CMO)
0.772%, 04/25/19 (b)

     24,609        24,588   

2.637%, 01/25/23

     1,931,000        1,927,389   

2.669%, 02/25/23

     4,676,419        4,781,587   

2.670%, 12/25/24

     7,000,000        6,834,005   

2.716%, 06/25/22

     4,073,000        4,097,105   

2.791%, 01/25/22

     8,841,000        8,962,540   

2.811%, 01/25/25

     10,500,000        10,338,390   

2.991%, 09/25/21

     5,755,000        5,906,822   

3.016%, 02/25/23

     8,178,834        8,466,174   

3.090%, 08/25/22

     29,800,000        30,583,263   

3.303%, 07/25/24

     7,854,000        8,075,450   

3.320%, 02/25/23 (b)

     932,000        969,349   

3.458%, 08/25/23 (b)

     5,000,000        5,224,776   

3.808%, 08/25/20

     7,890,000        8,447,493   

3.974%, 01/25/21

     17,750,000        19,133,199   

4.084%, 11/25/20 (b)

     980,000        1,058,981   

4.251%, 01/25/20

     4,090,000        4,404,615   

Freddie Mac REMICS (CMO)
0.731%, 03/15/34 (b)

     655,174        659,986   

1.231%, 02/15/33 (b)

     460,628        468,342   

4.500%, 12/15/26

     2,002,923        2,174,546   

4.500%, 09/15/27

     1,232,736        1,322,025   

4.500%, 02/15/41

     56,690        61,356   

5.000%, 10/15/34

     679,716        751,453   

5.000%, 11/15/34

     749,488        755,920   

5.000%, 12/15/37

     235,627        255,094   

5.000%, 03/15/41

     500,000        552,604   

5.000%, 04/15/41

     659,848        770,905   

5.500%, 05/15/34

     3,267,390        3,646,098   

5.500%, 06/15/41

     4,220,000        4,782,428   

Ginnie Mae I 30 Yr. Pool
3.000%, 05/15/42

     909,815        925,614   

3.000%, 04/15/43

     296,787        301,272   

3.000%, 05/15/43

     450,892        457,660   

3.000%, 03/15/45

     174,043        176,438   

3.500%, 11/15/41

     428,861        449,068   

3.500%, 02/15/42

     375,409        393,056   

3.500%, 03/15/42

     430,982        450,766   

3.500%, 05/15/42

     1,566,684        1,634,035   

3.500%, 06/15/42

     1,282,647        1,335,736   

4.000%, 09/15/40

     2,439,555        2,636,631   

Agency Sponsored Mortgage - Backed—(Continued)

  

Ginnie Mae I 30 Yr. Pool
4.000%, 10/15/40

     250,945      266,415   

4.000%, 03/15/41

     1,271,759        1,377,390   

4.000%, 10/15/41

     656,703        710,639   

4.000%, 12/15/41

     602,360        650,858   

4.500%, 08/15/39

     3,486,305        3,786,450   

4.500%, 06/15/40

     1,393,691        1,502,582   

4.500%, 07/15/40

     260,257        282,597   

4.500%, 03/15/41

     1,328,995        1,437,515   

4.500%, 04/15/41

     144,318        155,657   

5.000%, 03/15/39

     121,798        135,871   

5.000%, 07/15/39

     349,191        385,445   

5.000%, 08/15/39

     244,079        272,265   

5.000%, 09/15/39

     176,881        197,307   

5.000%, 04/15/40

     82,424        91,237   

5.000%, 08/15/40

     275,046        306,852   

5.000%, 04/15/41

     194,313        215,533   

5.000%, 09/15/41

     164,547        182,157   

5.500%, 06/15/35

     1,253,496        1,425,540   

5.500%, 11/15/35

     820,627        931,620   

5.500%, 10/15/39

     39,276        43,771   

6.000%, 06/15/36

     1,439,522        1,658,597   

Ginnie Mae II 30 Yr. Pool
3.000%, 06/20/42

     1,570,766        1,598,232   

3.000%, 03/20/45

     838,305        850,813   

3.000%, 07/20/45

     1,811,351        1,838,377   

3.000%, 08/20/45

     6,900,376        7,003,333   

3.000%, 11/20/45

     861,697        874,554   

3.000%, 12/20/45

     3,000,000        3,044,762   

3.500%, 07/20/42

     954,872        998,435   

3.500%, 10/20/42

     1,282,776        1,341,300   

3.500%, 12/20/42

     782,125        817,808   

3.500%, 01/20/43

     66,059        69,073   

3.500%, 05/20/43

     2,209,723        2,309,862   

3.500%, 08/20/43

     94,264        98,507   

3.500%, 09/20/43

     1,881,866        1,966,427   

3.500%, 04/20/45

     8,676,290        9,057,973   

3.500%, 05/20/45

     2,109,820        2,202,634   

3.500%, 07/20/45

     2,477,122        2,586,095   

3.500%, 08/20/45

     3,434,971        3,586,081   

3.500%, TBA (a)

     600,000        625,477   

4.000%, 09/20/39

     285,666        305,675   

4.000%, 10/20/40

     42,635        45,664   

4.000%, 11/20/40

     2,992,226        3,205,240   

4.000%, 11/20/41

     1,365,510        1,460,651   

4.000%, 06/20/45

     2,459,452        2,614,021   

4.000%, 07/20/45

     4,713,432        5,010,735   

4.000%, 11/20/45

     998,637        1,068,940   

4.500%, 02/20/40

     333,093        362,838   

4.500%, 09/20/40

     35,184        38,326   

4.500%, 05/20/41

     5,072,693        5,525,746   

Ginnie Mae II Pool
4.300%, 08/20/61

     1,227,190        1,274,499   

4.533%, 12/20/61

     9,478,697        9,970,035   

4.649%, 02/20/62

     868,939        918,414   

4.682%, 02/20/62

     1,139,563        1,200,314   

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Pyramis Government Income Portfolio

Schedule of Investments as of December 31, 2015

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

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage - Backed—(Continued)

  

Ginnie Mae II Pool
4.684%, 01/20/62

     3,668,018      $ 3,860,061   

5.470%, 08/20/59

     436,072        446,277   

5.612%, 04/20/58

     102,961        103,948   

Government National Mortgage Association (CMO)
0.492%, 08/20/60 (b)

     249,148        245,883   

0.492%, 09/20/60 (b)

     266,419        262,541   

0.562%, 07/20/60 (b)

     292,781        289,098   

0.682%, 02/20/61 (b)

     349,630        346,199   

0.692%, 12/20/60 (b)

     655,986        651,851   

0.692%, 02/20/61 (b)

     103,310        102,842   

0.692%, 04/20/61 (b)

     241,051        239,392   

0.692%, 05/20/61 (b)

     477,714        474,805   

0.722%, 06/20/61 (b)

     326,444        323,821   

0.792%, 10/20/61 (b)

     1,128,825        1,126,535   

0.792%, 12/20/63 (b)

     11,110,570        11,008,871   

0.822%, 01/20/62 (b)

     1,112,119        1,111,523   

0.822%, 03/20/62 (b)

     681,852        680,993   

0.875%, 12/16/39 (b)

     303,601        305,268   

0.882%, 01/20/38 (b)

     71,198        71,835   

0.892%, 11/20/61 (b)

     1,025,680        1,025,534   

0.892%, 01/20/62 (b)

     698,085        699,579   

0.902%, 07/20/37 (b)

     285,116        287,827   

0.945%, 11/16/39 (b)

     395,144        400,721   

2.500%, 06/20/63

     42,732,260        43,243,137   

2.500%, 05/20/65

     6,204,437        6,278,935   

2.500%, 06/20/65

     1,851,061        1,873,146   

2.750%, 05/20/64

     1,915,204        1,949,215   

3.000%, 04/20/37

     25,209        25,253   

4.500%, 05/16/40

     80,000        87,271   

4.500%, 05/20/40 (c)

     56,850        5,963   

5.000%, 12/20/39

     3,651,791        4,271,286   

5.010%, 09/20/60 (b)

     3,615,483        3,834,179   

5.150%, 08/20/60

     3,112,230        3,301,264   

5.298%, 07/20/60 (b)

     4,665,998        4,937,504   

5.698%, 07/20/41 (b) (c)

     431,713        69,828   

7.501%, 05/20/41 (b)

     167,505        197,426   

8.131%, 04/20/39 (b)

     2,052,056        2,293,791   

8.264%, 08/20/39 (b)

     3,854,787        4,430,864   
   

 

 

  
      717,386,315   
   

 

 

  

Federal Agencies—4.9%

    

Federal Home Loan Mortgage Corp.
1.250%, 08/01/19

     3,000,000        2,966,634   

6.250%, 07/15/32

     7,568,000        10,521,374   

6.750%, 03/15/31

     481,000        689,542   

Federal National Mortgage Association
1.125%, 07/20/18

     118,000        117,519   

1.500%, 06/22/20

     1,907,000        1,883,254   

1.500%, 11/30/20

     4,482,000        4,402,377   

1.875%, 12/28/20

     5,394,000        5,391,076   

2.625%, 09/06/24

     7,000,000        7,073,913   

6.625%, 11/15/30

     1,430,000        2,025,073   

Federal Agencies—(Continued)

  

Tennessee Valley Authority
1.750%, 10/15/18

     7,486,000      7,561,639   

4.250%, 09/15/65

     8,970,000        8,763,394   

5.250%, 09/15/39

     557,000        669,456   

5.500%, 06/15/38

     6,117,000        7,571,329   
   

 

 

  
      59,636,580   
   

 

 

  

U.S. Treasury—23.7%

    

U.S. Treasury Bonds
2.875%, 08/15/45

     10,307,000        10,010,272   

3.000%, 11/15/45

     3,500,000        3,489,472   

3.375%, 05/15/44

     8,767,000        9,408,771   

3.625%, 02/15/44

     44,290,000        49,822,795   

4.375%, 02/15/38

     11,000,000        13,881,483   

4.375%, 05/15/40

     3,000,000        3,774,843   

5.000%, 05/15/37 (d)

     9,000,000        12,333,870   

5.250%, 02/15/29

     29,405,000        38,522,844   

5.375%, 02/15/31 (e)

     4,933,000        6,689,419   

U.S. Treasury Inflation Indexed Bonds
0.750%, 02/15/45 (f)

     18,840,913        16,431,330   

1.375%, 02/15/44 (f)

     5,738,384        5,839,999   

U.S. Treasury Notes
0.875%, 11/30/17

     5,000,000        4,985,545   

1.500%, 01/31/22

     17,650,000        17,157,724   

1.750%, 03/31/22

     16,618,000        16,362,232   

2.000%, 11/30/22

     55,496,000        55,192,492   

2.000%, 08/15/25

     7,331,000        7,148,011   

2.125%, 06/30/21

     1,000,000        1,012,578   

2.125%, 12/31/22

     4,000,000        4,007,656   

2.125%, 05/15/25

     2,061,000        2,034,110   

2.250%, 11/15/24

     1,113,000        1,112,435   

2.250%, 11/15/25

     6,000,000        5,986,638   

2.375%, 08/15/24

     3,098,000        3,130,312   
   

 

 

  
      288,334,831   
   

 

 

  

Total U.S. Treasury & Government Agencies
(Cost $1,070,063,081)

       1,065,357,726   
   

 

 

  
Mortgage-Backed Securities—4.7%           

Collateralized Mortgage Obligations—1.8%

  

  

CSMC
1.156%, 10/26/37 (144A) (b)

     3,520,730        3,494,810   

Granite Mortgages plc
0.717%, 01/20/44 (b)

     165,438        165,397   

1.297%, 07/20/43 (b)

     4,355,943        4,355,903   

National Credit Union Administration Guaranteed Notes Trust
0.646%, 11/06/17 (b)

     1,639,806        1,642,407   

0.656%, 03/06/20 (b)

     258,623        259,028   

0.726%, 01/08/20 (b)

     8,118,502        8,150,879   

RBSSP Resecuritization Trust
2.433%, 07/26/45 (144A) (b)

     2,598,942        2,616,125   

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Pyramis Government Income Portfolio

Schedule of Investments as of December 31, 2015

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

 

Security Description   Principal
Amount*		     Value  

Collateralized Mortgage Obligations—(Continued)

  

Thornburg Mortgage Securities Trust
1.062%, 09/25/43 (b)

     518,958      $ 501,099   
   

 

 

  
      21,185,648   
   

 

 

  

Commercial Mortgage-Backed Securities—2.9%

  

BBCMS Trust
3.323%, 09/10/28 (144A)

     7,149,000        7,231,661   

CDGJ Commercial Mortgage Trust
1.731%, 12/15/27 (144A) (b)

     12,000,000        11,924,726   

Commercial Mortgage Trust
1.201%, 06/11/27 (144A) (b)

     5,500,000        5,436,180   

3.305%, 11/10/47

     6,984,000        7,119,103   

SCG Trust
1.731%, 11/15/26 (144A) (b)

     3,750,000        3,761,837   
   

 

 

  
      35,473,507   
   

 

 

  

Total Mortgage-Backed Securities
(Cost $57,056,916)

       56,659,155   
   

 

 

  
Foreign Government—4.0%           

Sovereign—4.0%

    

Hashemite Kingdom of Jordan Government AID Bonds
2.503%, 10/30/20

     13,375,000        13,709,709   

3.000%, 06/30/25

     5,389,000        5,540,819   

Israel Government AID Bonds
5.500%, 09/18/23

     13,878,000        16,628,481   

5.500%, 12/04/23

     8,920,000        10,727,558   

5.500%, 04/26/24

     1,900,000        2,297,723   
   

 

 

  

Total Foreign Government
(Cost $50,331,263)

       48,904,290   
   

 

 

  
Asset-Backed Securities—2.3%   

Asset-Backed - Automobile—2.3%

  

  

American Credit Acceptance Receivables Trust
1.950%, 09/12/19 (144A)

     6,094,653        6,081,332   

CPS Auto Receivables Trust
1.770%, 06/17/19 (144A)

     12,435,157        12,406,933   

Drive Auto Receivables Trust
1.230%, 06/15/18 (144A)

     8,900,000        8,890,856   
   

 

 

  

Total Asset-Backed Securities
(Cost $27,428,007)

       27,379,121   
   

 

 

  
Corporate Bonds & Notes—1.3%   
Security Description   Principal
Amount*		     Value  

Diversified Financial Services—1.3%

  

  

National Credit Union Administration Guaranteed Notes
3.450%, 06/12/21

     8,645,000      9,374,119   

Private Export Funding Corp.
4.300%, 12/15/21

     6,000,000        6,585,204   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $16,500,397)

       15,959,323   
   

 

 

  
Short-Term Investment—0.8%   

Repurchase Agreement—0.8%

    

Fixed Income Clearing Corp.
Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $10,285,845 on 01/04/16, collateralized by $10,505,000 Federal National Mortgage Association at 1.670% due 02/10/20 with a value of $10,491,869.

     10,285,811        10,285,811   
   

 

 

  

Total Short-Term Investments
(Cost $10,285,811)

       10,285,811   
   

 

 

  

Total Investments—100.6%
(Cost $1,231,665,475) (g)

       1,224,545,426   

Other assets and liabilities
(net)—(0.6)%

       (6,889,651 ) 
   

 

 

  
Net Assets—100.0%     $ 1,217,655,775   
   

 

 

  

 

* 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 December 31, 2015. 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 futures contracts. As of December 31, 2015, the market value of securities pledged was $419,352.
(e) All or a portion of the security was pledged as collateral against open centrally cleared swap contracts. As of December 31, 2015, the market value of securities pledged was $271,211.
(f) Principal amount of security is adjusted for inflation.
(g) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $1,238,257,466. The aggregate unrealized appreciation and depreciation of investments were $8,476,309 and $(22,188,349), respectively, resulting in net unrealized depreciation of $(13,712,040) for federal income tax purposes.
(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 December 31, 2015, the market value of 144A securities was $61,844,460, which is 5.1% of net assets.
(ARM)— Adjustable-Rate Mortgage
(CMO)— Collateralized Mortgage Obligation
(REMIC)—Real Estate Mortgage Investment Conduit

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Pyramis Government Income Portfolio

Schedule of Investments as of December 31, 2015

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

 

TBA Forward Sale Commitments

 

Security Description

    Interest Rate     Maturity
Date		      Face
Amount		     Cost     Value  

Fannie Mae 15 Yr. Pool

      3.500 %      TBA       $ (600,000 )    $ (630,047 )    $ (628,336 ) 
         

 

 

    

 

 

  

Futures Contracts

 

Futures Contracts—Long

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

U.S. Treasury Note 2 Year Futures

      03/31/16         142         USD         30,888,234       $ (40,953 ) 

U.S. Treasury Ultra Long Bond Futures

      03/21/16         67         USD         10,549,001         83,062   
              

 

 

  

Net Unrealized Appreciation

  

    $ 42,109   
              

 

 

  

Swap Agreements

Centrally Cleared Interest Rate Swaps

 

Pay/Receive Floating Rate

    Floating
Rate Index		      Fixed
Rate		     Maturity
Date		      Notional
Amount		      Unrealized
Appreciation		  

Pay

      3M LIBOR         2.750 %      03/16/46         USD         1,200,000       $ 5,737   

Receive

      3M LIBOR         2.750 %      03/16/46         USD         1,200,000         11,761   
                

 

 

  

Net Unrealized Appreciation

  

    $ 17,498   
                

 

 

  

 

(USD)— United States Dollar
(LIBOR)— London Interbank Offered Rate

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Pyramis Government Income Portfolio

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1     Level 2     Level 3      Total  

Total U.S. Treasury & Government Agencies*

    $ —        $ 1,065,357,726      $ —         $ 1,065,357,726   

Total Mortgage-Backed Securities*

      —          56,659,155        —           56,659,155   

Total Foreign Government*

      —          48,904,290        —           48,904,290   

Total Asset-Backed Securities*

      —          27,379,121        —           27,379,121   

Total Corporate Bonds & Notes*

      —          15,959,323        —           15,959,323   

Total Short-Term Investment*

      —          10,285,811        —           10,285,811   

Total Investments

    $ —        $ 1,224,545,426      $ —         $ 1,224,545,426   
                                   

TBA Forward Sales Commitments

    $ —        $ (628,336 )    $ —         $ (628,336 ) 
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 83,062      $ —        $ —         $ 83,062   

Futures Contracts (Unrealized Depreciation)

      (40,953 )      —          —           (40,953 ) 

Total Futures Contracts

    $ 42,109      $ —        $ —         $ 42,109   
Centrally Cleared Swap Contracts          

Centrally Cleared Swap Contracts (Unrealized Appreciation)

    $ —        $ 17,498      $ —         $ 17,498   

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

Pyramis Government Income Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a)

    $ 1,224,545,426   

Receivable for:

   

Investments sold

      2,867,857   

TBA securities sold (b)

      1,063,259   

Fund shares sold

      27,750   

Principal paydowns

      62,660   

Interest

      5,155,764   

Variation margin on futures contracts

      73,656   

Variation margin on centrally cleared swap contracts

      12,341   

Prepaid expenses

      3,245   
  

 

 

  

Total Assets

      1,233,811,958   

Liabilities

   

Forward sales commitments, at value

      628,336   

Payables for:

   

Investments purchased

      6,005,865   

TBA securities purchased

      8,319,366   

Fund shares redeemed

      267,198   

Interest on forward sales commitments

      1,050   

Accrued Expenses:

   

Management fees

      438,815   

Distribution and service fees

      259,396   

Deferred trustees’ fees

      64,810   

Other expenses

      171,347   
  

 

 

  

Total Liabilities

      16,156,183   
  

 

 

  

Net Assets

    $ 1,217,655,775   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 1,248,525,278   

Undistributed net investment income

      27,182,479   

Accumulated net realized loss

      (50,993,251 ) 

Unrealized depreciation on investments, futures contracts and swap contracts

      (7,058,731 ) 
  

 

 

  

Net Assets

    $ 1,217,655,775   
  

 

 

  

Net Assets

   

Class B

    $ 1,217,655,775   

Capital Shares Outstanding*

   

Class B

      114,969,889   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 10.59   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,231,665,475.
(b) Included within TBA securities sold is $631,097 related to TBA forward sale commitments.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Interest

    $ 28,855,980   
  

 

 

  

Total investment income

      28,855,980   

Expenses

   

Management fees

      5,300,439   

Administration fees

      30,422   

Custodian and accounting fees

      177,472   

Distribution and service fees—Class B

      3,137,774   

Audit and tax services

      68,140   

Legal

      26,460   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      45,647   

Insurance

      7,858   

Miscellaneous

      16,428   
  

 

 

  

Total expenses

      8,845,813   
  

 

 

  

Net Investment Income

      20,010,167   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      8,475,386   

Futures contracts

      935,382   

Swap contracts

      (643,314 ) 
  

 

 

  

Net realized gain

      8,767,454   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (21,622,661 ) 

Futures contracts

      (884,866 ) 

Swap contracts

      (64,553 ) 
  

 

 

  

Net change in unrealized depreciation

      (22,572,080 ) 
  

 

 

  

Net realized and unrealized loss

      (13,804,626 ) 
  

 

 

  

Net Increase in Net Assets From Operations

    $ 6,205,541   
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

Pyramis Government Income Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 20,010,167      $ 22,009,058   

Net realized gain

      8,767,454        12,609,051   

Net change in unrealized appreciation (depreciation)

      (22,572,080 )      58,974,472   
  

 

 

    

 

 

  

Increase in net assets from operations

      6,205,541        93,592,581   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (28,865,138 )      (33,274,992 ) 
  

 

 

    

 

 

  

Total distributions

      (28,865,138 )      (33,274,992 ) 
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (30,916,492 )      (103,502,674 ) 
  

 

 

    

 

 

  

Total decrease in net assets

      (53,576,089 )      (43,185,085 ) 

Net Assets

     

Beginning of period

      1,271,231,864        1,314,416,949   
  

 

 

    

 

 

  

End of period

    $ 1,217,655,775      $ 1,271,231,864   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 27,182,479      $ 28,719,344   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      16,085,470      $ 171,551,252        8,154,990      $ 86,377,180   

Reinvestments

      2,741,229        28,865,138        3,214,975        33,274,992   

Redemptions

      (21,560,388 )      (231,332,882 )      (21,168,534 )      (223,154,846 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (2,733,689 )    $ (30,916,492 )      (9,798,569 )    $ (103,502,674 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (30,916,492 )      $ (103,502,674 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

Pyramis Government Income Portfolio

Financial Highlights

 

Selected per share data                               
     Class B  
     Year Ended December 31,  
     2015     2014     2013     2012     2011(a)  

Net Asset Value, Beginning of Period

    $ 10.80      $ 10.31      $ 11.05      $ 10.73      $ 10.00   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (Loss) from Investment Operations

           

Net investment income (b)

      0.17        0.18        0.13        0.10        0.10   

Net realized and unrealized gain (loss) on investments

      (0.12 )      0.59        (0.61 )      0.24        0.76   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.05        0.77        (0.48 )      0.34        0.86   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less Distributions

           

Distributions from net investment income

      (0.26 )      (0.28 )      (0.16 )      (0.00 )(c)      (0.04 ) 

Distributions from net realized capital gains

      0.00        0.00        (0.10 )      (0.02 )      (0.09 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.26 )      (0.28 )      (0.26 )      (0.02 )      (0.13 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 10.59      $ 10.80      $ 10.31      $ 11.05      $ 10.73   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return (%) (d)

      0.43        7.56        (4.52 )      3.15        8.57  (e) 

Ratios/Supplemental Data

           

Ratio of expenses to average net assets (%)

      0.70        0.71        0.70        0.70        0.84  (f) 

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

      1.59        1.72        1.24        0.94        1.37  (f) 

Portfolio turnover rate (%)

      214  (g)      281  (g)      329  (g)      457  (g)      366  (e) 

Net assets, end of period (in millions)

    $ 1,217.7      $ 1,271.2      $ 1,314.4      $ 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 mortgage dollar roll and TBA transactions; excluding these transactions the portfolio turnover rates would have been 117%, 151%, 212% and 262% for the years ended December 31, 2015, 2014, 2013 and 2012, respectively.

 

See accompanying notes to financial statements.

 

MIST-15

Met Investors Series Trust

Pyramis Government Income Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 and subject to general oversight by the Board. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and 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.

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

Options, including swaptions, and futures contracts that are traded over-the-counter (“OTC”) are generally valued on the basis of quotations provided by broker-dealers or prices provided by 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, yield curves, credit curves, measures of volatility and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

 

MIST-16

Met Investors Series Trust

Pyramis Government Income Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or an independent pricing service when the exchange price is not available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third party prices are used to produce daily settlement prices. These securities are categorized as Level 2 within the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates, including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 TIPS adjustments, premium amortization adjustments and paydown transactions. These adjustments have no impact on net assets or the results 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 remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

Mortgage Dollar Rolls - The Portfolio may enter into mortgage “dollar rolls” in which a Portfolio sells to-be-announced (“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.

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.

 

MIST-17

Met Investors Series Trust

Pyramis Government Income Portfolio

Notes to Financial Statements—December 31, 2015—(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.

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 sale commitments are valued at the current market value of the underlying securities, according to the procedures described under “Investment Valuation and Fair Value Measurements”.

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.

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.

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

 

MIST-18

Met Investors Series Trust

Pyramis Government Income Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 proceeds received from a short sale are recorded as a liability. The Portfolio will realize 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. Conversely, the Portfolio will realize a gain if the security declines in price between those dates. The latter 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 (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $10,285,811, 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 December 31, 2015.

3. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts 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 cash 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. If futures contracts are exchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

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 either privately negotiated in the OTC market (“OTC swaps”) or 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 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.

Centrally Cleared Swaps: Clearinghouses currently offer clearing derivative transactions which include interest rate and 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

 

MIST-19

Met Investors Series Trust

Pyramis Government Income Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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.

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 upon entering into the swap agreement 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: (1) 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”; (2) 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 (3) 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 contract’s remaining life, to the extent that amount is positive.

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 investment exposure to a target asset class or to enhance return. Writing puts or buying calls tends to increase the Portfolio’s exposure to the underlying instrument and writing calls or buying puts tends 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.

 

MIST-20

Met Investors Series Trust

Pyramis Government Income Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

The main risk associated with purchasing an option is that the option expires without being exercised. In this case, the option is worthless when it expires and the premium paid for the option is considered a realized 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 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 subsequently marked to market to reflect the current value of the option written. 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.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of 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 swap contracts (a)    $ 17,498         
   Unrealized appreciation on futures contracts (b)      83,062       Unrealized depreciation on futures contracts (b)    $ 40,953   
     

 

 

        

 

 

  

Total

       $ 100,560          $ 40,953   
     

 

 

        

 

 

  

 

  (a) 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.
  (b) 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 tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Interest Rate  

Investments (a)

    $ (405,693 ) 

Futures contracts

      935,382   

Swap contracts

      (643,314 ) 
  

 

 

  
   $ (113,625 ) 
  

 

 

  

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

    Interest Rate  

Investments (a)

    $ 405,693   

Futures contracts

      (884,866 ) 

Swap contracts

      (64,553 ) 
  

 

 

  
   $ (543,726 ) 
  

 

 

  

 

MIST-21

Met Investors Series Trust

Pyramis Government Income Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Futures contracts long

    $ 41,475,000   

Swap contracts

      27,266,667   

 

  ‡ Averages are based on activity levels during 2015.
  (a) Represents purchased options which are part of net realized gain (loss) on investments and net change in unrealized appreciation (depreciation) on investments as shown in the Statement of Operations.

4. Certain Risks

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”).

Market 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, 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC options).

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

Master Securities Forward Transaction Agreements (“MSFTA”) govern the considerations and factors surrounding the settlement of certain forward settling transactions, such as TBA securities and delayed-delivery or secured borrowings transactions by and between the Portfolio and select counterparties. The MSFTA maintain provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to Portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

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-22

Met Investors Series Trust

Pyramis Government Income Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, including mortgage dollar roll and TBA transactions but excluding short-term securities, for the year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$2,715,125,306    $ 46,976,267       $ 2,752,214,415       $ 78,946,270   

Purchases and sales of mortgage dollar rolls and TBA transactions for the year ended December 31, 2015 were as follows:

 

Purchases

    Sales  
$1,309,888,352    $ 1,344,503,486   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management Fees
earned by MetLife
Advisers
for the year ended

December 31, 2015

    % per annum     Average Daily Net Assets
$5,300,439      0.520 %    First $100 million
     0.440 %    $100 million to $500 million
     0.400 %    Over $500 million

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. FIAM, LLC (formerly, Pyramis Global Advisors, LLC) is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

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, LLC, 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 year ended December 31, 2015 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-23

Met Investors Series Trust

Pyramis Government Income Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital
Gain		      Total  

2015

    2014      2015      2014      2015      2014  
$28,865,138    $ 33,274,992       $ —       $ —       $ 28,865,138       $ 33,274,992   

As of December 31, 2015, 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		     Other
Accumulated
Capital Losses		     Total  
$27,248,362    $ —       $ (13,692,830 )    $ (44,360,225 )    $ (30,804,693 ) 

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.

During the year ended December 31, 2015, the Portfolio utilized $1,717,397 of accumulated capital losses.

As of December 31, 2015, the Portfolio had accumulated short-term capital losses of $27,175,461 and accumulated long-term capital losses of $17,184,764.

 

MIST-24

Met Investors Series Trust

Pyramis Government Income Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Pyramis Government Income 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 Pyramis Government Income Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended and for the period from May 2, 2011 (commencement of operations) to December 31, 2011. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 Pyramis Government Income Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended and for the period from May 2, 2011 (commencement of operations) to December 31, 2011, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-25

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-26

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-27

Met Investors Series Trust

Pyramis Government Income Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

 

MIST-28

Met Investors Series Trust

Pyramis Government Income Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

 

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

 

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-29

Met Investors Series Trust

Pyramis Government Income Portfolio

Board Approval of Advisory and Subadvisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

Pyramis Government Income Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and FIAM, LLC (formerly, Pyramis Global Advisors, LLC) regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the one-year, three-year, and since-inception (beginning May 2, 2011) periods ended June 30, 2015. The Board further considered that the Portfolio outperformed its benchmark, the Barclays U.S. Government Bond Index, for the one-year, three-year, and since-inception periods ended October 31, 2015 and underperformed its blended benchmark for the same periods.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also noted that the Portfolio’s contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-30

Met Investors Series Trust

Pyramis Managed Risk Portfolio

Managed by FIAM, LLC (formerly known as Pyramis Global Advisors, LLC)

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class B shares of the Pyramis Managed Risk Portfolio returned -1.25%. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned -1.21%.

MARKET ENVIRONMENT / CONDITIONS

2015 was a weak year for many asset classes. Market turbulence returned after two years of below-average volatility, reflecting the slowdown in the global economy and the Federal Reserve’s move toward policy tightening. China and many other emerging markets faced recessionary pressures. China’s faltering growth and industrial overcapacity weighed heavily on global trade, including Europe’s and Japan’s manufacturing sectors, as export values plunged and manufacturing inventories built up around the world. However, most of the developed world continued in mid-cycle expansion, led by steady outlooks for the U.S. and Europe. Despite an equity bounce in the fourth quarter, many asset categories finished 2015 in negative territory. Mainstream asset classes such as large-cap stocks and high-quality bonds eked out positive returns and outpaced most risky categories for the second year in a row. Global weakness, the stronger dollar, and low oil prices weighed on export-oriented U.S. sectors, such as Industrials and Materials, but these areas constitute a relatively small portion of the overall economy. The much larger U.S. Consumer Discretionary sector continued to experience a positive dynamic, including the continued tightening of labor markets and an increasingly positive real-income outlook. Commodities and emerging markets equities suffered hefty losses amid flagging global growth. Developed markets outperformed emerging markets equities in 2015, continuing a multi-year trend. The U.S. dollar rose against almost all other currencies, with particularly large currency declines among emerging markets commodity producers.

Following several years of solid gains, U.S. equities posted mixed performance in 2015, with a relatively narrow group of large-cap growth stocks driving returns. Performance for small- and mid-cap categories was negative, but real estate investment trusts (“REITs”) outpaced the domestic equities for the second year in a row, despite a rise in interest rates during the course of the year. At the U.S. sector level, healthy consumer spending boosted Consumer Discretionary performance, while growth-oriented Health Care and Technology stocks posted solid results for the second year in a row. Disappointing global growth and slumping commodity prices pushed Materials and Industrials into negative territory, with Energy posting the worst performance for the second consecutive year.

Most asset classes outside of the U.S. ended 2015 in negative territory. Global assets linked to commodities and emerging markets suffered the steepest declines, whereas Japan and small-cap equities were the best performers. Some developed markets registered positive returns in local-currency terms, but U.S. dollar strength was a detractor for a large majority of countries and regions.

Fixed-income markets saw modest returns in 2015. In a reversal from 2014, interest rates rose across the yield curve in 2015, suppressing fixed income returns and driving longer-duration bonds into negative territory. However, yields generally remained well below historical averages. Corporate bond yield spreads widened, with losses most pronounced in high-yield markets. But, outside of high yield, credit spreads generally remained at or near historical averages for most categories. Benefiting from favorable supply-demand dynamics, municipal bonds were the strongest performing bond category.

PORTFOLIO REVIEW / PERIOD END POSITIONING

For the first half of 2015, the Portfolio was overweight risk assets relative to its benchmark. Though the global expansion remained sluggish, better conditions in several major developed economies underpinned a modestly improving outlook and provided support for a healthy equity overweight, particularly in attractively valued foreign developed equities. The Portfolio maintained a significant investment grade debt underweight, reflecting a challenging fixed income environment with rising rates and wider spreads. In addition, volatility forecasts were low relative to the Portfolio’s volatility cap.

Intensifying investor uncertainty over a hard landing in China, the People’s Bank of China surprise renminbi devaluation and potential Federal Reserve actions were catalysts for a global sell-off that punctuated the summer. With rising volatility forecasts, the Portfolio reduced its developed equity overweight to an underweight. The bond underweight was reduced but not eliminated. In addition, opportunistic asset class exposure (a mix of primarily REITs, high yield debt, and emerging markets equity) was reduced, largely through the near elimination of the Portfolio’s emerging markets equity position. Much of the proceeds from the reduction of the Portfolio’s equity exposure were allocated to a temporary overweight in cash. As the fourth quarter commenced, volatility forecasts were declining while the Portfolio maintained a constructive outlook. With this backdrop, the Portfolio increased risk asset exposure by significantly adding to its U.S. and foreign developed equity allocations while avoiding emerging markets. The Portfolio also built a meaningful U.S. Treasury inflation protected securities (TIPs) position reflecting attractive valuations. Sources for these re-allocations were investment grade bonds and cash.

For the period, the Portfolio’s security selection positively contributed to performance. Some challenges in U.S. equity and investment-grade debt security selection were more than offset by strong contributions from foreign developed equity holdings. On the other hand, the Portfolio’s asset allocation detracted from performance. In particular, the overweight in U.S. and foreign developed equity and underweight in investment grade debt had negative impacts. The interest rate overlay contributed to performance during the period.

The Portfolio used certain derivative instruments during the period, specifically futures contracts, to help provide liquidity, additional

 

MIST-1

Met Investors Series Trust

Pyramis Managed Risk Portfolio

Managed by FIAM, LLC (formerly known as Pyramis Global Advisors, LLC)

Portfolio Manager Commentary*—(Continued)

 

diversification and balance the sources of risk. At period end, the Portfolio held S&P 500 Index futures (U.S. equities), MSCI EAFE Index futures (foreign equities), and U.S. Treasury futures (U.S. government bonds).

As of December 31, 2015, the Portfolio favored equities versus bonds. Within the equity allocation, relative to the benchmark, the Portfolio was overweight developed markets equity. There was a modest emerging markets exposure through equity and debt. The Portfolio’s largest active position was an underweight investment-grade debt allocation. Investment grade credit and a modest high yield debt position accounted for most of the fixed-income holdings. The Portfolio ended the year with a small cash position.

Xuehai En

Portfolio Manager

FIAM, 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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        Since Inception2  
Pyramis Managed Risk Portfolio            

Class B

        -1.25           5.81   
Dow Jones Moderate Index        -1.21           5.29   

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 date of the Class B shares is 4/19/2013. Index since inception return is based on the Portfolio’s inception date.

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
Fidelity Total Bond Fund      22.3   
Fidelity Overseas Fund      9.2   
Fidelity Contrafund      6.1   
Fidelity Blue Chip Growth Fund      5.5   
Fidelity Value Discovery Fund      4.2   
Fidelity Corporate Bond Fund      3.8   
Fidelity Stock Selector Large Cap Value Fund      2.6   
iShares 20+ Year Treasury Bond ETF      2.5   
Fidelity International Small Cap Opportunities Fund      2.0   
iShares U.S. Financial Services ETF      1.9   

Top Sectors

 

     % of
Net Assets		  
Mutual Funds      84.7   
Cash & Cash Equivalents      14.4   

 

MIST-3

Met Investors Series Trust

Pyramis Managed Risk 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class B(a)(b)

    Actual      0.63 %     $ 1,000.00         $ 964.30         $ 3.12   
   Hypothetical*      0.63 %     $ 1,000.00         $ 1,022.03         $ 3.21   

* 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 (184 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.

(b) The annualized expense ratio does not include the expenses of the Underlying Portfolios and Underlying ETFs in which the Portfolio invests.

 

MIST-4

Met Investors Series Trust

Pyramis Managed Risk Portfolio

Schedule of Investments as of December 31, 2015

Mutual Funds—84.7% of Net Assets

 

Security Description       
    
Shares		     Value  

Investment Company Securities—84.7%

    

Energy Select Sector SPDR Fund

     72,228      $ 4,373,405   

Fidelity Blue Chip Growth Fund (a)

     552,106        38,078,729   

Fidelity Blue Chip Value Fund (a)

     809,491        12,700,917   

Fidelity Conservative Income Bond Fund (a)

     98,717        989,140   

Fidelity Contrafund (a)

     421,898        41,746,820   

Fidelity Corporate Bond Fund (a)

     2,409,385        26,358,668   

Fidelity Diversified International Fund (a)

     372,845        13,071,957   

Fidelity Emerging Asia Fund (a)

     17,588        527,827   

Fidelity Europe Fund (a)

     50,165        1,814,461   

Fidelity International Discovery Fund (a)

     46,021        1,813,687   

Fidelity International Small Cap Opportunities Fund (a)

     936,920        13,978,846   

Fidelity Japan Smaller Companies Fund (a)

     276,131        3,821,651   

Fidelity Low-Priced Stock Fund (a)

     93,599        4,469,357   

Fidelity Mega Cap Stock Fund (a)

     146,722        2,291,802   

Fidelity Mid Cap Value Fund (a)

     378,561        8,457,063   

Fidelity Overseas Fund (a)

     1,548,873        63,286,950   

Fidelity Real Estate Income Fund (a)

     90,237        1,014,260   

Fidelity Real Estate Investment Portfolio (a)

     64,025        2,598,126   

Fidelity Small Cap Stock Fund (a)

     508,478        8,832,258   

Fidelity Stock Selector Large Cap Value Fund (a)

     1,115,919        18,167,155   

Fidelity Total Bond Fund (a)

     14,947,561        153,361,979   

Fidelity Value Discovery Fund (a)

     1,262,859        29,172,041   

iShares 20+ Year Treasury Bond ETF

     140,300        16,922,986   

iShares J.P. Morgan USD Emerging Markets Bond ETF

     30,051        3,178,795   

iShares MSCI EAFE ETF

     42,596        2,502,515   

iShares TIPS Bond ETF

     96,163        10,547,158   

iShares U.S. Financial Services ETF

     146,401        13,173,162   

iShares U.S. Technology ETF

     84,703        9,065,762   

Spartan Inflation Protected Bond Index Fund (a)

     683,979        6,415,724   

SPDR Barclays High Yield Bond ETF

     253,136        8,583,842   

Vanguard Consumer Discretionary ETF

     30,395        3,724,907   

Vanguard Consumer Staples ETF

     71,714        9,256,126   

Vanguard FTSE Developed Markets ETF

     311,543        11,439,859   

Vanguard Health Care ETF

     75,108        9,980,351   

Vanguard Industrials ETF

     107,617        10,860,708   

Investment Company Securities—(Continued)

  

  

Vanguard Materials ETF

     6,712      632,203   

Vanguard Telecommunication Services ETF

     65,315        5,480,582   

Vanguard Value ETF

     49,741        4,054,886   

WisdomTree Europe Hedged Equity Fund

     81,137        4,365,982   

WisdomTree Japan Hedged Equity Fund

     30,564        1,530,645   
   

 

 

  

Total Mutual Funds
(Cost $602,943,233)

       582,643,292   
   

 

 

  
Short-Term Investment—14.4%   

Repurchase Agreement—14.4%

    

Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $99,310,223 on 01/04/16, collateralized by $101,045,000 U.S. Treasury Note at 1.625% due 06/30/20 with a value of $101,297,613.

     99,309,892        99,309,892   
   

 

 

  

Total Short-Term Investments
(Cost $99,309,892)

       99,309,892   
   

 

 

  

Total Investments—99.1%
(Cost $702,253,125) (b)

       681,953,184   

Other assets and liabilities (net)—0.9%

       6,478,480   
   

 

 

  
Net Assets—100.0%     $ 688,431,664   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Affiliated Issuer. (See Note 7 of the Notes to Financial Statements for a summary of transactions in securities of affiliated issuers.)
(b) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $703,711,332. The aggregate unrealized appreciation and depreciation of investments were $740,712 and $(22,498,860), respectively, resulting in net unrealized depreciation of $(21,758,148) for federal income tax purposes.
(ETF)— Exchange-Traded Fund

 

Futures Contracts

 

Futures Contracts—Long

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

MSCI EAFE Mini Index Futures

      03/18/16         279         USD         23,234,727       $ 455,162   

S&P 500 E-Mini Index Futures

      03/18/16         621         USD         62,134,518         1,064,652   

U.S. Treasury Note 10 Year Futures

      03/21/16         1,283         USD         161,849,594         (311,875 ) 

U.S. Treasury Ultra Long Bond Futures

      03/21/16         298         USD         46,931,776         357,099   
              

 

 

  

Net Unrealized Appreciation

  

    $ 1,565,038   
              

 

 

  

 

(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 December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1     Level 2      Level 3      Total  
Mutual Funds           

Investment Company Securities

    $ 582,643,292      $ —         $ —         $ 582,643,292   

Total Short-Term Investment*

      —          99,309,892         —          99,309,892   

Total Investments

    $ 582,643,292      $ 99,309,892       $ —         $ 681,953,184   
                                    
Futures Contracts           

Futures Contracts (Unrealized Appreciation)

    $ 1,876,913      $ —         $ —         $ 1,876,913   

Futures Contracts (Unrealized Depreciation)

      (311,875 )      —           —          (311,875 ) 

Total Futures Contracts

    $ 1,565,038      $ —         $ —         $ 1,565,038   

 

* 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

 

December 31, 2015

 

Assets

   

Investments at value (a)

    $ 129,673,874   

Affiliated investments at value (b)

      452,969,418   

Repurchase Agreement

      99,309,892   

Cash collateral for futures contracts

      6,805,650   

Receivable for:

   

Fund shares sold

      904,348   

Dividends and interest

      47,972   

Dividends on affiliated investments

      678,597   

Variation margin on futures contracts

      678,891   

Prepaid expenses

      1,093   
  

 

 

  

Total Assets

      691,069,735   

Liabilities

   

Payables for:

   

Investments purchased

      628,012   

Affiliated investments purchased

      629,000   

Fund shares redeemed

      14,724   

Variation margin on futures contracts

      910,035   

Accrued Expenses:

   

Management fees

      194,896   

Distribution and service fees

      145,247   

Deferred trustees’ fees

      45,270   

Other expenses

      70,887   
  

 

 

  

Total Liabilities

      2,638,071   
  

 

 

  

Net Assets

    $ 688,431,664   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 702,692,701   

Undistributed net investment income

      5,637,897   

Accumulated net realized loss

      (1,164,031 ) 

Unrealized depreciation on investments, affiliated investments and futures contracts

      (18,734,903 ) 
  

 

 

  

Net Assets

    $ 688,431,664   
  

 

 

  

Net Assets

   

Class B

    $ 688,431,664   

Capital Shares Outstanding*

   

Class B

      63,661,490   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 10.81   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding repurchase agreement and affiliated investments, was $135,644,779.
(b) Identified cost of affiliated investments was $467,298,454.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends

    $ 2,888,368   

Dividends from affiliated investments

      5,758,297   

Interest

      1,302   
  

 

 

  

Total investment income

      8,647,967   

Expenses

   

Management fees

      2,214,442   

Administration fees

      12,455   

Custodian and accounting fees

      44,052   

Distribution and service fees—Class B

      1,230,246   

Audit and tax services

      30,943   

Legal

      26,133   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      32,080   

Insurance

      2,096   

Miscellaneous

      9,512   
  

 

 

  

Total expenses

      3,637,132   

Less management fee waiver

      (543,002 ) 
  

 

 

  

Net expenses

      3,094,130   
  

 

 

  

Net Investment Income

      5,553,837   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      453,217   

Affiliated investments

      (5,444,150 ) 

Futures contracts

      39,530   

Capital gain distributions from Affiliated Underlying Portfolios

      6,020,961   
  

 

 

  

Net realized gain

      1,069,558   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (6,479,383 ) 

Affiliated investments

      (16,059,073 ) 

Futures contracts

      (217,462 ) 
  

 

 

  

Net change in unrealized depreciation

      (22,755,918 ) 
  

 

 

  

Net realized and unrealized loss

      (21,686,360 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (16,132,523 ) 
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Pyramis Managed Risk Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 5,553,837      $ 2,233,737   

Net realized gain

      1,069,558        15,731,096   

Net change in unrealized appreciation (depreciation)

      (22,755,918 )      617,497   
  

 

 

    

 

 

  

Increase (Decrease) in net assets from operations

      (16,132,523 )      18,582,330   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (3,299,846 )      0   

Net realized capital gains

     

Class B

      (16,611,724 )      (736,608 ) 
  

 

 

    

 

 

  

Total distributions

      (19,911,570 )      (736,608 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      416,046,441        146,809,143   
  

 

 

    

 

 

  

Total increase in net assets

      380,002,348        164,654,865   

Net Assets

     

Beginning of period

      308,429,316        143,774,451   
  

 

 

    

 

 

  

End of period

    $ 688,431,664      $ 308,429,316   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 5,637,897      $ 3,209,689   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      37,479,696      $ 424,089,091        14,480,063      $ 159,388,219   

Reinvestments

      1,757,420        19,911,570        68,971        736,608   

Redemptions

      (2,487,815 )      (27,954,220 )      (1,208,150 )      (13,315,684 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      36,749,301      $ 416,046,441        13,340,884      $ 146,809,143   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 416,046,441        $ 146,809,143   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Pyramis Managed Risk Portfolio

Financial Highlights

 

Selected per share data

 

     Class B  
     Year Ended December 31,  
     2015      2014      2013(a)  

Net Asset Value, Beginning of Period

    $ 11.46       $ 10.59       $ 10.00   
  

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

         

Net investment income (b)

      0.13         0.11         0.10   

Net realized and unrealized gain (loss) on investments

      (0.25 )       0.80         0.76   
  

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.12 )       0.91         0.86   
  

 

 

     

 

 

     

 

 

  

Less Distributions

         

Distributions from net investment income

      (0.09 )       0.00         (0.08 ) 

Distributions from net realized capital gains

      (0.44 )       (0.04 )       (0.19 ) 
  

 

 

     

 

 

     

 

 

  

Total distributions

      (0.53 )       (0.04 )       (0.27 ) 
  

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.81       $ 11.46       $ 10.59   
  

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      (1.25 )       8.64         8.59  (d) 

Ratios/Supplemental Data

         

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

      0.74         0.82         1.15  (f) 

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

      0.63         0.70         0.80  (f) 

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

      1.13         0.99         1.39  (f) 

Portfolio turnover rate (%)

      93         62         88  (d) 

Net assets, end of period (in millions)

    $ 688.4       $ 308.4       $ 143.8   

 

(a) Commencement of operations was April 19, 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) The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios and Underlying ETFs 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 (see Note 6 of the Notes to Financial Statements).
(h) Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the Underlying Portfolios and Underlying ETFs in which it invests.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Pyramis Managed Risk Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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”), 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 invests approximately 80% of its assets in shares of affiliated mutual funds offered by Fidelity Investments (“Underlying Portfolios”) and exchange-traded funds (“Underlying ETFs”) offered by Fidelity Investments and other sponsors 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946- Financial Services- Investment Companies. 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 - 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. These types of investments are categorized as Level 1 within the fair value hierarchy. 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.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

Swap contracts (other than centrally cleared swaps) are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and other pricing services. Such quotations and prices are derived utilizing observable data, including the underlying reference securities or indices, credit spread quotations and expected default recovery rates determined by the pricing service. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or an independent pricing service when the exchange price is not available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third party prices are used to produce daily settlement prices. These securities are categorized as Level 2 of the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model

 

MIST-10

Met Investors Series Trust

Pyramis Managed Risk Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

that references the underlying rates, including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 of the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

Dividends and Distributions to Shareholders—The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 redesignations and distributions from Underlying Portfolios and ETFs. These adjustments have no impact on net assets or the results 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 remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

Repurchase Agreements—The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $99,309,892, which is reflected as repurchase agreement on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2015.

3. Investments in Derivative Instruments

Futures Contracts—The Portfolio may buy and sell futures contracts 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

 

MIST-11

Met Investors Series Trust

Pyramis Managed Risk Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 cash 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. If futures contracts are exchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

The following table summarizes the fair value of derivatives haled by the Portfolio at December 31, 2015 by category of 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)    $ 357,099       Unrealized depreciation on futures contracts (a)    $ 311,875   

Equity

    Unrealized appreciation on futures contracts (a)      1,519,814         
     

 

 

        

 

 

  

Total

       $ 1,876,913          $ 311,875   
     

 

 

        

 

 

  

 

  (a) 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 tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Interest Rate     Equity     Total  

Futures contracts

    $ 1,291,583      $ (1,252,053 )    $ 39,530   
  

 

 

    

 

 

    

 

 

  

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

    Interest Rate     Equity     Total  

Futures contracts

    $ (1,367,044 )    $ 1,149,582      $ (217,462 ) 
  

 

 

    

 

 

    

 

 

  

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Futures contracts long

    $ 113,021,538   

 

  ‡ Averages are based on activity levels during 2015.

4. Certain Risks

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”).

Market 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, 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-12

Met Investors Series Trust

Pyramis Managed Risk Portfolio

Notes to Financial Statements—December 31, 2015—(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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC 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 (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to Portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 722,870,113       $ 0       $ 385,064,572   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement (“Management Agreement”) with MetLife Advisers with respect to the Portfolio. For providing

 

MIST-13

Met Investors Series Trust

Pyramis Managed Risk Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the annual rate of 0.450% of average daily net assets. Fees earned by MetLife Advisers with respect to the Portfolio for the year ended December 31, 2015 were $2,214,442.

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. FIAM, LLC (formerly, Pyramis Global Advisors, LLC) (the “Subadvisor”) is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, through April 30, 2016, 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. Amounts waived for the year ended December 31, 2015 are shown as a management fee waiver in the Statement of Operations.

Expense Limitation Agreement - Metlife Advisers 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 30, 2016. Pursuant to that Expense Limitation Agreement, Metlife Advisers 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

    
   0.80%  

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, Metlife Advisers 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 Metlife Advisers more than five years after the end of the fiscal year in which such expense was incurred. For the year ended December 31, 2015, there were no expenses deferred by Metlife Advisers.

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, LLC, 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 year ended December 31, 2015 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-14

Met Investors Series Trust

Pyramis Managed Risk Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

7. Transactions in Securities of Affiliated Underlying Portfolios

A summary of the Portfolio’s transactions in the securities of affiliated Underlying Portfolios during the year ended December 31, 2015 is as follows:

 

Underlying Portfolio

    Number of
shares held at
December 31, 2014		     Shares
purchased		      Shares sold     Number of
shares held at
December 31, 2015		  

Fidelity Blue Chip Growth Fund

      223,782        486,686         (158,362 )      552,106   

Fidelity Blue Chip Value Fund

      —        911,044         (101,553 )      809,491   

Fidelity Conservative Income Bond Fund

      —        2,297,365         (2,198,648 )      98,717   

Fidelity Contrafund

      —        472,064         (50,166 )      421,898   

Fidelity Corporate Bond Fund

      1,188,075        2,876,843         (1,655,533 )      2,409,385   

Fidelity Disciplined Equity Fund

      35,535        37,389         (72,924 )      —   

Fidelity Diversified International Fund

      450,000        1,042,338         (1,119,493 )      372,845   

Fidelity Emerging Asia Fund

      46,189        205,712         (234,313 )      17,588   

Fidelity Emerging Markets Fund

      225,425        —         (225,425 )      —   

Fidelity Europe Fund

      56,075        50,165         (56,075 )      50,165   

Fidelity Growth & Income

      42,325        —         (42,325 )      —   

Fidelity Growth Discovery Fund

      205,539        —         (205,539 )      —   

Fidelity Independence Fund

      52,087        62,309         (114,396 )      —   

Fidelity International Discovery Fund

      80,767        473         (35,219 )      46,021   

Fidelity International Small Cap Opportunities Fund

      —        936,920         —        936,920   

Fidelity Japan Smaller Companies Fund

      —        276,131         —        276,131   

Fidelity Large Cap Stock Fund

      511,639        493,571         (1,005,210 )      —   

Fidelity Low-Priced Stock Fund

      —        232,647         (139,048 )      93,599   

Fidelity Mega Cap Stock Fund

      407,887        10,786         (271,951 )      146,722   

Fidelity Mid Cap Value Fund

      764,719        643,680         (1,029,838 )      378,561   

Fidelity Nordic Fund

      49,058        —         (49,058 )      —   

Fidelity OTC

      56,360        81,412         (137,772 )      —   

Fidelity Overseas Fund

      91,460        1,457,413         —        1,548,873   

Fidelity Real Estate Income Fund

      85,424        4,813         —        90,237   

Fidelity Real Estate Investment Portfolio

      55,559        84,314         (75,848 )      64,025   

Fidelity Small Cap Stock Fund

      —        508,478         —        508,478   

Fidelity Stock Selector Large Cap Value Fund

      787,238        1,068,590         (739,909 )      1,115,919   

Fidelity Total Bond Fund

      5,476,404        9,806,982         (335,825 )      14,947,561   

Fidelity Value Discovery Fund

      152,716        1,285,917         (175,774 )      1,262,859   

Spartan Inflation Protected Bond Index Fund

      —        683,979         —        683,979   

Underlying Portfolio

    Net Realized
Gain/(Loss) on sales
of Affiliated
Underlying
Portfolios		     Capital Gain
Distributions
from Affiliated
Underlying
Portfolios		      Dividend Income
from Affiliated
Underlying
Portfolios		     Ending Value
as of
December 31, 2015		  

Fidelity Blue Chip Growth Fund

    $ 1,114,324      $ 1,784,323       $ 12,693      $ 38,078,729   

Fidelity Blue Chip Value Fund

      (1,943 )      6,431         205,903        12,700,917   

Fidelity Conservative Income Bond Fund

      —        99         20,084        989,140   

Fidelity Contrafund

      105,465        1,609,381         124,817        41,746,820   

Fidelity Corporate Bond Fund

      (245,975 )      —         411,855        26,358,668   

Fidelity Disciplined Equity Fund

      87,122        —         —        —   

Fidelity Diversified International Fund

      (1,894,295 )      63,057         119,923        13,071,957   

Fidelity Emerging Asia Fund

      (1,288,491 )      —         2,312        527,827   

Fidelity Emerging Markets Fund

      (1,033,603 )      —         —        —   

Fidelity Europe Fund

      (262,223 )      7,605         20,988        1,814,461   

Fidelity Growth & Income

      92,383        —         —        —   

Fidelity Growth Discovery Fund

      434,934        —         —        —   

Fidelity Independence Fund

      (353,539 )      11,355         —        —   

Fidelity International Discovery Fund

      88,194        228         18,629        1,813,687   

Fidelity International Small Cap Opportunities Fund

      —        61,806         66,220        13,978,846   

Fidelity Japan Smaller Companies Fund

      —        29,128         24,773        3,821,651   

Fidelity Large Cap Stock Fund

      (1,275,577 )      324,351         82,636        —   

Fidelity Low-Priced Stock Fund

      (194,703 )      311,334         130,801        4,469,357   

Fidelity Mega Cap Stock Fund

      66,413        112,480         61,356        2,291,802   

Fidelity Mid Cap Value Fund

      (1,243,171 )      399,474         147,871        8,457,063   

 

MIST-15

Met Investors Series Trust

Pyramis Managed Risk Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Underlying Portfolio

    Net Realized
Gain/(Loss) on sales
of Affiliated
Underlying
Portfolios		     Capital Gain
Distributions
from Affiliated
Underlying
Portfolios		      Dividend Income
from Affiliated
Underlying
Portfolios		      Ending Value
as of
December 31, 2015		  

Fidelity Nordic Fund

    $ (135,057 )    $ —       $ —       $ —   

Fidelity OTC

      (25,217 )      —         110,505         —   

Fidelity Overseas Fund

      —        9,007         642,506         63,286,950   

Fidelity Real Estate Income Fund

      —        12,349         41,916         1,014,260   

Fidelity Real Estate Investment Portfolio

      (72,014 )      25,128         30,758         2,598,126   

Fidelity Small Cap Stock Fund

      —        500,481         30,366         8,832,258   

Fidelity Stock Selector Large Cap Value Fund

      374,061        —         225,846         18,167,155   

Fidelity Total Bond Fund

      (29,114 )      665,353         2,993,292         153,361,979   

Fidelity Value Discovery Fund

      247,876        79,394         232,247         29,172,041   

Spartan Inflation Protected Bond Index Fund

      —        8,197         —         6,415,724   
  

 

 

    

 

 

     

 

 

     

 

 

  
   $ (5,444,150 )    $ 6,020,961       $ 5,758,297       $ 452,969,418   
  

 

 

    

 

 

     

 

 

     

 

 

  

8. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$9,562,054    $ 298,151       $ 10,349,516       $ 438,457       $ 19,911,570       $ 736,608   

As of December 31, 2015, 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		     Other
Accumulated
Capital Losses		      Total  
$5,683,166    $ 1,859,214       $ (21,758,148 )    $ —       $ (14,215,768 ) 

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.

As of December 31, 2015, the Portfolio had no accumulated capital losses.

10. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-16

Met Investors Series Trust

Pyramis Managed Risk Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Pyramis Managed Risk 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 Pyramis Managed Risk Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the two years in the period then ended and for the period April 19, 2013 (commencement of operations) to December 31, 2013. 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 December 31, 2015, by correspondence with the custodian, brokers, and the transfer agent; when replies were not received from brokers or the transfer agent, 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 Pyramis Managed Risk Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the two years in the period then ended and for the period April 19, 2013 (commencement of operations) to December 31, 2013, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-17

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-18

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-19

Met Investors Series Trust

Pyramis Managed Risk Portfolio

Board of Trustees’ Consideration of Advisory and Sub-advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-20

Met Investors Series Trust

Pyramis Managed Risk Portfolio

Board of Trustees’ Consideration of Advisory and Sub-advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-21

Met Investors Series Trust

Pyramis Managed Risk Portfolio

Board of Trustees’ Consideration of Advisory and Sub-advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

Pyramis Managed Risk Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and FIAM, LLC (formerly, Pyramis Global Advisors, LLC) regarding the Portfolio:

The Board considered and found that the advisory fee to be paid to the Adviser with respect to the Portfolio was based on services to be provided that were in addition to, rather than duplicative of, the services provided pursuant to the advisory agreements for the underlying portfolios in which the Portfolio invests.

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Blended Index for the one-year and since-inception (beginning April 19, 2013) periods ended June 30, 2015. The Board further considered that the Portfolio outperformed its benchmark, the Dow Jones Moderate Index, for the one-year and since-inception periods ended October 31, 2015 and underperformed its blended benchmark for the same periods.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-1 fees) were above the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board further considered that the Portfolio’s contractual management fees were above the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also noted that the Portfolio’s contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-22

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Managed by Schroder Investment Management North America Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class B shares of the Schroders Global Multi-Asset Portfolio returned -0.88%. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned -1.21%.

MARKET ENVIRONMENT / CONDITIONS

Central banks spent 2015 in the spotlight once again. In the U.S., the focus was on when the Federal Reserve (the “Fed”) would raise interest rates whereas other major central banks were embarking on ever-looser monetary policy. Among these was the European Central Bank (the “ECB”) which launched a much-anticipated quantitative easing (“QE”) program in March 2015, in response to weak economic growth and below-target inflation. The program initially envisaged asset purchases totaling €60 billion per month until September 2016, and was later extended to March 2017. The People’s Bank of China was among the other central banks to ease monetary policy during the year in response to disappointing growth rates.

By contrast, there was much debate during the year over the timing of the first interest rate rise from the Fed in nearly a decade. Improving employment data over the spring and summer meant September was seen as the most likely month for rate ‘lift off.’ However, a period of pronounced market volatility in August stayed the Fed’s hand. Fears over global growth, and particularly slowing growth in China, were thought to be behind the volatility. Meanwhile, some in the market interpreted the Fed’s decision to hold rates steady as a sign that the U.S. economy was not as strong as expected, thus adding to the volatile sentiment. The Fed eventually announced a 0.25% rate rise in December, taking the target range for Fed Funds to 0.25-0.50%.

The diverging monetary policy paths taken by the Fed and ECB saw the U.S. dollar strengthen against the euro over the year. The ECB’s QE announcement saw the Swiss National Bank abandon the franc’s peg to the euro, causing a sharp appreciation in the Swiss currency. Weakness in the Japanese yen was another feature of the period as the Bank of Japan kept monetary policy loose. China’s currency was in sharp focus over the summer after the authorities allowed the yuan to depreciate. This caused significant stock market volatility amid concern over the possibility of a much larger devaluation and a potential hard landing for the economy.

Global equities were lackluster in 2015 with the MSCI World USD Index returning -0.9%, while emerging markets lagged with a -14.9% return (MSCI Emerging Markets USD Index). Within developed markets, Japanese equities were particularly strong, partly as exporters were able to boost profit margins thanks to the weaker yen. Despite the December disappointment from the ECB, eurozone equities also posted positive returns (in euro terms). In the U.S., overall returns were muted as the Consumer Discretionary sector performed well but energy stocks were weak due to the ongoing oil price softness. In emerging markets, Brazilian equities lagged and currency weakness amplified the negative returns. South Africa also saw weakness with the large current account deficit causing some unease in the face of expectations for tighter global liquidity, and the rand, the South African currency, experienced a sharp decline relative to the U.S. dollar. However, Chinese equities were resilient for the year overall despite significant volatility.

The year was marked by expectations of an interest rate rise from the Fed, while other major central banks continued to keep monetary policy highly accommodative. U.S. Treasuries returned 0.9% for the year but corporate bonds fared less well overall. U.S. high yield bonds had a very difficult year in 2015 as shale oil/gas producers feature heavily in the asset class. Concerns over the solvency of shale producers as oil prices fell lower prompted investors to price in a higher default rate.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Schroders Global Multi-Asset Portfolio aims to capture global growth opportunities while protecting against market volatility. The Portfolio’s strategic exposure contains actively-managed Schroders equity and bond portfolios, supplemented with passive investments (e.g. Exchange Traded Funds and futures) to facilitate rapid implementation of Schroders’ thematic and tactical views in a cost-effective manner. Schroders seeks to pre-emptively manage risk in its strategic exposures through forward-looking market views, complemented by a Volatility Management Strategy aiming to cap portfolio volatility at 10% over 12-month periods. The Portfolio employs an interest rate overlay to improve diversification and balance the sources of risk through utilizing 10-year interest rate swaps.

The largest detractors to Portfolio performance were positions in U.S. Bank stocks and Investment Grade Bonds. The overweight position to U.S. Banks dampened performance. We anticipated the sector to benefit from a Fed rate hike, however, the sector weakened following the Fed’s announcement. Investment Grade Bonds suffered as credit spreads compressed meaning a corporate bond became less attractive versus a less risky U.S. Treasury Bond. This shift put significant downward pressure on the asset class. Additionally, security selection within the Investment Grade Bonds portfolio was a headwind.

The primary drivers of Portfolio performance for the year were overall asset allocation and certain tactical positions in currencies and the U.S. Consumer Discretionary sector. The Government Bond and long U.S. dollar allocation decisions were additive to performance over the period. Further, the Portfolio’s tactical currency positions were additive to performance over the year. We were underweight Asian currencies due to deflationary pressures and weakness in China. Further, idiosyncratic factors and disappointment from the ECB’s announcement in December led to a strengthening of the euro, re-affirming our prior decision to take profit and close the Portfolio’s long U.S. dollar versus short euro position. In addition, the Portfolio’s long Japanese yen versus British sterling position fared well as

 

MIST-1

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Managed by Schroder Investment Management North America Inc.

Portfolio Manager Commentary*—(Continued)

 

the yen strengthened against the U.S. dollar. The team put on a tactical trade aiming to key into an anticipated rebound in the U.S. Consumer Discretionary sector. We believed that consumers were effectively receiving a tax cut due to lower oil prices. Further, continued improvement in the U.S. economy such as employment growth, wage growth, and credit expansion were all supportive to the consumer and to the performance of this trade.

During the first quarter of the year, we expected a stronger U.S. dollar to weigh on corporate profitability and the region’s competitiveness and, therefore, decreased the Portfolio’s allocation to U.S. equities. We rotated a portion of the Portfolio’s assets into European equities as we believed the windfall effect of a weaker euro for European corporations and the punitive interest rate investment environment would provide a tailwind. On a tactical basis, we increased Canadian equities as structural problems that formerly plagued the region seem to have subsided and the country was likely to benefit from a weaker currency. Within the fixed income allocation, we continued to prefer the long end of the curve versus shorter maturities due to the sensitivity of the shorter maturity bonds to interest rate changes. The team held the belief that negative yields in Europe could trigger flows into other developed government bond markets that offered positive yields. Furthermore, following the interest rate cut in February by the Royal Bank of Australia, long term Australian bonds experienced a sharp decrease in yields which lent support to the Australian bond allocation.

As we moved into the second quarter, we continued to prefer equities though rotated to regions and sectors we expected to benefit from lower oil prices (such as the energy-consuming Asian markets) and currencies (such as the Eurozone). In terms of sectors, we held overweight positions to the Consumer Discretionary sector which benefits from lower energy costs, and to the Bank sector, which we believed would benefit from increasing loan demand and rising rates. Market risks (such as Greece, China, and U.S. growth) posed challenges as the obvious hedge of government duration would become less attractive as we approached the much anticipated Fed rate hike. Having already reduced credit duration in the Portfolio, we continued to look to overseas government markets to take duration. We also retained a variety of currency positions for hedging and “alpha” purposes.

In the summer, emerging market currency weakness and actions by Chinese monetary authorities supported the notion that global growth was underwhelming. Chinese efforts to support their stock market and depreciate their currency pointed to ongoing weakness in the global trade cycle. We had low exposures to emerging market equities and remained cognizant about the risks emerging markets face from China. We decided to increase the Portfolio’s exposure to U.S. Small Cap Equities for two reasons: one, they allow exposure to domestic demand within the U.S. and two, they have historically been correlated to what we expected to be tighter credit spreads. We switched a portion of the Portfolio’s Japanese holdings into the Japanese Corporate Reform Thematic Equity Basket, which seeks to take advantage of the effects of the reforms to corporate governance introduced by Japanese authorities. These are likely to encourage corporations to boost return on equity and shareholder returns. With interest rates pinned at 0%, the search for yield led to stretched valuations, a fact we aimed to mitigate through diversified exposure. Given the deflationary bias to our risk scenarios, we believed that some exposure to government bonds was warranted. The heightened volatility in August triggered the Volatility Management Strategy which was active through October 30th. In implementing the Volatility Management Strategy, we hedged a portion of the Portfolio’s equity exposure with a basket of equity futures that were weighted in such proportions so as to minimize the basis risk between the basket and the underlying Portfolio.

In the final quarter of the period, we were hyper focused on the diverting policies of prominent central banks. Those economies which engaged in aggressive quantitative easing typically did so with a view to weakening their home currency, thereby gaining a competitive advantage in a world of subdued growth. This led us to favor Japanese and European equities on a currency hedged basis as the Japanese yen and the euro depreciated sharply. When looking for value, commodities, resource and energy stocks, emerging equities, and emerging currencies had been the clear laggards and jump out as potential opportunities. However, we refrained from adding exposure to these asset classes in the absence of an improvement in global trade. Instead, we focused on less cyclically-exposed “patient” value through our Schroders Quantitative Value Equity portfolio and exposure to U.S. financial stocks.

The Portfolio primarily used derivative instruments to adjust equity, currency, and interest-rate exposures. The derivatives positions performed in line with expectations and facilitated the Portfolio’s overall performance by providing a cost-effective and liquid approach to gaining the desired market exposure versus implementation via physical instruments.

 

MIST-2

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Managed by Schroder Investment Management North America Inc.

Portfolio Manager Commentary*—(Continued)

 

As of December 31, 2015, the Portfolio’s allocation to Developed Equities was 59.8% and the allocation to Investment Grade bonds was 33.8%. We held approximately 0.42% in Opportunistic asset classes, specifically, Emerging Market Equities. The Portfolio’s cash level was 6.0% as of the end of December. The calculated volatility of the Portfolio’s positioning as of year end was less than 10% per year.

Johanna Kyrklund

Philip Chandler

Michael Hodgson

Portfolio Managers

Schroder Investment Management North America 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, 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 subject to change at any time based upon economic, market, or other conditions and the advisory 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-3

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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        Since Inception2  
Schroders Global Multi-Asset Portfolio            

Class B

        -0.88           6.70   
Dow Jones Moderate Index        -1.21           6.15   

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 date of the Class B shares is 4/23/2012. Index since inception return is based on the Portfolio’s inception date.

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 DECEMBER 31, 2015

Top Equity Sectors

 

     % of
Net Assets		  
Financials      12.8   
Information Technology      4.6   
Health Care      4.5   
Industrials      3.9   
Consumer Discretionary      3.8   

Top Fixed Income Sectors

 

     % of
Net Assets		  
Cash & Cash Equivalents      34.3   
Corporate Bonds & Notes      24.2   
U.S. Treasury & Government Agencies      0.6   

 

MIST-4

Met Investors Series Trust

Schroders Global Multi-Asset 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, July 1, 2015 through December 31, 2015.

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.

 

Schroders Global Multi-Asset Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class B

    Actual      0.96 %     $ 1,000.00         $ 980.00         $ 4.79   
   Hypothetical*      0.96 %     $ 1,000.00         $ 1,020.37         $ 4.89   

* 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 (184 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

 

MIST-5

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of December 31, 2015

Common Stocks—30.3% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—0.5%

    

Airbus Group SE

     1,181      $ 79,296   

Boeing Co. (The)

     7,500        1,084,425   

General Dynamics Corp.

     4,100        563,176   

Honeywell International, Inc.

     8,500        880,345   

Huntington Ingalls Industries, Inc.

     2,000        253,700   

Lockheed Martin Corp.

     3,800        825,170   

Northrop Grumman Corp.

     1,400        264,334   

Raytheon Co.

     5,200        647,556   

Thales S.A.

     1,016        76,131   

United Technologies Corp.

     9,400        903,058   
   

 

 

  
      5,577,191   
   

 

 

  

Air Freight & Logistics—0.2%

    

C.H. Robinson Worldwide, Inc.

     10,600        657,412   

Cia de Distribucion Integral Logista Holdings S.A.

     7,906        166,595   

Expeditors International of Washington, Inc.

     11,500        518,650   

Oesterreichische Post AG

     5,342        194,764   

Royal Mail plc

     36,781        239,341   

United Parcel Service, Inc. - Class B

     7,100        683,233   
   

 

 

  
      2,459,995   
   

 

 

  

Airlines—0.1%

    

Copa Holdings S.A. - Class A (a)

     2,400        115,824   

Dart Group plc

     13,800        119,379   

Delta Air Lines, Inc.

     8,669        439,432   

Japan Airlines Co., Ltd.

     7,700        275,748   

JetBlue Airways Corp. (b)

     6,700        151,755   

Southwest Airlines Co.

     3,800        163,628   
   

 

 

  
      1,265,766   
   

 

 

  

Auto Components—0.4%

    

Autoliv, Inc. (a)

     1,200        149,724   

Bridgestone Corp.

     28,300        969,045   

Calsonic Kansei Corp.

     10,000        88,208   

Cie Generale des Etablissements Michelin

     3,433        325,956   

Continental AG

     2,094        508,246   

Cooper Tire & Rubber Co.

     2,700        102,195   

Delphi Automotive plc

     400        34,292   

Gentex Corp.

     5,600        89,656   

Hella KGaA Hueck & Co.

     2,199        91,139   

HI-LEX Corp.

     1,900        54,736   

Keihin Corp.

     3,700        64,797   

Koito Manufacturing Co., Ltd.

     10,900        445,856   

Lear Corp.

     1,700        208,811   

Magna International, Inc.

     7,000        283,905   

NHK Spring Co., Ltd.

     10,500        105,174   

Nippon Seiki Co., Ltd.

     3,000        68,738   

Nissin Kogyo Co., Ltd.

     5,400        78,310   

NOK Corp.

     14,500        338,911   

Nokian Renkaat Oyj

     3,852        136,824   

Plastic Omnium S.A.

     5,341        169,206   

Showa Corp.

     3,800        35,271   

Topre Corp.

     1,900        43,590   

TPR Co., Ltd.

     2,000        56,243   

Auto Components—(Continued)

  

TS Tech Co., Ltd.

     2,800      72,396   

Unipres Corp.

     1,700        38,364   
   

 

 

  
      4,559,593   
   

 

 

  

Automobiles—0.4%

    

Daihatsu Motor Co., Ltd. (a)

     5,000        67,352   

Daimler AG

     501        41,819   

Ford Motor Co.

     5,000        70,450   

Fuji Heavy Industries, Ltd.

     25,900        1,064,706   

General Motors Co.

     5,354        182,090   

Isuzu Motors, Ltd.

     21,300        229,217   

Kia Motors Corp.

     1,035        46,105   

Mazda Motor Corp.

     9,400        193,375   

Mitsubishi Motors Corp.

     82,600        698,352   

Nissan Shatai Co., Ltd.

     3,300        35,456   

Peugeot S.A. (b)

     8,524        149,458   

Suzuki Motor Corp.

     6,900        209,473   

Thor Industries, Inc.

     1,800        101,070   

Toyota Motor Corp.

     27,600        1,694,089   
   

 

 

  
      4,783,012   
   

 

 

  

Banks—2.8%

    

Aichi Bank, Ltd. (The)

     600        31,822   

Aozora Bank, Ltd.

     49,000        170,873   

Australia & New Zealand Banking Group, Ltd. (a)

     11,132        224,655   

Awa Bank, Ltd. (The)

     25,000        145,336   

Banco Popular Espanol S.A.

     28,509        93,879   

Banco Santander S.A.

     64,332        315,840   

Bank Hapoalim B.M.

     49,604        256,188   

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

     45,678        158,445   

Bank of America Corp.

     117,200        1,972,476   

Bank of East Asia, Ltd. (The)

     26,400        97,740   

Bank of Kyoto, Ltd. (The)

     12,000        111,161   

Bank of Montreal

     5,942        335,298   

Bank of Nova Scotia (The)

     5,814        235,174   

Bank of Yokohama, Ltd. (The)

     75,000        459,068   

Barclays plc

     202,543        655,567   

BB&T Corp.

     21,400        809,134   

BNP Paribas S.A.

     11,949        676,361   

BOC Hong Kong Holdings, Ltd.

     98,500        298,246   

C&F Financial Corp. (a)

     181        7,059   

Canadian Imperial Bank of Commerce (a)

     3,490        230,002   

Chugoku Bank, Ltd. (The)

     4,600        61,315   

Citigroup, Inc.

     34,900        1,806,075   

Comerica, Inc.

     11,800        493,594   

Commerzbank AG (b)

     18,612        192,700   

Commonwealth Bank of Australia (a)

     2,195        135,609   

Credit Agricole S.A.

     13,756        162,055   

Dah Sing Banking Group, Ltd.

     20,000        35,147   

Dah Sing Financial Holdings, Ltd.

     11,200        55,598   

Fifth Third Bancorp

     44,524        894,932   

First Financial Corp.

     1,000        33,970   

Hachijuni Bank, Ltd. (The)

     21,000        128,872   

Hang Seng Bank, Ltd.

     15,300        291,146   

HSBC Holdings plc

     191,626        1,512,204   

 

§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 December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Banks—(Continued)

  

HSBC Holdings plc (Hong Kong Listed Shares)

     33,200      $ 262,868   

Hyakugo Bank, Ltd. (The)

     15,000        72,776   

International Bancshares Corp.

     5,800        149,060   

Israel Discount Bank, Ltd. - Class A (b)

     28,934        52,442   

Iyo Bank, Ltd. (The)

     14,400        139,788   

Japan Post Bank Co., Ltd. (b)

     13,100        190,732   

JPMorgan Chase & Co.

     40,600        2,680,818   

Kasikornbank PCL (NVDR)

     30,600        127,776   

KB Financial Group, Inc.

     4,550        127,837   

KeyCorp

     67,874        895,258   

Mitsubishi UFJ Financial Group, Inc.

     246,100        1,523,087   

Mizuho Financial Group, Inc.

     37,200        74,260   

Nordea Bank AB

     16,959        185,051   

PNC Financial Services Group, Inc. (The)

     13,431        1,280,109   

Regions Financial Corp.

     22,269        213,782   

Resona Holdings, Inc.

     54,900        266,477   

Royal Bank of Scotland Group plc (b)

     114,713        507,511   

San-In Godo Bank, Ltd. (The)

     10,000        81,108   

Seven Bank, Ltd.

     89,000        389,573   

Shiga Bank, Ltd. (The) (a)

     6,000        30,018   

Shinsei Bank, Ltd.

     336,000        618,090   

Shizuoka Bank, Ltd. (The)

     32,000        310,175   

Societe Generale S.A.

     10,542        486,276   

Sumitomo Mitsui Financial Group, Inc.

     28,800        1,086,402   

Suruga Bank, Ltd.

     12,000        247,257   

TOMONY Holdings, Inc.

     7,300        27,716   

U.S. Bancorp

     18,400        785,128   

UniCredit S.p.A.

     54,083        297,887   

Unione di Banche Italiane SCPA

     21,348        141,783   

United Overseas Bank, Ltd.

     48,900        673,191   

Wells Fargo & Co.

     55,069        2,993,551   

Westpac Banking Corp.

     10,182        246,806   

Yamanashi Chuo Bank, Ltd. (The)

     7,000        35,660   
   

 

 

  
      30,287,794   
   

 

 

  

Beverages—0.7%

    

Anheuser-Busch InBev S.A.

     11,199        1,383,357   

Asahi Group Holdings, Ltd.

     19,900        622,115   

Coca-Cola Co. (The)

     40,700        1,748,472   

Coca-Cola Enterprises, Inc.

     4,048        199,323   

Diageo plc

     41,201        1,123,571   

PepsiCo, Inc.

     20,741        2,072,441   
   

 

 

  
      7,149,279   
   

 

 

  

Biotechnology—0.6%

    

AbbVie, Inc.

     1,658        98,220   

Abcam plc

     25,215        247,056   

Actelion, Ltd. (b)

     904        124,389   

Amgen, Inc.

     10,760        1,746,671   

Biogen, Inc. (b)

     1,700        520,795   

Celgene Corp. (b)

     6,100        730,536   

CSL, Ltd.

     8,221        626,794   

Gilead Sciences, Inc.

     19,499        1,973,104   

Grifols S.A.

     1,882        86,639   

Medivir AB - B Shares (b)

     1,800        13,924   

Biotechnology—(Continued)

  

Regeneron Pharmaceuticals, Inc. (b)

     400      217,148   

United Therapeutics Corp. (a) (b)

     2,200        344,542   
   

 

 

  
      6,729,818   
   

 

 

  

Building Products—0.0%

    

Aica Kogyo Co., Ltd.

     3,200        62,737   

Kingspan Group plc

     3,410        89,765   

Masco Corp.

     7,544        213,495   

Sekisui Jushi Corp.

     3,000        41,323   
   

 

 

  
      407,320   
   

 

 

  

Capital Markets—0.8%

    

Aberdeen Asset Management plc (a)

     19,408        82,681   

Ameriprise Financial, Inc.

     2,031        216,139   

Ashmore Group plc (a)

     48,203        182,017   

Azimut Holding S.p.A.

     5,907        145,827   

CI Financial Corp.

     12,800        283,067   

Daiwa Securities Group, Inc.

     78,000        476,894   

Deutsche Bank AG

     28,903        709,399   

Eaton Vance Corp.

     9,847        319,338   

Franklin Resources, Inc.

     19,749        727,158   

Goldman Sachs Group, Inc. (The)

     6,790        1,223,762   

Invesco, Ltd.

     7,026        235,231   

Investec plc

     11,403        80,472   

Macquarie Group, Ltd.

     8,790        525,259   

Mediobanca S.p.A.

     22,839        218,977   

Morgan Stanley

     17,000        540,770   

Nomura Holdings, Inc.

     21,300        118,379   

Perpetual, Ltd.

     3,842        129,555   

SBI Holdings, Inc.

     48,600        524,618   

SEI Investments Co.

     2,700        141,480   

T. Rowe Price Group, Inc.

     10,623        759,438   

TD Ameritrade Holding Corp.

     5,200        180,492   

Tetragon Financial Group, Ltd.

     2,330        23,043   

UBS Group AG

     48,970        942,374   

Waddell & Reed Financial, Inc. - Class A

     6,000        171,960   
   

 

 

  
      8,958,330   
   

 

 

  

Chemicals—1.0%

    

ADEKA Corp.

     3,900        55,582   

Air Liquide S.A.

     1,173        131,744   

Asahi Kasei Corp.

     136,000        920,450   

BASF SE

     13,049        997,593   

CF Industries Holdings, Inc.

     3,016        123,083   

Croda International plc

     3,594        160,192   

Daicel Corp.

     40,300        599,701   

Dow Chemical Co. (The)

     12,700        653,796   

DuluxGroup, Ltd.

     11,127        53,552   

E.I. du Pont de Nemours & Co.

     1,700        113,220   

Eastman Chemical Co.

     800        54,008   

Fujimori Kogyo Co., Ltd.

     1,600        41,584   

Hexpol AB

     19,677        210,933   

Hitachi Chemical Co., Ltd.

     12,800        202,820   

Innospec, Inc.

     1,600        86,896   

JSR Corp.

     14,000        218,504   

K&S AG

     7,882        204,931   

 

§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 December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Chemicals—(Continued)

  

Lintec Corp.

     2,800      $ 58,838   

LyondellBasell Industries NV - Class A

     8,990        781,231   

Mitsubishi Chemical Holdings Corp.

     91,600        580,761   

Mitsubishi Gas Chemical Co., Inc.

     47,000        240,135   

Monsanto Co.

     6,000        591,120   

Mosaic Co. (The)

     10,524        290,357   

Nihon Parkerizing Co., Ltd.

     11,900        121,217   

Nippon Pillar Packing Co., Ltd.

     1,000        8,614   

Nippon Shokubai Co., Ltd.

     1,700        118,135   

Nippon Synthetic Chemical Industry Co., Ltd. (The)

     4,000        28,632   

Nissan Chemical Industries, Ltd.

     4,500        102,175   

Nitto Denko Corp.

     7,300        532,497   

NOF Corp.

     16,000        122,847   

Orica, Ltd. (a)

     8,623        96,458   

Petronas Chemicals Group Bhd

     68,200        115,414   

Potash Corp. of Saskatchewan, Inc.

     25,672        439,710   

Shikoku Chemicals Corp.

     2,000        18,957   

Sika AG

     93        333,391   

Soda Sanayii A/S

     71,390        103,529   

Sumitomo Chemical Co., Ltd.

     90,000        516,530   

Syngenta AG

     1,047        410,952   

Terra Nitrogen Co. L.P.

     700        71,106   

Tikkurila Oyj

     2,696        46,933   

Toagosei Co., Ltd.

     12,000        102,773   

Tosoh Corp.

     9,000        46,219   

Westlake Chemical Corp.

     4,200        228,144   

Yara International ASA

     9,271        399,306   
   

 

 

  
      11,334,570   
   

 

 

  

Commercial Services & Supplies—0.3%

  

ADT Corp. (The) (a)

     7,800        257,244   

Berendsen plc

     17,596        278,271   

Cabcharge Australia, Ltd.

     2,996        6,463   

Deluxe Corp. (a)

     4,400        239,976   

Edenred

     5,565        104,850   

Ennis, Inc.

     3,100        59,675   

Healthcare Services Group, Inc. (a)

     3,500        122,045   

Intrum Justitia AB

     7,007        238,372   

Mitie Group plc

     11,092        50,800   

Park24 Co., Ltd.

     11,900        288,747   

Prosegur Cia de Seguridad S.A.

     22,319        103,045   

Ritchie Bros Auctioneers, Inc. (a)

     8,300        199,987   

Secom Co., Ltd.

     11,000        744,366   

Transcontinental, Inc. - Class A

     6,600        82,327   

Waste Management, Inc.

     5,732        305,917   
   

 

 

  
      3,082,085   
   

 

 

  

Communications Equipment—0.3%

    

Brocade Communications Systems, Inc.

     10,400        95,472   

Cisco Systems, Inc.

     58,100        1,577,705   

QUALCOMM, Inc.

     24,500        1,224,633   
   

 

 

  
      2,897,810   
   

 

 

  

Construction & Engineering—0.1%

    

ACS Actividades de Construccion y Servicios S.A.

     5,017      146,164   

Ausdrill, Ltd.

     4,930        914   

Boskalis Westminster

     5,869        239,088   

COMSYS Holdings Corp.

     5,300        74,443   

Decmil Group, Ltd.

     14,456        10,982   

HOCHTIEF AG

     1,128        104,610   

Jacobs Engineering Group, Inc. (b)

     3,801        159,452   

Kyowa Exeo Corp.

     9,100        93,185   

MACA, Ltd.

     10,971        5,824   

Maeda Road Construction Co., Ltd.

     4,000        66,872   

Monadelphous Group, Ltd. (a)

     5,493        26,054   

Nichireki Co., Ltd.

     2,000        15,837   

Nippo Corp.

     3,000        48,732   

Quanta Services, Inc. (b)

     6,764        136,971   

United Integrated Services Co., Ltd.

     23,000        29,548   

Vinci S.A.

     6,776        434,539   
   

 

 

  
      1,593,215   
   

 

 

  

Construction Materials—0.0%

    

Taiheiyo Cement Corp.

     171,000        498,572   
   

 

 

  
   

Consumer Finance—0.2%

    

Ally Financial, Inc. (b)

     12,300        229,272   

American Express Co.

     9,435        656,204   

Discover Financial Services

     15,932        854,274   

Navient Corp.

     10,695        122,458   

World Acceptance Corp. (a) (b)

     700        25,970   
   

 

 

  
      1,888,178   
   

 

 

  

Containers & Packaging—0.2%

    

Avery Dennison Corp.

     3,100        194,246   

Bemis Co., Inc.

     9,500        424,555   

CCL Industries, Inc. - Class B

     1,300        210,798   

International Paper Co.

     15,844        597,318   

Sonoco Products Co.

     4,700        192,089   

WestRock Co.

     761        34,717   
   

 

 

  
      1,653,723   
   

 

 

  

Distributors—0.0%

    

Genuine Parts Co.

     4,300        369,327   
   

 

 

  

Diversified Consumer Services—0.0%

    

H&R Block, Inc.

     7,000        233,170   

Meiko Network Japan Co., Ltd.

     1,100        12,747   
   

 

 

  
      245,917   
   

 

 

  

Diversified Financial Services—0.3%

    

ASX, Ltd.

     8,661        265,719   

Berkshire Hathaway, Inc. - Class B (b)

     4,600        607,384   

FactSet Research Systems, Inc.

     1,000        162,570   

IG Group Holdings plc

     12,699        149,520   

Industrivarden AB - A Shares

     1,443        26,917   

Industrivarden AB - C Shares

     8,502        145,319   

 

§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 December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Diversified Financial Services—(Continued)

  

Investment AB Kinnevik - B Shares

     7,341      $ 225,039   

Investor AB - B Shares

     12,638        464,980   

ORIX Corp.

     69,300        972,151   

RMB Holdings, Ltd.

     22,762        81,525   

Sofina S.A.

     759        85,185   

Voya Financial, Inc.

     5,077        187,392   
   

 

 

  
      3,373,701   
   

 

 

  

Diversified Telecommunication Services—0.7%

  

AT&T, Inc.

     47,848        1,646,450   

CenturyLink, Inc.

     6,570        165,301   

Elisa Oyj

     9,836        369,914   

Nippon Telegraph & Telephone Corp.

     19,900        790,066   

Proximus

     12,963        420,556   

Singapore Telecommunications, Ltd.

     200,000        525,003   

TDC A/S

     18,469        91,619   

Telekomunikasi Indonesia Persero Tbk PT

     1,167,200        262,091   

Telenor ASA

     29,852        496,625   

TeliaSonera AB

     47,737        237,385   

Telstra Corp., Ltd.

     194,223        788,066   

Turk Telekomunikasyon A/S

     18,115        33,884   

Verizon Communications, Inc.

     33,816        1,562,976   

Verizon Communications, Inc. (London Listed Shares)

     10,693        496,635   
   

 

 

  
      7,886,571   
   

 

 

  

Electric Utilities—0.1%

    

Electricite de France S.A.

     7,221        106,079   

Enel S.p.A.

     36,018        150,655   

Entergy Corp.

     3,550        242,678   

Tohoku Electric Power Co., Inc.

     23,800        297,525   

Transmissora Alianca de Energia Eletrica S.A.

     21,700        91,476   
   

 

 

  
      888,413   
   

 

 

  

Electrical Equipment—0.6%

    

ABB, Ltd. (b)

     8,840        156,910   

AMETEK, Inc.

     4,100        219,719   

Eaton Corp. plc

     9,600        499,584   

Emerson Electric Co.

     23,525        1,125,201   

Hubbell, Inc.

     3,200        323,328   

Legrand S.A.

     10,223        576,995   

Mitsubishi Electric Corp.

     100,000        1,048,452   

Nidec Corp.

     7,300        528,391   

Nitto Kogyo Corp.

     2,600        45,273   

OSRAM Licht AG

     3,923        165,071   

Rockwell Automation, Inc.

     6,131        629,102   

Saft Groupe S.A.

     1,457        44,399   

Schneider Electric SE

     11,541        657,097   
   

 

 

  
      6,019,522   
   

 

 

  

Electronic Equipment, Instruments & Components—0.3%

  

Amano Corp.

     2,400        32,503   

Arrow Electronics, Inc. (b)

     2,588        140,218   

Avnet, Inc.

     4,709        201,734   

Corning, Inc.

     32,401        592,290   

Electronic Equipment, Instruments & Components—(Continued)

  

Dolby Laboratories, Inc. - Class A

     2,100      70,665   

Flextronics International, Ltd. (b)

     14,750        165,348   

FLIR Systems, Inc.

     7,000        196,490   

Flytech Technology Co., Ltd.

     15,008        43,181   

Halma plc

     13,639        172,864   

Hitachi, Ltd.

     94,000        531,821   

Ibiden Co., Ltd. (a)

     4,000        57,283   

II-VI, Inc. (b)

     2,900        53,824   

Kanematsu Electronics, Ltd.

     800        14,120   

Kyocera Corp.

     5,700        264,190   

Nippon Electric Glass Co., Ltd.

     15,000        75,634   

Simplo Technology Co., Ltd.

     17,000        54,011   

Spectris plc

     4,132        109,510   

Yokogawa Electric Corp.

     38,100        458,068   
   

 

 

  
      3,233,754   
   

 

 

  

Energy Equipment & Services—0.2%

    

John Wood Group plc

     19,283        172,916   

National Oilwell Varco, Inc. (a)

     6,100        204,289   

Oceaneering International, Inc.

     8,263        310,028   

Schlumberger, Ltd.

     16,900        1,178,775   

Tenaris S.A.

     27,263        324,558   

TGS Nopec Geophysical Co. ASA (a)

     9,037        142,949   

Transocean Partners LLC

     7,400        65,342   
   

 

 

  
      2,398,857   
   

 

 

  

Food & Staples Retailing—0.5%

    

Ain Holdings, Inc.

     2,300        109,566   

Axfood AB

     13,016        224,556   

Casino Guichard Perrachon S.A. (a)

     2,829        129,951   

Costco Wholesale Corp.

     1,500        242,250   

Create SD Holdings Co., Ltd.

     600        14,572   

CVS Health Corp.

     4,400        430,188   

J Sainsbury plc

     35,971        137,070   

Koninklijke Ahold NV

     34,086        719,661   

Lawson, Inc.

     13,000        1,054,259   

Sysco Corp.

     12,100        496,100   

Wal-Mart Stores, Inc.

     15,500        950,150   

Walgreens Boots Alliance, Inc.

     2,100        178,825   

WM Morrison Supermarkets plc (a)

     35,023        76,006   

Woolworths, Ltd.

     13,934        246,586   
   

 

 

  
      5,009,740   
   

 

 

  

Food Products—0.6%

    

Archer-Daniels-Midland Co.

     4,783        175,440   

Calbee, Inc.

     12,900        541,390   

Campbell Soup Co. (a)

     10,800        567,540   

Flowers Foods, Inc.

     15,700        337,393   

General Mills, Inc.

     18,252        1,052,410   

Ingredion, Inc.

     4,600        440,864   

Mondelez International, Inc. - Class A

     2,700        121,068   

Nestle S.A.

     34,590        2,563,937   

Origin Enterprises plc

     21,284        174,661   

Saputo, Inc.

     3,300        78,941   
   

 

 

  
      6,053,644   
   

 

 

  

 

§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 December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Gas Utilities—0.2%

    

Ascopiave S.p.A.

     14,158      $ 33,581   

Gas Natural SDG S.A.

     9,945        202,028   

Osaka Gas Co., Ltd.

     237,000        854,564   

Toho Gas Co., Ltd.

     57,000        368,097   

Tokyo Gas Co., Ltd.

     223,000        1,047,506   

UGI Corp.

     5,500        185,680   
   

 

 

  
      2,691,456   
   

 

 

  

Health Care Equipment & Supplies—0.6%

  

C.R. Bard, Inc.

     3,400        644,096   

Coloplast A/S - Class B

     2,585        208,652   

Coltene Holding AG

     643        38,969   

DiaSorin S.p.A.

     5,049        264,027   

Essilor International S.A.

     361        45,001   

Hoya Corp.

     21,200        864,296   

Medtronic plc

     5,500        423,060   

Meridian Bioscience, Inc. (a)

     11,300        231,876   

ResMed, Inc. (a)

     7,800        418,782   

Sartorius Stedim Biotech

     135        51,810   

Smith & Nephew plc

     15,397        272,523   

St. Jude Medical, Inc.

     13,000        803,010   

St. Shine Optical Co., Ltd.

     12,000        239,712   

Stryker Corp.

     8,400        780,696   

Sysmex Corp.

     8,500        543,627   

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

     9,579        773,983   
   

 

 

  
      6,604,120   
   

 

 

  

Health Care Providers & Services—0.6%

  

Aetna, Inc.

     6,889        744,839   

AmerisourceBergen Corp.

     3,032        314,449   

Anthem, Inc.

     1,924        268,282   

Cardinal Health, Inc.

     6,217        554,992   

Centene Corp. (b)

     3,400        223,754   

Chemed Corp. (a)

     2,300        344,540   

Express Scripts Holding Co. (b)

     2,513        219,661   

HCA Holdings, Inc. (b)

     4,890        330,711   

Life Healthcare Group Holdings, Ltd.

     71,122        160,574   

McKesson Corp.

     1,200        236,676   

Medical Facilities Corp.

     2,700        28,079   

MEDNAX, Inc. (b)

     8,100        580,446   

Miraca Holdings, Inc.

     4,200        185,222   

Molina Healthcare, Inc. (a) (b)

     4,900        294,637   

Quest Diagnostics, Inc.

     1,900        135,166   

UnitedHealth Group, Inc.

     13,800        1,623,432   

Universal Health Services, Inc. - Class B

     1,100        131,439   
   

 

 

  
      6,376,899   
   

 

 

  

Health Care Technology—0.1%

    

AGFA-Gevaert NV (b)

     9,799        55,737   

Computer Programs & Systems, Inc. (a)

     4,713        234,472   

Quality Systems, Inc.

     19,200        309,504   
   

 

 

  
      599,713   
   

 

 

  

Hotels, Restaurants & Leisure—0.3%

    

Brinker International, Inc.

     500        23,975   

Cracker Barrel Old Country Store, Inc. (a)

     1,900        240,977   

Hotels, Restaurants & Leisure—(Continued)

  

Flight Centre Travel Group, Ltd. (a)

     3,962      114,176   

Kangwon Land, Inc.

     5,414        176,237   

Las Vegas Sands Corp.

     2,843        124,637   

McDonald’s Corp.

     9,200        1,086,888   

Oriental Land Co., Ltd. (a)

     8,000        481,653   

Restaurant Group plc (The)

     10,613        106,804   

Starbucks Corp.

     4,200        252,126   

Starwood Hotels & Resorts Worldwide, Inc.

     2,360        163,501   

William Hill plc

     29,242        170,642   

Wyndham Worldwide Corp.

     3,012        218,822   

Yum! Brands, Inc.

     7,500        547,875   
   

 

 

  
      3,708,313   
   

 

 

  

Household Durables—0.4%

    

Casio Computer Co., Ltd. (a)

     25,400        592,919   

Fujitsu General, Ltd.

     9,000        114,336   

Garmin, Ltd. (a)

     8,100        301,077   

Iida Group Holdings Co., Ltd.

     5,700        105,579   

Leggett & Platt, Inc.

     10,958        460,455   

Nikon Corp. (a)

     11,100        148,285   

PanaHome Corp.

     4,000        30,209   

Panasonic Corp.

     42,900        435,388   

Persimmon plc (b)

     5,510        164,550   

Sekisui Chemical Co., Ltd.

     61,600        803,508   

Sekisui House, Ltd.

     36,600        615,035   

Sony Corp.

     2,500        61,246   

Token Corp.

     600        46,173   

Tupperware Brands Corp. (a)

     2,400        133,560   
   

 

 

  
      4,012,320   
   

 

 

  

Household Products—0.4%

    

Clorox Co. (The)

     4,300        545,369   

Energizer Holdings, Inc.

     3,700        126,022   

Kimberly-Clark Corp.

     4,900        623,770   

Procter & Gamble Co. (The)

     26,600        2,112,306   

Reckitt Benckiser Group plc

     9,622        885,695   

Unicharm Corp.

     23,800        485,222   
   

 

 

  
      4,778,384   
   

 

 

  

Independent Power and Renewable Electricity Producers—0.0%

  

AES Corp.

     15,476        148,105   

NRG Energy, Inc.

     10,030        118,053   

Tractebel Energia S.A.

     9,800        82,357   
   

 

 

  
      348,515   
   

 

 

  

Industrial Conglomerates—0.4%

    

3M Co.

     6,900        1,039,416   

CK Hutchison Holdings, Ltd.

     10,500        140,661   

General Electric Co.

     58,800        1,831,620   

Hopewell Holdings, Ltd.

     26,500        95,003   

Roper Technologies, Inc.

     2,500        474,475   

Siemens AG

     10,174        987,093   
   

 

 

  
      4,568,268   
   

 

 

  

 

§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 December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Insurance—1.3%

    

ACE, Ltd.

     7,902      $ 923,349   

Aegon NV

     28,089        158,548   

Aflac, Inc.

     13,256        794,034   

Ageas

     4,342        201,257   

AIA Group, Ltd.

     22,000        131,066   

Allianz SE

     1,799        318,703   

Allstate Corp. (The)

     5,401        335,348   

American Equity Investment Life Holding Co.

     6,100        146,583   

American Financial Group, Inc.

     4,500        324,360   

American International Group, Inc.

     13,900        861,383   

American National Insurance Co.

     500        51,135   

Assured Guaranty, Ltd.

     7,800        206,154   

Axis Capital Holdings, Ltd.

     8,091        454,876   

Baloise Holding AG

     992        125,797   

Beazley plc

     6,123        35,245   

Chesnara plc

     7,256        35,827   

CNA Financial Corp.

     2,646        93,007   

Direct Line Insurance Group plc

     86,558        517,037   

Everest Re Group, Ltd.

     3,362        615,549   

FBL Financial Group, Inc. - Class A

     1,858        118,243   

Grupo Catalana Occidente S.A.

     4,899        170,138   

Hartford Financial Services Group, Inc. (The)

     6,372        276,927   

HCI Group, Inc. (a)

     1,100        38,335   

Horace Mann Educators Corp.

     5,500        182,490   

Legal & General Group plc

     128,803        507,975   

Lincoln National Corp.

     9,527        478,827   

Loews Corp.

     9,706        372,710   

Mapfre S.A.

     38,540        96,126   

MBIA, Inc. (b)

     5,100        33,048   

National Western Life Group, Inc. - Class A

     400        100,776   

NN Group NV

     5,549        195,133   

Principal Financial Group, Inc.

     15,842        712,573   

Prudential plc

     30,500        682,831   

RenaissanceRe Holdings, Ltd.

     2,300        260,337   

Sampo Oyj - A Shares

     8,070        409,037   

Sony Financial Holdings, Inc.

     36,289        648,228   

T&D Holdings, Inc.

     52,800        694,075   

Torchmark Corp.

     8,377        478,829   

UnipolSai S.p.A.

     46,129        116,863   

Universal Insurance Holdings, Inc. (a)

     2,800        64,904   

Unum Group

     6,270        208,728   

Validus Holdings, Ltd.

     4,300        199,047   

W.R. Berkley Corp.

     2,629        143,938   

Zurich Insurance Group AG (b)

     838        213,824   
   

 

 

  
      13,733,200   
   

 

 

  

Internet & Catalog Retail—0.3%

    

Amazon.com, Inc. (b)

     3,000        2,027,670   

Expedia, Inc.

     1,800        223,740   

GS Home Shopping, Inc.

     336        47,740   

Netflix, Inc. (a) (b)

     1,400        160,132   

Priceline Group, Inc. (The) (b)

     505        643,850   
   

 

 

  
      3,103,132   
   

 

 

  

Internet Software & Services—0.7%

    

Alphabet, Inc. - Class A (b)

     2,700        2,100,627   

Alphabet, Inc. - Class C (b)

     2,860        2,170,397   

Internet Software & Services—(Continued)

  

carsales.com, Ltd.

     16,631      141,049   

eBay, Inc. (b)

     29,274        804,450   

Facebook, Inc. - Class A (b)

     15,000        1,569,900   

j2 Global, Inc.

     2,000        164,640   

Kakaku.com, Inc. (a)

     7,400        146,088   

Mixi, Inc.

     1,700        63,471   

Moneysupermarket.com Group plc

     25,964        140,244   

VeriSign, Inc. (a) (b)

     2,567        224,253   

Yahoo Japan Corp. (a)

     77,500        314,965   
   

 

 

  
      7,840,084   
   

 

 

  

IT Services—1.0%

    

Accenture plc - Class A

     7,600        794,200   

Alliance Data Systems Corp. (b)

     732        202,449   

Amadeus IT Holding S.A. - A Shares

     9,118        401,495   

Amdocs, Ltd.

     6,800        371,076   

Automatic Data Processing, Inc.

     6,500        550,680   

CGI Group, Inc. - Class A (b)

     5,700        228,214   

Cognizant Technology Solutions Corp. - Class A (b)

     9,300        558,186   

Computer Sciences Corp.

     3,158        103,203   

Computershare, Ltd.

     21,577        181,871   

CSG Systems International, Inc. (a)

     2,100        75,558   

CSRA, Inc.

     3,158        94,740   

Fiserv, Inc. (b)

     2,726        249,320   

FleetCor Technologies, Inc. (b)

     1,300        185,809   

Future Architect, Inc. (a)

     5,100        33,139   

GMO Payment Gateway, Inc.

     1,400        66,240   

Infocom Corp.

     2,400        28,574   

Infosys, Ltd. (ADR)

     11,400        190,950   

International Business Machines Corp.

     12,543        1,726,168   

Iress, Ltd. (a)

     9,135        66,073   

Jack Henry & Associates, Inc.

     2,000        156,120   

MasterCard, Inc. - Class A

     4,900        477,064   

NeuStar, Inc. - Class A (a) (b)

     2,200        52,734   

NTT Data Corp.

     4,000        193,230   

Otsuka Corp.

     8,100        397,223   

Paychex, Inc.

     7,200        380,808   

PayPal Holdings, Inc. (b)

     11,700        423,540   

Poletowin Pitcrew Holdings, Inc.

     3,300        31,210   

Syntel, Inc. (b)

     5,195        235,074   

TeleTech Holdings, Inc.

     1,300        36,283   

Teradata Corp. (a) (b)

     6,600        174,372   

Tieto Oyj

     2,469        66,060   

Total System Services, Inc.

     5,100        253,980   

Visa, Inc. - Class A (a)

     12,000        930,600   

Western Union Co. (The) (a)

     24,338        435,893   

Xerox Corp.

     19,365        205,850   
   

 

 

  
      10,557,986   
   

 

 

  

Leisure Products—0.1%

    

Bandai Namco Holdings, Inc.

     4,700        98,756   

Heiwa Corp.

     3,900        73,013   

Mattel, Inc. (a)

     13,281        360,845   

Polaris Industries, Inc. (a)

     3,951        339,588   

Sankyo Co., Ltd.

     3,100        115,627   
   

 

 

  
      987,829   
   

 

 

  

 

§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 December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Life Sciences Tools & Services—0.1%

    

Bio-Techne Corp.

     3,400      $ 306,000   

Mettler-Toledo International, Inc. (b)

     914        309,965   

Quintiles Transnational Holdings, Inc. (b)

     3,748        257,338   

Waters Corp. (b)

     4,300        578,694   
   

 

 

  
      1,451,997   
   

 

 

  

Machinery—0.8%

    

Aalberts Industries NV

     5,077        174,604   

AGCO Corp.

     3,162        143,523   

Alfa Laval AB

     24,734        449,098   

Atlas Copco AB - A Shares

     18,313        446,135   

Caterpillar, Inc. (a)

     2,622        178,191   

Cummins, Inc.

     7,599        668,788   

Daiwa Industries, Ltd.

     2,000        15,598   

Deere & Co. (a)

     2,954        225,302   

Dover Corp.

     11,415        699,854   

FANUC Corp.

     6,700        1,155,021   

Flowserve Corp. (a)

     8,486        357,091   

Fukushima Industries Corp.

     1,000        23,639   

Hillenbrand, Inc.

     5,300        157,039   

Hino Motors, Ltd.

     12,200        140,759   

Illinois Tool Works, Inc.

     6,200        574,616   

IMI plc

     14,370        181,283   

Kone Oyj - Class B (a)

     11,645        489,618   

Lincoln Electric Holdings, Inc.

     3,800        197,182   

Mitsuboshi Belting, Ltd.

     6,000        47,928   

Namura Shipbuilding Co., Ltd.

     2,700        22,123   

NSK, Ltd.

     38,600        418,656   

Parker-Hannifin Corp.

     5,300        513,994   

Rational AG

     232        105,445   

Rotork plc

     103,233        277,577   

Schindler Holding AG (Participation Certificate)

     1,752        293,367   

Spirax-Sarco Engineering plc

     827        39,839   

Tadano, Ltd.

     8,000        96,725   

Toro Co. (The)

     3,500        255,745   

Tsubakimoto Chain Co.

     16,000        122,963   

Volvo AB - B Shares

     14,214        131,224   

Wabtec Corp.

     3,200        227,584   

Weir Group plc (The)

     8,445        124,218   

Yangzijiang Shipbuilding Holdings, Ltd. (a)

     232,000        179,130   
   

 

 

  
      9,133,859   
   

 

 

  

Marine—0.0%

    

AP Moeller - Maersk A/S - Class B

     88        114,269   

Kuehne & Nagel International AG

     1,265        173,450   
   

 

 

  
      287,719   
   

 

 

  

Media—0.7%

    

Comcast Corp. - Class A

     17,410        982,446   

CTS Eventim AG & Co. KGaA

     2,574        102,686   

Daiichikosho Co., Ltd.

     3,300        130,621   

Discovery Communications, Inc. - Class A (b)

     5,538        147,754   

Gannett Co., Inc.

     4,450        72,490   

John Wiley & Sons, Inc. - Class A

     3,500        157,605   

Media—(Continued)

  

Liberty Global plc - Class A (b)

     4,112      174,184   

Meredith Corp.

     1,600        69,200   

Metropole Television S.A.

     8,631        148,391   

Omnicom Group, Inc. (a)

     8,754        662,328   

ProSiebenSat.1 Media SE

     4,225        213,717   

Publicis Groupe S.A.

     7,304        484,434   

REA Group, Ltd.

     567        22,547   

RELX NV

     22,603        380,090   

RELX plc

     22,808        399,880   

RTL Group S.A. (b)

     2,535        211,733   

Scripps Networks Interactive, Inc. - Class A (a)

     8,375        462,384   

SKY Network Television, Ltd.

     27,790        86,974   

TEGNA, Inc.

     3,200        81,664   

Time Warner, Inc.

     3,200        206,944   

Twenty-First Century Fox, Inc. - Class A

     16,400        445,424   

Viacom, Inc. - Class B

     9,838        404,932   

Walt Disney Co. (The)

     12,200        1,281,976   

Wolters Kluwer NV

     8,560        286,809   

WPP plc

     16,711        384,649   
   

 

 

  
      8,001,862   
   

 

 

  

Metals & Mining—0.4%

    

Acacia Mining plc

     9,163        24,318   

Asahi Holdings, Inc.

     5,100        79,498   

BHP Billiton plc

     39,329        441,552   

BHP Billiton, Ltd.

     35,011        454,804   

Boliden AB

     9,022        149,590   

Centerra Gold, Inc.

     20,800        99,062   

Compass Minerals International, Inc.

     2,000        150,540   

Dominion Diamond Corp.

     7,900        80,730   

Goldcorp, Inc.

     14,000        161,784   

Highland Gold Mining, Ltd.

     5,802        4,876   

Hitachi Metals, Ltd.

     37,600        463,662   

IAMGOLD Corp. (b)

     10,100        14,379   

Independence Group NL

     31,001        56,559   

KGHM Polska Miedz S.A.

     3,843        61,792   

Koza Altin Isletmeleri A/S

     2,462        10,365   

Kumba Iron Ore, Ltd. (a)

     2,066        5,495   

Mitsubishi Materials Corp.

     139,000        437,174   

MMC Norilsk Nickel PJSC (ADR)

     6,172        78,353   

Nevsun Resources, Ltd.

     8,300        22,494   

Newmont Mining Corp.

     8,700        156,513   

OZ Minerals, Ltd.

     29,926        87,053   

Rio Tinto plc

     18,428        537,041   

Rio Tinto, Ltd.

     8,354        269,534   

SEMAFO, Inc. (b)

     12,700        32,216   

Sibanye Gold, Ltd.

     15,437        23,265   

Sumitomo Metal Mining Co., Ltd.

     24,000        290,081   

Troy Resources, Ltd. (b)

     2,277        341   

Vale S.A.

     6,400        21,020   

Western Areas, Ltd.

     21,277        34,357   

Yamato Kogyo Co., Ltd.

     3,600        91,830   
   

 

 

  
      4,340,278   
   

 

 

  

 

§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 December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Multi-Utilities—0.1%

    

ACEA S.p.A.

     9,505      $ 146,607   

CenterPoint Energy, Inc.

     13,563        249,017   

Suez Environnement Co.

     6,016        112,565   

Veolia Environnement S.A.

     9,207        218,236   
   

 

 

  
      726,425   
   

 

 

  

Multiline Retail—0.1%

    

Canadian Tire Corp., Ltd. - Class A

     1,224        104,523   

Dillard’s, Inc. - Class A (a)

     1,000        65,710   

Kohl’s Corp. (a)

     5,567        265,156   

Lifestyle International Holdings, Ltd.

     21,500        28,703   

Macy’s, Inc.

     4,199        146,881   

Next plc

     3,055        327,493   

Nordstrom, Inc. (a)

     3,644        181,508   

Target Corp.

     1,300        94,393   
   

 

 

  
      1,214,367   
   

 

 

  

Oil, Gas & Consumable Fuels—1.7%

    

Antero Resources Corp. (a) (b)

     9,800        213,640   

Apache Corp.

     2,829        125,806   

BP plc

     176,929        921,967   

Buckeye Partners L.P.

     1,300        85,748   

Cairn Energy plc (b)

     17,935        41,643   

Cameco Corp.

     13,500        166,543   

Chevron Corp.

     22,257        2,002,240   

China Shenhua Energy Co., Ltd. - Class H

     22,000        34,235   

CNOOC, Ltd.

     194,000        199,406   

ConocoPhillips

     3,313        154,684   

CVR Energy, Inc.

     3,200        125,920   

Denbury Resources, Inc. (a)

     8,000        16,160   

DNO International ASA (a) (b)

     45,045        30,610   

Ecopetrol S.A. (ADR)

     11,100        77,811   

Eni S.p.A.

     44,062        652,741   

Etablissements Maurel et Prom (b)

     3,769        12,130   

Exxon Mobil Corp.

     40,100        3,125,795   

Gazprom PAO (ADR)

     8,163        29,958   

Hess Corp.

     2,496        121,006   

Inpex Corp.

     64,700        638,500   

Japan Petroleum Exploration Co., Ltd.

     5,500        147,289   

Koninklijke Vopak NV

     3,015        129,658   

Lukoil PJSC (ADR)

     2,590        84,136   

Magellan Midstream Partners L.P.

     1,900        129,048   

Marathon Oil Corp.

     27,900        351,261   

Marathon Petroleum Corp.

     13,000        673,920   

Murphy Oil Corp. (a)

     10,556        236,982   

Oasis Petroleum, Inc. (a) (b)

     6,000        44,220   

Occidental Petroleum Corp.

     12,900        872,169   

Polskie Gornictwo Naftowe i Gazownictwo S.A.

     142,606        186,500   

PTT Exploration & Production PCL

     18,300        29,114   

PTT Exploration & Production PCL (NVDR)

     66,900        106,507   

QEP Resources, Inc.

     10,300        138,020   

Repsol S.A.

     23,374        254,473   

REX American Resources Corp. (a) (b)

     2,100        113,547   

Royal Dutch Shell plc - A Shares

     33,888        761,345   

Royal Dutch Shell plc - A Shares

     6,248        143,134   

Oil, Gas & Consumable Fuels—(Continued)

  

Royal Dutch Shell plc - B Shares

     30,054      686,261   

Sasol, Ltd.

     5,549        149,480   

Showa Shell Sekiyu KK (a)

     23,400        190,206   

Soco International plc (a)

     19,904        43,160   

Statoil ASA

     46,207        646,265   

Tatneft PAO

     1,400        37,016   

TonenGeneral Sekiyu KK

     35,000        294,123   

Total Gabon

     33        4,619   

Total S.A.

     24,654        1,097,987   

Ultrapar Participacoes S.A. (ADR)

     6,800        103,700   

Valero Energy Corp.

     14,695        1,039,083   

Western Refining, Inc.

     4,500        160,290   

Woodside Petroleum, Ltd.

     37,447        785,386   
   

 

 

  
      18,415,442   
   

 

 

  

Paper & Forest Products—0.0%

    

Altri SGPS S.A.

     11,839        61,343   

Schweitzer-Mauduit International, Inc.

     3,200        134,368   
   

 

 

  
      195,711   
   

 

 

  

Personal Products—0.2%

    

Blackmores, Ltd.

     555        87,579   

Edgewell Personal Care Co.

     2,000        156,740   

Unilever NV

     22,874        991,030   

Unilever plc

     21,495        920,368   

USANA Health Sciences, Inc. (b)

     3,200        408,800   
   

 

 

  
      2,564,517   
   

 

 

  

Pharmaceuticals—2.4%

    

Allergan plc (b)

     1,600        500,000   

Astellas Pharma, Inc.

     44,700        634,928   

AstraZeneca plc

     18,638        1,260,096   

Bayer AG

     8,325        1,044,465   

Boiron S.A.

     547        44,272   

Bristol-Myers Squibb Co.

     6,800        467,772   

Chugai Pharmaceutical Co., Ltd. (a)

     14,400        501,877   

Eisai Co., Ltd.

     7,100        469,331   

Eli Lilly & Co.

     3,018        254,297   

GlaxoSmithKline plc

     50,298        1,015,919   

Hisamitsu Pharmaceutical Co., Inc.

     6,400        268,450   

Indivior plc

     80,242        222,077   

Johnson & Johnson

     33,103        3,400,340   

Kaken Pharmaceutical Co., Ltd.

     7,000        477,162   

Lannett Co., Inc. (a) (b)

     3,800        152,456   

Merck & Co., Inc.

     39,740        2,099,067   

Merck KGaA

     2,034        197,568   

Mitsubishi Tanabe Pharma Corp.

     23,700        408,297   

Novartis AG

     26,712        2,283,251   

Novo Nordisk A/S - Class B

     19,358        1,112,705   

Orion Oyj - Class B

     10,034        345,895   

Pfizer, Inc.

     77,118        2,489,369   

Recordati S.p.A.

     14,091        367,820   

Roche Holding AG

     8,318        2,292,342   

Sanofi

     17,450        1,488,935   

Santen Pharmaceutical Co., Ltd.

     49,700        817,339   

 

§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 December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Pharmaceuticals—(Continued)

  

Shionogi & Co., Ltd.

     10,700      $ 483,733   

Shire plc

     14,365        984,488   

Stada Arzneimittel AG

     5,783        232,991   

Taro Pharmaceutical Industries, Ltd. (b)

     900        139,095   

Teva Pharmaceutical Industries, Ltd. (ADR)

     3,700        242,868   
   

 

 

  
      26,699,205   
   

 

 

  

Professional Services—0.3%

    

Capita plc

     14,517        258,290   

Dun & Bradstreet Corp. (The)

     3,400        353,362   

Experian plc

     31,602        558,423   

IHS, Inc. - Class A (b)

     2,200        260,546   

Intertek Group plc

     9,810        401,198   

ManpowerGroup, Inc.

     2,042        172,120   

Navigant Consulting, Inc. (b)

     3,700        59,422   

Recruit Holdings Co., Ltd.

     6,700        197,009   

Seek, Ltd. (a)

     20,584        228,872   

SGS S.A.

     302        575,338   

TechnoPro Holdings, Inc.

     3,300        95,989   
   

 

 

  
      3,160,569   
   

 

 

  

Real Estate Investment Trusts—0.2%

    

BWP Trust

     59,926        137,270   

CapitaLand Commercial Trust

     73,100        69,398   

CapitaLand Mall Trust

     175,200        237,426   

Corrections Corp. of America (a)

     8,400        222,516   

EPR Properties

     2,100        122,745   

Hansteen Holdings plc

     46,228        78,403   

HCP, Inc.

     9,500        363,280   

Link REIT

     45,000        269,329   

LTC Properties, Inc.

     3,000        129,420   

Mapletree Greater China Commercial Trust

     52,900        34,112   

Mapletree Industrial Trust

     127,000        136,071   

National Health Investors, Inc.

     2,100        127,827   

National Retail Properties, Inc.

     3,300        132,165   

Simon Property Group, Inc.

     400        77,776   

Urstadt Biddle Properties, Inc. - Class A

     2,200        42,328   

Ventas, Inc.

     7,300        411,939   
   

 

 

  
      2,592,005   
   

 

 

  

Real Estate Management & Development—0.2%

  

Hang Lung Group, Ltd.

     16,000        51,777   

Hang Lung Properties, Ltd.

     72,000        163,301   

Henderson Land Development Co., Ltd.

     24,683        150,256   

Hysan Development Co., Ltd.

     20,000        81,862   

Kerry Properties, Ltd.

     33,500        91,414   

Nomura Real Estate Holdings, Inc.

     18,900        350,098   

Sino Land Co., Ltd.

     122,000        178,087   

Sun Hung Kai Properties, Ltd.

     25,000        300,527   

Swire Pacific, Ltd. - Class A

     19,000        213,361   

Swire Properties, Ltd.

     59,600        170,923   

UOL Group, Ltd.

     9,000        39,467   

Wharf Holdings, Ltd. (The)

     44,000        243,714   

Wheelock & Co., Ltd.

     20,000        84,297   
   

 

 

  
      2,119,084   
   

 

 

  

Road & Rail—0.4%

    

Central Japan Railway Co.

     6,900      1,222,264   

ComfortDelGro Corp., Ltd.

     115,700        247,478   

CSX Corp.

     6,680        173,346   

East Japan Railway Co.

     8,000        751,858   

Go-Ahead Group plc

     1,671        65,720   

Norfolk Southern Corp.

     2,467        208,683   

Sankyu, Inc.

     12,000        61,098   

Union Pacific Corp.

     8,500        664,700   

Utoc Corp.

     3,700        13,082   

West Japan Railway Co.

     11,100        765,660   
   

 

 

  
      4,173,889   
   

 

 

  

Semiconductors & Semiconductor Equipment—0.5%

  

Analog Devices, Inc.

     4,700        260,004   

Cabot Microelectronics Corp. (b)

     2,500        109,450   

Dialog Semiconductor plc (b)

     1,984        66,814   

Intel Corp.

     55,884        1,925,204   

Linear Technology Corp.

     7,100        301,537   

Maxim Integrated Products, Inc.

     6,400        243,200   

Melexis NV

     2,027        109,978   

Microchip Technology, Inc. (a)

     5,700        265,278   

Novatek Microelectronics Corp.

     24,000        93,219   

NVIDIA Corp.

     5,468        180,225   

Rohm Co., Ltd.

     9,000        454,833   

Taiwan Semiconductor Manufacturing Co., Ltd. (ADR)

     11,800        268,450   

Teradyne, Inc.

     2,700        55,809   

Texas Instruments, Inc.

     18,651        1,022,261   

Xilinx, Inc.

     6,300        295,911   
   

 

 

  
      5,652,173   
   

 

 

  

Software—0.9%

    

Babylon, Ltd. (b)

     3,842        1,840   

CA, Inc.

     19,423        554,721   

Check Point Software Technologies, Ltd. (a) (b)

     2,700        219,726   

Citrix Systems, Inc. (b)

     2,900        219,385   

Fidessa Group plc

     1,215        35,825   

Intuit, Inc.

     2,201        212,397   

Koei Tecmo Holdings Co., Ltd.

     4,400        65,282   

Konami Holdings Corp.

     2,800        66,776   

Microsoft Corp.

     73,462        4,075,672   

Nexon Co., Ltd.

     7,200        116,874   

Oracle Corp.

     43,959        1,605,822   

Oracle Corp. Japan

     5,300        247,164   

Playtech plc

     6,680        81,804   

Sage Group plc (The)

     27,270        242,467   

Salesforce.com, Inc. (b)

     1,800        141,120   

SAP SE

     11,534        918,697   

Software AG

     3,940        112,834   

SRA Holdings

     1,600        38,711   

Symantec Corp.

     25,303        531,363   

Trend Micro, Inc. (b)

     3,800        154,148   

VMware, Inc. - Class A (a) (b)

     4,969        281,096   
   

 

 

  
      9,923,724   
   

 

 

  

 

§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 December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Specialty Retail—0.6%

    

ABC-Mart, Inc.

     5,800      $ 318,155   

AutoZone, Inc. (b)

     450        333,859   

Bed Bath & Beyond, Inc. (a) (b)

     10,089        486,794   

Best Buy Co., Inc.

     9,355        284,860   

Buckle, Inc. (The) (a)

     2,300        70,794   

Cato Corp. (The) - Class A

     1,800        66,276   

Chico’s FAS, Inc.

     7,300        77,891   

Dunelm Group plc

     4,253        58,930   

Fast Retailing Co., Ltd.

     1,500        525,274   

Foot Locker, Inc.

     3,800        247,342   

GameStop Corp. - Class A (a)

     6,681        187,335   

Gap, Inc. (The) (a)

     17,665        436,325   

Geo Holdings Corp. (a)

     3,000        47,043   

Hibbett Sports, Inc. (b)

     1,600        48,384   

Home Depot, Inc. (The)

     9,000        1,190,250   

Kingfisher plc

     33,276        161,127   

L Brands, Inc.

     2,394        229,393   

L’Occitane International S.A.

     93,250        180,081   

Lowe’s Cos., Inc.

     8,092        615,316   

Outerwall, Inc. (a)

     700        25,578   

Ross Stores, Inc.

     5,700        306,717   

Sanrio Co., Ltd. (a)

     9,700        227,098   

TJX Cos., Inc. (The)

     6,700        475,097   

Urban Outfitters, Inc. (b)

     8,266        188,052   

USS Co., Ltd.

     9,900        148,952   

WH Smith plc

     4,386        114,329   
   

 

 

  
      7,051,252   
   

 

 

  

Technology Hardware, Storage & Peripherals—1.0%

  

Apple, Inc.

     54,964        5,785,511   

Brother Industries, Ltd.

     32,500        372,678   

Canon, Inc. (a)

     26,700        809,258   

Elecom Co., Ltd.

     1,200        15,533   

EMC Corp.

     27,300        701,064   

FUJIFILM Holdings Corp.

     12,100        503,973   

Hewlett Packard Enterprise Co.

     25,100        381,520   

HP, Inc.

     25,100        297,184   

Japan Digital Laboratory Co., Ltd.

     3,100        42,089   

Konica Minolta, Inc.

     14,100        141,423   

Neopost S.A.

     1,697        41,415   

NetApp, Inc.

     13,796        366,008   

QLogic Corp. (b)

     4,100        50,020   

Samsung Electronics Co., Ltd.

     210        224,245   

Seagate Technology plc (a)

     8,627        316,266   

Western Digital Corp.

     6,613        397,111   
   

 

 

  
      10,445,298   
   

 

 

  

Textiles, Apparel & Luxury Goods—0.3%

  

Bijou Brigitte AG

     106        6,554   

Burberry Group plc

     13,667        240,387   

Christian Dior SE

     2,258        383,563   

Cie Financiere Richemont S.A.

     1,814        130,306   

Coach, Inc.

     6,710        219,618   

Deckers Outdoor Corp. (a) (b)

     1,200        56,640   

Hugo Boss AG

     1,760        146,568   

Li & Fung, Ltd.

     144,000        97,358   

Textiles, Apparel & Luxury Goods—(Continued)

  

LVMH Moet Hennessy Louis Vuitton SE

     4,518      706,284   

Michael Kors Holdings, Ltd. (b)

     8,448        338,427   

NIKE, Inc. - Class B

     7,400        462,500   

Pandora A/S

     2,093        264,104   

Peak Sport Products Co., Ltd.

     74,000        20,567   

Ralph Lauren Corp.

     2,899        323,180   

Van de Velde NV

     570        38,858   
   

 

 

  
      3,434,914   
   

 

 

  

Thrifts & Mortgage Finance—0.0%

    

Genworth MI Canada, Inc. (a)

     9,600        184,549   
   

 

 

  

Tobacco—0.5%

    

Altria Group, Inc.

     19,000        1,105,990   

British American Tobacco plc

     18,157        1,008,422   

Imperial Tobacco Group plc

     11,323        595,540   

Japan Tobacco, Inc.

     19,300        708,641   

Philip Morris International, Inc.

     14,000        1,230,740   

Reynolds American, Inc.

     3,700        170,755   

Swedish Match AB

     8,040        284,451   
   

 

 

  
      5,104,539   
   

 

 

  

Trading Companies & Distributors—0.1%

  

Diploma plc

     3,009        33,679   

MSC Industrial Direct Co., Inc. - Class A

     2,900        163,183   

WW Grainger, Inc. (a)

     2,512        508,906   
   

 

 

  
      705,768   
   

 

 

  

Transportation Infrastructure—0.1%

    

Abertis Infraestructuras S.A.

     13,890        216,505   

Hamburger Hafen und Logistik AG

     3,140        47,785   

Kamigumi Co., Ltd.

     6,000        51,647   

SATS, Ltd.

     109,900        297,556   

Westshore Terminals Investment Corp.

     1,300        10,945   
   

 

 

  
      624,438   
   

 

 

  

Water Utilities—0.0%

    

Guangdong Investment, Ltd.

     140,000        197,247   
   

 

 

  

Wireless Telecommunication Services—0.4%

  

China Mobile, Ltd.

     19,500        218,545   

KDDI Corp.

     64,900        1,680,064   

Mobile TeleSystems PJSC (ADR)

     7,700        47,586   

MTN Group, Ltd.

     16,083        137,877   

NTT DoCoMo, Inc.

     72,700        1,490,026   

Vodacom Group, Ltd.

     4,479        44,084   

Vodafone Group plc

     66,261        214,323   
   

 

 

  
      3,832,505   
   

 

 

  

Total Common Stocks
(Cost $334,065,481)

       332,749,252   
   

 

 

  

 

§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 December 31, 2015

Corporate Bonds & Notes—24.2%

 

Security Description   Principal
Amount*		     Value  

Advertising—0.2%

    

Omnicom Group, Inc.
4.450%, 08/15/20

     1,855,000      $ 1,978,267   

5.900%, 04/15/16

     210,000        212,682   
   

 

 

  
      2,190,949   
   

 

 

  

Aerospace/Defense—0.1%

    

Lockheed Martin Corp.
3.550%, 01/15/26

     610,000        612,147   
   

 

 

  

Agriculture—0.5%

    

Altria Group, Inc.
4.750%, 05/05/21

     660,000        716,114   

10.200%, 02/06/39

     304,000        498,515   

Philip Morris International, Inc.
6.375%, 05/16/38

     645,000        813,537   

Reynolds American, Inc.
4.450%, 06/12/25

     1,395,000        1,458,934   

7.250%, 06/15/37

     170,000        208,124   

7.750%, 06/01/18

     1,035,000        1,167,053   
   

 

 

  
      4,862,277   
   

 

 

  

Auto Manufacturers—0.3%

  

Ford Motor Credit Co. LLC
4.375%, 08/06/23

     1,290,000        1,325,582   

6.625%, 08/15/17

     1,090,000        1,161,807   

General Motors Financial Co., Inc.
3.100%, 01/15/19

     520,000        519,245   

3.150%, 01/15/20

     595,000        589,675   
   

 

 

  
      3,596,309   
   

 

 

  

Auto Parts & Equipment—0.3%

  

Delphi Automotive plc
3.150%, 11/19/20

     1,245,000        1,243,390   

Delphi Corp.
4.150%, 03/15/24

     560,000        564,283   

Magna International, Inc.
4.150%, 10/01/25

     1,850,000        1,883,383   
   

 

 

  
      3,691,056   
   

 

 

  

Banks—6.5%

  

Abbey National Treasury Services plc
1.232%, 08/24/18 (c)

     1,500,000        1,499,436   

Bank of America Corp.
3.300%, 01/11/23

     1,410,000        1,387,898   

3.950%, 04/21/25

     1,255,000        1,222,080   

5.000%, 01/21/44

     1,100,000        1,148,059   

5.625%, 07/01/20

     1,045,000        1,160,754   

Bank of America N.A.
1.750%, 06/05/18

     1,235,000        1,227,060   

Barclays Bank plc
5.140%, 10/14/20

     940,000        1,020,088   

Barclays plc
3.650%, 03/16/25

     1,435,000        1,379,071   

BB&T Corp.
2.450%, 01/15/20

     1,500,000        1,510,051   

Banks—(Continued)

  

BBVA Banco Continental S.A.
3.250%, 04/08/18 (144A)

     330,000      330,000   

BNP Paribas S.A.
2.375%, 09/14/17

     625,000        632,424   

BPCE S.A.
2.250%, 01/27/20

     1,200,000        1,183,147   

2.500%, 12/10/18

     1,580,000        1,593,389   

4.500%, 03/15/25 (144A)

     1,060,000        1,016,852   

5.700%, 10/22/23 (144A)

     535,000        561,721   

Capital One Financial Corp.
3.200%, 02/05/25

     970,000        937,637   

Capital One N.A.
2.950%, 07/23/21

     860,000        851,279   

Citigroup, Inc.
1.013%, 04/27/18 (c)

     1,100,000        1,095,550   

2.150%, 07/30/18

     965,000        964,285   

4.300%, 11/20/26

     2,685,000        2,671,747   

Commonwealth Bank of Australia
2.400%, 11/02/20

     1,820,000        1,802,128   

Cooperatieve Centrale Raiffeisen-Boerenleenbank BA
2.250%, 01/14/19

     395,000        396,273   

3.875%, 02/08/22

     700,000        738,769   

3.950%, 11/09/22

     250,000        253,056   

Credit Suisse AG
1.700%, 04/27/18

     1,410,000        1,399,876   

Discover Bank
2.000%, 02/21/18

     1,210,000        1,201,819   

First Republic Bank
2.375%, 06/17/19

     880,000        878,141   

Goldman Sachs Group, Inc. (The)
2.012%, 11/29/23 (c)

     1,070,000        1,079,496   

3.625%, 01/22/23

     2,635,000        2,664,920   

4.250%, 10/21/25

     1,020,000        1,012,204   

5.150%, 05/22/45

     1,340,000        1,301,657   

5.250%, 07/27/21

     1,460,000        1,614,205   

5.750%, 01/24/22

     2,000,000        2,274,442   

6.750%, 10/01/37

     495,000        578,623   

HSBC Holdings plc
4.000%, 03/30/22

     1,770,000        1,858,088   

4.875%, 01/14/22

     1,555,000        1,705,684   

5.250%, 03/14/44

     570,000        591,446   

JPMorgan Chase & Co.
3.875%, 09/10/24

     5,620,000        5,590,461   

Lloyds Bank plc
2.300%, 11/27/18

     295,000        296,171   

Morgan Stanley
3.750%, 02/25/23

     1,140,000        1,167,663   

4.000%, 07/23/25

     515,000        530,334   

4.350%, 09/08/26

     950,000        953,106   

5.450%, 01/09/17

     1,870,000        1,941,150   

5.500%, 01/26/20

     755,000        831,189   

6.625%, 04/01/18

     400,000        438,612   

PNC Bank N.A.
1.850%, 07/20/18

     1,160,000        1,157,732   

 

§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 December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Banks—(Continued)

  

Regions Bank
2.250%, 09/14/18

     545,000      $ 544,427   

Royal Bank of Scotland Group plc
1.875%, 03/31/17

     1,670,000        1,663,011   

Santander UK Group Holdings plc
2.875%, 10/16/20

     685,000        680,350   

Societe Generale S.A.
5.000%, 01/17/24 (144A)

     3,030,000        3,088,491   

Standard Chartered plc
1.700%, 04/17/18 (144A)

     1,585,000        1,568,960   

5.700%, 01/25/22

     1,060,000        1,124,839   

U.S. Bancorp
5.125%, 01/15/21 (c)

     665,000        668,125   

UBS AG
1.303%, 03/26/18 (c)

     1,960,000        1,956,372   

Wells Fargo & Co.
3.000%, 02/19/25

     1,940,000        1,886,958   
   

 

 

  
      70,831,306   
   

 

 

  

Beverages—0.1%

  

Anheuser-Busch InBev Worldwide, Inc.
3.750%, 07/15/42

     915,000        786,175   
   

 

 

  

Biotechnology—0.5%

    

Amgen, Inc.
3.875%, 11/15/21

     955,000        994,991   

4.500%, 03/15/20

     900,000        962,042   

5.750%, 03/15/40

     605,000        654,495   

Gilead Sciences, Inc.
4.500%, 04/01/21

     1,180,000        1,276,688   

4.500%, 02/01/45

     1,725,000        1,687,333   
   

 

 

  
      5,575,549   
   

 

 

  

Chemicals—0.5%

  

Eastman Chemical Co.
2.700%, 01/15/20

     170,000        168,321   

3.800%, 03/15/25

     1,000,000        968,434   

4.800%, 09/01/42

     660,000        605,961   

LYB International Finance B.V.
4.875%, 03/15/44

     180,000        164,375   

5.250%, 07/15/43

     740,000        710,464   

Monsanto Co.
4.700%, 07/15/64

     720,000        546,707   

Mosaic Co. (The)
3.750%, 11/15/21

     255,000        255,684   

4.875%, 11/15/41

     335,000        291,595   

Praxair, Inc.
3.200%, 01/30/26

     1,230,000        1,233,035   
   

 

 

  
      4,944,576   
   

 

 

  

Commercial Services—0.1%

  

McGraw Hill Financial, Inc.
2.500%, 08/15/18

     465,000        467,902   

UBM plc
5.750%, 11/03/20 (144A)

     630,000        673,304   
   

 

 

  
      1,141,206   
   

 

 

  

Computers—0.6%

  

Apple, Inc.
4.375%, 05/13/45

     970,000      979,420   

Hewlett Packard Enterprise Co.
4.400%, 10/15/22 (144A)

     2,080,000        2,072,027   

4.900%, 10/15/25 (144A)

     1,190,000        1,166,931   

International Business Machines Corp.
7.625%, 10/15/18

     1,785,000        2,057,571   
   

 

 

  
      6,275,949   
   

 

 

  

Diversified Financial Services—1.0%

  

American Express Co.
2.650%, 12/02/22

     1,170,000        1,133,460   

American Express Credit Corp.
0.722%, 06/05/17 (c)

     1,400,000        1,392,734   

Capital One Bank USA N.A.
1.300%, 06/05/17

     740,000        734,058   

GE Capital International Funding Co.
3.373%, 11/15/25 (144A)

     2,433,000        2,477,001   

General Electric Capital Corp.
3.100%, 01/09/23

     935,000        949,036   

5.300%, 02/11/21

     400,000        451,048   

HSBC Finance Corp.
6.676%, 01/15/21

     1,220,000        1,400,165   

Navient Corp.
6.000%, 01/25/17

     700,000        717,500   

Visa, Inc.
4.300%, 12/14/45

     2,045,000        2,074,773   
   

 

 

  
      11,329,775   
   

 

 

  

Electric—1.0%

  

Berkshire Hathaway Energy Co.
6.500%, 09/15/37

     345,000        419,874   

Duke Energy Carolinas LLC
4.300%, 06/15/20

     540,000        584,466   

Duke Energy Florida LLC
6.400%, 06/15/38

     1,925,000        2,461,877   

Electricite de France S.A.
4.750%, 10/13/35 (144A)

     1,185,000        1,171,149   

6.500%, 01/26/19 (144A)

     180,000        201,341   

Georgia Power Co.
1.950%, 12/01/18

     960,000        957,566   

4.300%, 03/15/42

     545,000        503,365   

Nisource Finance Corp.
4.800%, 02/15/44

     230,000        233,769   

6.125%, 03/01/22

     830,000        950,042   

PPL Electric Utilities Corp.
4.750%, 07/15/43

     625,000        674,240   

Public Service Co. of Colorado
4.750%, 08/15/41

     1,065,000        1,146,663   

Southern California Edison Co.
4.500%, 09/01/40

     1,025,000        1,069,072   

5.500%, 03/15/40

     335,000        395,103   

Southern Power Co.
5.250%, 07/15/43

     670,000        639,309   
   

 

 

  
      11,407,836   
   

 

 

  

 

§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 December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Electronics—0.0%

  

Honeywell International, Inc.
5.700%, 03/15/37

     240,000      $ 289,639   
   

 

 

  

Environmental Control—0.0%

    

Republic Services, Inc.
5.250%, 11/15/21

     415,000        458,797   
   

 

 

  

Food—0.4%

    

Kraft Foods Group, Inc.
5.000%, 06/04/42

     580,000        583,997   

6.500%, 02/09/40

     75,000        87,430   

Kraft Heinz Foods Co.
3.500%, 07/15/22 (144A)

     750,000        755,171   

5.200%, 07/15/45 (144A)

     1,270,000        1,327,033   

Kroger Co. (The)
5.000%, 04/15/42

     260,000        265,980   

5.150%, 08/01/43

     473,000        495,523   

Tyson Foods, Inc.
5.150%, 08/15/44

     310,000        323,703   
   

 

 

  
      3,838,837   
   

 

 

  

Forest Products & Paper—0.2%

  

International Paper Co.
5.150%, 05/15/46

     1,560,000        1,484,159   

7.300%, 11/15/39

     210,000        239,359   
   

 

 

  
      1,723,518   
   

 

 

  

Gas—0.0%

  

Fermaca Enterprises S de RL de C.V.
6.375%, 03/30/38 (144A)

     470,018        439,466   

Healthcare-Products—0.3%

  

Becton Dickinson & Co.
4.685%, 12/15/44

     700,000        706,238   

Boston Scientific Corp.
2.650%, 10/01/18

     940,000        944,940   

Medtronic, Inc.
4.625%, 03/15/45

     1,291,000        1,331,607   
   

 

 

  
      2,982,785   
   

 

 

  

Healthcare-Services—0.2%

  

Anthem, Inc.
4.650%, 01/15/43

     1,848,000        1,758,491   

Humana, Inc.
7.200%, 06/15/18

     95,000        106,297   

Laboratory Corp. of America Holdings
4.700%, 02/01/45

     770,000        703,515   
   

 

 

  
      2,568,303   
   

 

 

  

Insurance—1.2%

  

American International Group, Inc.
4.375%, 01/15/55

     670,000        575,722   

6.400%, 12/15/20

     1,150,000        1,326,680   

Aon plc
4.600%, 06/14/44

     1,265,000        1,217,893   

Insurance—(Continued)

  

Berkshire Hathaway Finance Corp.
4.400%, 05/15/42

     425,000      420,802   

CNA Financial Corp.
5.750%, 08/15/21

     400,000        447,696   

Hartford Financial Services Group, Inc. (The)
6.625%, 03/30/40

     945,000        1,167,901   

Liberty Mutual Group, Inc.
5.000%, 06/01/21 (144A)

     120,000        128,343   

6.500%, 05/01/42 (144A)

     960,000        1,091,294   

Lincoln National Corp.
4.850%, 06/24/21

     390,000        420,002   

Marsh & McLennan Cos., Inc.
4.800%, 07/15/21

     720,000        783,716   

Pacific LifeCorp
5.125%, 01/30/43 (144A)

     240,000        244,525   

Prudential Financial, Inc.
5.800%, 11/16/41

     1,105,000        1,253,519   

Swiss Re Treasury U.S. Corp.
2.875%, 12/06/22 (144A)

     260,000        251,232   

4.250%, 12/06/42 (144A)

     415,000        391,997   

Voya Financial, Inc.
5.500%, 07/15/22

     1,560,000        1,745,618   

XLIT, Ltd.
5.500%, 03/31/45

     1,100,000        1,027,698   

5.750%, 10/01/21

     300,000        334,303   
   

 

 

  
      12,828,941   
   

 

 

  

Media—1.1%

  

21st Century Fox America, Inc.
4.500%, 02/15/21

     320,000        344,330   

CCO Safari LLC
6.484%, 10/23/45 (144A)

     1,975,000        1,978,237   

Comcast Corp.
4.500%, 01/15/43

     825,000        821,604   

4.750%, 03/01/44

     280,000        290,838   

6.300%, 11/15/17

     520,000        565,752   

DIRECTV Holdings LLC / DIRECTV Financing Co., Inc.
2.400%, 03/15/17

     350,000        352,816   

3.800%, 03/15/22

     705,000        709,458   

5.150%, 03/15/42

     1,675,000        1,561,665   

NBCUniversal Media LLC
4.375%, 04/01/21

     1,990,000        2,161,598   

Time Warner Cable, Inc.
5.500%, 09/01/41

     605,000        546,705   

Time Warner, Inc.
3.600%, 07/15/25

     915,000        890,733   

4.000%, 01/15/22

     1,700,000        1,761,241   

Viacom, Inc.
5.850%, 09/01/43

     415,000        372,661   
   

 

 

  
      12,357,638   
   

 

 

  

Mining—0.7%

  

Barrick Gold Corp.
4.100%, 05/01/23

     359,000        307,972   

 

§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 December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Mining—(Continued)

  

Barrick North America Finance LLC
4.400%, 05/30/21

     655,000      $ 588,145   

BHP Billiton Finance USA, Ltd.
3.850%, 09/30/23

     580,000        549,154   

5.000%, 09/30/43

     585,000        525,800   

6.250%, 10/19/75 (144A) (a) (c)

     1,395,000        1,365,356   

Freeport-McMoRan, Inc.
3.875%, 03/15/23

     1,145,000        652,650   

Glencore Funding LLC
1.377%, 04/16/18 (144A) (c)

     1,225,000        1,033,659   

Rio Tinto Finance USA plc
2.250%, 12/14/18

     1,150,000        1,121,321   

3.500%, 03/22/22

     530,000        499,561   

Rio Tinto Finance USA, Ltd.
4.125%, 05/20/21

     400,000        400,568   
   

 

 

  
      7,044,186   
   

 

 

  

Miscellaneous Manufacturing—0.2%

  

Ingersoll-Rand Luxembourg Finance S.A.
4.650%, 11/01/44

     755,000        722,599   

Siemens Financieringsmaatschappij NV
4.400%, 05/27/45 (144A) (a)

     1,390,000        1,420,917   

Tyco International Finance S.A.
3.900%, 02/14/26

     450,000        451,003   
   

 

 

  
      2,594,519   
   

 

 

  

Multi-National—0.1%

  

FMS Wertmanagement AoeR
1.625%, 11/20/18

     1,215,000        1,218,705   
   

 

 

  

Oil & Gas—2.2%

    

Anadarko Petroleum Corp.
3.450%, 07/15/24 (a)

     2,880,000        2,558,431   

Chevron Phillips Chemical Co. LLC / Chevron Phillips Chemical Co. L.P.
2.450%, 05/01/20 (144A)

     745,000        735,832   

ConocoPhillips Co.
3.350%, 11/15/24

     2,190,000        2,002,790   

Continental Resources, Inc.
5.000%, 09/15/22

     1,395,000        1,028,812   

Devon Energy Corp.
3.250%, 05/15/22 (a)

     2,265,000        1,925,334   

Ensco plc
4.700%, 03/15/21 (a)

     2,250,000        1,811,653   

EOG Resources, Inc.
2.625%, 03/15/23

     1,546,000        1,464,617   

EQT Corp.
4.875%, 11/15/21

     1,000,000        952,069   

Marathon Petroleum Corp.
5.000%, 09/15/54

     1,145,000        917,081   

5.125%, 03/01/21

     830,000        871,156   

Noble Energy, Inc.
4.150%, 12/15/21

     615,000        596,022   

6.000%, 03/01/41

     350,000        301,764   

Oil & Gas—(Continued)

  

Occidental Petroleum Corp.
2.700%, 02/15/23

     2,713,000      2,553,318   

Phillips 66
4.300%, 04/01/22

     1,050,000        1,080,237   

Statoil ASA
3.700%, 03/01/24 (a)

     1,920,000        1,945,231   

Suncor Energy, Inc.
3.600%, 12/01/24

     1,805,000        1,700,090   

6.850%, 06/01/39

     520,000        572,973   

Valero Energy Corp.
6.625%, 06/15/37

     905,000        909,904   

9.375%, 03/15/19

     343,000        405,230   
   

 

 

  
      24,332,544   
   

 

 

  

Oil & Gas Services—0.2%

    

Halliburton Co.
5.000%, 11/15/45

     2,140,000        2,115,482   

Schlumberger Investment S.A.
3.650%, 12/01/23

     430,000        436,247   
   

 

 

  
      2,551,729   
   

 

 

  

Pharmaceuticals—1.1%

    

AbbVie, Inc.
2.500%, 05/14/20

     2,230,000        2,207,580   

2.900%, 11/06/22

     625,000        604,649   

3.200%, 11/06/22

     200,000        196,867   

3.600%, 05/14/25

     595,000        587,226   

Actavis Funding SCS
4.550%, 03/15/35

     430,000        417,898   

4.750%, 03/15/45

     2,135,000        2,081,721   

4.850%, 06/15/44

     450,000        445,239   

AmerisourceBergen Corp.
4.250%, 03/01/45

     560,000        514,714   

EMD Finance LLC
2.400%, 03/19/20 (144A)

     1,935,000        1,883,622   

Express Scripts Holding Co.
4.750%, 11/15/21

     880,000        943,589   

Mead Johnson Nutrition Co.
3.000%, 11/15/20

     935,000        934,718   

Wyeth LLC
5.950%, 04/01/37

     640,000        760,980   
   

 

 

  
      11,578,803   
   

 

 

  

Pipelines—0.9%

    

Energy Transfer Partners L.P.
4.150%, 10/01/20

     1,575,000        1,452,927   

5.150%, 02/01/43

     1,200,000        857,869   

Enterprise Products Operating LLC
3.350%, 03/15/23

     1,440,000        1,302,133   

4.950%, 10/15/54

     265,000        207,306   

6.450%, 09/01/40

     1,300,000        1,235,161   

Kinder Morgan Energy Partners L.P.
5.000%, 08/15/42

     540,000        398,421   

Kinder Morgan, Inc.
5.550%, 06/01/45

     915,000        714,276   

 

§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 December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description       
Principal
Amount*		     Value  

Pipelines—(Continued)

  

ONEOK Partners L.P.
6.125%, 02/01/41

     550,000      $ 420,286   

8.625%, 03/01/19

     145,000        159,889   

Plains All American Pipeline L.P. / PAA Finance Corp.
4.300%, 01/31/43

     305,000        200,793   

4.900%, 02/15/45

     2,020,000        1,452,744   

Williams Partners L.P.
3.350%, 08/15/22

     420,000        318,804   

4.000%, 09/15/25

     1,230,000        920,976   

5.400%, 03/04/44

     555,000        371,976   
   

 

 

  
      10,013,561   
   

 

 

  

Real Estate—0.0%

  

American Campus Communities Operating Partnership L.P.
3.750%, 04/15/23

     444,000        436,713   
   

 

 

  

Real Estate Investment Trusts—0.8%

  

Alexandria Real Estate Equities, Inc.
3.900%, 06/15/23

     410,000        404,934   

4.500%, 07/30/29

     540,000        528,154   

American Tower Corp.
2.800%, 06/01/20

     1,300,000        1,285,038   

3.400%, 02/15/19

     1,335,000        1,369,428   

Digital Delta Holdings LLC
3.400%, 10/01/20 (144A)

     705,000        705,773   

Digital Realty Trust L.P.
3.950%, 07/01/22

     945,000        938,386   

ERP Operating L.P.
4.625%, 12/15/21

     940,000        1,020,164   

Ventas Realty L.P.
3.500%, 02/01/25

     1,250,000        1,196,914   

Welltower, Inc.
4.125%, 04/01/19

     1,395,000        1,454,846   
   

 

 

  
      8,903,637   
   

 

 

  

Retail—1.5%

  

AutoNation, Inc.
4.500%, 10/01/25

     1,360,000        1,379,564   

AutoZone, Inc.
2.875%, 01/15/23

     880,000        850,505   

CVS Health Corp.
2.250%, 12/05/18

     2,445,000        2,456,797   

5.125%, 07/20/45

     1,780,000        1,875,107   

Dollar General Corp.
4.150%, 11/01/25

     900,000        894,069   

Home Depot, Inc. (The)
4.250%, 04/01/46

     350,000        357,802   

4.400%, 04/01/21

     700,000        770,854   

5.950%, 04/01/41

     990,000        1,231,970   

Macy’s Retail Holdings, Inc.

    

2.875%, 02/15/23

     790,000        715,939   

5.125%, 01/15/42

     450,000        386,821   

Retail—(Continued)

  

McDonald’s Corp.
2.200%, 05/26/20

     839,000      823,799   

3.500%, 07/15/20

     466,000        480,692   

4.875%, 12/09/45

     1,765,000        1,775,751   

Signet UK Finance plc
4.700%, 06/15/24

     740,000        728,726   

Wal-Mart Stores, Inc.
3.625%, 07/08/20

     1,480,000        1,583,547   
   

 

 

  
      16,311,943   
   

 

 

  

Software—0.2%

  

Microsoft Corp.
3.125%, 11/03/25

     2,115,000        2,126,220   
   

 

 

  

Telecommunications—0.9%

  

AT&T, Inc.
3.000%, 06/30/22

     1,000,000        976,019   

4.350%, 06/15/45

     765,000        654,435   

4.500%, 05/15/35

     700,000        647,403   

4.750%, 05/15/46

     665,000        608,871   

Deutsche Telekom International Finance B.V.
2.250%, 03/06/17 (144A)

     1,550,000        1,559,652   

Verizon Communications, Inc.
0.877%, 06/09/17 (c)

     1,035,000        1,030,640   

2.450%, 11/01/22

     820,000        776,196   

4.672%, 03/15/55

     1,583,000        1,374,362   

5.012%, 08/21/54

     1,704,000        1,560,167   

6.350%, 04/01/19

     625,000        703,146   
   

 

 

  
      9,890,891   
   

 

 

  

Transportation—0.3%

  

Burlington Northern Santa Fe LLC
4.400%, 03/15/42

     1,295,000        1,231,406   

Canadian Pacific Railway Co.
5.750%, 01/15/42

     395,000        428,516   

Kansas City Southern de Mexico S.A. de C.V.
3.000%, 05/15/23

     470,000        444,758   

Union Pacific Corp.
3.646%, 02/15/24

     360,000        375,783   

4.850%, 06/15/44

     835,000        906,175   
   

 

 

  
      3,386,638   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $272,257,293)

       265,123,123   
   

 

 

  
Mutual Funds—7.0%   

Investment Company Securities—7.0%

  

BB Biotech AG (a) (b)

     769        223,037   

Financial Select Sector SPDR Fund (a)

     1,357,333        32,277,379   

iShares Core S&P 500 ETF (a)

     146,929        30,101,344   

Vanguard Total Stock Market ETF

     142,500        14,864,175   
   

 

 

  

Total Mutual Funds
(Cost $70,571,638)

       77,465,935   
   

 

 

  

 

§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 December 31, 2015

U.S. Treasury & Government Agencies—0.6%

 

Security Description   Shares/
Principal
Amount*		     Value  

U.S. Treasury—0.6%

    

U.S. Treasury Notes
0.500%, 06/30/16

     5,680,000      $ 5,678,671   

1.625%, 11/30/20

     280,000        278,337   

2.000%, 08/15/25

     260,000        253,510   
   

 

 

  

Total U.S. Treasury & Government Agencies
(Cost $6,223,729)

       6,210,518   
   

 

 

  
Preferred Stocks—0.0%   

Automobiles—0.0%

  

Porsche Automobil Holding SE

     2,275        123,278   
   

 

 

  

Banks—0.0%

    

Itausa—Investimentos Itau S.A.

     38,060        66,008   
   

 

 

  

Chemicals—0.0%

    

FUCHS Petrolub SE

     4,596        217,151   
   

 

 

  

Construction Materials—0.0%

    

Sto SE & Co. KGaA

     207        25,725   
   

 

 

  

Total Preferred Stocks
(Cost $487,273)

       432,162   
   

 

 

  
Rights—0.0%   

Banks—0.0%

  

UBI Banca, Expires 01/12/16 (b)
(Cost $0)

     21,348        0   
   

 

 

  
Short-Term Investments—38.8%   

Mutual Fund—4.5%

  

State Street Navigator Securities Lending MET Portfolio (d)

     48,994,913        48,994,913   
   

 

 

  

Repurchase Agreement—34.3%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $375,893,725 on 01/04/16, collateralized by $388,850,000 U.S. Treasury Notes with rates ranging from 1.000% - 1.625%, maturity dates ranging from 03/31/19 - 11/30/19, with a value of $383,417,972.

     375,892,472        375,892,472   
   

 

 

  

Total Short-Term Investments
(Cost $424,887,385)

       424,887,385   
   

 

 

  

Total Investments— 100.9%
(Cost $1,108,492,799) (e)

       1,106,868,375   

Other assets and liabilities (net)—(0.9)%

       (10,060,840 ) 
   

 

 

  
Net Assets—100.0%     $ 1,096,807,535   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of December 31, 2015, the market value of securities loaned was $48,843,073 and the collateral received consisted of cash in the amount of $48,994,913 and non-cash collateral with a value of $1,826,784. 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 Consolidated Statement of Assets and Liabilities.
(b) Non-income producing security.
(c) Variable or floating rate security. The stated rate represents the rate at December 31, 2015. Maturity date shown for callable securities reflects the earliest possible call date.
(d) Represents investment of cash collateral received from securities on loan as of December 31, 2015.
(e) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $1,112,948,459. The aggregate unrealized appreciation and depreciation of investments were $34,035,800 and $(40,115,884), respectively, resulting in net unrealized depreciation of $(6,080,084) for federal income tax purposes.
(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 December 31, 2015, the market value of 144A securities was $29,639,886, which is 2.7% 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
(NVDR)— Non-Voting Depository Receipts

 

§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 December 31, 2015

Forward Foreign Currency Exchange Contracts

 

 

Contracts to Buy

       

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  
AUD     353,669        

JPMorgan Chase Bank N.A.

        01/04/16           USD           257,319         $ 400   
AUD     103,532        

Royal Bank of Canada

        01/05/16           USD           75,539           (95 ) 
AUD     16,311,000        

Citibank N.A.

        03/10/16           USD           11,849,762           (2,034 ) 
BRL     20,971,000        

Deutsche Bank AG

        03/10/16           USD           5,413,687           (220,244 ) 
CAD     17,813,000        

State Street Bank and Trust

        03/10/16           USD           13,107,629           (231,853 ) 
CHF     8,614,000        

Credit Suisse International

        03/10/16           USD           8,744,396           (120,440 ) 
DKK     12,780,000        

Deutsche Bank AG

        03/10/16           USD           1,879,244           (14,597 ) 
EUR     12,421        

Royal Bank of Canada

        01/04/16           USD           13,554           (56 ) 
EUR     13,222        

Royal Bank of Canada

        01/04/16           USD           14,427           (59 ) 
EUR     6,185        

Standard Chartered Bank

        01/04/16           USD           6,756           (34 ) 
EUR     4,606        

Deutsche Bank AG

        01/05/16           USD           5,027           (22 ) 
EUR     11,339        

Deutsche Bank AG

        01/05/16           USD           12,376           (54 ) 
EUR     4,598        

BNP Paribas S.A.

        01/06/16           USD           5,004           (7 ) 
EUR     4,960        

BNP Paribas S.A.

        01/06/16           USD           5,398           (8 ) 
EUR     7,356,814        

BNP Paribas S.A.

        03/10/16           USD           8,142,139           (134,153 ) 
EUR     15,082,000        

Citibank N.A.

        03/10/16           USD           16,533,947           (116,997 ) 
EUR     7,119,587        

HSBC Bank plc

        03/10/16           USD           7,860,836           (111,074 ) 
EUR     7,076,012        

Standard Chartered Bank

        03/10/16           USD           7,829,607           (127,277 ) 
EUR     7,119,587        

UBS AG

        03/10/16           USD           7,865,236           (115,474 ) 
GBP     15,681,000        

JPMorgan Chase Bank N.A.

        03/10/16           USD           23,807,961           (688,548 ) 
INR     1,056,200,000        

Standard Chartered Bank

        03/10/16           USD           15,612,712           186,197   
JPY     2,005,750        

HSBC Bank plc

        01/04/16           USD           16,634           53   
JPY     1,022,461,000        

BNP Paribas S.A.

        03/10/16           USD           8,434,198           84,361   
JPY     90,695,000        

JPMorgan Chase Bank N.A.

        03/10/16           USD           755,162           456   
MXN     178,530,000        

HSBC Bank plc

        03/10/16           USD           10,409,913           (98,707 ) 
SEK     16,740,000        

Citibank N.A.

        03/10/16           USD           1,975,693           11,038   

Contracts to Deliver

                                             
EUR     7,747,000        

Citibank N.A.

        03/10/16           USD           8,530,369           97,660   
GBP     1,389,700        

Royal Bank of Canada

        03/10/16           USD           2,113,572           64,657   
JPY     197,997,000        

Goldman Sachs & Co.

        03/10/16           USD           1,648,917           (681 ) 
KRW     22,803,000,000        

HSBC Bank plc

        03/10/16           USD           19,340,967           (77,381 ) 
NOK     16,980,000        

Standard Chartered Bank

        03/10/16           USD           1,965,585           48,540   
SGD     20,756,334        

Citibank N.A.

        03/10/16           USD           14,774,243           166,159   
SGD     20,756,333        

JPMorgan Chase Bank N.A.

        03/10/16           USD           14,771,088           163,005   
SGD     20,756,333        

Standard Chartered Bank

        03/10/16           USD           14,771,088           163,005   
TWD     639,660,000        

HSBC Bank plc

        03/10/16           USD           19,494,697           7,839   
TWD     426,440,000        

HSBC Bank plc

        03/10/16           USD           13,016,458           25,220   
TWD     718,800,000        

Standard Chartered Bank

        03/10/16           USD           21,897,944           134   

Cross Currency Contracts to Buy

                                    
AUD     31,009,434        

State Street Bank and Trust

        03/10/16           NZD           33,529,000           (317,785 ) 
CHF     4,309,474        

HSBC Bank plc

        03/10/16           GBP           2,938,752           (18,318 ) 
CHF     7,752,239        

BNP Paribas S.A.

        03/10/16           GBP           5,290,150           (38,378 ) 
CHF     9,469,287        

HSBC Bank plc

        03/10/16           GBP           6,457,374           (40,251 ) 
JPY     4,093,969,000        

Royal Bank of Canada

        03/10/16           GBP           22,248,260           1,306,698   
SEK     93,280,000        

Skandinaviska Enskilda Banken

        03/10/16           EUR           10,009,529           175,122   
SEK     93,000,000        

Skandinaviska Enskilda Banken

        03/10/16           EUR           9,995,593           157,061   
                          

 

 

  

Net Unrealized Appreciation

  

      $ 183,078   
                          

 

 

  

 

§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 December 31, 2015

Futures Contracts

 

 

Futures Contracts—Long

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

Australian 10 Year Treasury Bond Futures

      03/15/16         485        AUD         61,327,144      $ 157,137   

Euro Stoxx 50 Index Futures

      03/18/16         2,758        EUR         88,944,612        1,709,401   

FTSE 100 Index Futures

      03/18/16         197        GBP         11,690,207        766,368   

NASDAQ 100 E-Mini Index Futures

      03/18/16         359        USD         33,300,066        (360,021 ) 

Nikkei 225 Index Futures

      03/10/16         218        JPY         4,296,666,640        (1,232,386 ) 

Russell 2000 Mini Index Futures

      03/18/16         308        USD         34,390,827        459,373   

S&P 500 E-Mini Index Futures

      03/18/16         117        USD         11,706,820        200,270   

S&P TSX 60 Index Futures

      03/17/16         151        CAD         23,009,558        (21,954 ) 

U.S. Treasury Note 2 Year Futures

      03/31/16         580        USD         126,166,772        (170,834 ) 

U.S. Treasury Ultra Long Bond Futures

      03/21/16         3        USD         472,036        4,026   

United Kingdom Long Gilt Bond Futures

      03/29/16         304        GBP         35,603,243        (155,031 ) 

Futures Contracts—Short

                                 

U.S. Treasury Long Bond Futures

      03/21/16         (57 )      USD         (8,805,648 )      41,898   

U.S. Treasury Note 10 Year Futures

      03/21/16         (125 )      USD         (15,792,741 )      54,460   

U.S. Treasury Note 5 Year Futures

      03/31/16         (818 )      USD         (97,104,497 )      318,481   
            

 

 

  

Net Unrealized Appreciation

  

   $ 1,771,188   
            

 

 

  

Swap Agreements

OTC Total Return Swaps

 

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

   3M LIBOR     0.192 %    02/25/16    UBS AG    S&P 500 Consumer Staples Total Return Index     USD        22,100,736       $ (715,434 )    $ —       $ (715,434 ) 

Pay

   3M LIBOR     0.462 %    02/25/16    UBS AG    S&P 500 Consumer Discretionary Total Return Index     USD        22,447,075         (717,009 )      —         (717,009 ) 
                  

 

 

    

 

 

     

 

 

  

Totals

  

    $ (1,432,443 )    $ —       $ (1,432,443 ) 
                  

 

 

    

 

 

     

 

 

  

Centrally Cleared Interest Rate Swaps

 

Pay/Receive Floating Rate

    Floating
Rate Index		      Fixed
Rate		     Maturity
Date		      Notional
Amount		      Unrealized
Appreciation		  

Pay

      3M LIBOR         2.015 %      07/23/25         USD         324,000,000       $ 7,652,585   

Pay

      3M LIBOR         2.931 %      01/26/26         USD         324,000,000         37,940   
                

 

 

  

Net Unrealized Appreciation

  

    $ 7,690,525   
  

 

 

  

 

(AUD)— Australian Dollar
(BRL)— Brazilian Real
(CAD)— Canadian Dollar
(CHF)— Swiss Franc
(DKK)— Danish Krone
(EUR)— Euro
(GBP)— British Pound
(INR)— Indian Rupee
(JPY)— Japanese Yen

 

§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 December 31, 2015

 

(KRW)— South Korean Won
(MXN)— Mexican Peso
(NOK)— Norwegian Krone
(NZD)— New Zealand Dollar
(SEK)— Swedish Krona
(SGD)— Singapore Dollar
(TWD)— Taiwanese Dollar
(USD)— United States Dollar
(LIBOR)— London Interbank Offered Rate

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2      Level 3      Total  
Common Stocks            

Aerospace & Defense

    $ 5,421,764       $ 155,427       $ —         $ 5,577,191   

Air Freight & Logistics

      1,859,295         600,700         —           2,459,995   

Airlines

      870,639         395,127         —           1,265,766   

Auto Components

      868,583         3,691,010         —           4,559,593   

Automobiles

      353,610         4,429,402         —           4,783,012   

Banks

      16,006,152         14,281,642         —           30,287,794   

Beverages

      4,020,236         3,129,043         —           7,149,279   

Biotechnology

      5,631,016         1,098,802         —           6,729,818   

Building Products

      213,495         193,825         —           407,320   

Capital Markets

      4,798,835         4,159,495         —           8,958,330   

Chemicals

      3,432,671         7,901,899         —           11,334,570   

Commercial Services & Supplies

      1,267,171         1,814,914         —           3,082,085   

Communications Equipment

      2,897,810         —           —           2,897,810   

Construction & Engineering

      296,423         1,296,792         —           1,593,215   

Construction Materials

      —           498,572         —           498,572   

Consumer Finance

      1,888,178         —           —           1,888,178   

Containers & Packaging

      1,653,723         —           —           1,653,723   

Distributors

      369,327         —           —           369,327   

Diversified Consumer Services

      233,170         12,747         —           245,917   

Diversified Financial Services

      957,346         2,416,355         —           3,373,701   

Diversified Telecommunication Services

      3,374,727         4,511,844         —           7,886,571   

Electric Utilities

      242,678         645,735         —           888,413   

Electrical Equipment

      2,796,934         3,222,588         —           6,019,522   

Electronic Equipment, Instruments & Components

      1,420,569         1,813,185         —           3,233,754   

 

§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 December 31, 2015

Fair Value Hierarchy—(Continued)

 

Description    Level 1      Level 2     Level 3      Total  

Energy Equipment & Services

    $ 1,758,434       $ 640,423      $ —         $ 2,398,857   

Food & Staples Retailing

      2,297,513         2,712,227        —           5,009,740   

Food Products

      2,773,656         3,279,988        —           6,053,644   

Gas Utilities

      185,680         2,505,776        —           2,691,456   

Health Care Equipment & Supplies

      4,075,503         2,528,617        —           6,604,120   

Health Care Providers & Services

      6,031,103         345,796        —           6,376,899   

Health Care Technology

      543,976         55,737        —           599,713   

Hotels, Restaurants & Leisure

      2,658,801         1,049,512        —           3,708,313   

Household Durables

      895,092         3,117,228        —           4,012,320   

Household Products

      3,407,467         1,370,917        —           4,778,384   

Independent Power and Renewable Electricity Producers

      266,158         82,357        —           348,515   

Industrial Conglomerates

      3,345,511         1,222,757        —           4,568,268   

Insurance

      8,475,490         5,257,710        —           13,733,200   

Internet & Catalog Retail

      3,055,392         47,740        —           3,103,132   

Internet Software & Services

      7,034,267         805,817        —           7,840,084   

IT Services

      9,092,871         1,465,115        —           10,557,986   

Leisure Products

      700,433         287,396        —           987,829   

Life Sciences Tools & Services

      1,451,997         —          —           1,451,997   

Machinery

      4,198,909         4,934,950        —           9,133,859   

Marine

      —           287,719        —           287,719   

Media

      5,149,331         2,852,531        —           8,001,862   

Metals & Mining

      796,071         3,544,207        —           4,340,278   

Multi-Utilities

      249,017         477,408        —           726,425   

Multiline Retail

      858,171         356,196        —           1,214,367   

Oil, Gas & Consumable Fuels

      10,257,817         8,157,625        —           18,415,442   

Paper & Forest Products

      134,368         61,343        —           195,711   

Personal Products

      565,540         1,998,977        —           2,564,517   

Pharmaceuticals

      9,745,264         16,953,941        —           26,699,205   

Professional Services

      845,450         2,315,119        —           3,160,569   

Real Estate Investment Trusts

      1,629,996         962,009        —           2,592,005   

Real Estate Management & Development

      —           2,119,084        —           2,119,084   

Road & Rail

      1,046,729         3,127,160        —           4,173,889   

Semiconductors & Semiconductor Equipment

      4,927,329         724,844        —           5,652,173   

Software

      7,841,302         2,082,422        —           9,923,724   

Specialty Retail

      5,270,263         1,780,989        —           7,051,252   

Technology Hardware, Storage & Peripherals

      8,294,684         2,150,614        —           10,445,298   

Textiles, Apparel & Luxury Goods

      1,400,365         2,034,549        —           3,434,914   

Thrifts & Mortgage Finance

      184,549         —          —           184,549   

Tobacco

      2,507,485         2,597,054        —           5,104,539   

Trading Companies & Distributors

      672,089         33,679        —           705,768   

Transportation Infrastructure

      10,945         613,493        —           624,438   

Water Utilities

      —           197,247        —           197,247   

Wireless Telecommunication Services

      47,586         3,784,919        —           3,832,505   

Total Common Stocks

      185,556,956         147,192,296        —           332,749,252   

Total Corporate Bonds & Notes*

      —           265,123,123        —           265,123,123   
Mutual Funds           

Investment Company Securities

      77,242,898         223,037        —           77,465,935   

Total U.S. Treasury & Government Agencies*

      —           6,210,518        —           6,210,518   

Total Preferred Stocks*

      —           432,162        —           432,162   

Total Rights*

      0         —          —           0   
Short-Term Investments           

Mutual Fund

      48,994,913         —          —           48,994,913   

Repurchase Agreement

      —           375,892,472        —           375,892,472   

Total Short-Term Investments

      48,994,913         375,892,472        —           424,887,385   

Total Investments

    $ 311,794,767       $ 795,073,608      $ —         $ 1,106,868,375   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (48,994,913 )    $ —         $ (48,994,913 ) 

 

§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 December 31, 2015

Fair Value Hierarchy—(Continued)

 

Description    Level 1     Level 2     Level 3      Total  
Forward Contracts          

Forward Foreign Currency Exchange Contracts (Unrealized Appreciation)

    $ —        $ 2,657,605      $ —         $ 2,657,605   

Forward Foreign Currency Exchange Contracts (Unrealized Depreciation)

      —          (2,474,527 )      —           (2,474,527 ) 

Total Forward Contracts

    $ —        $ 183,078      $ —         $ 183,078   
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 3,711,414      $ —        $ —         $ 3,711,414   

Futures Contracts (Unrealized Depreciation)

      (1,940,226 )      —          —           (1,940,226 ) 

Total Futures Contracts

    $ 1,771,188      $ —        $ —         $ 1,771,188   
Centrally Cleared Swap Contracts          

Centrally Cleared Swap Contracts (Unrealized Appreciation)

    $ —        $ 7,690,525      $ —         $ 7,690,525   
OTC Swap Contracts          

OTC Swap Contracts at Value (Liabilities)

    $ —        $ (1,432,443 )    $ —         $ (1,432,443 ) 

 

* See Consolidated Schedule of Investments for additional detailed categorizations.

Transfers from Level 1 to Level 2 in the amount of $103,462 were due to the application of a systematic fair valuation model factor.

 

§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§ Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 730,975,903   

Repurchase Agreement

      375,892,472   

Cash

      14,821   

Cash denominated in foreign currencies (c)

      1,316,836   

Cash collateral (d)

      36,950,575   

Unrealized appreciation on forward foreign currency exchange contracts

      2,657,605   

Receivable for:

   

Investments sold

      33,135   

Fund shares sold

      307,081   

Dividends and interest

      3,577,139   

Interest on OTC swap contracts

      4,363   

Variation margin on centrally cleared swap contracts

      1,210,480   

Prepaid expenses

      2,814   
  

 

 

  

Total Assets

      1,152,943,224   

Liabilities

   

OTC swap contracts at market value

      1,432,443   

Unrealized depreciation on forward foreign currency exchange contracts

      2,474,527   

Collateral for securities loaned

      48,994,913   

Payables for:

   

Investments purchased

      566,177   

Fund shares redeemed

      97,647   

Variation margin on futures contracts

      1,333,587   

Interest on OTC swap contracts

      10,662   

Accrued Expenses:

   

Management fees

      596,399   

Distribution and service fees

      232,949   

Deferred trustees’ fees

      56,734   

Other expenses

      339,651   
  

 

 

  

Total Liabilities

      56,135,689   
  

 

 

  

Net Assets

    $ 1,096,807,535   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 1,066,268,375   

Undistributed net investment income

      15,764,232   

Accumulated net realized gain

      8,186,885   

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

      6,588,043   
  

 

 

  

Net Assets

    $ 1,096,807,535   
  

 

 

  

Net Assets

   

Class B

    $ 1,096,807,535   

Capital Shares Outstanding*

   

Class B

      97,344,842   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 11.27   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding repurchase agreement, was $732,600,327.
(b) Includes securities loaned at value of $48,843,073.
(c) Identified cost of cash denominated in foreign currencies was $1,324,518.
(d) Includes collateral of $19,152,739 for futures contracts $1,440,000 for OTC swap contracts and $16,357,836 for centrally cleared swap contracts.

Consolidated§ Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends (a)

    $ 10,661,544   

Interest

      8,661,538   

Securities lending income

      310,502   
  

 

 

  

Total investment income

      19,633,584   

Expenses

   

Management fees

      6,765,020   

Administration fees

      72,998   

Custodian and accounting fees

      480,496   

Distribution and service fees—Class B

      2,639,121   

Audit and tax services

      84,666   

Legal

      31,096   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      58,859   

Insurance

      6,316   

Miscellaneous

      49,725   
  

 

 

  

Total expenses

      10,223,470   
  

 

 

  

Net Investment Income

      9,410,114   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments (b)

      21,556,506   

Futures contracts

      (3,133,830 ) 

Swap contracts

      1,325,125   

Foreign currency transactions

      (1,229,374 ) 
  

 

 

  

Net realized gain

      18,518,427   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments (c)

      (45,299,515 ) 

Futures contracts

      827,653   

Swap contracts

      2,517,396   

Foreign currency transactions

      349,174   
  

 

 

  

Net change in unrealized depreciation

      (41,605,292 ) 
  

 

 

  

Net realized and unrealized loss

      (23,086,865 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (13,676,751 ) 
  

 

 

  

 

(a) Net of foreign withholding taxes of $412,289.
(b) Net of foreign capital gains tax of $7,757.
(c) Includes change in foreign capital gains tax of $8,143.

 

§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§ Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 9,410,114      $ 11,744,197   

Net realized gain

      18,518,427        35,066,890   

Net change in unrealized appreciation (depreciation)

      (41,605,292 )      19,709,325   
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (13,676,751 )      66,520,412   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (10,565,679 )      (11,797,788 ) 

Net realized capital gains

     

Class B

      (31,697,038 )      (32,257,243 ) 
  

 

 

    

 

 

  

Total distributions

      (42,262,717 )      (44,055,031 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      196,303,209        110,319,726   
  

 

 

    

 

 

  

Total increase in net assets

      140,363,741        132,785,107   

Net Assets

     

Beginning of period

      956,443,794        823,658,687   
  

 

 

    

 

 

  

End of period

    $ 1,096,807,535      $ 956,443,794   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 15,764,232      $ 10,608,492   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      17,025,399      $ 202,292,880        10,163,463      $ 118,160,917   

Reinvestments

      3,640,200        42,262,717        3,944,049        44,055,031   

Redemptions

      (4,123,422 )      (48,252,388 )      (4,463,590 )      (51,896,222 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      16,542,177      $ 196,303,209        9,643,922      $ 110,319,726   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 196,303,209        $ 110,319,726   
    

 

 

      

 

 

  

 

§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§ Financial Highlights

 

Selected per share data                           
     Class B  
     Year Ended December 31,  
     2015      2014      2013     2012(a)  

Net Asset Value, Beginning of Period

    $ 11.84       $ 11.57       $ 10.55      $ 10.00   
  

 

 

     

 

 

     

 

 

    

 

 

  

Income (Loss) from Investment Operations

           

Net investment income (b)

      0.11         0.15         0.12        0.14   

Net realized and unrealized gain (loss) on investments

      (0.20 )       0.71         0.94        0.67   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total from investment operations

      (0.09 )       0.86         1.06        0.81   
  

 

 

     

 

 

     

 

 

    

 

 

  

Less Distributions

           

Distributions from net investment income

      (0.12 )       (0.16 )       (0.00 )(c)      (0.08 ) 

Distributions from net realized capital gains

      (0.36 )       (0.43 )       (0.04 )      (0.18 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

      (0.48 )       (0.59 )       (0.04 )      (0.26 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 11.27       $ 11.84       $ 11.57      $ 10.55   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total Return (%) (d)

      (0.88 )       7.74         10.11  (f)      8.06  (e) 

Ratios/Supplemental Data

           

Gross ratio of expenses to average net assets (%)

      0.97         0.99         1.02        1.24  (g) 

Net ratio of expenses to average net assets (%)

      0.97         0.99         1.02  (h)      1.10  (g)(h) 

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

      0.89         1.30         1.10        1.96  (g) 

Portfolio turnover rate (%)

      78         85         94        132  (e) 

Net assets, end of period (in millions)

    $ 1,096.8       $ 956.4       $ 823.7      $ 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) In 2013, 0.09% of the Portfolio’s total return for Class B consists of a voluntary reimbursement by the subadvisor for a realized loss. Excluding this item, total return would have been 10.02% for Class B.
(g) Computed on an annualized basis.
(h) Includes the effects of expenses reimbursed by the Adviser.

 

§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

Notes to Consolidated Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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”), 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 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 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
December 31, 2015		      % of
Total Assets at
December 31, 2015		  

Schroders Global Multi-Asset Portfolio, Ltd.

      4/23/2012       $ 10,690         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 December 31, 2015 through the date the consolidated financial statements were issued.

 

MIST-30

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 and subject to general oversight by the Board. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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 through an independent pricing service based on the mean between closing bid and ask prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or broker-dealer. These contracts are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

Options, including swaptions, and futures contracts that are traded OTC are generally valued on the basis of quotations provided by broker-dealers or prices provided by 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, yield curves, credit curves, measures of volatility and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts (other than centrally cleared swaps) are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and other pricing services. Such quotations and prices are derived utilizing observable data, including the underlying reference securities or indices, credit spread quotations and expected default recovery rates determined by the pricing service. These contracts are generally categorized as Level 2 within the fair value hierarchy.

 

MIST-31

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or an independent pricing service when the exchange price is not available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third party prices are used to produce daily settlement prices. These securities are categorized as Level 2 within the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates, including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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, futures transactions, foreign capital gains taxes, premium amortization adjustments, controlled foreign corporation reversal, swap transactions, corporate actions, adjustments to prior period accumulated balances, real estate investment trusts (REIT) and passive foreign investment companies (PFICs). These adjustments have no impact on net assets or the results 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 remain subject to examination by the Internal

 

MIST-32

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

Revenue Service for three fiscal years after the returns are filed. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

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.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $375,892,472, which is reflected as repurchase agreement on the Consolidated Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Consolidated Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Consolidated Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

 

MIST-33

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

The following table provides a breakdown of the collateral received and the remaining contractual maturities for securities lending transactions, which are accounted for as secured borrowings.

 

     Remaining Contractual Maturity of the Agreements
As of December 31, 2015		  
      Overnight and
Continuous		     Up to
30 Days		      31 - 90
Days		      Greater than
90 days		     Total  
Securities Lending Transactions             

Common Stocks

    $ (11,582,688 )    $ —       $ —       $ —      $ (11,582,688 ) 

Corporate Bonds & Notes

      (8,899,782 )      —         —         —        (8,899,782 ) 

Mutual Funds

      (28,512,443 )      —         —         —        (28,512,443 ) 

Total

    $ (48,994,913 )    $ —       $ —       $ —      $ (48,994,913 ) 

Total Borrowings

    $ (48,994,913 )    $ —       $ —       $ —      $ (48,994,913 ) 

Gross amount of recognized liabilities for securities lending transactions

  

   $ (48,994,913 ) 

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 valuation 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 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 cash 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. If futures contracts are exchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

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.

 

MIST-34

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(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 either privately negotiated in the OTC market (“OTC swaps”) or 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 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.

Centrally Cleared Swaps: Clearinghouses currently offer clearing derivative transactions which include interest rate and 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.

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 upon entering into the swap agreement 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: The Portfolio may enter into currency swap agreements to gain or mitigate exposure to currency risk. 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: (1) 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”; (2) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the

 

MIST-35

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

extent that interest rates fall below a specified rate, or “floor”; and (3) 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 contract’s 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.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of 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 appreciation on centrally cleared swap contracts (a) (b)    $ 7,690,525         
   Unrealized appreciation on futures contracts (a) (c)      576,002       Unrealized depreciation on futures contracts (a) (c)    $ 325,865   
Equity          OTC swap contracts at market value (d)      1,432,443   
   Unrealized appreciation on futures contracts (a) (c)      3,135,412       Unrealized depreciation on futures contracts (a) (c)      1,614,361   
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts      2,657,605       Unrealized depreciation on forward foreign currency exchange contracts      2,474,527   
     

 

 

        

 

 

  
Total       $ 14,059,544          $ 5,847,196   
     

 

 

        

 

 

  

 

  (a) Financial instrument not subject to a master netting agreement.
  (b) 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.
  (c) 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.
  (d) Excludes OTC swap interest receivable of $4,363 and OTC swap interest payable of $10,662.

The Portfolio is required to disclose the impact of offsetting assets and liabilities represented in the Consolidated Statement of Assets and Liabilities to enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized assets and liabilities.

 

MIST-36

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

The following table presents the Portfolio’s derivative assets by counterparty net of amounts available for offset under a master netting agreement (“MNA”) (see Note 5), or similar agreement, and net of the related collateral received by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Assets
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Received†		      Net Amount*  

BNP Paribas S.A.

    $ 84,361       $ (84,361 )    $ —       $ —   

Citibank N.A.

      274,857         (119,031 )      —         155,826   

HSBC Bank plc

      33,112         (33,112 )      —         —   

JPMorgan Chase Bank N.A.

      163,861         (163,861 )      —         —   

Royal Bank of Canada

      1,371,355         (210 )      —         1,371,145   

Skandinaviska Enskilda Banken

      332,183         —        —         332,183   

Standard Chartered Bank

      397,876         (127,311 )      —         270,565   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 2,657,605       $ (527,886 )    $ —       $ 2,129,719   
  

 

 

     

 

 

    

 

 

     

 

 

  

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under an MNA, or similar agreement, and net of the related collateral pledged by the Portfolio as of December 31, 2015.

 

Counterparty

    Derivative Liabilities
subject to an MNA
by Counterparty		      Financial
Instruments
available for offset		     Collateral
Pledged†		     Net Amount**  

BNP Paribas S.A.

    $ 172,546       $ (84,361 )    $ —      $ 88,185   

Citibank N.A.

      119,031         (119,031 )      —        —   

Credit Suisse International

      120,440         —        —        120,440   

Deutsche Bank AG

      234,917         —        —        234,917   

Goldman Sachs & Co.

      681         —        —        681   

HSBC Bank plc

      345,731         (33,112 )      —        312,619   

JPMorgan Chase Bank N.A.

      688,548         (163,861 )      —        524,687   

Royal Bank of Canada

      210         (210 )      —        —   

Standard Chartered Bank

      127,311         (127,311 )      —        —   

State Street Bank and Trust

      549,638         —        —        549,638   

UBS AG

      1,547,917         —        (1,440,000 )      107,917   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 3,906,970       $ (527,886 )    $ (1,440,000 )    $ 1,939,084   
  

 

 

     

 

 

    

 

 

    

 

 

  

 

  * Net amount represents the net amount receivable from the counterparty in the event of default.
  ** Net amount represents the net amount payable due to the counterparty in the event of default.
  † In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.

The following tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

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

    Interest Rate     Equity     Foreign
Exchange		     Total  

Forward foreign currency transactions

    $ —      $ —      $ (1,314,470 )    $ (1,314,470 ) 

Futures contracts

      1,363,446        (4,497,276 )      —        (3,133,830 ) 

Swap contracts

      5,959,461        (4,634,336 )      —        1,325,125   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 7,322,907      $ (9,131,612 )    $ (1,314,470 )    $ (3,123,175 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

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

    Interest Rate     Equity     Foreign
Exchange		     Total  

Forward foreign currency transactions

    $ —      $ —      $ 262,303      $ 262,303   

Futures contracts

      (1,640,165 )      2,467,818        —        827,653   

Swap contracts

      3,949,840        (1,432,444 )      —        2,517,396   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 2,309,675      $ 1,035,374      $ 262,303      $ 3,607,352   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

MIST-37

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Forward foreign currency transactions

    $ 323,779,068   

Futures contracts long

      143,443,353   

Futures contracts short

      (60,234,727 ) 

Swap contracts

      401,915,068   

 

  ‡ Averages are based on activity levels during 2015.

5. Certain Risks

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”).

Market 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, interest rate, and price fluctuations.

Commodities Risk: 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 factors affecting a particular industry or commodity.

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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC 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 (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

 

MIST-38

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(Continued)

 

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to Portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Because securities may be denominated in foreign currencies, may require settlement in foreign currencies and may 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 year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$20,157,413    $ 520,644,727       $ 30,072,161       $ 560,855,851   

7. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$6,765,020      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

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Schroder Investment Management North America Inc. is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

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, LLC, 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 year ended December 31, 2015 are shown as Distribution and service fees in the Consolidated Statement of Operations.

 

MIST-39

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Notes to Consolidated Financial Statements—December 31, 2015—(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 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 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$25,885,914    $ 32,481,252       $ 16,376,803       $ 11,573,779       $ 42,262,717       $ 44,055,031   

As of December 31, 2015, 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		     Other
Accumulated
Capital Losses		      Total  
$17,779,709    $ 13,224,477       $ (408,292 )    $ —       $ 30,595,894   

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.

As of December 31, 2015, the Portfolio had no accumulated capital losses.

10. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-40

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Schroder’s Global Multi-Asset 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 Schroders Global Multi-Asset Portfolio and subsidiary, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, and the consolidated financial highlights for each of the three years in the period then ended and for the period from April 23, 2012 (commencement of operations) to December 31, 2012. These consolidated financial statements and consolidated financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these consolidated financial statements and consolidated 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 December 31, 2015, by correspondence with the custodian and brokers; when replies were not received from the 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 consolidated financial highlights referred to above present fairly, in all material respects, the financial position of Schroders Global Multi-Asset Portfolio and subsidiary of the Met Investors Series Trust as of December 31, 2015, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the consolidated financial highlights for each of the three years in the period then ended and for the period from April 23, 2012 (commencement of operations) to December 31, 2012, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-41

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-42

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-43

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-44

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-45

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

Schroders Global Multi-Asset Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Schroder Investment Management North America Inc. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the one-year and since-inception (beginning April 23, 2012) periods ended June 30, 2015. The Board also considered that the Portfolio underperformed the median of its Performance Universe and its Lipper Index for the three-year period ended June 30, 2015. The Board also considered that the Portfolio outperformed its benchmark, the Dow Jones Moderate Index, for the one-year and since-inception periods ended October 31, 2015 and underperformed this benchmark for the three-year period ended October 31, 2015. The Board also noted that the Portfolio underperformed its blended benchmark for the one-year, three-year, and since-inception periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, the Expense Universe median and the Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also noted that the Portfolio’s contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-46

Met Investors Series Trust

SSGA Growth and Income ETF Portfolio

Managed by SSGA Funds Management, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A, B, and E shares of the SSGA Growth and Income ETF Portfolio returned -1.77%, -1.96%, and -1.93%, respectively. The Portfolio’s benchmark, the MSCI All Country World Index1, returned -2.36%.

MARKET ENVIRONMENT / CONDITIONS

2015 began with a flurry of divergent Central Bank policy moves in response to an uneven global growth outlook, rapidly declining global inflation and a major anticipated expansion of quantitative easing by the European Central Bank (the “ECB”). The Swiss National Bank delivered an early surprise for global markets on January 15th by removing the peg between the Swiss Franc and the Euro in place since 2011. This unexpected tightening action sent the Swiss Franc up better than 20% against the Euro and the Swiss equity market down by 15% immediately following the move. The Bank of Canada (the “BoC”) provided further shock therapy on January 21st by unexpectedly cutting overnight rates by 0.25% to 0.75%. Canadian stocks and bonds rallied, but the Canadian dollar traded down 2.5% on the news. One day later, the ECB announced a larger than expected Quantitative Easing (“QE”) program scheduled to continue through September 2016. The commitment to continue buying bonds is open ended thereafter until it has achieved, as ECB President Mario Draghi said, “A sustained adjustment in the path of inflation which is consistent with our aim of achieving inflation rates below, but close to, 2% over the medium term.” After the Royal Bank of Australia cut rates on February 3rd, the remainder of the quarter was moderately quiet in regards to actual central bank activity—communications from the Federal Reserve (the “Fed”) and its members notwithstanding.

Kicking off the second quarter of 2015, April provided a bumpy ride for investors exposed to a number of recent popular trends in the market. After rising for nine consecutive months on anticipated policy divergence, the U.S. dollar declined nearly 4% for the month reflecting in part a softening in U.S. data and a later expected start to possible Fed rate hikes. Oil prices rose sharply in April with West Texas (“WTI”) crude up 25.3% and Brent crude up 21.2%, the largest upward monthly move for Brent since 2009. In Europe, German 10 year bond yields capped a long stretch of continuous declines to as low as 5 basis points on April 19th before pacing a global bond sell off to end the month at 37 basis points. Later in the quarter markets were unsettled by a steady stream of worrying headlines and, in particular, news around the increasingly acrimonious bailout negotiations between Greece and the Troika (European Commission, ECB, and International Monetary Fund [the “IMF”]). Setting up what many saw as high stakes, though ultimately resolvable set of moves, the Greek government on June 5th elected to miss a scheduled payment to the IMF, choosing to instead bundle the payment with two others for a total of €1.5 billion payable on June 30th. Not surprisingly, equity markets on June 29th reacted negatively to the uncertainty created, though contagion in debt markets was relatively contained with very modest widening in sovereign debt spreads in Spain and Italy. Also contributing to the market jitters, China’s central bank announced a surprise reduction in interest rates on June 27th. This move was widely viewed as a response to a precipitous fall in China’s roaring stock market. After rising 153% on a rolling one year basis through June 12th, the Shanghai Stock Exchange Composite Index had declined 19% through June 26th.

With clouds of uncertainty surrounding the possibility of a Greek exit from the Eurozone and a sudden free fall in China’s stock market, global markets entered the third quarter of 2015 nervously. By the end of the quarter, the Greek drama had been largely resolved with Greece agreeing to a new more austere bailout agreement with creditors in July, while continued volatility in China’s equity markets and growing concerns surrounding emerging market growth prospects more generally led to a broad selloff of global equities in August and September. That a slowdown in emerging markets should be cause for increasing market jitters is attributable to the outsize contribution they had made to global growth in recent years. Since 2000, emerging markets had provided the majority of global GDP growth, doubling their share of global output from about 20% to near 40% in 2015. By the end of the quarter, investors in global equity markets experienced the worst three month performance of the last four years as measured by the MSCI World Index. That weakness was mostly attributed to a cascade of worrying headlines emanating from China, where a surprise currency devaluation and plummeting stock market spilled over in dramatic fashion to rattle global financial markets in late August. After trading in a curiously narrow channel for all of 2015, never up or down more than 3.5% from the beginning of the year, the S&P 500 Index declined six consecutive days for an ultimate correction of 11% through August 25th. On August 24th, the most aggressive day of the selloff, the VIX index of implied volatility hit an intraday high over 53, the highest level since the global financial crisis in March of 2009. The increase in market jitters accelerated a selloff in oil and commodities generally that had been underway since early July, sending the price of WTI crude below $40 on August 24th to the lowest level since 2009 while the broad Bloomberg Commodity Index declined to new thirteen year lows. The combination of the Chinese devaluation and plunging commodities proved particularly toxic for emerging market currencies, sending the Russian Ruble to its weakest closing price ever against the dollar on August 24th and the Brazilian Real down 6% on the month.

After being battered to close the third quarter of 2015 on a rapidly deteriorating global growth outlook, global equity markets found their footing to open the fourth quarter. The shift in market sentiment was aided by new policy commitments from global central banks to provide additional stimulus to combat the effects of a slowing global economy—a concern that was seemingly validated when the IMF downgraded their forecast for global growth in early October. With that as a backdrop the most prominent central bank pronouncements hailed from Europe and China. On October 22nd, ECB President Draghi gave strong indications the

 

MIST-1

Met Investors Series Trust

SSGA Growth and Income ETF Portfolio

Managed by SSGA Funds Management, Inc.

Portfolio Manager Commentary*—(Continued)

 

ECB would be prepared to introduce additional stimulus measures before the end of 2015 citing the negative effect weak emerging markets growth will have on meeting ECB inflation targets. This was followed a day later by an interest rate cut by the People’s Bank of China and further policy measures to combat weak investment growth and low inflation. As the quarter progressed, expectations that the Fed would finally be initiating the first increase in the target Federal Funds rate in over nine years in December steadily grew in interest rate futures markets, rising from an implied probability of 43% on November 1st to 72% on November 30th. Global investors were braced for an explicit realization of the now long running policy divergence thematic with high expectations for new monetary policy easing measures from the ECB and equally elevated expectations that December would bring the first rate rise in over nine years from the Fed. On December 3rd, the ECB cut its deposit rate by 10 basis points to -0.3% and announced an extension of its current bond buying program by six months through March 2017. These measures did represent an easing of policy, but the details were far less than what markets expected, sending European shares and the U.S. dollar sharply lower on the day of the policy announcement. On December 16th, the Fed in turn came through with a widely expected 0.25% increase in the Federal Funds rate, consistent with expectations priced in the overnight index swap market on the eve of the decision. Given there was little daylight between expectations and the final outcome, market reaction immediately following the Fed move was comparatively muted compared to the dispirited market reaction to the ECB.

After a sharp selloff in the third quarter of 2015 on global growth fears emanating from emerging markets led by China that took most major bourses negative on the year, global equities rebounded smartly in October, though with little follow through to end the year. For 2015, the MSCI World Index returned—0.9%, the weakest year for developed global equities since 2011. Leading the developed market regional indices for the quarter was the MSCI Pacific Index which returned 9.0% and a positive return for all of 2015 of 3.0%. U.S. investors in European equities faced a large headwind in the form of the strong U.S. Dollar that saw local returns of 4.9% in 2015 for the MSCI Europe Index reduced to a negative 2.8% once currency effects were accounted for. As underwhelming as returns in developed markets were for 2015, they were quite stellar compared to the performance of Emerging Markets with the MSCI Emerging Markets Index returning 0.7% for the fourth quarter and a negative 14.9% for 2015 as a whole. Investors in U.S. markets have also faced headwinds to earn positive returns in 2015 with year-to-date returns on the S&P 500 Total Return Index of 1.38%. Contributing to this lackluster outcome for 2015 was a challenging environment for U.S. companies’ ability to earn a profit, evidenced by declining year over year of earnings on the S&P 500 Index for both the second and third quarters and the potential for more of the same in the final quarter of the year.

Results were mixed in the fixed income space. For government bonds, the Barclays U.S. Government Intermediate Bond Index returned 1.2%, while the corresponding long government index was down -1.2%. In U.S. credit markets, the fourth quarter punctuated an unsettlingly steady rise in both investment grade and speculative grade credit spreads throughout 2015. In the speculative U.S. high yield space much of the spread widening was attributable to the impact of sharply lower global oil prices on the energy sector, which represents better than 15% of the Barclays U.S. High Yield Index. Spreads for the Barclays U.S. High Yield Index were up nearly 180 basis points for the year, reaching their highest levels earlier in December since the spring of 2012. Evidence that credit conditions in the U.S. tightened throughout 2015 for reasons beyond energy prices is supported by the coincident rise in investment grade credits where spreads for the Barclays U.S. Long Credit Index widened from 184 basis points to 231 basis points at the end of the year close to levels not reached since July of 2012. The Barclays U.S. Aggregate Bond Index was up 0.6% for the year.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio delivered absolute returns of -1.77% for the year, underperforming its composite benchmark. The Portfolio was negatively impacted by both asset allocation decisions and by the performance of the underlying ETFs versus their respective benchmarks.

From an asset allocation perspective, the single largest detractor to performance was the decision to overweight equity assets relative to fixed income and cash. Likewise, an overweight position in long government bonds also hurt, as investment grade bonds with shorter maturities general outperformed similar longer dated bonds. On the equity side, non-U.S. holdings seeking to hedge currency risk provided mixed results—with hedged European positions underperforming unhedged over the holding period. Lastly, tracking error incurred by the exchange traded funds held in the Portfolio weighed on results. These effects were most pronounced in the high yield ETF held in the Portfolio, which at times traded at a significant discount relative to its given index.

The largest contributor to performance from an asset allocation perspective was our underweight holding of emerging market equities. Emerging markets were at the epicenter of market volatility for much of the year and faced a number of macro headwinds, most notably Fed tightening and the potential for continued strength of the U.S. dollar. The Portfolio also benefitted from well-timed allocations to U.S. and non-U.S. REITs. Lastly, despite meager returns, favorable contributions were made by our allocation to cash. The Portfolio’s strategic mix delivered a negative return for 2015 and cash, while returning a near zero absolute return, still outperformed on a relative basis.

Looking forward to 2016, in contrast to the beginning of 2015, the outlook for global growth is generally more subdued. This saturnine outlook has been importantly influenced by lower expectations for the pace of China’s GDP growth rate. Indeed, the IMF forecasts

 

MIST-2

Met Investors Series Trust

SSGA Growth and Income ETF Portfolio

Managed by SSGA Funds Management, Inc.

Portfolio Manager Commentary*—(Continued)

 

Chinese GDP will fall to 6.3% in 2016 following an estimated growth rate of 6.9% for 2015, itself a disappointment relative to expectations at the beginning of the year. The IMF is also forecasting 2016 growth rates for both the U.S. and Global economy to be 0.3% softer than they were at the same point a year ago. Not surprisingly, with the outcome in 2015, forecasts for emerging markets growth outside China are also challenged; Brazil and Russia, the second and fourth largest emerging markets by output, are still forecast to be in recession for 2016.

At the end of the reporting period, the Portfolio had a modest bias to defensive versus growth oriented assets. Within equities we favored non-U.S. developed markets over their U.S. counterparts on relative policy support, favorable sentiment surrounding earnings and more attractive valuations. We continue to underweight emerging market equities on the slowdown in relative growth rates of emerging market economies compared to developed markets and an unfavorable currency outlook. Recognizing the generally low level of rates overall and potential risks of interest rate volatility, we have built a significant overweight in cash to help insulate the portfolio from any unfavorable moves across the curve. Lastly, given the mostly supportive policy backdrop as well as near record low default rates in high yield bonds, we maintain a cautiously optimistic outlook on credit. Nonetheless, the steady rise in both investment grade and high yield credit spreads does offer some cause for concern.

Dan Farley

Mike Martel

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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-3

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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year        Since Inception2  
SSGA Growth and Income ETF Portfolio                      

Class A

        -1.77           6.22           —           5.08   

Class B

        -1.96           5.96           5.15           —   

Class E

        -1.93           6.08           —           4.93   
MSCI ACWI (All Country World Index)        -2.36           6.09           4.76           —   

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 dates of the Class A, Class B and Class E shares are 5/1/2006, 10/3/2005 and 5/1/2006, respectively. Index since inception return is based on the Class B inception date.

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  

SPDR S&P 500 ETF Trust

      19.9   

Vanguard Total Bond Market ETF

      14.6   

SPDR Barclays High Yield Bond ETF

      12.6   

iShares MSCI EAFE ETF

      11.8   

WisdomTree Europe Hedged Equity Fund

      4.1   

Vanguard REIT ETF

      4.1   

WisdomTree Japan Hedged Equity Fund

      3.3   

iShares TIPS Bond ETF

      3.1   

iShares 20+ Year Treasury Bond ETF

      3.0   

Health Care Select Sector SPDR Fund

      2.1   

 

MIST-4

Met Investors Series Trust

SSGA Growth and Income ETF 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual      0.31 %     $ 1,000.00         $ 968.60         $ 1.54   
   Hypothetical*      0.31 %     $ 1,000.00         $ 1,023.64         $ 1.58   

Class B(a)

    Actual      0.56 %     $ 1,000.00         $ 967.50         $ 2.78   
   Hypothetical*      0.56 %     $ 1,000.00         $ 1,022.38         $ 2.85   

Class E(a)

    Actual      0.46 %     $ 1,000.00         $ 967.60         $ 2.28   
   Hypothetical*      0.46 %     $ 1,000.00         $ 1,022.89         $ 2.35   

* 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 (184 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-5

Met Investors Series Trust

SSGA Growth and Income ETF Portfolio

Schedule of Investments as of December 31, 2015

Mutual Funds—88.2% of Net Assets

 

Security Description   Shares     Value  

Investment Company Securities—88.2%

  

Consumer Discretionary Select Sector SPDR Fund (a) (b)

     678,713      $ 53,041,421   

Health Care Select Sector SPDR Fund (a) (b)

     765,474        55,152,402   

iShares 20+ Year Treasury Bond ETF (a)

     662,695        79,934,271   

iShares Core S&P Small-Cap ETF (a)

     238,648        26,277,531   

iShares MSCI Canada ETF (a)

     1,469,487        31,593,970   

iShares MSCI EAFE ETF (a)

     5,330,394        313,160,647   

iShares TIPS Bond ETF (a)

     745,191        81,732,549   

SPDR Barclays High Yield Bond ETF (a) (b)

     9,852,119        334,085,355   

SPDR Dow Jones International Real Estate ETF (a) (b)

     691,063        27,034,385   

SPDR S&P 500 ETF Trust (a) (b)

     2,599,830        530,079,339   

SPDR S&P International Small Cap ETF (b)

     1,908,091        53,865,409   

SPDR S&P MidCap 400 ETF Trust (a) (b)

     51,771        13,154,493   

Technology Select Sector SPDR Fund (a) (b)

     1,241,175        53,159,525   

Vanguard REIT ETF (a)

     1,365,771        108,892,922   

Vanguard Total Bond Market ETF (a)

     4,805,290        388,075,220   

WisdomTree Europe Hedged Equity Fund

     2,042,544        109,909,293   

WisdomTree Japan Hedged Equity Fund (a)

     1,745,294        87,404,324   
   

 

 

  

Total Mutual Funds
(Cost $2,332,624,209)

       2,346,553,056   
   

 

 

  
Short-Term Investments—25.1%   

Mutual Funds—25.1%

  

AIM STIT-STIC Prime Portfolio

     311,080,884        311,080,884   

State Street Navigator Securities Lending MET Portfolio (b) (c)

     355,662,247        355,662,247   
   

 

 

  

Total Short-Term Investments
(Cost $666,743,131)

       666,743,131   
   

 

 

  

Total Investments—113.3%
(Cost $2,999,367,340) (d)

       3,013,296,187   

Other assets and liabilities (net)—(13.3)%

       (352,253,974 ) 
   

 

 

  
Net Assets—100.0%     $ 2,661,042,213   
   

 

 

  

 

(a) All or a portion of the security was held on loan. As of December 31, 2015, the market value of securities loaned was $642,258,929 and the collateral received consisted of cash in the amount of $355,662,247 and non-cash collateral with a value of $305,295,788. 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) Affiliated Issuer. (See Note 6 of the Notes to Financial Statements for a summary of transactions in securities of affiliated issuers.)
(c) Represents investment of cash collateral received from securities on loan as of December 31, 2015.
(d) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $3,011,479,225. The aggregate unrealized appreciation and depreciation of investments were $112,820,444 and $(111,003,482), respectively, resulting in net unrealized appreciation of $1,816,962 for federal income tax purposes.
(ETF)— Exchange-Traded Fund

 

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

SSGA Growth and Income ETF Portfolio

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2     Level 3      Total  
Mutual Funds           

Investment Company Securities

    $ 2,346,553,056       $ —        $ —         $ 2,346,553,056   

Total Short-Term Investments*

      666,743,131         —          —           666,743,131   

Total Investments

    $ 3,013,296,187       $ —        $ —         $ 3,013,296,187   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (355,662,247 )    $ —         $ (355,662,247 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

SSGA Growth and Income ETF Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 1,538,061,611   

Affiliated investments at value (c) (d)

      1,475,234,576   

Receivable for:

   

Fund shares sold

      556,157   

Interest

      4,990   

Dividends on affiliated investments

      5,065,614   

Prepaid expenses

      7,701   
  

 

 

  

Total Assets

      3,018,930,649   

Liabilities

   

Collateral for securities loaned

      355,662,247   

Payables for:

   

Fund shares redeemed

      787,607   

Accrued Expenses:

   

Management fees

      695,403   

Distribution and service fees

      562,232   

Administration fees

      5,500   

Custodian and accounting fees

      12,769   

Deferred trustees’ fees

      81,937   

Other expenses

      80,741   
  

 

 

  

Total Liabilities

      357,888,436   
  

 

 

  

Net Assets

    $ 2,661,042,213   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 2,447,777,546   

Undistributed net investment income

      62,339,294   

Accumulated net realized gain

      136,996,526   

Unrealized appreciation on investments and affiliated investments

      13,928,847   
  

 

 

  

Net Assets

    $ 2,661,042,213   
  

 

 

  

Net Assets

   

Class A

    $ 27,005,675   

Class B

      2,623,843,061   

Class E

      10,193,477   

Capital Shares Outstanding*

   

Class A

      2,366,930   

Class B

      231,609,350   

Class E

      897,422   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 11.41   

Class B

      11.33   

Class E

      11.36   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding affiliated investments, was $1,592,160,804.
(b) Includes securities loaned at value of $173,830,779.
(c) Identified cost of affiliated investments was $1,407,206,536.
(d) Includes securities loaned at value of $468,428,150.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends from Underlying ETFs

    $ 32,297,876   

Dividends from affiliated investments

      38,633,670   

Interest

      189,307   

Securities lending income from affiliated investments

      3,066,309   
  

 

 

  

Total investment income

      74,187,162   

Expenses

   

Management fees

      8,704,664   

Administration fees

      22,280   

Custodian and accounting fees

      30,700   

Distribution and service fees—Class B

      7,030,505   

Distribution and service fees—Class E

      17,004   

Audit and tax services

      38,250   

Legal

      26,460   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      51,225   

Insurance

      18,671   

Miscellaneous

      25,249   
  

 

 

  

Total expenses

      16,000,181   
  

 

 

  

Net Investment Income

      58,186,981   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      8,073,273   

Affiliated investments

      129,322,301   

Capital gain distributions from Underlying ETFs

      12,007,968   

Capital gain distributions from affiliated investments

      290,072   
  

 

 

  

Net realized gain

      149,693,614   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (85,949,859 ) 

Affiliated investments

      (173,893,902 ) 
  

 

 

  

Net change in unrealized depreciation

      (259,843,761 ) 
  

 

 

  

Net realized and unrealized loss

      (110,150,147 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (51,963,166 ) 
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

SSGA Growth and Income ETF Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 58,186,981      $ 65,268,334   

Net realized gain

      149,693,614        164,047,917   

Net change in unrealized depreciation

      (259,843,761 )      (57,734,308 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (51,963,166 )      171,581,943   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (709,365 )      (682,050 ) 

Class B

      (64,559,466 )      (66,328,760 ) 

Class E

      (274,098 )      (281,232 ) 

Net realized capital gains

     

Class A

      (1,552,696 )      (1,619,345 ) 

Class B

      (157,391,527 )      (175,216,589 ) 

Class E

      (639,561 )      (709,033 ) 
  

 

 

    

 

 

  

Total distributions

      (225,126,713 )      (244,837,009 ) 
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (11,029,590 )      (24,532,803 ) 
  

 

 

    

 

 

  

Total decrease in net assets

      (288,119,469 )      (97,787,869 ) 

Net Assets

     

Beginning of period

      2,949,161,682        3,046,949,551   
  

 

 

    

 

 

  

End of period

    $ 2,661,042,213      $ 2,949,161,682   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 62,339,294      $ 67,015,897   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      300,959      $ 3,738,291        399,964      $ 5,051,526   

Reinvestments

      189,929        2,262,061        191,783        2,301,395   

Redemptions

      (372,207 )      (4,605,503 )      (507,018 )      (6,432,754 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      118,681      $ 1,394,849        84,729      $ 920,167   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      4,912,966      $ 59,332,440        5,798,284      $ 72,534,933   

Reinvestments

      18,745,861        221,950,993        20,229,929        241,545,349   

Redemptions

      (24,102,317 )      (292,961,957 )      (27,089,439 )      (339,671,937 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (443,490 )    $ (11,678,524 )      (1,061,226 )    $ (25,591,655 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      98,414      $ 1,207,182        121,530      $ 1,524,458   

Reinvestments

      77,037        913,659        82,798        990,265   

Redemptions

      (235,098 )      (2,866,756 )      (189,008 )      (2,376,038 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (59,647 )    $ (745,915 )      15,320      $ 138,685   
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (11,029,590 )      $ (24,532,803 ) 
    

 

 

      

 

 

  

 

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 A  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 12.62       $ 12.98       $ 12.08       $ 11.21       $ 11.48   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.28         0.31         0.31         0.34         0.34   

Net realized and unrealized gain (loss) on investments

      (0.46 )       0.43         1.22         1.09         (0.17 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.18 )       0.74         1.53         1.43         0.17   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.32 )       (0.33 )       (0.34 )       (0.30 )       (0.22 ) 

Distributions from net realized capital gains

      (0.71 )       (0.77 )       (0.29 )       (0.26 )       (0.22 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (1.03 )       (1.10 )       (0.63 )       (0.56 )       (0.44 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.41       $ 12.62       $ 12.98       $ 12.08       $ 11.21   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (1.77 )       6.14         13.22         13.11         1.28   

Ratios/Supplemental Data

               

Ratio of expenses to average net assets (%) (c)

      0.31         0.31         0.31         0.32         0.32   

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

      2.30         2.45         2.52         2.96         3.01   

Portfolio turnover rate (%)

      43         55         47         39         36   

Net assets, end of period (in millions)

    $ 27.0       $ 28.4       $ 28.1       $ 21.1       $ 15.5   
     Class B  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 12.53       $ 12.90       $ 12.01       $ 11.15       $ 11.43   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.25         0.27         0.27         0.30         0.31   

Net realized and unrealized gain (loss) on investments

      (0.45 )       0.42         1.22         1.10         (0.17 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.20 )       0.69         1.49         1.40         0.14   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.29 )       (0.29 )       (0.31 )       (0.28 )       (0.20 ) 

Distributions from net realized capital gains

      (0.71 )       (0.77 )       (0.29 )       (0.26 )       (0.22 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (1.00 )       (1.06 )       (0.60 )       (0.54 )       (0.42 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.33       $ 12.53       $ 12.90       $ 12.01       $ 11.15   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (1.96 )       5.81         12.93         12.85         1.06   

Ratios/Supplemental Data

               

Ratio of expenses to average net assets (%) (c)

      0.56         0.56         0.56         0.57         0.57   

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

      2.04         2.17         2.21         2.64         2.79   

Portfolio turnover rate (%)

      43         55         47         39         36   

Net assets, end of period (in millions)

    $ 2,623.8       $ 2,908.8       $ 3,006.7       $ 2,879.1       $ 2,600.5   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

SSGA Growth and Income ETF Portfolio

Financial Highlights

 

 

Selected per share data       
     Class E  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 12.57       $ 12.93       $ 12.03       $ 11.17       $ 11.44   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.26         0.28         0.29         0.32         0.32   

Net realized and unrealized gain (loss) on investments

      (0.46 )       0.44         1.23         1.09         (0.17 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.20 )       0.72         1.52         1.41         0.15   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.30 )       (0.31 )       (0.33 )       (0.29 )       (0.20 ) 

Distributions from net realized capital gains

      (0.71 )       (0.77 )       (0.29 )       (0.26 )       (0.22 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (1.01 )       (1.08 )       (0.62 )       (0.55 )       (0.42 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.36       $ 12.57       $ 12.93       $ 12.03       $ 11.17   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (1.93 )       6.00         13.11         12.91         1.17   

Ratios/Supplemental Data

               

Ratio of expenses to average net assets (%) (c)

      0.46         0.46         0.46         0.47         0.47   

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

      2.11         2.26         2.34         2.76         2.85   

Portfolio turnover rate (%)

      43         55         47         39         36   

Net assets, end of period (in millions)

    $ 10.2       $ 12.0       $ 12.2       $ 10.9       $ 9.1   

 

(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) The ratio of operating expenses to average net assets does not include expenses of the Underlying ETFs in which the Portfolio invests.
(d) 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-11

Met Investors Series Trust

SSGA Growth and Income ETF Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 redesignations and distributions received from underlying ETFs. These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

 

MIST-12

Met Investors Series Trust

SSGA Growth and Income ETF Portfolio

Notes to Financial Statements—December 31, 2015—(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, State Street Bank and Trust Company (the “custodian”), as the lending agent. 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 equal to at least 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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is disclosed in the footnotes to the Statement of Operations. Any outstanding loans by the Portfolio at December 31, 2015 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 or 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.

All securities on loan are classified as Mutual Funds in the Portfolio’s Schedule of Investments as of December 31, 2015, with a contractual maturity of overnight and continuous.

3. Certain Risks

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”).

Market 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, 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’ investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of their trading partners, (ii) monitoring and/or limiting the amount of their net exposure to each individual counterparty based on the adviser’s 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 (“Master Agreements”) with counterparties (approved brokers) with whom the Portfolio and the Underlying ETFs undertake a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection

 

MIST-13

Met Investors Series Trust

SSGA Growth and Income ETF Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio and the Underlying ETFs in which it invests.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 1,136,570,430       $ 0       $ 1,489,630,371   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$8,704,664      0.330 %    First $500 million
     0.300 %    Over $500 million

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. SSGA Funds Management, Inc. is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

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, LLC, 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 year ended December 31, 2015 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-14

Met Investors Series Trust

SSGA Growth and Income ETF Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

6. Transactions in Securities of Affiliated Issuers

A summary of the Portfolio’s transactions in the securities of affiliated issuers during the year ended December 31, 2015 is as follows:

 

Underlying ETF/Security

    Number of
shares held at
December 31, 2014		     Shares
purchased		      Shares sold     Number of
shares held at
December 31, 2015		  

Consumer Discretionary Select Sector SPDR Fund

      —        771,833         (93,120 )      678,713   

Financial Select Sector SPDR Fund

      2,458,962        2,348,466         (4,807,428 )      —   

Health Care Select Sector SPDR Fund

      838,511        44,547         (117,584 )      765,474   

Industrial Select Sector SPDR Fund

      —        1,023,816         (1,023,816 )      —   

SPDR Barclays High Yield Bond ETF

      7,658,442        3,612,649         (1,418,972 )      9,852,119   

SPDR Dow Jones International Real Estate ETF

      1,419,960        402,579         (1,131,476 )      691,063   

SPDR Gold Shares

      268,484        —         (268,484 )      —   

SPDR S&P 500 ETF Trust

      4,236,323        —         (1,636,493 )      2,599,830   

SPDR S&P International Small Cap ETF

      1,892,196        266,114         (250,219 )      1,908,091   

SPDR S&P MidCap 400 ETF Trust

      113,342        51,771         (113,342 )      51,771   

State Street Navigator Securities Lending MET Portfolio

      674,829,885        5,821,730,488         (6,140,898,126 )      355,662,247   

Technology Select Sector SPDR Fund

      1,460,237        1,241,175         (1,460,237 )      1,241,175   

Underlying ETF/Security

    Net Realized
Gain/(Loss) on sales
of Affiliated
Investments		     Capital Gain
Distributions
from Affiliated
Investments		      Dividend Income
from Affiliated
Investments		     Ending Value
as of
December 31, 2015		  

Consumer Discretionary Select Sector SPDR Fund

    $ 212,018      $ —       $ 624,639      $ 53,041,421   

Financial Select Sector SPDR Fund

      (3,729,732 )      —         489,555        —   

Health Care Select Sector SPDR Fund

      1,595,798        —         807,843        55,152,402   

Industrial Select Sector SPDR Fund

      831,945        —         —        —   

SPDR Barclays High Yield Bond ETF

      (2,596,043 )      —         20,839,335        334,085,355   

SPDR Dow Jones International Real Estate ETF

      (576,879 )      —         1,140,895        27,034,385   

SPDR Gold Shares

      (6,391,595 )      —         —        —   

SPDR S&P 500 ETF Trust

      125,096,483        —         12,584,889        530,079,339   

SPDR S&P International Small Cap ETF

      (370,788 )      290,072         1,147,533        53,865,409   

SPDR S&P MidCap 400 ETF Trust

      5,338,861        —         219,860        13,154,493   

State Street Navigator Securities Lending MET Portfolio

      —        —         3,066,309        355,662,247   

Technology Select Sector SPDR Fund

      9,912,233        —         779,121        53,159,525   
  

 

 

    

 

 

     

 

 

    

 

 

  
   $ 129,322,301      $ 290,072       $ 41,699,979      $ 1,457,234,576   
  

 

 

    

 

 

     

 

 

    

 

 

  

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees 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-15

Met Investors Series Trust

SSGA Growth and Income ETF Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$88,566,332    $ 72,797,312       $ 136,560,381       $ 172,039,697       $ 225,126,713       $ 244,837,009   

As of December 31, 2015, 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		      Other
Accumulated
Capital Losses		      Total  
$62,421,229    $ 149,108,414       $ 1,816,961       $ —       $ 213,346,604   

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, 2015, the Portfolio had no post-enactment accumulated capital losses and no pre-enactment accumulated capital loss carryforwards.

9. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-16

Met Investors Series Trust

SSGA Growth and Income ETF Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of SSGA Growth and Income ETF 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 SSGA Growth and Income ETF Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 SSGA Growth and Income ETF Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-17

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-18

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-19

Met Investors Series Trust

SSGA Growth and Income ETF Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-20

Met Investors Series Trust

SSGA Growth and Income ETF Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-21

Met Investors Series Trust

SSGA Growth and Income ETF Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

SSGA Growth and Income ETF Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and SSGA Funds Management, Inc. regarding the Portfolio:

The Board considered and found that the advisory fee to be paid to the Adviser with respect to the Portfolio was based on services to be provided that were in addition to, rather than duplicative of, the services provided pursuant to the advisory agreements for the underlying portfolios in which the Portfolio invests.

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the three- and five-year periods ended June 30, 2015, and underperformed the median of its Performance Universe and its Lipper Index for the one-year period ended June 30, 2015. The Board further considered that the Portfolio outperformed its benchmark, the MSCI ACWI (All Country World Index), for the one-year period ended October 31, 2015 and underperformed its benchmark for the three- and five-year periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-l fees) were below the Expense Group median, the Expense Universe median, and the Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also noted that the Portfolio’s contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-22

Met Investors Series Trust

SSGA Growth ETF Portfolio

Managed by SSGA Funds Management, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A, B, and E shares of the SSGA Growth ETF Portfolio returned -2.04%, -2.31%, and -2.21%, respectively. The Portfolio’s benchmark, the MSCI All Country World Index1, returned -2.36%.

MARKET ENVIRONMENT / CONDITIONS

2015 began with a flurry of divergent Central Bank policy moves in response to an uneven global growth outlook, rapidly declining global inflation and a major anticipated expansion of quantitative easing by the European Central Bank (the “ECB”). The Swiss National Bank delivered an early surprise for global markets on January 15th by removing the peg between the Swiss Franc and the Euro in place since 2011. This unexpected tightening action sent the Swiss Franc up better than 20% against the Euro and the Swiss equity market down by 15% immediately following the move. The Bank of Canada (the “BoC”) provided further shock therapy on January 21st by unexpectedly cutting overnight rates by 0.25% to 0.75%. Canadian stocks and bonds rallied, but the Canadian dollar traded down 2.5% on the news. One day later, the ECB announced a larger than expected Quantitative Easing (“QE”) program scheduled to continue through September 2016. The commitment to continue buying bonds is open ended thereafter until it has achieved, as ECB President Mario Draghi said, “A sustained adjustment in the path of inflation which is consistent with our aim of achieving inflation rates below, but close to, 2% over the medium term.” After the Royal Bank of Australia cut rates on February 3rd, the remainder of the quarter was moderately quiet in regards to actual central bank activity—communications from the Federal Reserve (the “Fed”) and its members notwithstanding.

Kicking off the second quarter of 2015, April provided a bumpy ride for investors exposed to a number of recent popular trends in the market. After rising for nine consecutive months on anticipated policy divergence, the U.S. dollar declined nearly 4% for the month reflecting in part a softening in U.S. data and a later expected start to possible Fed rate hikes. Oil prices rose sharply in April with West Texas (“WTI”) crude up 25.3% and Brent crude up 21.2%, the largest upward monthly move for Brent since 2009. In Europe, German 10 year bond yields capped a long stretch of continuous declines to as low as 5 basis points on April 19th before pacing a global bond sell off to end the month at 37 basis points. Later in the quarter markets were unsettled by a steady stream of worrying headlines and, in particular, news around the increasingly acrimonious bailout negotiations between Greece and the Troika (European Commission, ECB, and International Monetary Fund [the “IMF”]). Setting up what many saw as high stakes, though ultimately resolvable set of moves, the Greek government on June 5th elected to miss a scheduled payment to the IMF, choosing to instead bundle the payment with two others for a total of €1.5 billion payable on June 30th. Not surprisingly, equity markets on June 29th reacted negatively to the uncertainty created, though contagion in debt markets was relatively contained with very modest widening in sovereign debt spreads in Spain and Italy. Also contributing to the market jitters, China’s central bank announced a surprise reduction in interest rates on June 27th. This move was widely viewed as a response to a precipitous fall in China’s roaring stock market. After rising 153% on a rolling one year basis through June 12, the Shanghai Stock Exchange Composite Index had declined 19% through June 26th.

With clouds of uncertainty surrounding the possibility of a Greek exit from the Eurozone and a sudden free fall in China’s stock market, global markets entered the third quarter of 2015 nervously. By the end of the quarter, the Greek drama had been largely resolved with Greece agreeing to a new more austere bailout agreement with creditors in July, while continued volatility in China’s equity markets and growing concerns surrounding emerging market growth prospects more generally led to a broad selloff of global equities in August and September. That a slowdown in emerging markets should be cause for increasing market jitters is attributable to the outsize contribution they had made to global growth in recent years. Since 2000, emerging markets had provided the majority of global GDP growth, doubling their share of global output from about 20% to near 40% in 2015. By the end of the quarter, investors in global equity markets experienced the worst three month performance of the last four years as measured by the MSCI World Index. That weakness was mostly attributed to a cascade of worrying headlines emanating from China, where a surprise currency devaluation and plummeting stock market spilled over in dramatic fashion to rattle global financial markets in late August. After trading in a curiously narrow channel for all of 2015, never up or down more than 3.5% from the beginning of the year, the S&P 500 Index declined six consecutive days for an ultimate correction of 11% through August 25th. On August 24th, the most aggressive day of the selloff, the VIX index of implied volatility hit an intraday high over 53, the highest level since the global financial crisis in March of 2009. The increase in market jitters accelerated a selloff in oil and commodities generally that had been underway since early July, sending the price of WTI crude below $40 on August 24th to the lowest level since 2009 while the broad Bloomberg Commodity Index declined to new thirteen year lows. The combination of the Chinese devaluation and plunging commodities proved particularly toxic for emerging market currencies, sending the Russian Ruble to its weakest closing price ever against the dollar on August 24th and the Brazilian Real down 6% on the month.

After being battered to close the third quarter of 2015 on a rapidly deteriorating global growth outlook, global equity markets found their footing to open the fourth quarter. The shift in market sentiment was aided by new policy commitments from global central banks to provide additional stimulus to combat the effects of a slowing global economy—a concern that was seemingly validated when the IMF downgraded their forecast for global growth in early October. With that as a backdrop the most prominent central bank pronouncements hailed from Europe and China. On October 22nd ECB President Draghi gave strong indications the ECB would be

 

MIST-1

Met Investors Series Trust

SSGA Growth ETF Portfolio

Managed by SSGA Funds Management, Inc.

Portfolio Manager Commentary*—(Continued)

 

prepared to introduce additional stimulus measures before the end of 2015 citing the negative effect weak emerging markets growth will have on meeting ECB inflation targets. This was followed a day later by an interest rate cut by the People’s Bank of China and further policy measures to combat weak investment growth and low inflation. As the quarter progressed, expectations that the Fed would finally be initiating the first increase in the target federal funds rate in over nine years in December steadily grew in interest rate futures markets, rising from an implied probability of 43% on November 1st to 72% on November 30th. Global investors were braced for an explicit realization of the now long running policy divergence thematic with high expectations for new monetary policy easing measures from the ECB and equally elevated expectations that December would bring the first rate rise in over nine years from the Fed. On December 3rd, the ECB cut its deposit rate by 10 basis points to -0.3% and announced an extension of its current bond buying program by six months through March 2017. These measures did represent an easing of policy, but the details were far less than what markets expected, sending European shares and the U.S. dollar sharply lower on the day of the policy announcement. On December 16th, the Fed in turn came through with a widely expected 0.25% increase in the Federal Funds rate, consistent with expectations priced in the overnight index swap market on the eve of the decision. Given there was little daylight between expectations and the final outcome, market reaction immediately following the Fed move was comparatively muted compared to the dispirited market reaction to the ECB.

After a sharp selloff in the third quarter of 2015 on global growth fears emanating from emerging markets led by China that took most major bourses negative on the year, global equities rebounded smartly in October, though with little follow through to end the year. For 2015, the MSCI World Index returned—0.9%, the weakest year for developed global equities since 2011. Leading the developed market regional indices for the quarter was the MSCI Pacific Index which returned 9.0% and a positive return for all of 2015 of 3.0%. U.S. investors in European equities faced a large headwind in the form of the strong U.S. Dollar that saw local returns of 4.9% in 2015 for the MSCI Europe Index reduced to a negative 2.8% once currency effects were accounted for. As underwhelming as returns in developed markets were for 2015, they were quite stellar compared to the performance of Emerging Markets with the MSCI Emerging Markets Index returning 0.7% for the fourth quarter and a negative 14.9% for 2015 as a whole. Investors in U.S. markets have also faced headwinds to earn positive returns in 2015 with year-to-date returns on the S&P 500 Total Return Index of 1.38%. Contributing to this lackluster outcome for 2015 was a challenging environment for U.S. companies’ ability to earn a profit, evidenced by declining year over year of earnings on the S&P 500 Index for both the second and third quarters and the potential for more of the same in the final quarter of the year.

Results were mixed in the fixed income space. For government bonds, the Barclays U.S. Government Intermediate Bond Index returned 1.2%, while the corresponding long government index was down -1.2%. In U.S. credit markets, the fourth quarter punctuated an unsettlingly steady rise in both investment grade and speculative grade credit spreads throughout 2015. In the speculative U.S. high yield space much of the spread widening was attributable to the impact of sharply lower global oil prices on the energy sector, which represents better than 15% of the Barclays U.S. High Yield Index. Spreads for the Barclays U.S. High Yield Index were up nearly 180 basis points for the year, reaching their highest levels earlier in December since the spring of 2012. Evidence that credit conditions in the U.S. tightened throughout 2015 for reasons beyond energy prices is supported by the coincident rise in investment grade credits where spreads for the Barclays U.S. Long Credit Index widened from 184 basis points to 231 basis points at the end of the year close to levels not reached since July of 2012. The Barclays U.S. Aggregate Bond Index was up 0.6% for the year.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio delivered absolute returns of -2.04% for the year, underperforming its composite benchmark. The Portfolio was negatively impacted by both asset allocation decisions and by the performance of the underlying ETFs versus their respective benchmarks.

From an asset allocation perspective, the single largest detractor to performance was the decision to overweight equity assets relative to fixed income and cash. Likewise, an overweight position in long government bonds also hurt, as investment grade bonds with shorter maturities general outperformed similar longer dated bonds. On the equity side, non-U.S. holdings seeking to hedge currency risk provided mixed results—with hedged European positions underperforming unhedged over the holding period. Lastly, tracking error incurred by the exchange traded funds held in the Portfolio weighed on results. These effects were most pronounced in the high yield ETF held in the Portfolio, which at times traded at a significant discount relative to its given index.

The largest contributor to performance from an asset allocation perspective was the Portfolio’s underweight holding of emerging market equities. Emerging markets were at the epicenter of market volatility for much of the year and faced a number of macro headwinds, most notably Fed tightening and the potential for continued strength of the U.S. dollar. The Portfolio also benefitted from well-timed allocations to U.S. and non-U.S. REITs. Lastly, despite meager returns, favorable contributions were made by our allocation to cash. The Portfolio’s strategic mix delivered a negative return for 2015 and cash, while returning a near zero absolute return, still outperformed on a relative basis.

Looking forward to 2016, in contrast to the beginning of 2015, the outlook for global growth is generally more subdued. This saturnine outlook has been importantly influenced by lower expectations for the pace of China’s GDP growth rate. Indeed, the IMF forecasts

 

MIST-2

Met Investors Series Trust

SSGA Growth ETF Portfolio

Managed by SSGA Funds Management, Inc.

Portfolio Manager Commentary*—(Continued)

 

Chinese GDP will fall to 6.3% in 2016 following an estimated growth rate of 6.9% for 2015, itself a disappointment relative to expectations at the beginning of the year. The IMF is also forecasting 2016 growth rates for both the U.S. and Global economy to be 0.3% softer than they were at the same point a year ago. Not surprisingly, with the outcome in 2015, forecasts for emerging markets growth outside China are also challenged; Brazil and Russia, the second and fourth largest emerging markets by output, are still forecast to be in recession for 2016.

At the end of the reporting period, the Portfolio had a modest bias to defensive versus growth oriented assets. Within equities we favored non-U.S. developed markets over their U.S. counterparts on relative policy support, favorable sentiment surrounding earnings and more attractive valuations. We continue to underweight emerging market equities on the slowdown in relative growth rates of emerging market economies compared to developed markets and an unfavorable currency outlook. Recognizing the generally low level of rates overall and potential risks of interest rate volatility, we have built a significant overweight in cash to help insulate the portfolio from any unfavorable moves across the curve. Lastly, given the mostly supportive policy backdrop as well as near record low default rates in high yield bonds, we maintain a cautiously optimistic outlook on credit. Nonetheless, the steady rise in both investment grade and high yield credit spreads does offer some cause for concern.

Dan Farley

Mike Martel

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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-3

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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year        Since Inception2  
SSGA Growth ETF Portfolio                      

Class A

        -2.04           6.76           —           4.75   

Class B

        -2.31           6.47           4.98           —   

Class E

        -2.21           6.59           —           4.60   
MSCI ACWI (All Country World Index)        -2.36           6.09           4.76           —   

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 dates of the Class A, Class B and Class E shares are 5/1/2006, 10/3/2005 and 5/1/2006, respectively. Index since inception return is based on the Class B inception date.

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 DECEMBER 31, 2015

 

Top Holdings

 

     % of
Net Assets		  
SPDR S&P 500 ETF Trust      25.0   
iShares MSCI EAFE ETF      18.2   
SPDR Barclays High Yield Bond ETF      7.8   
WisdomTree Europe Hedged Equity Fund      4.1   
Vanguard REIT ETF      4.0   
SPDR S&P MidCap 400 ETF Trust      3.5   
WisdomTree Japan Hedged Equity Fund      3.3   
SPDR S&P International Small Cap ETF      3.0   
iShares 20+ Year Treasury Bond ETF      3.0   
iShares Core S&P Small-Cap ETF      3.0   

 

MIST-4

Met Investors Series Trust

SSGA Growth ETF 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual      0.34 %     $ 1,000.00         $ 959.50         $ 1.68   
   Hypothetical*      0.34 %     $ 1,000.00         $ 1,023.49         $ 1.73   

Class B(a)

    Actual      0.59 %     $ 1,000.00         $ 957.60         $ 2.91   
   Hypothetical*      0.59 %     $ 1,000.00         $ 1,022.23         $ 3.01   

Class E(a)

    Actual      0.49 %     $ 1,000.00         $ 957.70         $ 2.42   
   Hypothetical*      0.49 %     $ 1,000.00         $ 1,022.74         $ 2.50   

* 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 (184 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-5

Met Investors Series Trust

SSGA Growth ETF Portfolio

Schedule of Investments as of December 31, 2015

Mutual Funds—88.4% of Net Assets

 

Security Description   Shares     Value  

Investment Company Securities—88.4%

  

  

Consumer Discretionary Select Sector SPDR Fund (a) (b)

     233,456      $ 18,244,586   

Health Care Select Sector SPDR
Fund (a) (b)

     263,126        18,958,228   

iShares 20+ Year Treasury Bond
ETF (a)

     231,816        27,961,646   

iShares Core MSCI Emerging Markets
ETF (a)

     468,804        18,466,190   

iShares Core S&P Small-Cap ETF (a)

     250,478        27,580,133   

iShares MSCI Canada ETF (a)

     771,146        16,579,639   

iShares MSCI EAFE ETF (a)

     2,872,828        168,778,645   

iShares TIPS Bond ETF

     85,486        9,376,104   

SPDR Barclays High Yield Bond
ETF (a) (b)

     2,143,424        72,683,508   

SPDR Dow Jones International Real Estate ETF (a) (b)

     244,330        9,558,190   

SPDR S&P 500 ETF Trust (a) (b)

     1,135,015        231,418,208   

SPDR S&P International Small Cap ETF (b)

     994,457        28,073,521   

SPDR S&P MidCap 400 ETF
Trust (a) (b)

     126,824        32,224,710   

Technology Select Sector SPDR
Fund (a) (b)

     425,516        18,224,850   

Vanguard REIT ETF (a)

     470,132        37,483,624   

Vanguard Total Bond Market ETF (a)

     174,906        14,125,409   

WisdomTree Europe Hedged Equity Fund

     714,675        38,456,662   

WisdomTree Japan Hedged Equity Fund (a)

     611,680        30,632,934   
   

 

 

  

Total Mutual Funds
(Cost $782,637,039)

       818,826,787   
   

 

 

  
Short-Term Investments—23.4%   

Mutual Funds—23.4%

    

AIM STIT-STIC Prime Portfolio

     106,817,566        106,817,566   

State Street Navigator Securities Lending MET Portfolio (b) (c)

     110,328,140        110,328,140   
   

 

 

  

Total Short-Term Investments
(Cost $217,145,706)

       217,145,706   
   

 

 

  

Total Investments—111.8%
(Cost $999,782,745) (d)

       1,035,972,493   

Other assets and liabilities (net)—(11.8)%

       (109,082,593 ) 
   

 

 

  
Net Assets—100.0%     $ 926,889,900   
   

 

 

  

 

(a) All or a portion of the security was held on loan. As of December 31, 2015, the market value of securities loaned was $253,636,263 and the collateral received consisted of cash in the amount of $110,328,140 and non-cash collateral with a value of $150,895,278. 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) Affiliated Issuer. (See Note 6 of the Notes to Financial Statements for a summary of transactions in securities of affiliated issuers.)
(c) Represents investment of cash collateral received from securities on loan as of December 31, 2015.
(d) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $1,004,130,765. The aggregate unrealized appreciation and depreciation of investments were $64,109,000 and $(32,267,272), respectively, resulting in net unrealized appreciation of $31,841,728 for federal income tax purposes.
(ETF)— Exchange-Traded Fund

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

SSGA Growth ETF Portfolio

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2     Level 3      Total  
Mutual Funds           

Investment Company Securities

    $ 818,826,787       $ —        $ —         $ 818,826,787   

Total Short-Term Investments*

      217,145,706         —          —           217,145,706   

Total Investments

    $ 1,035,972,493       $ —        $ —         $ 1,035,972,493   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (110,328,140 )    $ —         $ (110,328,140 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

SSGA Growth ETF Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 496,258,552   

Affiliated investments at value (c) (d)

      539,713,941   

Receivable for:

   

Fund shares sold

      13,232   

Interest

      1,703   

Dividends on affiliated investments

      1,908,553   

Prepaid expenses

      2,697   
  

 

 

  

Total Assets

      1,037,898,678   

Liabilities

   

Collateral for securities loaned

      110,328,140   

Payables for:

   

Fund shares redeemed

      68,491   

Accrued Expenses:

   

Management fees

      251,271   

Distribution and service fees

      192,301   

Administration fees

      5,500   

Custodian and accounting fees

      12,678   

Deferred trustees’ fees

      81,937   

Other expenses

      68,460   
  

 

 

  

Total Liabilities

      111,008,778   
  

 

 

  

Net Assets

    $ 926,889,900   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 818,128,256   

Undistributed net investment income

      19,436,071   

Accumulated net realized gain

      53,135,825   

Unrealized appreciation on investments and affiliated investments

      36,189,748   
  

 

 

  

Net Assets

    $ 926,889,900   
  

 

 

  

Net Assets

   

Class A

    $ 26,999,539   

Class B

      892,297,907   

Class E

      7,592,454   

Capital Shares Outstanding*

   

Class A

      2,375,033   

Class B

      79,007,270   

Class E

      670,573   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 11.37   

Class B

      11.29   

Class E

      11.32   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding affiliated investments, was $512,871,777.
(b) Includes securities loaned at value of $48,583,827.
(c) Identified cost of affiliated investments was $486,910,968.
(d) Includes securities loaned at value of $205,052,436.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends from Underlying ETFs

    $ 10,505,516   

Dividends from affiliated investments

      12,094,447   

Interest

      66,366   

Securities lending income from affiliated investments

      1,074,399   
  

 

 

  

Total investment income

      23,740,728   

Expenses

   

Management fees

      3,128,020   

Administration fees

      22,280   

Custodian and accounting fees

      30,332   

Distribution and service fees—Class B

      2,391,714   

Distribution and service fees—Class E

      12,326   

Audit and tax services

      38,250   

Legal

      26,461   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      38,101   

Insurance

      6,436   

Miscellaneous

      15,108   
  

 

 

  

Total expenses

      5,744,201   
  

 

 

  

Net Investment Income

      17,996,527   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      4,975,733   

Affiliated investments

      49,415,131   

Capital gain distributions from Underlying ETFs

      4,086,388   

Capital gain distributions from affiliated investments

      151,179   
  

 

 

  

Net realized gain

      58,628,431   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (37,269,542 ) 

Affiliated investments

      (60,405,368 ) 
  

 

 

  

Net change in unrealized depreciation

      (97,674,910 ) 
  

 

 

  

Net realized and unrealized loss

      (39,046,479 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (21,049,952 ) 
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

SSGA Growth ETF Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 17,996,527      $ 19,742,858   

Net realized gain

      58,628,431        58,720,378   

Net change in unrealized depreciation

      (97,674,910 )      (24,834,629 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (21,049,952 )      53,628,607   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (622,967 )      (529,593 ) 

Class B

      (19,132,936 )      (18,433,185 ) 

Class E

      (168,956 )      (172,768 ) 

Net realized capital gains

     

Class A

      (1,510,422 )      (1,558,077 ) 

Class B

      (52,256,358 )      (60,844,497 ) 

Class E

      (442,229 )      (541,653 ) 
  

 

 

    

 

 

  

Total distributions

      (74,133,868 )      (82,079,773 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      14,743,190        25,734,790   
  

 

 

    

 

 

  

Total decrease in net assets

      (80,440,630 )      (2,716,376 ) 

Net Assets

     

Beginning of period

      1,007,330,530        1,010,046,906   
  

 

 

    

 

 

  

End of period

    $ 926,889,900      $ 1,007,330,530   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 19,436,071      $ 20,350,283   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      331,451      $ 4,025,156        402,674      $ 5,075,081   

Reinvestments

      177,634        2,133,389        175,435        2,087,670   

Redemptions

      (252,942 )      (3,012,682 )      (317,920 )      (3,945,587 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      256,143      $ 3,145,863        260,189      $ 3,217,164   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      5,551,105      $ 67,021,107        6,477,443      $ 81,025,037   

Reinvestments

      5,973,999        71,389,294        6,690,100        79,277,682   

Redemptions

      (10,457,433 )      (126,555,073 )      (11,056,086 )      (138,015,868 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      1,067,671      $ 11,855,328        2,111,457      $ 22,286,851   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      91,818      $ 1,119,844        99,689      $ 1,249,449   

Reinvestments

      51,060        611,185        60,187        714,421   

Redemptions

      (160,718 )      (1,989,030 )      (138,929 )      (1,733,095 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (17,840 )    $ (258,001 )      20,947      $ 230,775   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 14,743,190        $ 25,734,790   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

SSGA Growth ETF Portfolio

Financial Highlights

 

Selected per share data       
     Class A  
     Year Ended December 31,  
     2015     2014     2013     2012     2011  

Net Asset Value, Beginning of Period

    $ 12.55      $ 12.96      $ 11.66      $ 10.72      $ 11.11   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (Loss) from Investment Operations

           

Net investment income (a)

      0.25        0.28        0.29        0.30        0.28   

Net realized and unrealized gain (loss) on investments

      (0.45 )      0.40        1.75        1.30        (0.47 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      (0.20 )      0.68        2.04        1.60        (0.19 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less Distributions

           

Distributions from net investment income

      (0.29 )      (0.28 )      (0.29 )      (0.25 )      (0.20 ) 

Distributions from net realized capital gains

      (0.69 )      (0.81 )      (0.45 )      (0.41 )      0.00   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.98 )      (1.09 )      (0.74 )      (0.66 )      (0.20 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 11.37      $ 12.55      $ 12.96      $ 11.66      $ 10.72   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return (%) (b)

      (2.04 )      5.69        18.34        15.32        (1.87 ) 

Ratios/Supplemental Data

           

Ratio of expenses to average net assets (%) (c)

      0.34        0.34        0.33        0.35        0.35   

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

      2.08        2.21        2.36        2.72        2.51   

Portfolio turnover rate (%)

      43        56        48        43        35   

Net assets, end of period (in millions)

    $ 27.0      $ 26.6      $ 24.1      $ 15.1      $ 10.1   

 

     Class B  
     Year Ended December 31,  
     2015     2014     2013     2012     2011  

Net Asset Value, Beginning of Period

    $ 12.47      $ 12.89      $ 11.60      $ 10.67      $ 11.07   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (Loss) from Investment Operations

           

Net investment income (a)

      0.22        0.24        0.24        0.26        0.24   

Net realized and unrealized gain (loss) on investments

      (0.46 )      0.40        1.76        1.30        (0.46 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      (0.24 )      0.64        2.00        1.56        (0.22 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less Distributions

           

Distributions from net investment income

      (0.25 )      (0.25 )      (0.26 )      (0.22 )      (0.18 ) 

Distributions from net realized capital gains

      (0.69 )      (0.81 )      (0.45 )      (0.41 )      0.00   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.94 )      (1.06 )      (0.71 )      (0.63 )      (0.18 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 11.29      $ 12.47      $ 12.89      $ 11.60      $ 10.67   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return (%) (b)

      (2.31 )      5.38        18.07        15.03        (2.13 ) 

Ratios/Supplemental Data

           

Ratio of expenses to average net assets (%) (c)

      0.59        0.59        0.58        0.60        0.60   

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

      1.80        1.94        2.01        2.33        2.20   

Portfolio turnover rate (%)

      43        56        48        43        35   

Net assets, end of period (in millions)

    $ 892.3      $ 972.1      $ 977.3      $ 830.6      $ 749.5   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

SSGA Growth ETF Portfolio

Financial Highlights

 

 

Selected per share data       
     Class E  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 12.50       $ 12.92       $ 11.62       $ 10.69       $ 11.08   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.23         0.26         0.26         0.27         0.27   

Net realized and unrealized gain (loss) on investments

      (0.46 )       0.39         1.76         1.30         (0.48 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.23 )       0.65         2.02         1.57         (0.21 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.26 )       (0.26 )       (0.27 )       (0.23 )       (0.18 ) 

Distributions from net realized capital gains

      (0.69 )       (0.81 )       (0.45 )       (0.41 )       0.00   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.95 )       (1.07 )       (0.72 )       (0.64 )       (0.18 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.32       $ 12.50       $ 12.92       $ 11.62       $ 10.69   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (2.21 )       5.48         18.25         15.12         (1.99 ) 

Ratios/Supplemental Data

               

Ratio of expenses to average net assets (%) (c)

      0.49         0.49         0.48         0.50         0.50   

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

      1.88         2.04         2.13         2.45         2.34   

Portfolio turnover rate (%)

      43         56         48         43         35   

Net assets, end of period (in millions)

    $ 7.6       $ 8.6       $ 8.6       $ 7.0       $ 6.0   

 

(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) The ratio of operating expenses to average net assets does not include expenses of the Underlying ETFs in which the Portfolio invests.
(d) 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-11

Met Investors Series Trust

SSGA Growth ETF Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946- Financial Services- Investment Companies. 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 - 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 redesignations and distributions received from underlying ETFs. These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

 

MIST-12

Met Investors Series Trust

SSGA Growth ETF Portfolio

Notes to Financial Statements—December 31, 2015—(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, State Street Bank and Trust Company (the “custodian”), as the lending agent. 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 equal to at least 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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is disclosed in the footnotes to the Statement of Operations. Any outstanding loans by the Portfolio at December 31, 2015 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 or 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.

All securities on loan are classified as Mutual Funds in the Portfolio’s Schedule of Investments as of December 31, 2015, with a contractual maturity of overnight and continuous.

3. Certain Risks

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”).

Market 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, 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’ investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of their trading partners, (ii) monitoring and/or limiting the amount of their net exposure to each individual counterparty based on the adviser’s 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 (“Master Agreements”) with counterparties (approved brokers) with whom the Portfolio and the Underlying ETFs undertake a significant volume of transactions. Master Agreements govern the terms of

 

MIST-13

Met Investors Series Trust

SSGA Growth ETF Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio and the Underlying ETFs in which it invests.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 394,360,956       $ 0       $ 493,111,641   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$3,128,020      0.330 %    First $500 million
     0.300 %    Over $500 million

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. SSGA Funds Management, Inc. is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

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, LLC, 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 year ended December 31, 2015 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-14

Met Investors Series Trust

SSGA Growth ETF Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

6. Transactions in Securities of Affiliated Issuers

A summary of the Portfolio’s transactions in the securities of affiliated issuers during the year ended December 31, 2015 is as follows:

 

Underlying ETF/Security

    Number of
shares held at
December 31, 2014		     Shares
purchased		      Shares
sold		     Number of
shares held at
December 31, 2015		  

Consumer Discretionary Select Sector SPDR Fund

      —        270,915         (37,459 )      233,456   

Financial Select Sector SPDR Fund

      814,408        816,915         (1,631,323 )      —   

Health Care Select Sector SPDR Fund

      285,923        14,242         (37,039 )      263,126   

Industrial Select Sector SPDR Fund

      —        356,637         (356,637 )      —   

SPDR Barclays High Yield Bond ETF

      1,305,710        1,270,016         (432,302 )      2,143,424   

SPDR Dow Jones International Real Estate ETF

      484,180        128,043         (367,893 )      244,330   

SPDR Gold Shares

      91,483        —         (91,483 )      —   

SPDR S&P 500 ETF Trust

      1,695,816        573         (561,374 )      1,135,015   

SPDR S&P International Small Cap ETF

      967,069        157,408         (130,020 )      994,457   

SPDR S&P MidCap 400 ETF Trust

      155,826        18,014         (47,016 )      126,824   

State Street Navigator Securities Lending MET Portfolio

      214,366,249        2,166,748,006         (2,270,786,115 )      110,328,140   

Technology Select Sector SPDR Fund

      489,841        438,852         (503,177 )      425,516   

Underlying ETF/Security

    Net Realized
Gain/(Loss) on sales
of Affiliated
Investments		     Capital Gain
Distributions
from Affiliated
Investments		      Dividend Income
from Affiliated
Investments		     Ending Value
as of
December 31, 2015		  

Consumer Discretionary Select Sector SPDR Fund

    $ 101,286      $ —       $ 217,039      $ 18,244,586   

Financial Select Sector SPDR Fund

      (1,322,267 )      —         166,012        —   

Health Care Select Sector SPDR Fund

      484,998        —         279,654        18,958,228   

Industrial Select Sector SPDR Fund

      289,801        —         —        —   

SPDR Barclays High Yield Bond ETF

      (1,006,757 )      —         4,344,957        72,683,508   

SPDR Dow Jones International Real Estate ETF

      (87,303 )      —         393,603        9,558,190   

SPDR Gold Shares

      (1,844,926 )      —         —        —   

SPDR S&P 500 ETF Trust

      44,418,957        —         5,370,301        231,418,208   

SPDR S&P International Small Cap ETF

      467,274        151,179         598,729        28,073,521   

SPDR S&P MidCap 400 ETF Trust

      4,575,415        —         452,842        32,224,710   

State Street Navigator Securities Lending MET Portfolio

      —        —         1,074,399        110,328,140   

Technology Select Sector SPDR Fund

      3,338,653        —         271,310        18,224,850   
  

 

 

    

 

 

     

 

 

    

 

 

  
   $ 49,415,131      $ 151,179       $ 13,168,846      $ 539,713,941   
  

 

 

    

 

 

     

 

 

    

 

 

  

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$27,299,167    $ 20,453,344       $ 46,834,701       $ 61,626,429       $ 74,133,868       $ 82,079,773   

As of December 31, 2015, 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		      Other
Accumulated
Capital Losses		      Total  
$19,518,008    $ 57,483,846       $ 31,841,728       $ —       $ 108,843,582   

 

MIST-15

Met Investors Series Trust

SSGA Growth ETF Portfolio

Notes to Financial Statements—December 31, 2015—(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, 2015, the Portfolio had no post-enactment accumulated capital losses and no pre-enactment accumulated capital loss carryforwards.

9. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-16

Met Investors Series Trust

SSGA Growth ETF Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of SSGA Growth ETF 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 SSGA Growth ETF Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 SSGA Growth ETF Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-17

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-18

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-19

Met Investors Series Trust

SSGA Growth ETF Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

 

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-20

Met Investors Series Trust

SSGA Growth ETF Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

 

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-21

Met Investors Series Trust

SSGA Growth ETF Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

 

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

SSGA Growth ETF Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and SSGA Funds Management, Inc. regarding the Portfolio:

The Board considered and found that the advisory fee to be paid to the Adviser with respect to the Portfolio was based on services to be provided that were in addition to, rather than duplicative of, the services provided pursuant to the advisory agreements for the underlying portfolios in which the Portfolio invests.

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the three- and five-year periods ended June 30, 2015, and underperformed the median of its Performance Universe and its Lipper Index for the one-year period ended June 30, 2015. The Board further considered that the Portfolio outperformed its benchmark, the MSCI ACWI (All Country World Index), for the one- and five-year periods ended October 31, 2015 but underperformed its benchmark for the three-year period ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-l fees) were below the Expense Group median, the Expense Universe median and the Sub-Advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also noted that the Portfolio’s contractual sub-advisory fees were below the averages of the Sub-advised Expense Group and Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-22

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Managed by T. Rowe Price Associates, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A, B and E shares of the T. Rowe Price Large Cap Value Portfolio returned -3.31%, -3.59%, and -3.48%, respectively. The Portfolio’s benchmark, the Russell 1000 Value Index1, returned -3.83%.

MARKET ENVIRONMENT / CONDITIONS

U.S. equities were mixed in 2015. The first half of the year saw continued gains, while economic turmoil in China led to a sharp drop-off in the latter half. As measured by the various Russell indexes, large-cap stocks held their value better than their mid- and small-cap counterparts, and within the large-cap space, growth posted gains while value ended in negative territory.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio posted negative results for the period but outperformed its benchmark, which also declined. Broadly speaking, both sector allocation and stock selection contributed to relative outperformance.

Information Technology (“IT”) boosted relative results as the Portfolio’s stock holdings posted gains in a period when the benchmark’s holdings ended significantly down. Microsoft was a key name here as the company overcame headwinds from a weak personal computer market due to robust growth in demand for its Azure public cloud platform and Office 365 applications. We added to the Portfolio’s stake as we believe that management is on the right track to shift the firm’s long-term focus to cloud computing, which should lay a foundation for further growth. We also initiated positions in Applied Materials, NXP Semiconductors, and Juniper Networks, and eliminated a position in SanDisk.

Energy was another area of relative strength, due primarily to a favorable underweight. In an environment of declining commodity prices, Energy was by far the weakest-performing sector within the benchmark. Due to our view that commodity prices were likely to be somewhat subdued over time because of increased global supply, the Portfolio remained significantly underweight in the sector, favoring companies with strong balance sheets, access to low-cost sources of oil and natural gas, and lower cost structures that can remain competitive in a lower-priced oil environment.

In Materials, the Portfolio’s stock positioning proved beneficial, most notably its holdings in Celanese. The company benefited from strong margin growth in its AEM Plastics segment due to a combination of healthy demand, improved productivity, and lower energy and raw materials costs. Although we trimmed the Portfolio’s position on strength, we believe that cost-cutting, efficiency gains, and smart capital allocation decisions have the potential to create additional value in this chemical company. While the cyclical industries that make up this sector have faced challenges due to large swings in raw materials costs as well as economic weakness, they appear to be well positioned for an improved economic environment.

Financials lagged for the period, due to stock selection and an underweight. The Portfolio’s position in Morgan Stanley hurt here, due to weakness in its volatile and capital-intensive Fixed Income, Currencies and Commodities (“FICC”) business as well as the Federal Reserve’s decision to delay raising interest rates until December. We remain confident in the company as management continues to reduce its exposure to the FICC segment and build up its more stable and profitable wealth management business. The Financials sector represented the largest weighting in the Portfolio as of year-end, with the largest exposures in the banks, insurance, and capital markets industries. While the sector has rebounded strongly from the lows of the financial crisis, we still find valuations of select Financials to be reasonable and believe there is significant leverage in this sector to an improving U.S. economic environment, rising interest rates, and continued firming in the housing market.

 

Utilities was another area of underperformance, owing to stock choices that included AES. Emerging market currency weakness and low commodity prices have weighed on the firm. We added to the Portfolio’s position in this global utility in light of its attractive valuation, limited downside risk, and skilled management team. We also initiated positions in Xcel Energy and CenterPoint Energy and eliminated a position in NRG Energy.

The Portfolio ended the period with overweights to Consumer Discretionary and Health Care. It was roughly in line with the benchmark’s exposure in Consumer Staples, Utilities, Industrials, IT, Materials, and Telecommunication Services. At the end of the period, the Portfolio had underweights to Financials and Energy.

John D. Linehan

Heather K. McPherson

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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year        Since Inception2  
T. Rowe Price Large Cap Value Portfolio                      

Class A

        -3.31           10.88           6.22           —   

Class B

        -3.59           10.60           5.95           —   

Class E

        -3.48           —           —           3.51   
Russell 1000 Value Index        -3.83           11.27           6.16           —   

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 dates of the Class A, Class B and Class E shares are 12/11/1989, 3/22/2001 and 4/23/2014, respectively.

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 DECEMBER 31, 2015

 

Top Holdings

 

     % of
Net Assets		  
JPMorgan Chase & Co.      4.1   
General Electric Co.      3.4   
Pfizer, Inc.      3.1   
Bank of America Corp.      2.9   
Microsoft Corp.      2.9   
PG&E Corp.      2.7   
Morgan Stanley      2.7   
Johnson & Johnson      2.0   
Thermo Fisher Scientific, Inc.      2.0   
Celanese Corp.- Series A      1.9   

Top Sectors

 

     % of
Net Assets		  
Financials      24.3   
Health Care      15.1   
Industrials      12.0   
Consumer Discretionary      11.1   
Information Technology      9.5   
Utilities      7.8   
Energy      7.2   
Consumer Staples      6.8   
Materials      4.4   
Telecommunication Services      0.6   

 

MIST-2

Met Investors Series Trust

T. Rowe Price Large Cap Value 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		      Ending
Account Value
December 31,
2015		      Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual     0.56 %    $ 1,000.00       $ 979.00       $ 2.79   
   Hypothetical*     0.56 %    $ 1,000.00       $ 1,022.38       $ 2.85   

Class B(a)

    Actual     0.81 %    $ 1,000.00       $ 977.80       $ 4.04   
   Hypothetical*     0.81 %    $ 1,000.00       $ 1,021.12       $ 4.13   

Class E(a)

    Actual     0.71 %    $ 1,000.00       $ 978.10       $ 3.54   
   Hypothetical*     0.71 %    $ 1,000.00       $ 1,021.63       $ 3.62   

* 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 (184 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 December 31, 2015

Common Stocks—98.8% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—3.8%

  

Boeing Co. (The) (a)

     388,800      $ 56,216,592   

Raytheon Co.

     260,100        32,390,253   

United Technologies Corp.

     349,900        33,614,893   
   

 

 

  
      122,221,738   
   

 

 

  

Airlines—1.6%

  

Southwest Airlines Co.

     1,236,600        53,247,996   
   

 

 

  

Auto Components—1.0%

  

Johnson Controls, Inc.

     813,000        32,105,370   
   

 

 

  

Automobiles—0.9%

  

General Motors Co.

     881,800        29,990,018   
   

 

 

  

Banks—11.9%

  

Bank of America Corp.

     5,679,400        95,584,302   

Citigroup, Inc.

     968,300        50,109,525   

Fifth Third Bancorp

     1,567,500        31,506,750   

JPMorgan Chase & Co.

     1,996,600        131,835,498   

U.S. Bancorp

     622,600        26,566,342   

Wells Fargo & Co.

     914,400        49,706,784   
   

 

 

  
      385,309,201   
   

 

 

  

Beverages—1.9%

  

Coca-Cola Co. (The)

     368,500        15,830,760   

PepsiCo, Inc.

     468,500        46,812,520   
   

 

 

  
      62,643,280   
   

 

 

  

Biotechnology—3.3%

  

AbbVie, Inc.

     333,000        19,726,920   

Amgen, Inc.

     247,300        40,144,209   

Baxalta, Inc.

     728,600        28,437,258   

Gilead Sciences, Inc.

     185,000        18,720,150   
   

 

 

  
      107,028,537   
   

 

 

  

Capital Markets—6.2%

  

Ameriprise Financial, Inc.

     300,500        31,979,210   

Bank of New York Mellon Corp. (The)

     1,478,700        60,952,014   

Invesco, Ltd.

     641,100        21,464,028   

Morgan Stanley

     2,705,500        86,061,955   
   

 

 

  
      200,457,207   
   

 

 

  

Chemicals—2.9%

  

Celanese Corp. - Series A (a)

     922,300        62,098,459   

E.I. du Pont de Nemours & Co.

     487,700        32,480,820   
   

 

 

  
      94,579,279   
   

 

 

  

Commercial Services & Supplies—0.9%

  

Tyco International plc

     905,000        28,860,450   
   

 

 

  

Communications Equipment—2.5%

  

Cisco Systems, Inc.

     1,394,300        37,862,216   

Juniper Networks, Inc.

     455,000        12,558,000   

QUALCOMM, Inc.

     633,000        31,640,505   
   

 

 

  
      82,060,721   
   

 

 

  

Construction Materials—0.7%

  

Vulcan Materials Co.

     238,800      22,678,836   
   

 

 

  

Consumer Finance—1.3%

  

American Express Co.

     618,300        43,002,765   
   

 

 

  

Containers & Packaging—0.8%

  

International Paper Co.

     708,900        26,725,530   
   

 

 

  

Electric Utilities—3.4%

  

Entergy Corp.

     398,400        27,234,624   

Exelon Corp.

     994,000        27,603,380   

FirstEnergy Corp.

     1,440,500        45,707,065   

Xcel Energy, Inc.

     304,200        10,923,822   
   

 

 

  
      111,468,891   
   

 

 

  

Electronic Equipment, Instruments & Components—1.2%

  

TE Connectivity, Ltd.

     580,000        37,473,800   
   

 

 

  

Food & Staples Retailing—0.5%

  

Wal-Mart Stores, Inc.

     277,900        17,035,270   
   

 

 

  

Food Products—1.0%

  

Tyson Foods, Inc. - Class A (a)

     632,000        33,704,560   
   

 

 

  

Health Care Equipment & Supplies—1.8%

  

Medtronic plc

     756,265        58,171,904   
   

 

 

  

Health Care Providers & Services—1.0%

  

Aetna, Inc.

     301,000        32,544,120   
   

 

 

  

Hotels, Restaurants & Leisure—2.2%

  

Carnival Corp.

     983,900        53,602,872   

Las Vegas Sands Corp.

     431,300        18,908,192   
   

 

 

  
      72,511,064   
   

 

 

  

Household Products—1.6%

  

Procter & Gamble Co. (The)

     640,400        50,854,164   
   

 

 

  

Independent Power and Renewable Electricity Producers—1.4%

  

AES Corp.

     4,637,200        44,378,004   
   

 

 

  

Industrial Conglomerates—3.4%

  

General Electric Co.

     3,499,300        109,003,195   
   

 

 

  

Insurance—4.0%

  

Loews Corp.

     632,600        24,291,840   

Marsh & McLennan Cos., Inc.

     1,096,300        60,789,835   

XL Group plc

     1,148,110        44,982,950   
   

 

 

  
      130,064,625   
   

 

 

  

IT Services—0.3%

  

Western Union Co. (The) (a)

     615,400        11,021,814   
   

 

 

  

Leisure Products—1.1%

  

Mattel, Inc. (a)

     1,355,000        36,815,350   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-4

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Life Sciences Tools & Services—2.0%

  

Thermo Fisher Scientific, Inc.

     448,800      $ 63,662,280   
   

 

 

  

Machinery—0.9%

  

Illinois Tool Works, Inc.

     309,100        28,647,388   
   

 

 

  

Media—3.4%

  

Comcast Corp. - Class A

     829,100        46,786,113   

News Corp. - Class A

     777,600        10,388,736   

Twenty-First Century Fox, Inc. - Class B

     1,665,200        45,343,396   

Viacom, Inc. - Class B

     186,000        7,655,760   
   

 

 

  
      110,174,005   
   

 

 

  

Multi-Utilities—3.0%

  

CenterPoint Energy, Inc.

     452,000        8,298,720   

PG&E Corp.

     1,665,600        88,593,264   
   

 

 

  
      96,891,984   
   

 

 

  

Multiline Retail—0.9%

  

Kohl’s Corp. (a)

     601,300        28,639,919   
   

 

 

  

Oil, Gas & Consumable Fuels—7.2%

  

Apache Corp.

     815,900        36,283,073   

Canadian Natural Resources, Ltd. (a)

     1,446,500        31,577,095   

Chevron Corp.

     89,000        8,006,440   

Exxon Mobil Corp.

     691,600        53,910,220   

Hess Corp.

     618,500        29,984,880   

Occidental Petroleum Corp.

     650,100        43,953,261   

Royal Dutch Shell plc - Class A (ADR)

     653,800        29,937,502   
   

 

 

  
      233,652,471   
   

 

 

  

Pharmaceuticals—7.0%

  

Johnson & Johnson

     643,800        66,131,136   

Merck & Co., Inc.

     1,160,000        61,271,200   

Pfizer, Inc.

     3,134,600        101,184,888   
   

 

 

  
      228,587,224   
   

 

 

  

Real Estate Investment Trusts—0.9%

  

Weyerhaeuser Co.

     1,002,300        30,048,954   
   

 

 

  

Road & Rail—1.5%

  

Canadian Pacific Railway, Ltd.

     370,400        47,263,040   
   

 

 

  

Semiconductors & Semiconductor Equipment—2.6%

  

Applied Materials, Inc.

     1,547,600        28,893,692   

NXP Semiconductors NV (b)

     197,100        16,605,675   

Texas Instruments, Inc.

     726,100        39,797,541   
   

 

 

  
      85,296,908   
   

 

 

  

Software—2.9%

  

Microsoft Corp.

     1,689,100        93,711,268   
   

 

 

  

Specialty Retail—1.5%

  

Lowe’s Cos., Inc.

     650,300        49,448,812   
   

 

 

  

Tobacco—1.7%

  

Philip Morris International, Inc.

     631,100      55,480,001   
   

 

 

  

Wireless Telecommunication Services—0.7%

  

T-Mobile U.S., Inc. (b)

     538,000        21,046,560   
   

 

 

  

Total Common Stocks
(Cost $2,745,786,332)

       3,208,508,503   
   

 

 

  
Short-Term Investments—3.3%   

Mutual Funds—3.3%

  

State Street Navigator Securities Lending MET Portfolio (c)

     75,958,385        75,958,385   

T. Rowe Price Government Reserve Investment Fund (d)

     30,782,469        30,782,469   
   

 

 

  

Total Short-Term Investments
(Cost $106,740,854)

       106,740,854   
   

 

 

  

Total Investments—102.1%
(Cost $2,852,527,186) (e)

       3,315,249,357   

Other assets and liabilities (net)—(2.1)%

       (67,747,310 ) 
   

 

 

  
Net Assets—100.0%     $ 3,247,502,047   
   

 

 

  

 

(a) All or a portion of the security was held on loan. As of December 31, 2015, the market value of securities loaned was $133,062,407 and the collateral received consisted of cash in the amount of $75,958,385 and non-cash collateral with a value of $61,617,192. 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 on loan as of December 31, 2015.
(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 December 31, 2015, the aggregate cost of investments for federal income tax purposes was $2,859,791,212. The aggregate unrealized appreciation and depreciation of investments were $606,621,568 and $(151,163,423), respectively, resulting in net unrealized appreciation of $455,458,145 for federal income tax purposes.
(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 December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2     Level 3      Total  

Total Common Stocks*

    $ 3,208,508,503       $ —        $ —         $ 3,208,508,503   

Total Short-Term Investments*

      106,740,854         —          —           106,740,854   

Total Investments

    $ 3,315,249,357       $ —        $ —         $ 3,315,249,357   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (75,958,385 )    $ —         $ (75,958,385 ) 

 

* 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

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 3,284,466,888   

Affiliated investments at value (c)

      30,782,469   

Cash

      1,338,131   

Receivable for:

   

Investments sold

      12,705,951   

Fund shares sold

      50,511   

Dividends

      5,709,657   

Dividends on affiliated investments

      5,352   

Prepaid expenses

      9,538   
  

 

 

  

Total Assets

      3,335,068,497   

Liabilities

   

Collateral for securities loaned

      75,958,385   

Payables for:

   

Investments purchased

      8,642,528   

Fund shares redeemed

      849,482   

Accrued Expenses:

   

Management fees

      1,517,194   

Distribution and service fees

      253,427   

Deferred trustees’ fees

      81,937   

Other expenses

      263,497   
  

 

 

  

Total Liabilities

      87,566,450   
  

 

 

  

Net Assets

    $ 3,247,502,047   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 2,330,585,642   

Undistributed net investment income

      96,285,694   

Accumulated net realized gain

      357,908,471   

Unrealized appreciation on investments and foreign currency transactions

      462,722,240   
  

 

 

  

Net Assets

    $ 3,247,502,047   
  

 

 

  

Net Assets

   

Class A

    $ 1,899,206,976   

Class B

      933,144,320   

Class E

      415,150,751   

Capital Shares Outstanding*

   

Class A

      55,718,791   

Class B

      27,557,558   

Class E

      12,227,373   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 34.09   

Class B

      33.86   

Class E

      33.95   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding affiliated investments, was $2,821,744,717.
(b) Includes securities loaned at value of $133,062,407.
(c) Identified cost of affiliated investments was $30,782,469.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends (a)

    $ 85,340,870   

Dividends from affiliated investments

      35,894   

Securities lending income

      409,275   
  

 

 

  

Total investment income

      85,786,039   

Expenses

   

Management fees

      20,003,467   

Administration fees

      83,590   

Custodian and accounting fees

      230,837   

Distribution and service fees—Class B

      2,521,861   

Distribution and service fees—Class E

      681,499   

Audit and tax services

      40,454   

Legal

      26,460   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      157,087   

Insurance

      23,394   

Miscellaneous

      29,755   
  

 

 

  

Total expenses

      23,833,577   

Less management fee waiver

      (875,855 ) 

Less broker commission recapture

      (45,029 ) 
  

 

 

  

Net expenses

      22,912,693   
  

 

 

  

Net Investment Income

      62,873,346   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      371,096,828   

Foreign currency transactions

      (13,351 ) 
  

 

 

  

Net realized gain

      371,083,477   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (553,557,082 ) 

Foreign currency transactions

      (23 ) 
  

 

 

  

Net change in unrealized depreciation

      (553,557,105 ) 
  

 

 

  

Net realized and unrealized loss

      (182,473,628 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (119,600,282 ) 
  

 

 

  

 

(a) Net of foreign withholding taxes of $533,244.

 

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

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 62,873,346      $ 60,531,825   

Net realized gain

      371,083,477        393,601,916   

Net change in unrealized appreciation (depreciation)

      (553,557,105 )      24,973,303   
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (119,600,282 )      479,107,044   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (35,648,433 )      (39,243,194 ) 

Class B

      (15,059,345 )      (13,876,211 ) 

Class E

      (7,465,717 )      0   

Net realized capital gains

     

Class A

      (4,289,405 )      0   

Class B

      (2,134,850 )      0   

Class E

      (959,137 )      0   
  

 

 

    

 

 

  

Total distributions

      (65,556,887 )      (53,119,405 ) 
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (334,612,334 )      (303,975,132 ) 
  

 

 

    

 

 

  

Total increase (decrease) in net assets

      (519,769,503 )      122,012,507   

Net Assets

     

Beginning of period

      3,767,271,550        3,645,259,043   
  

 

 

    

 

 

  

End of period

    $ 3,247,502,047      $ 3,767,271,550   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 96,285,694      $ 57,996,158   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      378,392      $ 13,326,663        997,734      $ 32,594,203   

Reinvestments

      1,121,534        39,937,838        1,225,584        39,243,194   

Redemptions

      (6,340,406 )      (223,368,986 )      (21,907,433 )      (731,328,930 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (4,840,480 )    $ (170,104,485 )      (19,684,115 )    $ (659,491,533 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      1,707,628      $ 59,016,979        3,535,782      $ 117,370,782   

Reinvestments

      485,300        17,194,195        435,537        13,876,211   

Redemptions

      (5,295,784 )      (184,254,758 )      (6,650,873 )      (222,121,518 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (3,102,856 )    $ (108,043,584 )      (2,679,554 )    $ (90,874,525 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E(a)

         

Sales

      355,820      $ 12,374,855        474,511      $ 15,834,636   

Fund subscription in kind

      0        0        15,369,962        498,447,864  (b) 

Reinvestments

      237,320        8,424,854        0        0   

Redemptions

      (2,214,035 )      (77,263,974 )      (1,996,205 )      (67,891,574 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (1,620,895 )    $ (56,464,265 )      13,848,268      $ 446,390,926   
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (334,612,334 )      $ (303,975,132 ) 
    

 

 

      

 

 

  

 

(a) Commencement of operations was April 23, 2014.
(b) Includes cash and securities amounting to $2,386,045 and $496,061,819, respectively. Securities were valued at market as of April 25, 2014.

 

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  
     Year Ended December 31,  
     2015      2014     2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 35.94       $ 32.15      $ 24.42       $ 21.00       $ 22.00   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (a)

      0.66         0.57        0.48         0.47         0.42   

Net realized and unrealized gain (loss) on investments

      (1.82 )       3.73        7.74         3.33         (1.23 ) 
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total from investment operations

      (1.16 )       4.30        8.22         3.80         (0.81 ) 
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.62 )       (0.51 )      (0.49 )       (0.38 )       (0.19 ) 

Distributions from net realized capital gains

      (0.07 )       0.00        0.00         0.00         0.00   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total distributions

      (0.69 )       (0.51 )      (0.49 )       (0.38 )       (0.19 ) 
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 34.09       $ 35.94      $ 32.15       $ 24.42       $ 21.00   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (3.31 )       13.57        34.09         18.27         (3.77 ) 

Ratios/Supplemental Data

              

Gross ratio of expenses to average net assets (%)

      0.59         0.59        0.59         0.59         0.58   

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

      0.56         0.56        0.56         0.56         0.56   

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

      1.88         1.69        1.69         2.06         1.96   

Portfolio turnover rate (%)

      33         19  (d)      14         15         104   

Net assets, end of period (in millions)

    $ 1,899.2       $ 2,176.5      $ 2,580.1       $ 2,019.1       $ 1,922.6   
     Class B  
     Year Ended December 31,  
     2015      2014     2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 35.71       $ 31.95      $ 24.27       $ 20.87       $ 21.87   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (a)

      0.57         0.48        0.41         0.41         0.33   

Net realized and unrealized gain (loss) on investments

      (1.83 )       3.71        7.70         3.31         (1.20 ) 
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total from investment operations

      (1.26 )       4.19        8.11         3.72         (0.87 ) 
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.52 )       (0.43 )      (0.43 )       (0.32 )       (0.13 ) 

Distributions from net realized capital gains

      (0.07 )       0.00        0.00         0.00         0.00   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total distributions

      (0.59 )       (0.43 )      (0.43 )       (0.32 )       (0.13 ) 
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 33.86       $ 35.71      $ 31.95       $ 24.27       $ 20.87   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (3.59 )       13.28        33.77         17.98         (4.01 ) 

Ratios/Supplemental Data

              

Gross ratio of expenses to average net assets (%)

      0.84         0.84        0.84         0.84         0.83   

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

      0.81         0.81        0.81         0.81         0.81   

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

      1.63         1.45        1.44         1.81         1.52   

Portfolio turnover rate (%)

      33         19  (d)      14         15         104   

Net assets, end of period (in millions)

    $ 933.1       $ 1,094.7      $ 1,065.2       $ 904.1       $ 883.6   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Financial Highlights

 

Selected per share data              
     Class E  
     Year Ended
December 31,		  
     2015      2014(e)  

Net Asset Value, Beginning of Period

    $ 35.82       $ 32.61   
  

 

 

     

 

 

  

Income (Loss) from Investment Operations

      

Net investment income (a)

      0.60         0.39   

Net realized and unrealized gain (loss) on investments

      (1.82 )       2.82   
  

 

 

     

 

 

  

Total from investment operations

      (1.22 )       3.21   
  

 

 

     

 

 

  

Less Distributions

      

Distributions from net investment income

      (0.58 )       0.00   

Distributions from net realized capital gains

      (0.07 )       0.00   
  

 

 

     

 

 

  

Total distributions

      (0.65 )       0.00   
  

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 33.95       $ 35.82   
  

 

 

     

 

 

  

Total Return (%) (b)

      (3.48 )       9.84  (f) 

Ratios/Supplemental Data

      

Gross ratio of expenses to average net assets (%)

      0.74         0.74  (g) 

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

      0.71         0.71  (g) 

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

      1.73         1.65  (g) 

Portfolio turnover rate (%)

      33         19  (d) 

Net assets, end of period (in millions)

    $ 415.2       $ 496.0   

 

(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) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).
(d) Excludes the effect of subscriptions in kind activity for the year ended December 31, 2014.
(e) Commencement of operations was April 23, 2014.
(f) Periods less than one year are not computed on an annualized basis.
(g) Computed on an annualized basis.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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, 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally categorized as Level 2 within the fair value hierarchy.

 

MIST-11

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 broker commission recapture, corporate actions and foreign currency transactions. These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

 

MIST-12

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(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.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2015, with a contractual maturity of overnight and continuous.

3. Certain Risks

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”).

Market 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, 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

 

MIST-13

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(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.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 1,119,183,919       $ 0       $ 1,396,897,468   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation 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%.
  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 year ended December 31, 2015, the Adviser earned management fees in the amount of $20,003,467 for managing the Portfolio.

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. T. Rowe Price Associates, Inc. is compensated by MetLife Advisers to provide subadvisory services for 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.

If the aforementioned conditions are met, T. Rowe Price will waive its subadvisory fee paid by MetLife Advisers by 5% for combined Trust and MSF average daily net assets over $750 million, 7.5% for the next $1.5 billion of combined assets, and 10% for amounts over $3 billion. MetLife Advisers has voluntarily agreed to reduce its advisory fee for the Portfolio by the amount waived (if any) by T. Rowe Price for the Portfolio pursuant to this voluntary subadvisory fee waiver. Because these fee waivers are voluntary, and not contractual, they may be discontinued by T. Rowe Price and MetLife Advisers at any time. Amounts voluntarily waived for the year ended December 31, 2015 are shown as management fee waivers in the Statement of Operations.

 

MIST-14

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(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 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, LLC, 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 year ended December 31, 2015 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 year ended December 31, 2015 is as follows:

 

Security Description

    Number of
shares held at
December 31, 2014		      Shares
purchased		      Shares
sold		     Number of
shares held at
December 31, 2015		      Realized
Gain on
shares
sold		      Income earned
from affiliates
during the
period		  

T. Rowe Price Government Reserve Investment Fund

      66,560,775         496,142,784         (531,921,090 )      30,782,469       $ 0       $ 35,894   

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$58,173,495    $ 53,119,405       $ 7,383,392       $ —       $ 65,556,887       $ 53,119,405   

As of December 31, 2015, 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		      Other
Accumulated
Capital Losses		      Total  
$98,924,951    $ 362,615,179       $ 455,458,211       $ —       $ 916,998,341   

 

MIST-15

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Notes to Financial Statements—December 31, 2015—(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, 2015, the Portfolio had no post-enactment accumulated capital losses and no pre-enactment accumulated capital loss carryforwards.

9. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-16

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of T. Rowe Price Large Cap Value 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 T. Rowe Price Large Cap Value Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 T. Rowe Price Large Cap Value Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-17

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-18

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-19

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

 

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-20

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

 

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

 

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-21

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

 

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

T. Rowe Price Large Cap Value Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and T. Rowe Price Associates, Inc. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the three- and five-year periods ended June 30, 2015, and underperformed the median of its Performance Universe and its Lipper Index for the one-year period ended June 30, 2015. The Board also considered that the Portfolio performed equally to its benchmark, the Russell 1000 Value Index, for the one-year period ended October 31, 2015, outperformed its benchmark for the three-year period ended October 31, 2015, and underperformed its benchmark for the five-year period ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-1 fees) were below the median of the Expense Group, Expense Universe, and Sub-advised Expense Universe. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also noted that the Portfolio’s contractual sub-advisory fees were below the average of the Sub-advised Expense Group but above the average of the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-22

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Managed by T. Rowe Price Associates, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A, B, and E shares of the T. Rowe Price Mid Cap Growth Portfolio returned 6.88%, 6.67%, and 6.72%, respectively. The Portfolio’s benchmark, the Russell Midcap Growth Index1, returned -0.20%.

MARKET ENVIRONMENT / CONDITIONS

U.S. equities were mixed in 2015. The first half of the year saw continued gains, while economic turmoil in China led to a sharp drop-off in the latter half. As measured by the various Russell indexes, large-cap stocks held their value better than their mid- and small-cap counterparts, and within the mid-cap space, growth posted smaller losses than value. Within the Russell Midcap Growth Index, Consumer Staples led returns, followed by Health Care. Energy ended sharply down, and Utilities and Materials also posted losses.

PORTFOLIO REVIEW / PERIOD END POSITIONING

In the 12-month period ended December 31, 2015, the Portfolio outpaced its benchmark, the Russell Midcap Growth Index. Broadly speaking, stock selection accounted for the outperformance, and sector allocation detracted.

Information Technology (“IT”) proved to be the greatest contributor to relative results, due to stock choices that included Altera and Verisign. Altera shares rose when Intel announced it would acquire the company, while Verisign benefited from strong results driven in part by a surge in demand for its services in China. With strong balance sheets and shareholder-oriented management teams, many IT names have compelling prospects, and we are particularly interested in the potential for new technologies to create competitive advantages for firms nimble enough to seize them.

In Consumer Discretionary, the Portfolio benefited from stock positioning as well as a favorable underweight. Both Norwegian Cruise Line Holdings and O’Reilly Automotive added relative value, as the former company reported accelerating booking volumes and the latter benefited from lower gas prices and improved employment numbers, both of which lead to more need for car repair. Following the financial crisis, consumer spending declined significantly. It will take time for most households to repair their balance sheets, and as a result, we are cautious in this sector, and the Portfolio’s overall allocation is lower than it has been historically. We continue to focus on firms that dominate their respective market niches.

Industrials and Business Services was another area of relative strength, owing to stock selection. Pall Corp. was the leading name within this sector, following news that industrial conglomerate Danaher would acquire the firm at a significant premium. Within the 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.

Consumer Staples was the primary detractor, due in roughly equal measure to underperforming stock holdings and a detrimental underweight. Sprouts Farmers Market and Whole Foods Market both hurt relative results here. Whole Foods faced greater competitive pressure from other organic grocers as well as problems with inaccurate pricing, while strong results for Spouts Farmers Market, another organic-oriented retailer, were outweighed by investor concerns about competition from conventional grocers. The Portfolio tends to have limited exposure to Consumer Staples names, which rarely meet our growth criteria.

At the end of the period, the Portfolio was overweight relative to the benchmark in the Health Care, Industrials and Business Services, Telecommunication Services, Energy, and Materials sectors and was essentially equal weight in Utilities. The Portfolio had underweights to Consumer Discretionary, Consumer Staples, Financials, and IT.

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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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 YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year  
T. Rowe Price Mid Cap Growth Portfolio                 

Class A

        6.88           13.20           10.16   

Class B

        6.67           12.93           9.89   

Class E

        6.72           13.03           10.00   
Russell Midcap Growth Index        -0.20           11.54           8.16   

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
Fiserv, Inc.      2.4   
Norwegian Cruise Line Holdings, Ltd.      1.8   
VeriSign, Inc.      1.8   
Textron, Inc.      1.7   
Alkermes plc      1.7   
CarMax, Inc.      1.7   
Intuitive Surgical, Inc.      1.6   
Roper Technologies, Inc.      1.5   
AutoZone, Inc.      1.5   
IHS, Inc.- Class A      1.4   

 

Top Sectors

 

     % of
Net Assets		  
Industrials      18.9   
Health Care      18.7   
Information Technology      18.5   
Consumer Discretionary      16.9   
Financials      11.2   
Materials      4.9   
Consumer Staples      2.7   
Telecommunication Services      1.4   
Energy      1.4   
Utilities      0.1   

 

MIST-2

Met Investors Series Trust

T. Rowe Price Mid Cap 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, July 1, 2015 through December 31, 2015.

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
July 1,
2015		      Ending
Account Value
December 31,
2015		      Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual     0.73 %    $ 1,000.00       $ 989.60       $ 3.66   
   Hypothetical*     0.73 %    $ 1,000.00       $ 1,021.53       $ 3.72   

Class B(a)

    Actual     0.98 %    $ 1,000.00       $ 988.10       $ 4.91   
   Hypothetical*     0.98 %    $ 1,000.00       $ 1,020.27       $ 4.99   

Class E(a)

    Actual     0.88 %    $ 1,000.00       $ 988.30       $ 4.41   
   Hypothetical*     0.88 %    $ 1,000.00       $ 1,020.77       $ 4.48   

* 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 (184 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 December 31, 2015

Common Stocks—94.3% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—2.1%

  

DigitalGlobe, Inc. (a)

     368,000      $ 5,762,880   

Textron, Inc.

     676,000        28,398,760   
   

 

 

  
      34,161,640   
   

 

 

  

Auto Components—0.9%

  

BorgWarner, Inc.

     335,000        14,482,050   
   

 

 

  

Automobiles—0.7%

  

Ferrari NV (a) (b)

     74,000        3,552,000   

Harley-Davidson, Inc. (b)

     127,000        5,764,530   

Tesla Motors, Inc. (a) (b)

     12,000        2,880,120   
   

 

 

  
      12,196,650   
   

 

 

  

Biotechnology—4.0%

  

Alkermes plc (a)

     354,000        28,100,520   

Alnylam Pharmaceuticals, Inc. (a) (b)

     33,000        3,106,620   

Baxalta, Inc.

     352,000        13,738,560   

Incyte Corp. (a) (b)

     118,000        12,797,100   

Vertex Pharmaceuticals, Inc. (a)

     67,000        8,430,610   
   

 

 

  
      66,173,410   
   

 

 

  

Building Products—1.0%

  

Allegion plc

     254,000        16,743,680   
   

 

 

  

Capital Markets—2.2%

  

E*Trade Financial Corp. (a)

     201,000        5,957,640   

LPL Financial Holdings, Inc. (b)

     238,000        10,150,700   

Oaktree Capital Group LLC

     78,000        3,722,160   

TD Ameritrade Holding Corp.

     469,000        16,278,990   
   

 

 

  
      36,109,490   
   

 

 

  

Chemicals—2.6%

  

Air Products & Chemicals, Inc.

     101,000        13,141,110   

Ashland, Inc. (b)

     79,000        8,113,300   

Celanese Corp. - Series A

     151,000        10,166,830   

RPM International, Inc.

     268,000        11,808,080   
   

 

 

  
      43,229,320   
   

 

 

  

Commercial Services & Supplies—1.1%

  

KAR Auction Services, Inc.

     100,000        3,703,000   

Waste Connections, Inc.

     271,000        15,262,720   
   

 

 

  
      18,965,720   
   

 

 

  

Communications Equipment—0.7%

  

Juniper Networks, Inc.

     59,000        1,628,400   

Lumentum Holdings, Inc. (a)

     101,000        2,224,020   

Palo Alto Networks, Inc. (a)

     34,000        5,988,760   

Viavi Solutions, Inc. (a)

     250,000        1,522,500   
   

 

 

  
      11,363,680   
   

 

 

  

Construction Materials—0.7%

  

Martin Marietta Materials, Inc. (b)

     84,000        11,472,720   
   

 

 

  

Containers & Packaging—0.9%

  

Ball Corp.

     201,000      $ 14,618,730   
   

 

 

  

Diversified Consumer Services—0.5%

  

ServiceMaster Global Holdings, Inc. (a)

     194,000        7,612,560   
   

 

 

  

Diversified Financial Services—3.9%

  

CBOE Holdings, Inc.

     270,000        17,523,000   

FactSet Research Systems, Inc. (b)

     47,000        7,640,790   

Intercontinental Exchange, Inc.

     74,000        18,963,240   

MSCI, Inc.

     287,000        20,701,310   
   

 

 

  
      64,828,340   
   

 

 

  

Electrical Equipment—2.9%

  

Acuity Brands, Inc.

     57,000        13,326,600   

AMETEK, Inc.

     305,000        16,344,950   

Sensata Technologies Holding N.V. (a)

     402,000        18,516,120   
   

 

 

  
      48,187,670   
   

 

 

  

Electronic Equipment, Instruments & Components—1.8%

  

Cognex Corp.

     99,000        3,343,230   

FEI Co. (b)

     141,000        11,250,390   

Keysight Technologies, Inc. (a)

     511,000        14,476,630   
   

 

 

  
      29,070,250   
   

 

 

  

Food & Staples Retailing—1.3%

  

Rite Aid Corp. (a)

     1,002,000        7,855,680   

Sprouts Farmers Market, Inc. (a) (b)

     335,000        8,907,650   

Whole Foods Market, Inc. (b)

     166,000        5,561,000   
   

 

 

  
      22,324,330   
   

 

 

  

Food Products—1.3%

  

Blue Buffalo Pet Products, Inc. (a) (b)

     36,000        673,560   

Keurig Green Mountain, Inc.

     33,000        2,969,340   

TreeHouse Foods, Inc. (a)

     84,000        6,590,640   

WhiteWave Foods Co. (The) (a)

     301,000        11,711,910   
   

 

 

  
      21,945,450   
   

 

 

  

Gas Utilities—0.1%

  

Atmos Energy Corp.

     28,000        1,765,120   
   

 

 

  

Health Care Equipment & Supplies—6.8%

  

Cooper Cos., Inc. (The) (b)

     125,000        16,775,000   

DENTSPLY International, Inc.

     338,000        20,567,300   

Hologic, Inc. (a)

     218,000        8,434,420   

IDEXX Laboratories, Inc. (a) (b)

     169,000        12,323,480   

Intuitive Surgical, Inc. (a)

     47,000        25,669,520   

Teleflex, Inc. (b)

     168,000        22,083,600   

West Pharmaceutical Services, Inc.

     105,000        6,323,100   
   

 

 

  
      112,176,420   
   

 

 

  

Health Care Providers & Services—3.2%

  

Envision Healthcare Holdings, Inc. (a)

     234,000        6,076,980   

Henry Schein, Inc. (a) (b)

     135,000        21,355,650   

MEDNAX, Inc. (a)

     237,000        16,983,420   

 

See accompanying notes to financial statements.

 

MIST-4

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Health Care Providers & Services—(Continued)

  

Universal Health Services, Inc. - Class B

     67,000      $ 8,005,830   
   

 

 

  
      52,421,880   
   

 

 

  

Health Care Technology—0.8%

  

IMS Health Holdings, Inc. (a)

     319,000        8,124,930   

Veeva Systems, Inc. - Class A (a) (b)

     200,000        5,770,000   
   

 

 

  
      13,894,930   
   

 

 

  

Hotels, Restaurants & Leisure—5.3%

  

Aramark

     306,000        9,868,500   

Chipotle Mexican Grill, Inc. (a) (b)

     4,000        1,919,400   

Choice Hotels International, Inc. (b)

     201,000        10,132,410   

Marriott International, Inc. - Class A (b)

     235,000        15,754,400   

MGM Resorts International (a)

     348,000        7,906,560   

Norwegian Cruise Line Holdings, Ltd. (a)

     512,000        30,003,200   

Royal Caribbean Cruises, Ltd.

     117,000        11,841,570   
   

 

 

  
      87,426,040   
   

 

 

  

Household Durables—0.4%

  

Harman International Industries, Inc.

     67,000        6,312,070   
   

 

 

  

Industrial Conglomerates—1.5%

  

Roper Technologies, Inc.

     135,000        25,621,650   
   

 

 

  

Insurance—3.7%

  

FNF Group

     675,000        23,402,250   

Progressive Corp. (The)

     524,000        16,663,200   

Willis Group Holdings plc

     437,000        21,225,090   
   

 

 

  
      61,290,540   
   

 

 

  

Internet & Catalog Retail—0.5%

  

TripAdvisor, Inc. (a)

     100,000        8,525,000   
   

 

 

  

Internet Software & Services—3.7%

  

Akamai Technologies, Inc. (a)

     301,000        15,841,630   

GrubHub, Inc. (a) (b)

     53,000        1,282,600   

LinkedIn Corp. - Class A (a)

     17,000        3,826,360   

Match Group, Inc. (a) (b)

     163,000        2,208,650   

VeriSign, Inc. (a) (b)

     337,000        29,440,320   

Zillow Group, Inc. - Class A (a) (b)

     134,000        3,489,360   

Zillow Group, Inc. - Class C (a) (b)

     201,000        4,719,480   
   

 

 

  
      60,808,400   
   

 

 

  

IT Services—6.4%

  

CoreLogic, Inc. (a)

     338,000        11,444,680   

Fidelity National Information Services, Inc.

     169,000        10,241,400   

Fiserv, Inc. (a)

     437,000        39,968,020   

Gartner, Inc. (a)

     127,000        11,518,900   

Global Payments, Inc.

     268,000        17,288,680   

Vantiv, Inc. - Class A (a)

     337,000        15,980,540   
   

 

 

  
      106,442,220   
   

 

 

  

Life Sciences Tools & Services—2.9%

  

Agilent Technologies, Inc.

     473,000      19,776,130   

Bruker Corp. (a)

     636,000        15,435,720   

Illumina, Inc. (a)

     38,000        7,293,910   

Mettler-Toledo International, Inc. (a)

     15,000        5,086,950   
   

 

 

  
      47,592,710   
   

 

 

  

Machinery—3.0%

  

Colfax Corp. (a) (b)

     268,000        6,257,800   

IDEX Corp.

     284,000        21,757,240   

Middleby Corp. (The) (a) (b)

     51,000        5,501,370   

Rexnord Corp. (a)

     141,000        2,554,920   

WABCO Holdings, Inc. (a)

     50,000        5,113,000   

Xylem, Inc.

     251,000        9,161,500   
   

 

 

  
      50,345,830   
   

 

 

  

Metals & Mining—0.7%

  

Franco-Nevada Corp. (b)

     2,000        91,500   

Franco-Nevada Corp. (Toronto Exchange)

     266,000        12,168,678   
   

 

 

  
      12,260,178   
   

 

 

  

Multiline Retail—1.2%

  

Dollar General Corp.

     270,000        19,404,900   
   

 

 

  

Oil, Gas & Consumable Fuels—1.4%

  

Cimarex Energy Co.

     26,000        2,323,880   

Concho Resources, Inc. (a)

     67,000        6,221,620   

EQT Corp.

     234,000        12,198,420   

Pioneer Natural Resources Co.

     17,000        2,131,460   
   

 

 

  
      22,875,380   
   

 

 

  

Pharmaceuticals—1.0%

  

Catalent, Inc. (a) (b)

     435,000        10,888,050   

Mallinckrodt plc (a)

     80,000        5,970,400   
   

 

 

  
      16,858,450   
   

 

 

  

Professional Services—5.4%

  

Equifax, Inc.

     202,000        22,496,740   

IHS, Inc. - Class A (a)

     202,000        23,922,860   

ManpowerGroup, Inc.

     119,000        10,030,510   

Towers Watson & Co. - Class A

     100,000        12,846,000   

TransUnion (a)

     102,000        2,812,140   

Verisk Analytics, Inc. (a) (b)

     235,000        18,066,800   
   

 

 

  
      90,175,050   
   

 

 

  

Real Estate Management & Development—1.1%

  

Jones Lang LaSalle, Inc.

     101,000        16,145,860   

WeWork Cos., Inc. - Class A (a) (c) (d)

     47,810        1,572,451   
   

 

 

  
      17,718,311   
   

 

 

  

Road & Rail—1.7%

  

J.B. Hunt Transport Services, Inc.

     151,000        11,077,360   

Kansas City Southern (b)

     181,000        13,515,270   

Old Dominion Freight Line, Inc. (a)

     67,500        3,987,225   
   

 

 

  
      28,579,855   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Semiconductors & Semiconductor Equipment—2.2%

  

Atmel Corp.

     1,132,000      $ 9,746,520   

Microchip Technology, Inc. (b)

     403,000        18,755,620   

Xilinx, Inc.

     184,000        8,642,480   
   

 

 

  
      37,144,620   
   

 

 

  

Software—3.8%

  

Atlassian Corp. plc - Class A (a)

     73,000        2,195,840   

Atlassian Corp. plc - Class A (Restricted Shares) (a) (c) (d)

     229,804        6,221,254   

Fortinet, Inc. (a)

     134,000        4,176,780   

Guidewire Software, Inc. (a)

     23,000        1,383,680   

Mobileye NV (a) (b)

     124,000        5,242,720   

NetSuite, Inc. (a) (b)

     44,000        3,723,280   

Red Hat, Inc. (a)

     287,000        23,766,470   

ServiceNow, Inc. (a)

     33,000        2,856,480   

Splunk, Inc. (a) (b)

     50,000        2,940,500   

SS&C Technologies Holdings, Inc.

     134,000        9,148,180   
   

 

 

  
      61,655,184   
   

 

 

  

Specialty Retail—6.1%

  

AutoZone, Inc. (a) (b)

     34,000        25,224,940   

CarMax, Inc. (a) (b)

     506,000        27,308,820   

L Brands, Inc.

     151,000        14,468,820   

Michaels Cos., Inc. (The) (a) (b)

     420,000        9,286,200   

O’Reilly Automotive, Inc. (a)

     94,000        23,821,480   
   

 

 

  
      100,110,260   
   

 

 

  

Textiles, Apparel & Luxury Goods—1.4%

  

Hanesbrands, Inc.

     558,000        16,421,940   

PVH Corp.

     84,000        6,186,600   
   

 

 

  
      22,608,540   
   

 

 

  

Wireless Telecommunication Services—1.4%

  

T-Mobile U.S., Inc. (a)

     607,000        23,745,840   
   

 

 

  

Total Common Stocks
(Cost $1,091,785,557)

       1,561,245,068   
   

 

 

  
Convertible Preferred Stocks—0.3%   

Internet Software & Services—0.0%

  

LivingSocial, Inc. - Series E (a) (c) (d)

     757,490        0   
   

 

 

  

Real Estate Management & Development—0.3%

  

WeWork Cos., Inc. - Series D1 (a) (c) (d)

     89,839        2,954,766   

WeWork Cos., Inc. - Series D2 (a) (c) (d)

     70,588        2,321,609   
   

 

 

  
      5,276,375   
   

 

 

  

Total Convertible Preferred Stocks
(Cost $6,951,872)

       5,276,375   
   

 

 

  
Short-Term Investments—17.8%   
Security Description   Shares     Value  

Mutual Funds—17.8%

  

State Street Navigator Securities Lending MET Portfolio (e)

     204,921,339      204,921,339   

T. Rowe Price Government Reserve Investment Fund (f)

     89,281,601        89,281,601   
   

 

 

  

Total Short-Term Investments
(Cost $294,202,940)

       294,202,940   
   

 

 

  

Total Investments—112.4%
(Cost $1,392,940,369) (g)

       1,860,724,383   

Other assets and liabilities (net)—(12.4)%

       (205,933,941 ) 
   

 

 

  
Net Assets—100.0%     $ 1,654,790,442   
   

 

 

  

 

(a) Non-income producing security.
(b) All or a portion of the security was held on loan. As of December 31, 2015, the market value of securities loaned was $255,718,206 and the collateral received consisted of cash in the amount of $204,921,339 and non-cash collateral with a value of $59,795,064. 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 December 31, 2015, the market value of restricted securities was $13,070,080, which is 0.8% 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 December 31, 2015, these securities represent 0.8% of net assets.
(e) Represents investment of cash collateral received from securities on loan as of December 31, 2015.
(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 December 31, 2015, the aggregate cost of investments for federal income tax purposes was $1,395,563,880. The aggregate unrealized appreciation and depreciation of investments were $503,478,133 and $(38,317,630), respectively, resulting in net unrealized appreciation of $465,160,503 for federal income tax purposes.

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Schedule of Investments as of December 31, 2015

 

 

Restricted Securities

    Acquisition
Date		      Shares      Cost      Value  

Atlassian Corp. plc - Class A (Restricted Shares)

      04/09/14         229,804       $ 3,676,864       $ 6,221,254   

LivingSocial, Inc.- Series E

      04/01/11         757,490         4,280,576         0   

WeWork Cos., Inc. - Class A

      12/09/14 - 05/26/15         47,810         722,353         1,572,451   

WeWork Cos., Inc. - Series D1

      12/09/14         89,839         1,495,924         2,954,766   

WeWork Cos., Inc. - Series D2

      12/09/14         70,588         1,175,372         2,321,609   
           

 

 

  
            $ 13,070,080   
           

 

 

  

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2      Level 3      Total  
Common Stocks            

Aerospace & Defense

    $ 34,161,640       $ —         $ —         $ 34,161,640   

Auto Components

      14,482,050         —           —           14,482,050   

Automobiles

      12,196,650         —           —           12,196,650   

Biotechnology

      66,173,410         —           —           66,173,410   

Building Products

      16,743,680         —           —           16,743,680   

Capital Markets

      36,109,490         —           —           36,109,490   

Chemicals

      43,229,320         —           —           43,229,320   

Commercial Services & Supplies

      18,965,720         —           —           18,965,720   

Communications Equipment

      11,363,680         —           —           11,363,680   

Construction Materials

      11,472,720         —           —           11,472,720   

Containers & Packaging

      14,618,730         —           —           14,618,730   

Diversified Consumer Services

      7,612,560         —           —           7,612,560   

Diversified Financial Services

      64,828,340         —           —           64,828,340   

Electrical Equipment

      48,187,670         —           —           48,187,670   

Electronic Equipment, Instruments & Components

      29,070,250         —           —           29,070,250   

Food & Staples Retailing

      22,324,330         —           —           22,324,330   

Food Products

      21,945,450         —           —           21,945,450   

Gas Utilities

      1,765,120         —           —           1,765,120   

Health Care Equipment & Supplies

      112,176,420         —           —           112,176,420   

Health Care Providers & Services

      52,421,880         —           —           52,421,880   

Health Care Technology

      13,894,930         —           —           13,894,930   

Hotels, Restaurants & Leisure

      87,426,040         —           —           87,426,040   

Household Durables

      6,312,070         —           —           6,312,070   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Schedule of Investments as of December 31, 2015

Fair Value Hierarchy—(Continued)

 

Description    Level 1      Level 2     Level 3      Total  

Industrial Conglomerates

    $ 25,621,650       $ —        $ —         $ 25,621,650   

Insurance

      61,290,540         —          —           61,290,540   

Internet & Catalog Retail

      8,525,000         —          —           8,525,000   

Internet Software & Services

      60,808,400         —          —           60,808,400   

IT Services

      106,442,220         —          —           106,442,220   

Life Sciences Tools & Services

      47,592,710         —          —           47,592,710   

Machinery

      50,345,830         —          —           50,345,830   

Metals & Mining

      12,260,178         —          —           12,260,178   

Multiline Retail

      19,404,900         —          —           19,404,900   

Oil, Gas & Consumable Fuels

      22,875,380         —          —           22,875,380   

Pharmaceuticals

      16,858,450         —          —           16,858,450   

Professional Services

      90,175,050         —          —           90,175,050   

Real Estate Management & Development

      16,145,860         —          1,572,451         17,718,311   

Road & Rail

      28,579,855         —          —           28,579,855   

Semiconductors & Semiconductor Equipment

      37,144,620         —          —           37,144,620   

Software

      55,433,930         6,221,254          —           61,655,184   

Specialty Retail

      100,110,260         —          —           100,110,260   

Textiles, Apparel & Luxury Goods

      22,608,540         —          —           22,608,540   

Wireless Telecommunication Services

      23,745,840         —          —           23,745,840   

Total Common Stocks

      1,553,451,363         6,221,254        1,572,451         1,561,245,068   

Total Convertible Preferred Stocks*

      —           —          5,276,375         5,276,375   

Total Short-Term Investments*

      294,202,940         —          —           294,202,940   

Total Investments

    $ 1,847,654,303       $ 6,221,254      $ 6,848,826       $ 1,860,724,383   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (204,921,339 )    $ —         $ (204,921,339 ) 

 

* 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,
2014		      Change in
Unrealized
Appreciation/
(Depreciation)		     Purchases      Transfers
out of
Level 3		     Balance as of
December 31,
2015		      Change in Unrealized
Appreciation/
(Depreciation) from
Investments Still Held at
December 31,  2015		  
Common Stock                

Software

    $ 4,366,276       $ —      $ —       $ (4,366,276 )    $ —       $ —   

Real Estate Management & Development

      300,986         850,099        421,366         —        1,572,451         850,099   
Convertible Preferred Stock                

Internet Software & Services

      181,797         (181,797 )      —         —        0       $ (181,797 ) 

Real Estate Management & Development

      2,671,296         2,605,079        —         —        5,276,375         2,605,079   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total

    $ 7,520,355       $ 3,273,381      $ 421,366       $ (4,366,276 )    $ 6,848,826       $ 3,273,381   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Common Stock in the amount of $4,366,276 was transferred out of Level 3 due to the initial public offering of the securities, which resulted in the trading of the securities on a recognized exchange and the availability of quoted prices in an active market.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 1,771,442,782   

Affiliated investments at value (c)

      89,281,601   

Cash

      891,241   

Receivable for:

   

Investments sold

      27,026   

Fund shares sold

      223,434   

Dividends

      429,960   

Dividends on affiliated investments

      11,653   

Prepaid expenses

      4,651   
  

 

 

  

Total Assets

      1,862,312,348   

Liabilities

   

Collateral for securities loaned

      204,921,339   

Payables for:

   

Investments purchased

      516,853   

Fund shares redeemed

      573,996   

Accrued Expenses:

   

Management fees

      998,197   

Distribution and service fees

      221,881   

Deferred trustees’ fees

      81,937   

Other expenses

      207,703   
  

 

 

  

Total Liabilities

      207,521,906   
  

 

 

  

Net Assets

    $ 1,654,790,442   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 949,106,025   

Accumulated net investment loss

      (2,001,646 ) 

Accumulated net realized gain

      239,902,049   

Unrealized appreciation on investments

      467,784,014   
  

 

 

  

Net Assets

    $ 1,654,790,442   
  

 

 

  

Net Assets

   

Class A

    $ 602,339,429   

Class B

      1,030,306,910   

Class E

      22,144,103   

Capital Shares Outstanding*

   

Class A

      52,861,399   

Class B

      95,673,170   

Class E

      2,008,994   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 11.39   

Class B

      10.77   

Class E

      11.02   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Includes securities loaned at value of $255,718,206.
(b) Identified cost of investments, excluding affiliated investments, was $1,303,658,768.
(c) Identified cost of affiliated investments was $89,281,601.

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends (a)

    $ 11,983,590   

Dividends from affiliated investments

      60,148   

Securities lending income

      961,714   
  

 

 

  

Total investment income

      13,005,452   

Expenses

   

Management fees

      12,933,872   

Administration fees

      41,480   

Custodian and accounting fees

      158,150   

Distribution and service fees—Class B

      2,677,622   

Distribution and service fees—Class E

      34,300   

Audit and tax services

      40,064   

Legal

      26,460   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      114,471   

Insurance

      10,896   

Miscellaneous

      33,410   
  

 

 

  

Total expenses

      16,105,898   

Less management fee waiver

      (717,195 ) 

Less broker commission recapture

      (23,235 ) 
  

 

 

  

Net expenses

      15,365,468   
  

 

 

  

Net Investment Loss

      (2,360,016 ) 
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      245,138,557   

Foreign currency transactions

      3,245   
  

 

 

  

Net realized gain

      245,141,802   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (126,896,793 ) 

Foreign currency transactions

      12   
  

 

 

  

Net change in unrealized depreciation

      (126,896,781 ) 
  

 

 

  

Net realized and unrealized gain

      118,245,021   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 115,885,005   
  

 

 

  

 

(a) Net of foreign withholding taxes of $40,942.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment loss

    $ (2,360,016 )    $ (4,117,579 ) 

Net realized gain

      245,141,802        276,530,818   

Net change in unrealized depreciation

      (126,896,781 )      (63,119,580 ) 
  

 

 

    

 

 

  

Increase in net assets from operations

      115,885,005        209,293,659   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net realized capital gains

     

Class A

      (96,778,546 )      (74,530,486 ) 

Class B

      (173,257,716 )      (105,958,502 ) 

Class E

      (3,629,858 )      (2,142,925 ) 
  

 

 

    

 

 

  

Total distributions

      (273,666,120 )      (182,631,913 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      78,819,932        (195,155,536 ) 
  

 

 

    

 

 

  

Total decrease in net assets

      (78,961,183 )      (168,493,790 ) 

Net Assets

     

Beginning of period

      1,733,751,625        1,902,245,415   
  

 

 

    

 

 

  

End of period

    $ 1,654,790,442      $ 1,733,751,625   
  

 

 

    

 

 

  

Accumulated net investment loss

     

End of period

    $ (2,001,646 )    $ (4,012,970 ) 
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      3,174,769      $ 39,652,401        10,455,892      $ 117,964,931   

Reinvestments

      8,300,047        96,778,546        6,781,664        74,530,486   

Redemptions

      (9,676,688 )      (120,449,112 )      (31,212,005 )      (356,341,751 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      1,798,128      $ 15,981,835        (13,974,449 )    $ (163,846,334 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      6,311,949      $ 72,189,369        5,335,633      $ 61,279,438   

Reinvestments

      15,693,634        173,257,716        10,072,101        105,958,502   

Redemptions

      (15,970,670 )      (184,541,325 )      (17,235,099 )      (198,121,045 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      6,034,913      $ 60,905,760        (1,827,365 )    $ (30,883,105 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      222,674      $ 2,675,417        190,302      $ 2,230,587   

Reinvestments

      321,511        3,629,858        200,086        2,142,925   

Redemptions

      (369,754 )      (4,372,938 )      (411,686 )      (4,799,609 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      174,431      $ 1,932,337        (21,298 )    $ (426,097 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ 78,819,932        $ (195,155,536 ) 
    

 

 

      

 

 

  

 

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 A  
     Year Ended December 31,  
     2015     2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 12.52      $ 12.29       $ 9.53       $ 9.53       $ 9.90   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (loss) (a)

      0.00  (b)      (0.01 )       (0.01 )       0.02         (0.02 ) 

Net realized and unrealized gain (loss) on investments

      0.91        1.45         3.38         1.28         (0.09 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.91        1.44         3.37         1.30         (0.11 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

              

Distributions from net investment income

      0.00        0.00         (0.05 )       0.00         0.00   

Distributions from net realized capital gains

      (2.04 )      (1.21 )       (0.56 )       (1.30 )       (0.26 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (2.04 )      (1.21 )       (0.61 )       (1.30 )       (0.26 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.39      $ 12.52       $ 12.29       $ 9.53       $ 9.53   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      6.88        13.04         36.96         13.93         (1.40 ) 

Ratios/Supplemental Data

              

Gross ratio of expenses to average net assets (%)

      0.78        0.78         0.78         0.78         0.78   

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

      0.74        0.74         0.75         0.76         0.76   

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

      0.02        (0.08 )       (0.12 )       0.17         (0.21 ) 

Portfolio turnover rate (%)

      25        23         25         30         38   

Net assets, end of period (in millions)

    $ 602.3      $ 639.3       $ 799.0       $ 642.5       $ 565.8   
     Class B  
     Year Ended December 31,  
     2015     2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 11.96      $ 11.82       $ 9.19       $ 9.25       $ 9.64   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

              

Net investment loss (a)

      (0.03 )      (0.04 )       (0.04 )       (0.01 )       (0.04 ) 

Net realized and unrealized gain (loss) on investments

      0.88        1.39         3.25         1.25         (0.09 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.85        1.35         3.21         1.24         (0.13 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

              

Distributions from net investment income

      0.00        0.00         (0.02 )       0.00         0.00   

Distributions from net realized capital gains

      (2.04 )      (1.21 )       (0.56 )       (1.30 )       (0.26 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (2.04 )      (1.21 )       (0.58 )       (1.30 )       (0.26 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.77      $ 11.96       $ 11.82       $ 9.19       $ 9.25   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      6.67        12.77         36.58         13.68         (1.65 ) 

Ratios/Supplemental Data

              

Gross ratio of expenses to average net assets (%)

      1.03        1.03         1.03         1.03         1.03   

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

      0.99        0.99         1.00         1.01         1.01   

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

      (0.23 )      (0.33 )       (0.37 )       (0.08 )       (0.45 ) 

Portfolio turnover rate (%)

      25        23         25         30         38   

Net assets, end of period (in millions)

    $ 1,030.3      $ 1,072.1       $ 1,081.0       $ 873.9       $ 820.0   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Financial Highlights

 

Selected per share data  
     Class E  
     Year Ended December 31,  
     2015      2014      2013      2012     2011  

Net Asset Value, Beginning of Period

    $ 12.19       $ 12.01       $ 9.33       $ 9.36      $ 9.75   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (loss) (a)

      (0.02 )       (0.03 )       (0.03 )       0.00  (b)      (0.04 ) 

Net realized and unrealized gain (loss) on investments

      0.89         1.42         3.30         1.27        (0.09 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total from investment operations

      0.87         1.39         3.27         1.27        (0.13 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Less Distributions

              

Distributions from net investment income

      0.00         0.00         (0.03 )       0.00        0.00   

Distributions from net realized capital gains

      (2.04 )       (1.21 )       (0.56 )       (1.30 )      (0.26 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

      (2.04 )       (1.21 )       (0.59 )       (1.30 )      (0.26 ) 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 11.02       $ 12.19       $ 12.01       $ 9.33      $ 9.36   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Return (%) (c)

      6.72         12.92         36.68         13.85        (1.63 ) 

Ratios/Supplemental Data

              

Gross ratio of expenses to average net assets (%)

      0.93         0.93         0.93         0.93        0.93   

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

      0.89         0.89         0.90         0.91        0.91   

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

      (0.13 )       (0.23 )       (0.27 )       0.01        (0.36 ) 

Portfolio turnover rate (%)

      25         23         25         30        38   

Net assets, end of period (in millions)

    $ 22.1       $ 22.4       $ 22.3       $ 17.4      $ 18.3   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Net investment income 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) Includes the effects of management fee waivers (see Note 5 of the Notes to Financial Statements).

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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 - 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally categorized as Level 2 within the fair value hierarchy.

 

MIST-13

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 broker commission recapture, foreign currency transactions, passive foreign investment companies (PFICs) and ordinary loss netting. These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

 

MIST-14

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Notes to Financial Statements—December 31, 2015—(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.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2015, with a contractual maturity of overnight and continuous.

3. Certain Risks

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”).

Market 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, 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

 

MIST-15

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Notes to Financial Statements—December 31, 2015—(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.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the year ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 405,202,677       $ 0       $ 601,977,684   

The Portfolio engaged in security transactions with other accounts managed by T. Rowe Price Associates, Inc. that amounted to $2,045,488 in purchases, which are included above.

 

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the annual rate of 0.750% of average daily net assets. Fees earned by MetLife Advisers with respect to the Portfolio for the year ended December 31, 2015 were $12,933,872.

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. T. Rowe Price Associates, Inc. is compensated by MetLife Advisers to provide subadvisory services for 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.

If the aforementioned conditions are met, T. Rowe Price will waive its subadvisory fee paid by MetLife Advisers by 5% for combined Trust and MSF average daily net assets over $750 million, 7.5% for the next $1.5 billion of combined assets, and 10% for amounts over $3 billion. MetLife Advisers has voluntarily agreed to reduce its advisory fee for the Portfolio by the amount waived (if any) by T. Rowe Price for the Portfolio pursuant to this voluntary subadvisory fee waiver. Because these fee waivers are voluntary, and not contractual, they may be discontinued by T. Rowe Price and MetLife Advisers at any time. Amounts voluntarily waived for the year ended December 31, 2015 are shown as management fee waivers 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, LLC, 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 year ended December 31, 2015 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.

 

MIST-16

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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 year ended December 31, 2015 is as follows:

 

Security Description

   Number of
shares held at
December 31, 2014		     Shares
purchased		     Shares
sold		     Number of
shares held at
December 31, 2015		     Realized
Gain on
shares
sold		     Income earned
from affiliates
during the
period		  

T. Rowe Price Government Reserve Investment Fund

     61,346,536        314,687,410        (286,752,345 )      89,281,601      $ 0      $ 60,148   

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees 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, 2015 and 2014 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2015

    2014      2015      2014      2015      2014  
$10,205,409    $ 11,215,570       $ 263,460,711       $ 171,416,343       $ 273,666,120       $ 182,631,913   

As of December 31, 2015, 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		      Other
Accumulated
Capital Losses		      Total  
$6,857,990    $ 233,747,862       $ 465,160,503       $ —       $ 705,766,355   

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, 2015, the Portfolio had no post-enactment accumulated capital losses and no pre-enactment accumulated capital loss carryforwards.

9. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-17

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of T. Rowe Price Mid Cap 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 T. Rowe Price Mid Cap Growth Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 T. Rowe Price Mid Cap Growth Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-18

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-19

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-20

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment

 

MIST-21

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of

 

MIST-22

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

T. Rowe Price Mid Cap Growth Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and T. Rowe Price Associates, Inc. regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed the median of its Performance Universe and its Lipper Index for the one-, three-, and five-year periods ended June 30, 2015. The Board also considered that the Portfolio outperformed its benchmark, the Russell Midcap Growth Index, for the one-, three-, and five-year periods ended October 31, 2015.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-1 fees) were below the median of the Expense Group, Expense Universe, and Sub-advised Expense Universe. The Board further noted that the Portfolio’s contractual management fees were below the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also noted that the Portfolio’s contractual sub-advisory fees were above the averages of the Sub-advised Expense Group and the Sub-advised Expense Universe at the Portfolio’s current size.

 

MIST-23

Met Investors Series Trust

TCW Core Fixed Income Portfolio

Managed by TCW Investment Management Company

Portfolio Manager Commentary*

 

PERFORMANCE

Since its inception on May 1, 2015, the Class A and B shares of the TCW Core Fixed Income Portfolio returned -0.50% and -0.50%, respectively. The Portfolio’s benchmark, the Barclays U.S. Aggregate Bond Index1, returned -0.68%.

MARKET ENVIRONMENT / CONDITIONS

After several years of relative calm induced by monetary policy intervention in the markets, volatility returned in 2015. The turbulent market action that dominated the latter half of 2015 was primarily driven by three developments: the highly anticipated end to the Federal Reserve’s (the “Fed”) zero interest rate policy, which finally came to fruition in December when the Fed raised the benchmark Federal Funds rate by 25 basis points (bps); the continued deterioration of commodity prices and the prospect of defaults by overleveraged producers as the benchmark West Texas Intermediate Crude oil price fell below $35 a barrel, a seven year low; and disappointing economic data from China, which rattled investors who questioned the ability of Chinese policy makers to manage the economic downturn and transition to a more open economy. In moving forward with the first rate hike in nearly a decade, the Fed relied primarily on decreased slack in the job market and largely downplayed the concerns about oil prices, faltering global growth, and market volatility. At their December meeting and in subsequent speeches, Fed members emphasized their intent to take a “gradual” approach to further rate hikes on the basis of incoming economic data, with an eye towards hiking in the face of actual progress towards their two percent inflation goal. While the market largely expected this hike, the Fed was still unable to shore up confidence in the strength of the U.S. economic outlook, particularly manufacturing, or reduce overall uncertainty, as market indicators, namely Fed Funds futures, betrayed skepticism of the Fed’s ability to make as many as four rate hikes in 2016.

In response to the developments, stresses emerged in the credit markets in the fourth quarter. The renewed fall in oil impacted energy and other commodity-related issues as investors worried about overleveraged producers. High yield credits were particularly hard hit and underperformed comparable maturity Treasuries by almost 6% for the year, the third worst calendar return in over three decades. The year was also challenging for investment grade credits with record-setting levels of issuance highlighting a degree of re-leveraging, especially among Industrials engaged in an array of shareholder-friendly actions. Despite outperforming comparable maturity Treasuries in the fourth quarter, investment grade corporates trailed Treasuries by 160 basis points (“bps”) for the year as a result of deteriorating fundamentals and heavy new issuance. Rates also broadly sold off, with yields higher by 10 to 40 bps across the curve this year, the front-end rising more than the long-end in the face of the Fed raising rates. All of this translated to a loss of 0.6% for the Barclays U.S. Aggregate Bond Index in the fourth quarter. For the year, however, on the strength of coupon income, the Index was able to realize a slight positive return of 0.7%. Among the better performing areas of the Index were mortgage backed securities (“MBS”), gaining 1.5%, as investors sought relative safety of a government sponsored asset class; and Investment Grade Financials, similarly up 1.5%, on continuing regulatory oversight that has limited risk-taking.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio returned -0.50% from its May 1 inception through year end, outperforming the Barclays U.S. Aggregate Bond Index. Returns benefitted from a relative underweight to investment grade credit, particularly the smaller than Index allocation to commodity-related sectors such as Energy and Metals & Mining, and the lack of exposure to non-U.S. sovereign credit which weighed on Index returns. Further contributions came from the small allocation to higher quality senior non-agency residential MBS given higher yields and steady prices. Negative net issuance and the ongoing bid from insurers, combined with improving collateral characteristics, have supported the legacy non-agency MBS market throughout most of 2015. The Portfolio’s defensive duration position was also a modest contributor as U.S. Treasury rates moved higher throughout the year. Meanwhile, the allocation to government-guaranteed student loan asset-backed securities (“ABS”) weighed on returns as uncertainty surrounding potential rating agency actions drove spreads wider in July and August, though the position was modestly additive in the fourth quarter as spreads stabilized.

In the face of rising market volatility and signs that we are nearing the end of the credit cycle, the Portfolio maintains a defensive and cautious profile. As such, duration remains shorter than the Index and the allocation among non-government fixed income sectors is conservative. While mindful of the liquidity profile of certain parts of the market, the Portfolio maintained an overweight position in MBS and ABS, which continued to offer attractive risk-adjusted returns and protection from rising interest rates. That said, as prices recover and the non-agency MBS market shrinks, it becomes marginally less attractive over time. Among ABS, senior, short, high quality parts of the market are less likely to face difficult liquidity conditions, making them a solid defensive holding. Given spread widening during the latter half of 2015, there may also be opportunities to reduce the relative underweight of investment grade credit to the benchmark. Parts of the investment grade credit market looked attractive at year end, particularly those sectors that are protected from re-leveraging like regulated utilities, financials, and taxable municipal issues.

 

MIST-1

Met Investors Series Trust

TCW Core Fixed Income Portfolio

Managed by TCW Investment Management Company

Portfolio Manager Commentary*—(Continued)

 

At year-end, Portfolio positioning was as follows: approximately 20% in Credit, 9% in non-agency MBS, 23% in agency MBS, 7% in Commercial MBS and 7% in ABS, with the remaining 34% in U.S. Government bonds, and a small allocation to cash and equivalents.

Tad Rivelle

Bryan Whalen

Laird Landmann

Stephen Kane

Portfolio Managers

TCW Investment Management 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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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

TCW Core Fixed Income Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE BARCLAYS U.S. AGGREGATE BOND INDEX

 

LOGO

CUMULATIVE RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2015)

 

        Since Inception2  
TCW Core Fixed Income Portfolio       

Class A

        -0.50   

Class B

        -0.50   
Barclays U.S. Aggregate Bond Index        -0.68   

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 Inception date of the Class A and Class B shares is 5/1/2015. Index since inception return is based on the Portfolio’s inception date.

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 DECEMBER 31, 2015

Top Sectors

 

     % of
Net Assets		  
U.S. Treasury & Government Agencies      64.6   
Corporate Bonds & Notes      19.4   
Asset-Backed Securities      11.3   
Mortgage-Backed Securities      7.3   
Municipals      0.3   

 

MIST-3

Met Investors Series Trust

TCW Core Fixed Income 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, July 1, 2015 through December 31, 2015.

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.

 

TCW Core Fixed Income Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual      0.45 %     $ 1,000.00         $ 1,004.00         $ 2.27   
   Hypothetical*      0.45 %     $ 1,000.00         $ 1,022.94         $ 2.29   

Class B(a)

    Actual      0.70 %     $ 1,000.00         $ 1,004.00         $ 3.54   
   Hypothetical*      0.70 %     $ 1,000.00         $ 1,021.68         $ 3.57   

* 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 (184 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

TCW Core Fixed Income Portfolio

Schedule of Investments as of December 31, 2015

U.S. Treasury & Government Agencies—64.6% of Net Assets

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage—Backed—27.0%

  

Fannie Mae 15 Yr. Pool
2.500%, TBA (a)

     22,090,000      $ 22,264,624   

Fannie Mae 30 Yr. Pool
3.000%, 07/01/45

     25,246,581        25,285,693   

3.000%, TBA (a)

     30,485,000        30,485,277   

3.500%, TBA (a)

     76,805,000        79,241,500   

4.000%, TBA (a)

     24,980,000        26,433,134   

4.500%, TBA (a)

     19,100,000        20,625,613   

Fannie Mae Pool
2.470%, 01/01/23

     2,500,000        2,483,451   

2.740%, 03/01/25

     2,184,997        2,164,692   

3.320%, 08/01/26

     1,895,000        1,931,349   

3.500%, 01/01/44

     19,441,411        20,089,257   

3.920%, 10/01/23

     1,730,000        1,853,216   

4.080%, 01/01/29

     4,436,700        4,772,270   

4.380%, 06/01/21

     7,397,663        8,067,588   

4.383%, 04/01/21

     7,347,987        7,953,088   

4.520%, 08/01/19

     4,233,683        4,565,223   

4.550%, 10/01/19

     5,073,635        5,495,790   

4.570%, 01/01/21

     1,484,251        1,627,982   

4.590%, 08/01/26

     2,978,164        3,330,631   

Fannie Mae-ACES
0.772%, 05/25/18 (b)

     2,693,761        2,695,921   

0.772%, 08/25/18 (b)

     2,142,967        2,144,628   

3.049%, 12/25/24 (b)

     9,800,407        10,062,698   

Freddie Mac 15 Yr. Gold Pool
2.500%, 09/01/30

     12,307,514        12,431,568   

3.000%, 08/01/30

     4,552,014        4,695,677   

Freddie Mac 30 Yr. Gold Pool
3.000%, 07/01/45

     15,122,865        15,110,220   

3.500%, 01/01/45

     18,009,500        18,596,202   

3.500%, 04/01/45

     9,593,714        9,918,159   

3.500%, 06/01/45

     25,116,062        25,911,060   

3.500%, 08/01/45

     9,891,823        10,190,815   

3.500%, 10/01/45

     25,566,217        26,355,923   

3.500%, 11/01/45

     9,639,905        9,931,283   

4.000%, 09/01/45

     9,531,718        10,077,192   

4.000%, 10/01/45

     9,543,064        10,089,184   

4.000%, 11/01/45

     9,570,225        10,117,900   

Freddie Mac Multi-family Structured Pass-Through Certificates
0.972%, 07/25/20 (b)

     1,919,603        1,929,873   

1.052%, 07/25/20 (b)

     1,968,994        1,977,798   

1.873%, 01/25/18

     1,135,231        1,135,968   

3.161%, 05/25/25

     2,015,000        2,031,151   

3.511%, 04/25/30

     4,495,000        4,561,994   

Ginnie Mae II 30 Yr. Pool
3.000%, 08/20/45

     20,318,710        20,621,876   

3.000%, 09/20/45

     3,587,402        3,640,928   

3.500%, 06/20/45

     9,681,571        10,107,479   

3.500%, 07/20/45

     4,594,896        4,797,033   

3.500%, 10/20/45

     9,795,404        10,226,319   

3.500%, TBA (a)

     19,165,000        19,978,765   

4.000%, 10/20/45

     8,057,810        8,569,559   

4.500%, TBA (a)

     4,300,000        4,619,813   
   

 

 

  
      541,197,364   
   

 

 

  

Federal Agencies—4.5%

  

Federal Farm Credit Bank
0.650%, 05/30/17 (b)

     20,280,000      $ 20,282,454   

Federal Home Loan Bank
1.250%, 06/28/30 (c)

     8,190,000        8,174,152   

Federal Home Loan Mortgage Corp.
0.407%, 04/20/17 (b)

     20,520,000        20,488,768   

Federal National Mortgage Association
0.279%, 10/05/17 (b)

     20,625,000        20,585,359   

0.422%, 07/20/17 (b)

     20,535,000        20,504,218   
   

 

 

  
      90,034,951   
   

 

 

  

U.S. Treasury—33.1%

  

U.S. Treasury Bond
3.000%, 11/15/45

     35,595,000        35,487,930   

U.S. Treasury Inflation Indexed Bond
0.750%, 02/15/45 (d)

     53,127,052        46,332,580   

U.S. Treasury Inflation Indexed Notes
0.250%, 01/15/25 (d)

     42,616,975        40,677,561   

0.375%, 07/15/25 (d)

     1,363,998        1,320,592   

U.S. Treasury Notes
0.750%, 10/31/17

     154,895,000        154,072,198   

0.875%, 11/30/17 (e)

     67,005,000        66,811,288   

1.000%, 12/31/17

     30,580,000        30,541,775   

1.375%, 10/31/20 (e)

     71,630,000        70,365,301   

1.625%, 11/30/20 (e)

     64,075,000        63,694,523   

1.750%, 12/31/20

     72,370,000        72,290,827   

2.250%, 11/15/25 (e)

     83,385,000        83,199,302   
   

 

 

  
      664,793,877   
   

 

 

  

Total U.S. Treasury & Government Agencies (Cost $1,303,373,258)

       1,296,026,192   
   

 

 

  
Corporate Bonds & Notes—19.4%   

Airlines—0.6%

  

America West Airlines Pass-Through Trust
7.100%, 10/02/22

     795,031        866,583   

8.057%, 01/02/22

     603,266        677,167   

American Airlines Pass-Through Trust
4.000%, 01/15/27

     1,755,847        1,773,405   

Continental Airlines Pass-Through Trust
6.545%, 08/02/20

     2,784,708        2,962,094   

JetBlue Airways Pass-Through Trust
0.737%, 02/15/18 (b)

     171,792        171,019   

0.812%, 05/15/18 (b)

     463,000        459,065   

U.S. Airways Pass-Through Trust
6.250%, 10/22/24

     2,376,774        2,661,987   

7.076%, 09/20/22

     1,646,826        1,774,455   
   

 

 

  
      11,345,775   
   

 

 

  

Auto Manufacturers—0.1%

  

General Motors Co.
4.875%, 10/02/23

     1,800,000        1,840,786   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

TCW Core Fixed Income Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Banks—5.7%

  

Bank of America Corp.
2.625%, 10/19/20

     2,815,000      $ 2,779,590   

3.750%, 07/12/16

     2,556,000        2,588,050   

4.875%, 04/01/44 (e)

     900,000        931,909   

5.000%, 01/21/44

     4,000,000        4,174,760   

6.000%, 09/01/17

     700,000        744,947   

6.500%, 08/01/16

     4,610,000        4,744,455   

Bank of America N.A.
5.300%, 03/15/17

     5,500,000        5,721,512   

Barclays Bank plc
5.000%, 09/22/16

     1,567,000        1,607,209   

Barclays plc
5.250%, 08/17/45

     2,055,000        2,069,971   

Capital One N.A.
1.650%, 02/05/18

     755,000        747,530   

Chase Capital VI
0.954%, 08/01/28 (b)

     2,000,000        1,690,000   

Citigroup, Inc.
1.300%, 04/01/16

     3,000,000        3,004,230   

1.300%, 11/15/16

     4,000,000        3,990,208   

Credit Suisse Group Funding Guernsey, Ltd.
3.125%, 12/10/20 (144A)

     3,045,000        3,031,170   

3.800%, 09/15/22 (144A)

     2,000,000        1,998,422   

4.875%, 05/15/45 (144A) (e)

     1,600,000        1,577,738   

Discover Bank
2.000%, 02/21/18

     1,000,000        993,239   

2.600%, 11/13/18

     2,085,000        2,083,334   

3.100%, 06/04/20

     3,000,000        3,006,807   

Goldman Sachs Group, Inc. (The)
1.036%, 03/22/16 (b)

     2,000,000        1,998,112   

1.048%, 05/22/17 (b)

     1,000,000        998,609   

2.012%, 11/29/23 (b)

     4,800,000        4,842,600   

3.625%, 02/07/16

     3,124,000        3,131,919   

6.150%, 04/01/18

     485,000        526,669   

6.250%, 09/01/17

     2,830,000        3,030,757   

JPMorgan Chase & Co.
2.550%, 10/29/20 (e)

     4,280,000        4,244,087   

6.300%, 04/23/19

     3,415,000        3,829,243   

JPMorgan Chase Bank N.A.
0.832%, 06/13/16 (b)

     2,000,000        1,997,028   

6.000%, 10/01/17

     3,015,000        3,223,517   

JPMorgan Chase Capital XIII
1.553%, 09/30/34 (b)

     2,300,000        1,931,770   

JPMorgan Chase Capital XXI
1.279%, 01/15/87 (b) (e)

     3,000,000        2,362,500   

Morgan Stanley
4.300%, 01/27/45

     2,000,000        1,908,216   

5.450%, 01/09/17

     4,000,000        4,152,192   

5.625%, 09/23/19

     4,050,000        4,469,576   

6.625%, 04/01/18

     475,000        520,852   

7.300%, 05/13/19

     1,000,000        1,148,709   

Royal Bank of Scotland Group plc
1.875%, 03/31/17

     470,000        468,033   

6.400%, 10/21/19 (e)

     2,500,000        2,773,697   

UBS AG
1.375%, 06/01/17

     7,000,000        6,966,645   

Banks—(Continued)

  

UBS Group Funding Jersey, Ltd.
4.125%, 09/24/25 (144A)

     2,055,000      2,052,869   

Wells Fargo & Co.
2.600%, 07/22/20

     5,175,000        5,161,742   

Wells Fargo Bank N.A.
0.572%, 05/16/16 (b)

     5,381,000        5,377,524   
   

 

 

  
      114,601,947   
   

 

 

  

Biotechnology—0.7%

    

Amgen, Inc.
2.300%, 06/15/16

     3,570,000        3,590,542   

Biogen, Inc.
5.200%, 09/15/45

     3,100,000        3,101,172   

Celgene Corp.
3.875%, 08/15/25

     3,100,000        3,087,445   

Gilead Sciences, Inc.
3.650%, 03/01/26

     3,500,000        3,529,676   
   

 

 

  
      13,308,835   
   

 

 

  

Commercial Services—0.1%

    

Northwestern University
4.643%, 12/01/44

     1,500,000        1,685,754   
   

 

 

  

Computers—0.1%

    

Apple, Inc.
4.375%, 05/13/45

     1,860,000        1,878,063   
   

 

 

  

Diversified Financial Services—0.9%

    

American Express Credit Corp.
2.600%, 09/14/20 (e)

     3,090,000        3,097,138   

Capital One Bank USA N.A.
1.200%, 02/13/17

     1,475,000        1,467,734   

International Lease Finance Corp.
6.750%, 09/01/16 (144A)

     2,000,000        2,055,000   

7.125%, 09/01/18 (144A)

     5,850,000        6,413,063   

Protective Life Global Funding
2.700%, 11/25/20 (144A)

     3,045,000        3,043,267   

Visa, Inc.
3.150%, 12/14/25

     2,500,000        2,503,090   
   

 

 

  
      18,579,292   
   

 

 

  

Electric—2.5%

    

Appalachian Power Co.
4.450%, 06/01/45

     2,200,000        2,088,313   

CenterPoint Energy Houston Electric LLC
3.550%, 08/01/42

     1,945,000        1,749,216   

Duke Energy Carolinas LLC
4.250%, 12/15/41

     3,300,000        3,289,278   

Duke Energy Progress LLC
3.250%, 08/15/25

     5,215,000        5,251,270   

4.100%, 05/15/42

     1,000,000        969,515   

4.100%, 03/15/43

     2,325,000        2,256,601   

Duquesne Light Holdings, Inc.
6.400%, 09/15/20 (144A)

     3,250,000        3,678,860   

El Paso Electric Co.
3.300%, 12/15/22

     825,000        797,343   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

TCW Core Fixed Income Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Electric—(Continued)

    

Entergy Corp.
4.000%, 07/15/22

     4,000,000      $ 4,080,712   

Exelon Corp.
1.550%, 06/09/17

     4,075,000        4,057,816   

Florida Power & Light Co.
4.050%, 10/01/44

     590,000        583,822   

International Transmission Co.
4.625%, 08/15/43 (144A)

     2,750,000        2,848,948   

IPALCO Enterprises, Inc.
5.000%, 05/01/18

     560,000        586,600   

Jersey Central Power & Light Co.
5.625%, 05/01/16

     1,082,000        1,095,731   

MidAmerican Energy Co.
4.800%, 09/15/43

     905,000        968,297   

NextEra Energy Capital Holdings, Inc.
1.586%, 06/01/17

     4,000,000        3,985,680   

2.056%, 09/01/17

     1,000,000        1,000,932   

PacifiCorp
3.350%, 07/01/25

     2,000,000        2,016,236   

Public Service Co. of New Mexico
3.850%, 08/01/25

     3,135,000        3,102,023   

Public Service Electric & Gas Co.
4.050%, 05/01/45 (e)

     3,000,000        2,937,426   

Xcel Energy, Inc.
3.300%, 06/01/25

     2,375,000        2,321,738   
   

 

 

  
      49,666,357   
   

 

 

  

Food—0.2%

    

Kraft Heinz Foods Co.
5.200%, 07/15/45 (144A) (e)

     3,270,000        3,416,849   
   

 

 

  

Gas—0.1%

    

Laclede Group, Inc. (The)
4.700%, 08/15/44

     1,944,000        1,918,852   
   

 

 

  

Healthcare-Services—0.4%

    

Baylor Scott & White Holdings
4.185%, 11/15/45

     1,300,000        1,229,400   

Hartford HealthCare Corp.
5.746%, 04/01/44

     1,000,000        1,083,389   

North Shore-Long Island Jewish Health Care, Inc.
4.800%, 11/01/42

     1,600,000        1,513,035   

Southern Baptist Hospital of Florida, Inc.
4.857%, 07/15/45

     1,250,000        1,291,346   

UnitedHealth Group, Inc.
3.750%, 07/15/25

     2,515,000        2,592,653   
   

 

 

  
      7,709,823   
   

 

 

  

Insurance—0.9%

    

Berkshire Hathaway Finance Corp.
4.400%, 05/15/42 (e)

     3,700,000        3,663,455   

Berkshire Hathaway, Inc.
4.500%, 02/11/43 (e)

     1,455,000        1,465,082   

Farmers Exchange Capital III
5.454%, 10/15/54 (144A) (b)

     3,530,000        3,430,733   

Insurance—(Continued)

    

Jackson National Life Global Funding
2.600%, 12/09/20 (144A)

     3,060,000      3,044,761   

Teachers Insurance & Annuity Association of America
4.375%, 09/15/54 (144A) (b)

     3,500,000        3,425,677   

ZFS Finance USA Trust II
6.450%, 12/15/65 (144A) (b)

     3,750,000        3,789,375   
   

 

 

  
      18,819,083   
   

 

 

  

Media—0.3%

    

CCO Safari LLC
6.484%, 10/23/45 (144A)

     5,215,000        5,223,547   

Comcast Corp.
4.400%, 08/15/35 (e)

     1,500,000        1,508,937   
   

 

 

  
      6,732,484   
   

 

 

  

Oil & Gas—0.4%

    

Anadarko Petroleum Corp.
4.500%, 07/15/44 (e)

     620,000        474,661   

BP Capital Markets plc
3.506%, 03/17/25 (e)

     1,060,000        1,026,503   

Devon Energy Corp.
5.000%, 06/15/45 (e)

     815,000        617,691   

Exxon Mobil Corp.
3.567%, 03/06/45 (e)

     2,775,000        2,608,078   

Noble Energy, Inc.
5.050%, 11/15/44 (e)

     1,050,000        847,771   

Shell International Finance B.V.
4.375%, 05/11/45

     2,750,000        2,596,184   
   

 

 

  
      8,170,888   
   

 

 

  

Pharmaceuticals—0.4%

    

AbbVie, Inc.
1.800%, 05/14/18

     3,500,000        3,483,886   

Actavis Funding SCS
3.800%, 03/15/25

     2,285,000        2,273,331   

4.750%, 03/15/45

     2,000,000        1,950,090   
   

 

 

  
      7,707,307   
   

 

 

  

Pipelines—1.4%

    

Boardwalk Pipelines L.P.
5.750%, 09/15/19

     4,950,000        4,981,205   

Columbia Pipeline Group, Inc.
2.450%, 06/01/18 (144A)

     2,250,000        2,199,865   

Enbridge Energy Partners L.P.
5.875%, 10/15/25 (e)

     2,000,000        1,927,522   

Energy Transfer Partners L.P.
2.500%, 06/15/18

     2,500,000        2,394,615   

4.650%, 06/01/21

     1,700,000        1,596,038   

5.150%, 03/15/45

     5,065,000        3,580,038   

6.500%, 02/01/42

     700,000        569,307   

EnLink Midstream Partners L.P.
4.150%, 06/01/25

     1,700,000        1,307,494   

Enterprise Products Operating LLC
4.900%, 05/15/46

     1,250,000        1,021,485   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

TCW Core Fixed Income Portfolio

Schedule of Investments as of December 31, 2015

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Pipelines—(Continued)

    

Spectra Energy Partners L.P.
2.950%, 06/15/16

     1,963,000      $ 1,970,098   

TC PipeLines L.P.
4.650%, 06/15/21

     3,840,000        3,687,852   

Texas Eastern Transmission L.P.
2.800%, 10/15/22 (144A)

     3,275,000        2,910,948   
   

 

 

  
      28,146,467   
   

 

 

  

Real Estate—0.2%

    

WEA Finance LLC / Westfield UK & Europe Finance plc
2.700%, 09/17/19 (144A)

     4,665,000        4,626,570   
   

 

 

  

Real Estate Investment Trusts—2.7%

  

Alexandria Real Estate Equities, Inc.
2.750%, 01/15/20

     475,000        466,969   

4.600%, 04/01/22

     1,292,000        1,340,378   

BioMed Realty L.P.
3.850%, 04/15/16

     2,400,000        2,407,358   

4.250%, 07/15/22

     1,500,000        1,490,844   

DDR Corp.
9.625%, 03/15/16

     5,750,000        5,839,775   

ERP Operating L.P.
5.125%, 03/15/16 (e)

     3,982,000        4,012,833   

5.375%, 08/01/16

     500,000        511,426   

HCP, Inc.
3.750%, 02/01/16

     3,885,000        3,890,470   

4.000%, 12/01/22

     1,000,000        995,377   

4.000%, 06/01/25

     975,000        952,003   

4.250%, 11/15/23

     3,216,000        3,220,522   

6.300%, 09/15/16 (e)

     2,850,000        2,946,504   

Healthcare Realty Trust, Inc.
3.750%, 04/15/23

     1,850,000        1,809,655   

5.750%, 01/15/21

     538,000        593,427   

Realty Income Corp.
5.950%, 09/15/16

     2,126,000        2,189,091   

Reckson Operating Partnership L.P.
6.000%, 03/31/16

     6,034,000        6,090,279   

Regency Centers L.P.
5.875%, 06/15/17

     750,000        790,896   

SL Green Realty Corp.
5.000%, 08/15/18

     1,500,000        1,573,948   

Ventas Realty L.P.
4.125%, 01/15/26

     4,750,000        4,734,966   

Welltower, Inc.
3.625%, 03/15/16 (e)

     7,157,000        7,188,104   

6.200%, 06/01/16

     440,000        448,540   
   

 

 

  
      53,493,365   
   

 

 

  

Retail—0.3%

  

CVS Health Corp.
3.875%, 07/20/25 (e)

     4,135,000        4,220,098   

Wal-Mart Stores, Inc.
4.300%, 04/22/44

     1,000,000        1,019,464   

4.750%, 10/02/43

     1,400,000        1,505,800   
   

 

 

  
      6,745,362   
   

 

 

  

Software—0.4%

  

Microsoft Corp.
3.125%, 11/03/25

     6,145,000      6,177,599   

3.750%, 02/12/45

     2,330,000        2,146,897   
   

 

 

  
      8,324,496   
   

 

 

  

Telecommunications—0.9%

  

AT&T, Inc.
0.741%, 02/12/16 (b)

     3,125,000        3,123,616   

4.350%, 06/15/45 (e)

     1,500,000        1,283,207   

4.750%, 05/15/46

     4,175,000        3,822,613   

Rogers Communications, Inc.
5.000%, 03/15/44

     960,000        966,488   

Verizon Communications, Inc.
2.500%, 09/15/16

     2,000,000        2,015,606   

4.862%, 08/21/46

     7,400,000        7,005,772   
   

 

 

  
      18,217,302   
   

 

 

  

Transportation—0.1%

  

Burlington Northern Santa Fe LLC
4.150%, 04/01/45

     1,300,000        1,178,225   

4.550%, 09/01/44

     1,605,000        1,549,398   
   

 

 

  
      2,727,623   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $397,590,627)

       389,663,280   
   

 

 

  
Asset-Backed Securities—11.3%   

Asset-Backed - Credit Card—0.3%

  

Chase Issuance Trust
0.531%, 05/15/18 (b)

     5,215,000        5,213,702   
   

 

 

  
   

Asset-Backed - Home Equity—2.5%

  

Asset Backed Securities Corp. Home Equity Loan Trust
0.582%, 05/25/36 (b)

     3,929,347        3,686,057   

Asset-Backed Funding Certificates Trust
1.052%, 03/25/35 (b)

     7,279,356        7,102,157   

JPMorgan Mortgage Acquisition Corp.
0.892%, 06/25/35 (b)

     8,803,000        8,219,232   

MASTR Asset-Backed Securities Trust
0.832%, 06/25/35 (b)

     7,558,329        7,535,468   

New Century Home Equity Loan Trust
1.202%, 08/25/34 (b)

     10,791,089        10,162,326   

Option One Mortgage Loan Trust
1.082%, 05/25/35 (b)

     5,367,378        5,155,166   

Wells Fargo Home Equity Trust
0.852%, 04/25/35 (b)

     8,215,000        8,081,350   
   

 

 

  
      49,941,756   
   

 

 

  

Asset-Backed - Other—3.1%

  

Cedar Funding III CLO, Ltd.
1.900%, 05/20/26 (144A) (b)

     4,005,000        3,958,442   

Citigroup Mortgage Loan Trust, Inc.
1.097%, 05/25/35 (b)

     7,078,380        6,984,304   

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

TCW Core Fixed Income Portfolio

Schedule of Investments as of December 31, 2015

Asset-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Asset-Backed - Other—(Continued)

  

Dryden XXXI Senior Loan Fund
1.667%, 04/18/26 (144A) (b)

     5,185,000      $ 5,130,164   

Encore Credit Receivables Trust
0.842%, 01/25/36 (b)

     6,945,440        6,908,502   

GSAMP Trust
1.102%, 10/25/34 (b)

     5,990,930        5,615,333   

HSI Asset Securitization Corp. Trust
0.612%, 12/25/35 (b)

     5,887,245        5,794,883   

Long Beach Mortgage Loan Trust
1.217%, 02/25/35 (b)

     6,682,649        6,642,590   

Magnetite, Ltd.
1.740%, 07/25/26 (144A) (b)

     5,000,000        4,963,165   

Neuberger Berman CLO, Ltd.
1.791%, 04/15/26 (144A) (b)

     5,100,000        5,043,859   

Park Place Securities, Inc. Asset-Backed Pass-Through Certificates
1.097%, 06/25/35 (b)

     3,870,003        3,863,356   

1.172%, 03/25/35 (b)

     4,999,113        4,975,343   

Voya CLO, Ltd.
1.765%, 07/17/26 (144A) (b)

     2,850,000        2,821,474   
   

 

 

  
      62,701,415   
   

 

 

  

Asset-Backed - Student Loan—5.4%

  

Education Loan Asset-Backed Trust I
1.222%, 06/25/26 (144A) (b)

     9,304,337        9,230,623   

Navient Student Loan Trust
1.922%, 10/25/58 (b)

     2,470,000        2,160,483   

Nelnet Student Loan Trust
1.022%, 02/26/46 (144A) (b)

     5,295,000        5,156,506   

SLC Student Loan Trust
0.622%, 03/15/27 (b)

     2,450,000        2,343,089   

0.672%, 12/15/38 (b)

     8,310,000        7,116,599   

0.672%, 09/15/39 (b)

     11,000,000        9,513,519   

SLM Student Loan Trust
0.380%, 01/25/22 (b)

     10,320,000        9,739,593   

0.470%, 10/25/29 (b)

     10,200,000        9,639,367   

0.870%, 04/27/26 (144A) (b)

     10,000,000        9,791,474   

1.022%, 11/25/27 (b)

     6,870,619        6,754,947   

1.070%, 10/25/40 (b)

     10,240,000        9,841,997   

1.172%, 05/26/26 (b)

     9,890,000        9,793,065   

1.172%, 01/25/45 (144A) (b)

     5,028,043        4,808,137   

1.820%, 04/25/23 (b)

     1,781,479        1,782,694   

2.222%, 09/25/43 (b)

     5,800,000        5,151,860   

Wachovia Student Loan Trust
0.490%, 04/25/40 (144A) (b)

     7,500,000        6,660,499   
   

 

 

  
      109,484,452   
   

 

 

  

Total Asset-Backed Securities
(Cost $230,548,883)

       227,341,325   
   

 

 

  
Mortgage-Backed Securities—7.3%   

Collateralized Mortgage Obligations—4.1%

  

Citigroup Mortgage Loan Trust, Inc.
0.417%, 05/20/47 (144A) (b)

     4,483,157        4,289,482   

Collateralized Mortgage Obligations—(Continued)

  

Credit Suisse Mortgage Trust
0.461%, 05/27/37 (144A) (b)

     4,317,050      4,273,982   

0.501%, 04/27/47 (144A) (b)

     4,758,179        4,552,067   

1.066%, 09/27/46 (144A)

     4,751,061        4,616,680   

2.403%, 01/27/36 (144A) (b)

     2,059,361        2,070,970   

Morgan Stanley Mortgage Loan Trust
0.692%, 09/25/35 (b)

     4,624,571        4,584,687   

Morgan Stanley Resecuritization Trust
0.671%, 08/26/47 (144A) (b)

     8,738,177        8,330,490   

2.587%, 01/26/51 (144A) (b)

     7,832,132        7,841,626   

Nomura Resecuritization Trust
0.481%, 02/25/37 (144A) (b)

     4,288,814        4,134,990   

0.521%, 08/26/37 (144A) (b)

     4,644,057        4,466,113   

2.835%, 03/26/37 (144A) (b)

     8,631,491        8,727,175   

Structured Adjustable Rate Mortgage Loan Trust 1.097%, 01/25/35 (b)

     6,652,647        6,431,342   

2.454%, 03/25/34 (b)

     9,464,960        9,500,625   

WaMu Mortgage Pass-Through Certificates Trust
0.712%, 10/25/45 (b)

     9,354,455        8,616,136   
   

 

 

  
      82,436,365   
   

 

 

  

Commercial Mortgage-Backed Securities—3.2%

  

Banc of America Commercial Mortgage Trust
5.492%, 02/10/51

     5,701,783        5,905,603   

Commercial Mortgage Trust
0.824%, 08/15/45

     1,157,298        1,155,696   

DBRR Trust
4.537%, 07/12/44 (144A) (b)

     3,000,000        3,238,410   

DBUBS Mortgage Trust
3.386%, 07/10/44 (144A)

     9,498,019        9,530,458   

GS Mortgage Securities Trust
2.539%, 01/10/45

     8,961,000        9,009,921   

JPMorgan Chase Commercial Mortgage Securities Trust
2.206%, 05/15/45

     3,966,492        3,982,645   

4.311%, 08/05/32 (144A)

     8,448,000        9,015,744   

Morgan Stanley Bank of America Merrill Lynch Trust
0.738%, 02/15/46

     3,643,606        3,633,408   

Morgan Stanley Capital I Trust
0.491%, 04/15/49 (b)

     6,270,956        6,257,946   

3.884%, 09/15/47 (144A)

     987,109        987,003   

4.700%, 09/15/47 (144A)

     1,490,000        1,578,961   

OBP Depositor LLC Trust

    

4.646%, 07/15/45 (144A)

     2,042,000        2,200,096   

UBS-Barclays Commercial Mortgage Trust
1.006%, 05/10/63

     2,627,803        2,619,732   

WF-RBS Commercial Mortgage Trust
3.240%, 03/15/44 (144A)

     1,555,963        1,557,080   

3.791%, 02/15/44 (144A)

     3,595,582        3,591,116   
   

 

 

  
      64,263,819   
   

 

 

  

Total Mortgage-Backed Securities
(Cost $147,827,643)

       146,700,184   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

TCW Core Fixed Income Portfolio

Schedule of Investments as of December 31, 2015

Municipals—0.3%

 

Security Description   Shares/
Principal
Amount*		     Value  

New York City Transitional Finance Authority, Future Tax Secured Revenue
5.267%, 05/01/27

     2,150,000      $ 2,430,209   

New York City, General Obligation Unlimited, Build America Bonds
5.968%, 03/01/36

     1,750,000        2,156,403   

6.271%, 12/01/37

     1,575,000        2,017,496   
   

 

 

  

Total Municipals
(Cost $6,615,795)

       6,604,108   
   

 

 

  
Short-Term Investments—24.2%   

Discount Note—1.2%

    

Freddie Mac
0.182%, 01/08/16 (f)

     24,905,000        24,904,007   
   

 

 

  

Mutual Funds—17.4%

    

SSgA Prime Money Market Fund
0.190% (g)

     13,210,887        13,210,887   

State Street Navigator Securities Lending MET Portfolio (h)

     336,741,883        336,741,883   
   

 

 

  
      349,952,770   
   

 

 

  

U.S. Treasury—5.6%

    

U.S. Treasury Bills
0.003%, 02/25/16 (e) (f)

     200,000        199,999   

0.015%, 03/03/16 (e) (f)

     165,000        164,996   

0.016%, 01/28/16 (e) (f)

     10,000        10,000   

0.055%, 01/07/16 (e) (f) (i)

     870,000        869,991   

0.121%, 04/07/16 (f)

     61,250,000        61,230,196   

0.139%, 02/11/16 (e) (f)

     37,460,000        37,454,006   

0.170%, 01/14/16 (e) (f)

     11,755,000        11,754,236   
   

 

 

  
      111,683,424   
   

 

 

  

Total Short - Term Investments
(Cost $486,540,201)

       486,540,201   
   

 

 

  

Total Investments—127.1%
(Cost $2,572,496,407) (j)

       2,552,875,290   

Other assets and liabilities (net)—(27.1)%

       (545,084,945 ) 
   

 

 

  
Net Assets—100.0%     $ 2,007,790,345   
   

 

 

  

 

* 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 December 31, 2015. Maturity date shown for callable securities reflects the earliest possible call date.
(c) Security is a “step-up” bond where coupon increases or steps up at a predetermined date. Rate shown is current coupon rate.
(d) Principal amount of security is adjusted for inflation.
(e) All or a portion of the security was held on loan. As of December 31, 2015, the market value of securities loaned was $329,693,956 and the collateral received consisted of cash in the amount of $336,741,883. The cash collateral is invested in a money market fund managed by an affiliate of the custodian.
(f) The rate shown represents current yield to maturity.
(g) The rate shown represents the annualized seven-day yield as of December 31, 2015.
(h) Represents investment of cash collateral received from securities on loan as of December 31, 2015.
(i) All or a portion of the security was pledged as collateral against open futures contracts. As of December 31, 2015, the market value of securities pledged was $549,997.
(j) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $2,574,531,751. The aggregate unrealized appreciation and depreciation of investments were $1,424,020 and $(23,080,481), respectively, resulting in net unrealized depreciation of $(21,656,461) for federal income tax purposes.
(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 December 31, 2015, the market value of 144A securities was $201,334,448, which is 10.0% of net assets.
(ACES)— Alternative Credit Enhancement Securities
(CLO)— Collateralized Loan Obligation

Futures Contracts

 

Futures Contracts—Long

    Expiration
Date		      Number of
Contracts		      Notional
Amount		      Unrealized
Depreciation		  

U.S. Treasury Note 5 Year Futures

      03/31/16         588         USD         69,732,776       $ (160,432 ) 
              

 

 

  

 

(USD)— United States Dollar

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

TCW Core Fixed Income Portfolio

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1     Level 2     Level 3      Total  

Total U.S. Treasury & Government Agencies*

    $ —        $ 1,296,026,192      $ —         $ 1,296,026,192   

Total Corporate Bonds & Notes*

      —          389,663,280        —           389,663,280   

Total Asset-Backed Securities*

      —          227,341,325        —           227,341,325   

Total Mortgage-Backed Securities*

      —          146,700,184        —           146,700,184   

Total Municipals

      —          6,604,108        —           6,604,108   
Short-Term Investments          

Discount Note

      —          24,904,007        —           24,904,007   

Mutual Funds

      349,952,770        —          —           349,952,770   

U.S. Treasury

      —          111,683,424        —           111,683,424   

Total Short-Term Investments

      349,952,770        136,587,431        —           486,540,201   

Total Investments

    $ 349,952,770      $ 2,202,922,520      $ —         $ 2,552,875,290   
                                   

Collateral for Securities Loaned (Liability)

    $ —        $ (336,741,883 )    $ —         $ (336,741,883 ) 
Futures Contracts          

Futures Contracts (Unrealized Depreciation)

    $ (160,432 )    $ —        $ —         $ (160,432 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

TCW Core Fixed Income Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

   

Investments at value (a) (b)

    $ 2,552,875,290   

Cash

      19,059   

Receivable for:

   

TBA securities sold

      11,463,111   

Interest

      7,016,320   

Variation margin on futures contracts

      83,884   

Prepaid expenses

      4,300   
  

 

 

  

Total Assets

      2,571,461,964   

Liabilities

   

Collateral for securities loaned

      336,741,883   

Payables for:

   

Investments purchased

      10,131,404   

TBA securities purchased

      215,317,603   

Fund shares redeemed

      570,778   

Accrued Expenses:

   

Management fees

      719,806   

Distribution and service fees

      19   

Deferred trustees’ fees

      7,510   

Other expenses

      182,616   
  

 

 

  

Total Liabilities

      563,671,619   
  

 

 

  

Net Assets

    $ 2,007,790,345   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 2,011,906,309   

Undistributed net investment income

      17,675,556   

Accumulated net realized loss

      (2,009,971 ) 

Unrealized depreciation on investments and futures contracts

      (19,781,549 ) 
  

 

 

  

Net Assets

    $ 2,007,790,345   
  

 

 

  

Net Assets

   

Class A

    $ 2,007,686,524   

Class B

      103,821   

Capital Shares Outstanding*

   

Class A

      201,758,384   

Class B

      10,433   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 9.95   

Class B

      9.95   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $2,572,496,407.
(b) Includes securities loaned at value of $329,693,956.

Statement of Operations

 

Period Ended December 31, 2015(a)

 

Investment Income

   

Interest

    $ 19,759,996   

Securities lending income

      170,969   
  

 

 

  

Total investment income

      19,930,965   

Expenses

   

Management fees

      6,953,253   

Administration fees

      30,985   

Custodian and accounting fees

      101,711   

Distribution and service fees—Class B

      63   

Audit and tax services

      69,885   

Legal

      55,420   

Trustees’ fees and expenses

      21,134   

Shareholder reporting

      63,987   

Insurance

      6,054   

Miscellaneous

      8,640   
  

 

 

  

Total expenses

      7,311,132   

Less management fee waiver

      (1,641,731 ) 
  

 

 

  

Net expenses

      5,669,401   
  

 

 

  

Net Investment Income

      14,261,564   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      (843,946 ) 

Futures contracts

      2,247,959   
  

 

 

  

Net realized gain

      1,404,013   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (19,621,117 ) 

Futures contracts

      (160,432 ) 
  

 

 

  

Net change in unrealized depreciation

      (19,781,549 ) 
  

 

 

  

Net realized and unrealized loss

      (18,377,536 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (4,115,972 ) 
  

 

 

  

 

(a) Commencement of operations was May 1, 2015.

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

TCW Core Fixed Income Portfolio

Statement of Changes in Net Assets

 

     Period Ended
December 31,
2015(a)		  

Increase (Decrease) in Net Assets:

   

From Operations

   

Net investment income

    $ 14,261,564   

Net realized gain

      1,404,013   

Net change in unrealized depreciation

      (19,781,549 ) 
  

 

 

  

Decrease in net assets from operations

      (4,115,972 ) 
  

 

 

  

Increase in net assets from capital share transactions

      2,011,906,317   
  

 

 

  

Total increase in net assets

      2,007,790,345   

Net Assets

   

Beginning of period

      —   
  

 

 

  

End of period

    $ 2,007,790,345   
  

 

 

  

Undistributed net investment income

   

End of period

    $ 17,675,556   
  

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Period Ended
December 31, 2015(a)		  
     Shares     Value  

Class A

     

Sales

      209,584,056      $ 2,089,891,632   

Redemptions

      (7,825,672 )      (78,089,380 ) 
  

 

 

    

 

 

  

Net increase

      201,758,384      $ 2,011,802,252   
  

 

 

    

 

 

  

Class B

     

Sales

      10,615      $ 105,867   

Redemptions

      (182 )      (1,802 ) 
  

 

 

    

 

 

  

Net increase

      10,433      $ 104,065   
  

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 2,011,906,317   
    

 

 

  

 

(a) Commencement of operations was May 1, 2015.

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

TCW Core Fixed Income Portfolio

Financial Highlights

 

Selected per share data       
     Class A  
     Period Ended
December 31,
2015(a)		  

Net Asset Value, Beginning of Period

    $ 10.00   
  

 

 

  

Income (Loss) from Investment Operations

   

Net investment income (b)

      0.08   

Net realized and unrealized loss on investments

      (0.13 ) 
  

 

 

  

Total from investment operations

      (0.05 ) 
  

 

 

  

Net Asset Value, End of Period

    $ 9.95   
  

 

 

  

Total Return (%) (c)

      (0.50 )(d) 

Ratios/Supplemental Data

   

Gross ratio of expenses to average net assets (%)

      0.58  (e) 

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

      0.45  (e) 

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

      1.13  (e) 

Portfolio turnover rate (%)

      325  (d)(g) 

Net assets, end of period (in millions)

    $ 2,007.7   
     Class B  
     Period Ended
December 31,
2015(a)		  

Net Asset Value, Beginning of Period

    $ 10.00   
  

 

 

  

Income (Loss) from Investment Operations

   

Net investment income (b)

      0.07   

Net realized and unrealized loss on investments

      (0.12 ) 
  

 

 

  

Total from investment operations

      (0.05 ) 
  

 

 

  

Net Asset Value, End of Period

    $ 9.95   
  

 

 

  

Total Return (%) (c)

      (0.50 )(d) 

Ratios/Supplemental Data

   

Gross ratio of expenses to average net assets (%)

      0.83  (e) 

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

      0.70  (e) 

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

      1.00  (e) 

Portfolio turnover rate (%)

      325  (d)(g) 

Net assets, end of period (in millions)

    $ 0.1   

 

(a) Commencement of operations was May 1, 2015.
(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 (see Note 6 of the Notes to Financial Statements).
(g) Includes mortgage dollar roll and TBA transactions; excluding these transactions the portfolio turnover rate would have been 205% for the period ended December 31, 2015.

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

TCW Core Fixed Income Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is TCW Core Fixed Income Portfolio (the “Portfolio”) (commenced operations on May 1, 2015), 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946—Financial Services—Investment Companies. 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, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 and subject to general oversight by the Board. The pricing models for these securities usually consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads for each tranche 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and 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.

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

Options, including swaptions, and futures contracts that are traded over-the-counter (“OTC”) are generally valued on the basis of quotations provided by broker-dealers or prices provided by pricing service providers who use a series of techniques, including

 

MIST-15

Met Investors Series Trust

TCW Core Fixed Income Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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, yield curves, credit curves, measures of volatility and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange or an independent pricing service when the exchange price is not available. For centrally cleared credit default swaps, the clearing facility requires its members to provide actionable price levels across complete term structures. These levels along with external third party prices are used to produce daily settlement prices. These securities are categorized as Level 2 within the fair value hierarchy. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates, including the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to produce the daily settlement price. These securities are categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

 

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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 paydown gains and losses and premium amortization adjustments. These adjustments have no impact on net assets or the results 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

 

MIST-16

Met Investors Series Trust

TCW Core Fixed Income Portfolio

Notes to Financial Statements—December 31, 2015—(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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

Mortgage Dollar Rolls - The Portfolio may enter into mortgage “dollar rolls” in which a Portfolio sells to-be-announced (“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.

Treasury and mortgage dollar roll transactions involve the risk that the market value of the securities that the Portfolio is required to repurchase or 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.

 

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.

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 sale commitments are valued at the current market value of the underlying securities, according to the procedures described under “Investment Valuation and Fair Value Measurements”.

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

TCW Core Fixed Income Portfolio

Notes to Financial Statements—December 31, 2015—(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.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the period ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

The following table provides a breakdown of the collateral received and the remaining contractual maturities for securities lending transactions, which are accounted for as secured borrowings.

 

     Remaining Contractual Maturity of the Agreements
As of December 31, 2015		  
      Overnight and
Continuous		     Up to
30 Days		      31 - 90
Days		      Greater than
90 days		      Total  
Securities Lending Transactions              

Corporate Bonds & Notes

    $ (17,629,770 )    $ —       $ —       $ —       $ (17,629,770 ) 

U.S. Treasury

      (29,155,810 )      —         —         —         (29,155,810 ) 

U.S. Treasury & Government Agencies

      (289,956,303 )      —         —         —         (289,956,303 ) 

Total

    $ (336,741,883 )    $ —       $ —       $ —       $ (336,741,883 ) 

Total Borrowings

    $ (336,741,883 )    $ —       $ —       $ —       $ (336,741,883 ) 

Gross amount of recognized liabilities for securities lending transactions

  

    $ (336,741,883 ) 
             

 

 

  

 

MIST-18

Met Investors Series Trust

TCW Core Fixed Income Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

3. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts 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 cash 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. If futures contracts are exchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of risk exposure:

 

    

Liability Derivatives

  

Risk Exposure 

   

Statement of Assets &
Liabilities Location

    Fair Value  

Interest Rate

    Unrealized depreciation on futures contracts (a)    $ 160,432   
     

 

 

  

 

  (a) 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 tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the period ended December 31, 2015:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Interest Rate  

Futures contracts

    $ 2,247,959   
  

 

 

  

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

    Interest Rate  

Futures contracts

    $ (160,432 ) 
  

 

 

  

For the period ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Futures contracts long

    $ 63,300,000   

 

  ‡ Averages are based on activity levels during the period.

4. Certain Risks

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”).

Market 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, 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-19

Met Investors Series Trust

TCW Core Fixed Income Portfolio

Notes to Financial Statements—December 31, 2015—(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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. 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 OTC traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and OTC 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.

Master Securities Forward Transaction Agreements (“MSFTA”) govern the considerations and factors surrounding the settlement of certain forward settling transactions, such as To-Be-Announced securities and delayed-delivery or secured borrowings transactions by and between the Portfolio and select counterparties. The MSFTA maintain provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral.

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 but excluding short-term securities, for the period ended December 31, 2015 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$6,748,805,965    $ 865,902,789       $ 5,442,580,057       $ 145,979,992   

Purchases and sales of mortgage dollar rolls and TBA transactions for the period ended December 31, 2015 were as follows:

 

Purchases

    Sales  
$2,775,584,475    $ 2,574,571,948   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the annual rate of 0.550% of average daily net assets. Fees earned by MetLife Advisers with respect to the Portfolio for the period ended December 31, 2015 were $6,953,253.

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. TCW Investment Management Company is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

 

MIST-20

Met Investors Series Trust

TCW Core Fixed Income Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, for the period May 1, 2015 to April 30, 2016, 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
0.070%    Of the first $500 million
0.150%    Of the next $1.5 billion
0.200%    On amounts in excess of $2 billion

Amounts waived for the period ended December 31, 2015 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, LLC, 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 December 31, 2015 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 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

As of December 31, 2015, 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		     Accumulated
Capital Losses		     Total  
$17,688,862    $ —       $ (21,656,461 )    $ (140,855 )    $ (4,108,454 ) 

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.

As of December 31, 2015, the Portfolio had accumulated short-term capital losses of $140,855.

 

MIST-21

Met Investors Series Trust

TCW Core Fixed Income Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

9. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-22

Met Investors Series Trust

TCW Core Fixed Income Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of TCW Core Fixed Income 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 TCW Core Fixed Income Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations, the statement of changes in net assets, and the financial highlights for the period May 1, 2015 (commencement of operations) to December 31, 2015. 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 audit.

We conducted our audit 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 audit 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 December 31, 2015, by correspondence with the custodian, transfer agent, and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audit provides 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 TCW Core Fixed Income Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations, the changes in its net assets, and the financial highlights for the period May 1, 2015 (commencement of operations) to December 31, 2015, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-23

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-24

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-25

Met Investors Series Trust

WMC Large Cap Research Portfolio

Managed by Wellington Management Company LLP

Portfolio Manager Commentary*

 

PERFORMANCE

For the one year period ended December 31, 2015, the Class A, B, and E shares of the WMC Large Cap Research Portfolio returned 4.59%, 4.41%, and 4.45%, respectively. The Portfolio’s benchmark, the Standard & Poor’s (“S&P”) 500 Index1, returned 1.38%.

MARKET ENVIRONMENT / CONDITIONS

U.S. equities, as measured by the S&P 500 Index, rose modestly during the twelve-month period ended December 31, 2015. 2015 was certainly a tale of two halves: the first half rise followed by the second half decline along with renewed volatility. U.S. stocks retreated briefly early in 2015, but then reached new all-time highs on March 2nd, April 24th, and May 21st. The market pulled back in early March as soft manufacturing data, potential currency- and oil-related earnings headwinds, and valuation concerns weighed on investors’ minds. However, risk appetites increased after the March 18th Federal Open Market Committee statement underlined the U.S. Federal Reserve’s (the “Fed”) hesitation to raise rates as U.S. domestic inflation remained subdued and other major central banks maintained an easing bias. In April, the tech-heavy Nasdaq Composite topped the 5,000 mark for the first time since the dot-com bubble and broke its closing record from March 2000. May marked the second-best month ever for deals involving U.S. companies with $234 billion in announcements. Stocks ended June on a sour note after negotiations between Greece and its creditors broke down.

In the second half of 2015, the U.S. economy remained on solid footing, with a sharp rebound in GDP, a seven-year low in unemployment, and a healthy housing market. While the growth slowdown in China and its implications for global commerce fueled investor anxiety, uncertainty about the Fed’s rate hike timeline also weighed on sentiment. During August and September, the market remained volatile and experienced its first 10% correction since October 2011. Oil prices and the energy sector as a whole remained extremely volatile, but ultimately fell sharply towards the end of the year. In the September meeting, the Fed left rates unchanged with its statement spooking some investors as it acknowledged that “recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term.” Eventually, after much anticipation, the Fed delivered its first rate hike since 2006 in December, approving a small increase of 25 basis points in the federal funds rate. The market initially reacted positively to the news, but remained volatile through the end of the year as investors digested the impact of the rate increase and global economic developments.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio outperformed its benchmark, the S&P 500 Index, for the twelve month period ended December 31, 2015. On a relative basis, nearly all of the value added over the period came from security selection. Positive stock selection was notable within the Information Technology, Consumer Staples, and Financials sectors, while selection was weaker within the Utilities sector.

Strong performance from Freescale Semiconductor and Amazon as well as the Portfolio’s underweight positioning to technology giant Apple, contributed most to relative performance during the period. Our decision to sell Kinder Morgan on valuation concerns earlier in the year together with not owning benchmark laggard Wal-Mart also aided relative results. The Portfolio’s underweight exposure to strong performing General Electric was among the Portfolio’s top detractors along with Enbridge (Canada) and GoPro. Additionally, the decision to not own The Home Depot weighed on relative performance.

The Portfolio is generally industry-neutral relative to the benchmark. On an absolute basis, the Portfolio’s largest exposures were to the software & services, pharmaceuticals, biotechnology & life sciences, and capital goods industries at the end of the period. Exposure to the software & services industry increased during the period while exposure to the technology hardware & equipment industry decreased (mainly through trimming our Apple exposure).

Cheryl M. Duckworth

Mark D. Mandel

Portfolio Managers

Wellington Management Company LLP

 

* 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, 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 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 statement) 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, and sales charges applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable 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

WMC Large Cap Research Portfolio

A $10,000 INVESTMENT COMPARED TO THE S&P 500 INDEX & THE RUSSELL 1000 INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE YEAR ENDED DECEMBER 31, 2015)

 

        1 Year        5 Year        10 Year        Since Inception3  
WMC Large Cap Research Portfolio                      

Class A

        4.59           12.80           6.50           —   

Class B

        4.41           12.52           —           4.99   

Class E

        4.45           12.61           —           5.10   
S&P 500 Index        1.38           12.57           7.31           —   
Russell 1000 Index2        0.92           12.44           7.40           —   

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

2 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.

3 Inception dates of the Class A, Class B and Class E shares are 3/23/1998, 4/30/2007 and 4/30/2007, respectively.

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 DECEMBER 31, 2015

Top Holdings

 

     % of
Net Assets		  
Alphabet, Inc. - Class A      3.1   
Microsoft Corp.      2.6   
Wells Fargo & Co.      2.2   
Amazon.com, Inc.      2.0   
Bank of America Corp.      1.9   
Medtronic plc      1.8   
Cisco Systems, Inc.      1.5   
Apple, Inc.      1.5   
Mondelez International, Inc. - Class A      1.5   
Comcast Corp. - Class A      1.4   

Top Sectors

 

     % of
Net Assets		  
Information Technology      18.4   
Financials      17.7   
Health Care      15.4   
Consumer Discretionary      12.2   
Consumer Staples      11.4   
Industrials      10.3   
Energy      5.1   
Utilities      4.2   
Materials      3.6   

 

MIST-2

Met Investors Series Trust

WMC Large Cap Research 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, July 1, 2015 through December 31, 2015.

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.

 

WMC Large Cap Research Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
July 1,
2015		        Ending
Account Value
December 31,
2015		        Expenses Paid
During Period**
July 1, 2015
to
December 31,
2015		  

Class A(a)

    Actual      0.51 %     $ 1,000.00         $ 1,004.30         $ 2.58   
   Hypothetical*      0.51 %     $ 1,000.00         $ 1,022.64         $ 2.60   

Class B(a)

    Actual      0.76 %     $ 1,000.00         $ 1,002.90         $ 3.84   
   Hypothetical*      0.76 %     $ 1,000.00         $ 1,021.37         $ 3.87   

Class E(a)

    Actual      0.66 %     $ 1,000.00         $ 1,003.60         $ 3.33   
   Hypothetical*      0.66 %     $ 1,000.00         $ 1,021.88         $ 3.36   

* 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 (184 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

WMC Large Cap Research Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—98.3% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—3.6%

  

Boeing Co. (The)

     116,840      $ 16,893,895   

Honeywell International, Inc.

     269,697        27,932,518   

Lockheed Martin Corp.

     94,120        20,438,158   

Raytheon Co.

     123,288        15,353,055   
   

 

 

  
      80,617,626   
   

 

 

  

Air Freight & Logistics—0.4%

  

FedEx Corp.

     20,180        3,006,618   

United Parcel Service, Inc. - Class B

     43,950        4,229,309   

XPO Logistics, Inc. (a) (b)

     95,640        2,606,190   
   

 

 

  
      9,842,117   
   

 

 

  

Airlines—0.3%

  

American Airlines Group, Inc.

     96,907        4,104,012   

United Continental Holdings, Inc. (a)

     45,721        2,619,813   
   

 

 

  
      6,723,825   
   

 

 

  

Banks—6.0%

  

Bank of America Corp.

     2,536,710        42,692,829   

Citizens Financial Group, Inc.

     613,207        16,059,891   

PNC Financial Services Group, Inc. (The)

     258,131        24,602,466   

Wells Fargo & Co.

     923,335        50,192,491   
   

 

 

  
      133,547,677   
   

 

 

  

Beverages—4.2%

  

Anheuser-Busch InBev S.A. (ADR)

     105,235        13,154,375   

Coca-Cola Co. (The)

     566,518        24,337,613   

Dr Pepper Snapple Group, Inc.

     101,897        9,496,800   

Monster Beverage Corp. (a)

     129,584        19,302,833   

PepsiCo, Inc.

     279,606        27,938,232   
   

 

 

  
      94,229,853   
   

 

 

  

Biotechnology—1.9%

  

Alkermes plc (a)

     91,306        7,247,870   

Alnylam Pharmaceuticals, Inc. (a) (b)

     12,520        1,178,633   

BioCryst Pharmaceuticals, Inc. (a)

     118,120        1,218,998   

Chiasma, Inc. (a)

     17,400        340,518   

Dicerna Pharmaceuticals, Inc. (a) (b)

     112,768        1,338,556   

Gilead Sciences, Inc.

     73,150        7,402,048   

GlycoMimetics, Inc. (a)

     108,511        620,683   

Incyte Corp. (a) (b)

     10,700        1,160,415   

Ironwood Pharmaceuticals, Inc. (a) (b)

     147,503        1,709,560   

Karyopharm Therapeutics, Inc. (a) (b)

     14,522        192,417   

Nivalis Therapeutics, Inc. (a) (b)

     41,800        323,532   

Novavax, Inc. (a) (b)

     165,270        1,386,615   

Otonomy, Inc. (a) (b)

     61,639        1,710,482   

PTC Therapeutics, Inc. (a) (b)

     24,890        806,436   

Puma Biotechnology, Inc. (a) (b)

     3,400        266,560   

Regeneron Pharmaceuticals, Inc. (a)

     16,418        8,912,840   

Regulus Therapeutics, Inc. (a) (b)

     76,840        670,045   

TESARO, Inc. (a) (b)

     31,440        1,644,941   

Trevena, Inc. (a) (b)

     142,847        1,499,893   

Ultragenyx Pharmaceutical, Inc. (a) (b)

     25,620        2,874,052   

Voyager Therapeutics, Inc. (a) (b)

     26,800        586,920   
   

 

 

  
      43,092,014   
   

 

 

  

Building Products—0.5%

  

Fortune Brands Home & Security, Inc. (b)

     85,870      4,765,785   

Owens Corning

     147,305        6,927,754   
   

 

 

  
      11,693,539   
   

 

 

  

Capital Markets—1.4%

  

Ameriprise Financial, Inc.

     62,885        6,692,222   

BlackRock, Inc.

     19,330        6,582,252   

Invesco, Ltd.

     127,948        4,283,699   

Northern Trust Corp.

     114,890        8,282,420   

Raymond James Financial, Inc.

     67,890        3,935,583   

WisdomTree Investments, Inc. (b)

     146,350        2,294,768   
   

 

 

  
      32,070,944   
   

 

 

  

Chemicals—1.7%

  

Cabot Corp.

     109,470        4,475,134   

Celanese Corp. - Series A

     134,163        9,033,195   

Dow Chemical Co. (The)

     147,381        7,587,174   

LyondellBasell Industries NV - Class A

     35,470        3,082,343   

Mosaic Co. (The)

     118,280        3,263,345   

Sherwin-Williams Co. (The)

     37,429        9,716,568   
   

 

 

  
      37,157,759   
   

 

 

  

Commercial Services & Supplies—0.4%

  

Waste Management, Inc.

     172,690        9,216,465   
   

 

 

  

Communications Equipment—1.9%

  

Arista Networks, Inc. (a)

     90,053        7,009,726   

Cisco Systems, Inc.

     1,269,770        34,480,604   
   

 

 

  
      41,490,330   
   

 

 

  

Construction Materials—0.6%

  

CRH plc (ADR)

     129,020        3,718,356   

Martin Marietta Materials, Inc.

     24,670        3,369,429   

Summit Materials, Inc. - Class A (a) (b)

     143,318        2,872,093   

Vulcan Materials Co.

     43,250        4,107,452   
   

 

 

  
      14,067,330   
   

 

 

  

Consumer Finance—1.6%

  

American Express Co.

     281,448        19,574,708   

Santander Consumer USA Holdings, Inc. (a)

     1,007,810        15,973,789   
   

 

 

  
      35,548,497   
   

 

 

  

Containers & Packaging—0.9%

  

Ball Corp.

     153,821        11,187,402   

International Paper Co.

     196,030        7,390,331   

Owens-Illinois, Inc. (a)

     135,060        2,352,745   
   

 

 

  
      20,930,478   
   

 

 

  

Diversified Financial Services—0.3%

  

MarketAxess Holdings, Inc. (b)

     11,400        1,272,126   

Markit, Ltd. (a) (b)

     53,714        1,620,551   

MSCI, Inc.

     57,834        4,171,567   
   

 

 

  
      7,064,244   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-4

Met Investors Series Trust

WMC Large Cap Research Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Electric Utilities—2.5%

  

Avangrid, Inc. (a)

     140,610      $ 5,399,424   

Duke Energy Corp.

     105,400        7,524,506   

Edison International

     115,000        6,809,150   

Eversource Energy

     88,140        4,501,310   

Exelon Corp.

     208,190        5,781,436   

ITC Holdings Corp.

     70,940        2,784,395   

NextEra Energy, Inc.

     194,310        20,186,866   

Pinnacle West Capital Corp.

     43,030        2,774,574   
   

 

 

  
      55,761,661   
   

 

 

  

Electrical Equipment—0.7%

  

AMETEK, Inc.

     142,310        7,626,393   

Eaton Corp. plc

     149,020        7,755,001   
   

 

 

  
      15,381,394   
   

 

 

  

Energy Equipment & Services—0.7%

  

Baker Hughes, Inc.

     8,580        395,967   

Ensco plc - Class A (b)

     38,570        593,592   

Forum Energy Technologies, Inc. (a) (b)

     154,190        1,921,207   

Halliburton Co.

     205,750        7,003,730   

Patterson-UTI Energy, Inc.

     146,595        2,210,653   

Tenaris S.A. (ADR)

     66,520        1,583,176   

Tesco Corp. (b)

     199,020        1,440,905   
   

 

 

  
      15,149,230   
   

 

 

  

Food & Staples Retailing—1.9%

  

Costco Wholesale Corp.

     71,423        11,534,815   

CVS Health Corp.

     200,060        19,559,866   

Walgreens Boots Alliance, Inc.

     143,890        12,252,953   
   

 

 

  
      43,347,634   
   

 

 

  

Food Products—1.5%

  

Mondelez International, Inc. - Class A

     739,140        33,143,038   
   

 

 

  

Gas Utilities—0.2%

  

UGI Corp.

     120,540        4,069,430   
   

 

 

  

Health Care Equipment & Supplies—4.3%

  

Abbott Laboratories

     143,468        6,443,148   

Baxter International, Inc.

     198,757        7,582,579   

Becton Dickinson & Co.

     59,627        9,187,924   

Boston Scientific Corp. (a)

     351,040        6,473,178   

ConforMIS, Inc. (a) (b)

     140,400        2,427,516   

Medtronic plc

     516,116        39,699,643   

St. Jude Medical, Inc.

     234,870        14,507,920   

Stryker Corp.

     117,480        10,918,591   
   

 

 

  
      97,240,499   
   

 

 

  

Health Care Providers & Services—3.3%

  

Aetna, Inc.

     103,420        11,181,770   

Cardinal Health, Inc.

     79,510        7,097,858   

HCA Holdings, Inc. (a)

     172,720        11,681,054   

McKesson Corp.

     81,985        16,169,901   

UnitedHealth Group, Inc.

     230,204        27,081,199   
   

 

 

  
      73,211,782   
   

 

 

  

Hotels, Restaurants & Leisure—2.2%

  

Las Vegas Sands Corp.

     60,460      2,650,566   

McDonald’s Corp.

     188,844        22,310,030   

Norwegian Cruise Line Holdings, Ltd. (a)

     128,157        7,510,000   

Starbucks Corp.

     180,864        10,857,266   

Wingstop, Inc. (a) (b)

     5,500        125,455   

Wyndham Worldwide Corp. (b)

     73,236        5,320,596   
   

 

 

  
      48,773,913   
   

 

 

  

Household Durables—0.8%

  

Mohawk Industries, Inc. (a)

     92,200        17,461,758   
   

 

 

  

Household Products—1.2%

  

Colgate-Palmolive Co.

     410,852        27,370,960   
   

 

 

  

Industrial Conglomerates—1.5%

  

Danaher Corp.

     288,970        26,839,534   

General Electric Co.

     234,950        7,318,692   
   

 

 

  
      34,158,226   
   

 

 

  

Insurance—5.0%

  

American International Group, Inc.

     454,901        28,190,215   

Assured Guaranty, Ltd.

     410,235        10,842,511   

Hartford Financial Services Group, Inc. (The)

     310,267        13,484,204   

Marsh & McLennan Cos., Inc.

     359,910        19,957,009   

Principal Financial Group, Inc.

     267,672        12,039,887   

Prudential Financial, Inc.

     143,690        11,697,803   

XL Group plc

     410,810        16,095,536   
   

 

 

  
      112,307,165   
   

 

 

  

Internet & Catalog Retail—3.0%

  

Amazon.com, Inc. (a)

     67,743        45,786,817   

Expedia, Inc.

     14,097        1,752,257   

Priceline Group, Inc. (The) (a)

     15,416        19,654,629   
   

 

 

  
      67,193,703   
   

 

 

  

Internet Software & Services—5.2%

  

Alphabet, Inc. - Class A (a)

     88,140        68,573,801   

Alphabet, Inc. - Class C (a)

     28,866        21,905,830   

Envestnet, Inc. (a)

     27,961        834,636   

Facebook, Inc. - Class A (a)

     241,050        25,228,293   

Zillow Group, Inc. - Class C (a) (b)

     2,328        54,662   
   

 

 

  
      116,597,222   
   

 

 

  

IT Services—4.5%

  

Accenture plc - Class A

     132,918        13,889,931   

Alliance Data Systems Corp. (a)

     19,082        5,277,509   

Automatic Data Processing, Inc.

     115,941        9,822,521   

Cognizant Technology Solutions Corp. - Class A (a)

     121,193        7,274,004   

Genpact, Ltd. (a)

     546,721        13,657,091   

Global Payments, Inc.

     114,110        7,361,236   

Heartland Payment Systems, Inc.

     78,086        7,404,114   

Visa, Inc. - Class A (b)

     375,660        29,132,433   

WEX, Inc. (a) (b)

     74,654        6,599,414   
   

 

 

  
      100,418,253   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

WMC Large Cap Research Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Life Sciences Tools & Services—0.4%

  

Thermo Fisher Scientific, Inc.

     65,460      $ 9,285,501   
   

 

 

  

Machinery—1.3%

  

Dover Corp.

     85,100        5,217,481   

Illinois Tool Works, Inc.

     176,330        16,342,264   

Pentair plc (b)

     161,730        8,010,487   
   

 

 

  
      29,570,232   
   

 

 

  

Media—3.5%

  

Comcast Corp. - Class A

     536,900        30,297,267   

DreamWorks Animation SKG, Inc. - Class A (a)

     194,610        5,015,100   

Interpublic Group of Cos., Inc. (The)

     210,289        4,895,528   

Time Warner Cable, Inc.

     129,260        23,989,363   

Twenty-First Century Fox, Inc. - Class A

     527,053        14,314,759   
   

 

 

  
      78,512,017   
   

 

 

  
   

Metals & Mining—0.1%

  

Reliance Steel & Aluminum Co.

     33,620        1,946,934   
   

 

 

  

Multi-Utilities—1.5%

  

Ameren Corp.

     116,590        5,040,186   

Dominion Resources, Inc.

     185,275        12,532,001   

DTE Energy Co.

     44,165        3,541,591   

PG&E Corp.

     125,540        6,677,472   

Public Service Enterprise Group, Inc.

     41,440        1,603,314   

Sempra Energy

     52,220        4,909,202   
   

 

 

  
      34,303,766   
   

 

 

  

Oil, Gas & Consumable Fuels—4.5%

  

Anadarko Petroleum Corp.

     51,108        2,482,827   

Cabot Oil & Gas Corp.

     273,160        4,832,200   

Cobalt International Energy, Inc. (a)

     1,148,087        6,199,670   

ConocoPhillips

     139,520        6,514,189   

Continental Resources, Inc. (a) (b)

     386,193        8,874,715   

Enbridge, Inc.

     343,939        11,415,335   

EOG Resources, Inc.

     9,470        670,381   

Hess Corp.

     82,476        3,998,436   

Marathon Petroleum Corp.

     137,160        7,110,374   

Newfield Exploration Co. (a)

     465,760        15,165,146   

Oasis Petroleum, Inc. (a) (b)

     325,060        2,395,692   

ONEOK, Inc. (b)

     52,206        1,287,400   

PBF Energy, Inc. - Class A

     232,808        8,569,663   

PDC Energy, Inc. (a)

     39,880        2,128,794   

Pioneer Natural Resources Co.

     89,226        11,187,156   

TransCanada Corp. (b)

     122,350        3,987,387   

WPX Energy, Inc. (a) (b)

     613,823        3,523,344   
   

 

 

  
      100,342,709   
   

 

 

  

Paper & Forest Products—0.3%

  

Boise Cascade Co. (a)

     219,222        5,596,738   
   

 

 

  

Personal Products—1.3%

  

Avon Products, Inc. (b)

     1,727,954        6,998,214   

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

     258,764        22,786,758   
   

 

 

  
      29,784,972   
   

 

 

  

Pharmaceuticals—5.4%

  

Aerie Pharmaceuticals, Inc. (a) (b)

     47,790      1,163,686   

Allergan plc (a)

     91,640        28,637,500   

AstraZeneca plc (ADR) (b)

     329,480        11,185,846   

Bristol-Myers Squibb Co.

     357,100        24,564,909   

Eli Lilly & Co.

     71,390        6,015,321   

Johnson & Johnson

     164,430        16,890,250   

Merck & Co., Inc.

     383,283        20,245,008   

Mylan NV (a)

     169,055        9,140,804   

MyoKardia, Inc. (a) (b)

     77,600        1,137,616   

Ocular Therapeutix, Inc. (a) (b)

     64,800        607,176   

Relypsa, Inc. (a) (b)

     33,700        955,058   

Tetraphase Pharmaceuticals, Inc. (a) (b)

     98,090        983,843   
   

 

 

  
      121,527,017   
   

 

 

  

Professional Services—1.1%

  

Equifax, Inc.

     66,249        7,378,151   

ManpowerGroup, Inc.

     57,140        4,816,331   

Nielsen Holdings plc

     196,400        9,152,240   

TransUnion (a)

     134,800        3,716,436   
   

 

 

  
      25,063,158   
   

 

 

  

Real Estate Investment Trusts—3.4%

  

American Tower Corp.

     171,599        16,636,523   

AvalonBay Communities, Inc.

     108,245        19,931,152   

Public Storage

     56,890        14,091,653   

Simon Property Group, Inc.

     69,411        13,496,275   

SL Green Realty Corp.

     108,710        12,282,056   
   

 

 

  
      76,437,659   
   

 

 

  

Road & Rail—0.4%

  

Genesee & Wyoming, Inc. - Class A (a)

     47,932        2,573,469   

Kansas City Southern

     8,114        605,872   

Knight Transportation, Inc. (b)

     85,856        2,080,291   

Norfolk Southern Corp.

     26,350        2,228,946   

Swift Transportation Co. (a) (b)

     117,480        1,623,574   
   

 

 

  
      9,112,152   
   

 

 

  

Semiconductors & Semiconductor Equipment—2.1%

  

Applied Materials, Inc.

     707,700        13,212,759   

Avago Technologies, Ltd. (b)

     78,820        11,440,723   

First Solar, Inc. (a)

     27,398        1,807,994   

Lam Research Corp.

     21,350        1,695,617   

Linear Technology Corp.

     105,860        4,495,874   

Microchip Technology, Inc. (b)

     75,000        3,490,500   

NXP Semiconductors NV (a)

     72,011        6,066,927   

ON Semiconductor Corp. (a)

     151,120        1,480,976   

Skyworks Solutions, Inc.

     10,900        837,447   

SunEdison Semiconductor, Ltd. (a) (b)

     104,030        815,595   

SunPower Corp. (a) (b)

     24,520        735,845   
   

 

 

  
      46,080,257   
   

 

 

  

Software—3.0%

  

Microsoft Corp.

     1,039,224        57,656,147   

ServiceNow, Inc. (a)

     65,240        5,647,174   

SS&C Technologies Holdings, Inc.

     59,543        4,065,001   
   

 

 

  
      67,368,322   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

WMC Large Cap Research Portfolio

Schedule of Investments as of December 31, 2015

Common Stocks—(Continued)

 

Security Description       
Shares		     Value  

Specialty Retail—1.8%

  

Advance Auto Parts, Inc.

     132,467      $ 19,937,608   

L Brands, Inc.

     65,128        6,240,565   

Ross Stores, Inc.

     36,398        1,958,576   

Signet Jewelers, Ltd.

     103,295        12,776,559   
   

 

 

  
      40,913,308   
   

 

 

  

Technology Hardware, Storage & Peripherals—1.8%

  

Apple, Inc.

     317,636        33,434,365   

Pure Storage, Inc. - Class A (a) (b)

     492,619        7,670,078   
   

 

 

  
      41,104,443   
   

 

 

  

Textiles, Apparel & Luxury Goods—1.0%

  

NIKE, Inc. - Class B

     197,510        12,344,375   

Ralph Lauren Corp. (b)

     24,930        2,779,196   

VF Corp.

     98,070        6,104,858   
   

 

 

  
      21,228,429   
   

 

 

  

Tobacco—1.2%

  

Altria Group, Inc.

     421,350        24,526,783   

Philip Morris International, Inc.

     26,550        2,334,011   
   

 

 

  
      26,860,794   
   

 

 

  

Total Common Stocks
(Cost $2,024,345,201)

       2,203,916,974   
   

 

 

  
Short-Term Investments—7.6%   

Mutual Fund—6.0%

  

State Street Navigator Securities Lending MET Portfolio (c)

     133,720,754        133,720,754   
   

 

 

  
Security Description   Principal
Amount*		     Value  

Repurchase Agreement—1.6%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 12/31/15 at 0.030% to be repurchased at $37,077,988 on 01/04/16, collateralized by $37,920,000 Federal Farm Credit Bank at 1.100% due 03/14/18 with a value of $37,823,683.

     37,077,865      $ 37,077,865   
   

 

 

  

Total Short-Term Investments (Cost $170,798,619)

       170,798,619   
   

 

 

  

Total Investments—105.9% (Cost $2,195,143,820) (d)

       2,374,715,593   

Other assets and liabilities (net)—(5.9)%

       (133,196,860 ) 
   

 

 

  
Net Assets—100.0%     $ 2,241,518,733   
   

 

 

  

 

* 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 December 31, 2015, the market value of securities loaned was $141,109,313 and the collateral received consisted of cash in the amount of $133,720,754 and non-cash collateral with a value of $11,750,765. 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 on loan as of December 31, 2015.
(d) As of December 31, 2015, the aggregate cost of investments for federal income tax purposes was $2,204,082,019. The aggregate unrealized appreciation and depreciation of investments were $251,056,906 and $(80,423,332), respectively, resulting in net unrealized appreciation of $170,633,574 for federal income tax purposes.
(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.

 

Futures Contracts

 

Futures Contracts—Long

    Expiration
Date		      Number of
Contracts		      Notional
Amount		      Unrealized
Appreciation		  

S&P 500 E-Mini Index Futures

      03/18/16         265         USD         26,881,938       $ 87,112   
              

 

 

  

 

(USD)— United States Dollar

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

WMC Large Cap Research Portfolio

Schedule of Investments as of December 31, 2015

 

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, separately for each major category of assets and liabilities, 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, quoted prices for similar assets or liabilities 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, or other market corroborated inputs)

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 used in determining the fair value of investments and derivative financial instruments)

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 December 31, 2015:

 

Description    Level 1      Level 2     Level 3      Total  

Total Common Stocks*

    $ 2,203,916,974       $ —        $ —         $ 2,203,916,974   
Short-Term Investments           

Mutual Fund

      133,720,754         —          —           133,720,754   

Repurchase Agreement

      —           37,077,865        —           37,077,865   

Total Short-Term Investments

      133,720,754         37,077,865        —           170,798,619   

Total Investments

    $ 2,337,637,728       $ 37,077,865      $ —         $ 2,374,715,593   
                                    

Collateral for Securities Loaned (Liability)

    $ —         $ (133,720,754 )    $ —         $ (133,720,754 ) 
Futures Contracts           

Futures Contracts (Unrealized Appreciation)

    $ 87,112       $ —        $ —         $ 87,112   

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

WMC Large Cap Research Portfolio

 

Statement of Assets and Liabilities

 

December 31, 2015

 

Assets

  

Investments at value (a) (b)

    $ 2,374,715,593   

Cash

      82,162   

Cash collateral for futures contracts

      1,340,900   

Receivable for:

   

Investments sold

      953,663   

Fund shares sold

      12,661   

Dividends and interest

      2,546,001   

Prepaid expenses

      6,373   
  

 

 

  

Total Assets

      2,379,657,353   

Liabilities

   

Collateral for securities loaned

      133,720,754   

Payables for:

   

Investments purchased

      1,761,232   

Fund shares redeemed

      1,044,594   

Variation margin on futures contracts

      254,400   

Accrued Expenses:

   

Management fees

      938,397   

Distribution and service fees

      37,672   

Deferred trustees’ fees

      81,937   

Other expenses

      299,634   
  

 

 

  

Total Liabilities

      138,138,620   
  

 

 

  

Net Assets

    $ 2,241,518,733   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 1,862,946,345   

Undistributed net investment income

      56,177,433   

Accumulated net realized gain

      142,736,036   

Unrealized appreciation on investments, futures contracts and foreign currency transactions

      179,658,919   
  

 

 

  

Net Assets

    $ 2,241,518,733   
  

 

 

  

Net Assets

   

Class A

    $ 2,034,592,842   

Class B

      128,127,044   

Class E

      78,798,847   

Capital Shares Outstanding*

   

Class A

      145,749,270   

Class B

      9,340,599   

Class E

      5,686,393   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 13.96   

Class B

      13.72   

Class E

      13.86   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $2,195,143,820.
(b) Includes securities loaned at value of $141,109,313.

 

Statement of Operations

 

Year Ended December 31, 2015

 

Investment Income

   

Dividends (a)

    $ 40,640,140   

Interest

      433   

Securities lending income

      553,404  
  

 

 

  

Total investment income

      41,193,977  

Expenses

   

Management fees

      13,295,174   

Administration fees

      56,755   

Custodian and accounting fees

      181,466   

Distribution and service fees—Class B

      340,387   

Distribution and service fees—Class E

      127,067   

Audit and tax services

      40,454   

Legal

      26,763   

Trustees’ fees and expenses

      35,173   

Shareholder reporting

      219,139   

Insurance

      15,083   

Miscellaneous

      17,107  
  

 

 

  

Total expenses

      14,354,568  

Less management fee waiver

      (1,738,572 ) 

Less broker commission recapture

      (29,962 )
  

 

 

  

Net expenses

      12,586,034  
  

 

 

  

Net Investment Income

      28,607,943  
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      161,048,316   

Futures contracts

      (1,622,197 ) 

Foreign currency transactions

      (7,513 )
  

 

 

  

Net realized gain

      159,418,606  
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (76,969,296 ) 

Futures contracts

      346,621   

Foreign currency transactions

      34  
  

 

 

  

Net change in unrealized depreciation

      (76,622,641 )
  

 

 

  

Net realized and unrealized gain

      82,795,965  
  

 

 

  

Net Increase in Net Assets From Operations

    $ 111,403,908  
  

 

 

  

 

(a) Net of foreign withholding taxes of $163,302.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

WMC Large Cap Research Portfolio

Statements of Changes in Net Assets

 

     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 28,607,943      $ 23,029,883   

Net realized gain

      159,418,606        343,002,439   

Net change in unrealized depreciation

      (76,622,641 )     (74,847,117 )
  

 

 

    

 

 

  

Increase in net assets from operations

      111,403,908       291,185,205  
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (20,411,301 )      (9,997,703 ) 

Class B

      (982,346 )      (973,334 ) 

Class E

      (669,098 )      (735,714 ) 

Net realized capital gains

     

Class A

      (153,228,496 )      0   

Class B

      (9,879,068 )      0   

Class E

      (6,044,559 )     0  
  

 

 

    

 

 

  

Total distributions

      (191,214,868 )     (11,706,751 )
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      (115,421,801 )     869,688,238  
  

 

 

    

 

 

  

Total increase (decrease) in net assets

      (195,232,761 )      1,149,166,692   

Net Assets

     

Beginning of period

      2,436,751,494       1,287,584,802  
  

 

 

    

 

 

  

End of period

    $ 2,241,518,733      $ 2,436,751,494   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 56,177,433      $ 21,845,575   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Year Ended
December 31, 2015		     Year Ended
December 31, 2014		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      526,389      $ 7,514,108        82,577,074      $ 1,068,466,751   

Reinvestments

      12,306,151        173,639,797        787,842        9,997,703   

Redemptions

      (19,490,744 )      (282,033,428 )      (13,489,908 )      (184,914,149 )
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (6,658,204 )    $ (100,879,523 )      69,875,008      $ 893,550,305  
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      826,315      $ 11,641,543        1,381,270      $ 18,289,839   

Reinvestments

      782,523        10,861,414        77,805        973,334   

Redemptions

      (2,018,345 )      (28,517,973 )      (2,139,140 )      (28,291,386 )
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (409,507 )    $ (6,015,016 )      (680,065 )    $ (9,028,213 )
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      183,488      $ 2,619,900        335,955      $ 4,491,486   

Reinvestments

      478,863        6,713,657        58,297        735,714   

Redemptions

      (1,243,097 )      (17,860,819 )      (1,507,102 )      (20,061,054 )
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (580,746 )    $ (8,527,262 )      (1,112,850 )    $ (14,833,854 )
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ (115,421,801 )      $ 869,688,238  
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

WMC Large Cap Research Portfolio

Financial Highlights

 

Selected per share data                                   
     Class A  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 14.49       $ 12.86      $ 9.71       $ 8.65       $ 8.70  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.18         0.16         0.11         0.14         0.11   

Net realized and unrealized gain (loss) on investments

      0.50        1.59        3.20        1.03        (0.06 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.68        1.75        3.31        1.17        0.05  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.14 )       (0.12 )       (0.16 )       (0.11 )       (0.10 ) 

Distributions from net realized capital gains

      (1.07 )      0.00        0.00        0.00        0.00  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (1.21 )      (0.12 )      (0.16 )      (0.11 )      (0.10 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 13.96       $ 14.49      $ 12.86       $ 9.71       $ 8.65  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      4.59        13.78        34.49        13.59        0.46  

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      0.59         0.60         0.62         0.64         0.64   

Net ratio of expenses to average net assets (%) (c) (d)

      0.51         0.53         0.60         0.63         0.63   

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

      1.23         1.16         1.03         1.54         1.20   

Portfolio turnover rate (%)

      63         136         42         103         98   

Net assets, end of period (in millions)

    $ 2,034.6       $ 2,207.6       $ 1,061.3       $ 873.0       $ 853.3   
     Class B  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 14.25       $ 12.66      $ 9.56       $ 8.52       $ 8.58  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.14         0.12         0.09         0.12         0.09   

Net realized and unrealized gain (loss) on investments

      0.51        1.57        3.14        1.01        (0.07 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.65        1.69        3.23        1.13        0.02  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.11 )       (0.10 )       (0.13 )       (0.09 )       (0.08 ) 

Distributions from net realized capital gains

      (1.07 )      0.00        0.00        0.00        0.00  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (1.18 )      (0.10 )      (0.13 )      (0.09 )      (0.08 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 13.72       $ 14.25      $ 12.66       $ 9.56       $ 8.52  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      4.41        13.41        34.17        13.32        0.18  

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      0.84         0.85         0.87         0.89         0.89   

Net ratio of expenses to average net assets (%) (c) (d)

      0.76         0.78         0.85         0.88         0.88   

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

      0.98         0.87         0.78         1.29         0.99   

Portfolio turnover rate (%)

      63         136         42         103         98   

Net assets, end of period (in millions)

    $ 128.1       $ 139.0       $ 132.0       $ 108.1       $ 99.0   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

WMC Large Cap Research Portfolio

Financial Highlights

 

Selected per share data                                   
     Class E  
     Year Ended December 31,  
     2015      2014      2013      2012      2011  

Net Asset Value, Beginning of Period

    $ 14.39       $ 12.77      $ 9.65       $ 8.59       $ 8.65  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (a)

      0.15         0.13         0.10         0.13         0.09   

Net realized and unrealized gain (loss) on investments

      0.51        1.60        3.16        1.03        (0.06 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.66        1.73        3.26        1.16        0.03  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.12 )       (0.11 )       (0.14 )       (0.10 )       (0.09 ) 

Distributions from net realized capital gains

      (1.07 )      0.00        0.00        0.00        0.00  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (1.19 )      (0.11 )      (0.14 )      (0.10 )      (0.09 )
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 13.86       $ 14.39      $ 12.77       $ 9.65       $ 8.59  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      4.45        13.62        34.17        13.51        0.21  

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      0.74         0.75         0.77         0.79         0.79   

Net ratio of expenses to average net assets (%) (c) (d)

      0.66         0.68         0.75         0.78         0.78   

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

      1.07         0.97         0.88         1.39         1.04   

Portfolio turnover rate (%)

      63         136         42         103         98   

Net assets, end of period (in millions)

    $ 78.8       $ 90.2       $ 94.3       $ 81.4       $ 94.8   

 

(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) The effect of the voluntary portion of the waivers on average net assets was 0.03% and 0.04% for the years ended December 31, 2015 and 2014, respectively (see Note 6 of the Notes to Financial Statements).
(d) Includes the effects of management fee waivers (see Note 6 of the Notes to Financial Statements).

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

WMC Large Cap Research Portfolio

Notes to Financial Statements—December 31, 2015

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust, which is managed by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., currently offers forty-eight series, each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is WMC Large Cap Research 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 plan and such distribution 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 December 31, 2015 through the date the financial statements were issued.

The Portfolio is an investment company and follows the accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946- Financial Services- Investment Companies. 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 - 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 or official closing 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 (“OTC”) are generally valued at the last reported sale price. Valuation adjustments may be applied to certain foreign equity securities that are traded solely on foreign exchanges that close before the close of 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. Foreign equity securities using these valuation adjustments are generally 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.

Debt securities, including corporate, convertible and municipal bonds and notes; obligations of the U.S. treasury and U.S. government agencies; sovereign issues; 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 the Adviser, pursuant to authorization of and subject to general oversight by 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, rates of prepayment, credit risks/spreads, default rates, reported trades, broker dealer quotes and quoted prices for similar assets. Floating rate loans are valued at the average of aggregate bid and ask quotations supplied by brokers or dealers in the loans, as obtained from an independent pricing service. 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 generally valued at amortized cost, as long as the amortized cost value is approximately the same as the fair value of the instrument, and are generally 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 sale price available as of the close of business on the valuation date or, if there is no such price available, at the last reported bid price. These types of

 

MIST-13

Met Investors Series Trust

WMC Large Cap Research Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

options are categorized as Level 1 within the fair value hierarchy. Futures contracts that 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.

If no current market value quotation or other observable inputs are readily available or market value quotations are deemed to be unreliable for an investment, the fair value of the investment will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board will be assisted in its responsibility to determine the fair value of an investment by the Valuation Committee (“Committee”) of MetLife Advisers. 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 the 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.

No single standard for determining the fair value of an investment can be set forth because fair value depends upon the facts and circumstances with respect to each investment. 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, a discounted cash flow analysis, 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.

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. These foreign taxes have been provided for in accordance with the Portfolio’s understanding of the applicable countries’ tax rules and rates.

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 the U.S. dollar 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. Because 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.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from securities 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, corporate actions, adjustments to prior period accumulated balances, real estate investment trust (REIT) adjustments and broker commission recapture. These adjustments have no impact on net assets or the results 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. As of December 31, 2015, the Portfolio had no uncertain tax positions that would require financial statement recognition, or de-recognition or disclosure.

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

 

MIST-14

Met Investors Series Trust

WMC Large Cap Research Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement (“MRA”), 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, under a tri-party repurchase agreement, receives delivery of the underlying securities collateralizing any repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be equal to at least 100% of the repurchase price in the case of a repurchase agreement of one-day duration and equal to at least 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 in connection with any repurchase transaction, the MRA 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 December 31, 2015, the Portfolio had investments in repurchase agreements with a gross value of $37,077,865, 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 December 31, 2015.

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 Authorization Agreement with the custodian as the lending agent. Under this agreement, 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 equal to at least 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. 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 that 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 is equal to 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. Income received by the Portfolio in securities lending transactions during the year ended December 31, 2015 is reflected as Securities lending income on the Statement of Operations. The values of any securities loaned by the Portfolio and the related collateral at December 31, 2015 are disclosed in the footnotes to the Schedule of Investments. The value of the related collateral received by the Portfolio exceeded the value of the securities out on loan at December 31, 2015.

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. The lending agent shall indemnify the Portfolio in the case of default of any securities borrower.

All securities on loan are classified as Common Stocks in the Portfolio’s Schedule of Investments as of December 31, 2015, with a contractual maturity of overnight and continuous.

3. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts 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 cash 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

 

MIST-15

Met Investors Series Trust

WMC Large Cap Research Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

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. If futures contracts are exchange-traded, the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures contracts against default. For OTC futures, the Portfolio’s ability to terminate the positions may be more limited than in the case of exchange-traded positions and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Portfolio.

The following table summarizes the fair value of derivatives held by the Portfolio at December 31, 2015 by category of risk exposure:

 

    

Asset Derivatives

  

Risk Exposure

   

Statement of Assets &
Liabilities Location

    Fair Value  

Equity

    Unrealized appreciation on futures contracts (a)    $ 87,112   
     

 

 

  

 

  (a) 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 tables summarize the effect of derivative instruments on the Statement of Operations, classified by derivative type and category of risk exposure, for the year ended December 31, 2015:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Equity  

Futures contracts

    $ (1,622,197 ) 
  

 

 

  

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

    Equity  

Futures contracts

    $ 346,621   
  

 

 

  

For the year ended December 31, 2015, the average notional par or face amount outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount‡		  

Futures contracts long

    $ 9,467   

 

  ‡ Averages are based on activity levels during 2015.

4. Certain Risks

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”).

Market 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, 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 (“Master Agreements”) with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Master Agreements govern the terms of certain transactions, and reduce the counterparty risk associated with relevant transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Master Agreements can also help limit counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels.

 

MIST-16

Met Investors Series Trust

WMC Large Cap Research Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (“GMRAs”) or Master Repurchase Agreements (“MRAs”), 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.

Customer Account Agreements and related addenda govern cleared derivatives transactions such as futures, options on futures, and cleared OTC derivatives. Cleared derivative transactions require posting of initial margin as determined by each relevant clearing agency, which is segregated at a broker account registered with the Commodities Futures Trading Commission (“CFTC”), or the applicable regulator. In the U.S., counterparty risk is significantly reduced as creditors of the futures broker do not have claim to Portfolio assets in the segregated account. Additionally, portability of exposure in the event of default further reduces risk to the Portfolio. Variation margin, or changes in market value, are exchanged daily, but may not be netted between futures and cleared OTC derivatives.

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 year ended December 31, 2015 were as follows:

 

Purchases      Sales  
U.S. Government      Non U.S. Government      U.S. Government      Non U.S. Government  
$ 0       $ 1,457,321,407       $ 0       $ 1,727,372,651   

The Portfolio engaged in security transactions with other accounts managed by Wellington Management Company LLP that amounted to $1,345,925 in sales of investments, which are included above.

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - MetLife Advisers is the investment adviser to the Portfolio. The Trust has entered into an investment management agreement with MetLife Advisers with respect to the Portfolio. For providing investment management services to the Portfolio, MetLife Advisers receives monthly compensation at the following annual rates:

 

Management
Fees earned by
MetLife Advisers
for the year ended
December 31, 2015

    % per annum     Average Daily Net Assets
$13,295,174      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

MetLife Advisers has entered into an investment subadvisory agreement with respect to managing the Portfolio. Wellington Management Company LLP is compensated by MetLife Advisers to provide subadvisory services for the Portfolio.

Management Fee Waiver - Pursuant to a management fee waiver agreement, MetLife Advisers has agreed, for the period December 1, 2015 to April 30, 2016, 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
0.070%    First $250 million
0.045%    $250 million to $2 billion
0.005%    $2 billion to $21.250 billion
0.010%    Over $21.250 billion

For the period January 1, 2015 to November 30, 2015, MetLife Advisers had agreed to reduce its advisory fees for each class of the Portfolio as follows:

 

% per annum reduction

    Average Daily Net Assets
0.070%    First $250 million
0.045%    $250 million to $2 billion

 

MIST-17

Met Investors Series Trust

WMC Large Cap Research Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

Additionally, prior to December 1, 2015, any reductions in total advisory fees paid by the Portfolio due to these waivers may have been reduced or eliminated by changes in the advisory fee structure at higher asset levels. MetLife Advisers received advisory fees equal to 0.505% of the Portfolio’s average daily net assets for amounts over $2 billion but less than $21.25 billion (0.005% over the contractual advisory fee rate). As a result, the dollar amount of the waiver was reduced as assets grew beyond $2 billion up to $21.25 billion, but the advisory fee net of waivers never exceeded the contractual dollar amount that was otherwise payable under the advisory fee.

Amounts waived for the year ended December 31, 2015 amounted to $946,144 and are included in the total amount shown as management fee waivers in the Statement of Operations.

The Subadviser has voluntarily agreed to waive a portion of its subadvisory fees payable by the Adviser to the Subadviser for managing the Portfolio. In addition to the above advisory fee waiver, the Adviser has agreed to reduce its advisory fee reflecting a portion of the amount waived by the Subadviser for managing the Portfolio pursuant to the voluntary subadvisory fee waiver. $792,428 was waived in the aggregate for the year ended December 31, 2015 and is reflected in the total amount 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, LLC, 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 year ended December 31, 2015 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 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, 2015 and 2014 were as follows:

 

Ordinary Income      Long-Term Capital Gain      Total  
2015      2014      2015      2014      2015      2014  
$ 22,062,745       $ 11,706,751       $ 169,152,123       $ —       $ 191,214,868       $ 11,706,751   

 

MIST-18

Met Investors Series Trust

WMC Large Cap Research Portfolio

Notes to Financial Statements—December 31, 2015—(Continued)

 

As of December 31, 2015, 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		      Other
Accumulated
Capital Losses		      Total  
$ 68,412,973       $ 139,607,747       $ 170,633,608       $ —       $ 378,654,328   

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, 2015, the Portfolio had no post-enactment accumulated capital losses and no pre-enactment accumulated capital loss carryforwards.

9. Recent Accounting Pronouncements

In May 2015, FASB issued Accounting Standards Update 2015-07 (“ASU”) which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. The ASU is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. At this time, management is evaluating the impact of these changes on the Portfolio’s financial statement disclosures.

 

MIST-19

Met Investors Series Trust

WMC Large Cap Research Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of WMC Large Cap Research 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 WMC Large Cap Research Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of December 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. 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 December 31, 2015, by correspondence with the custodian and brokers; when 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 WMC Large Cap Research Portfolio of the Met Investors Series Trust as of December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

February 25, 2016

 

MIST-20

Met Investors Series Trust

Trustees and Officers

 

MANAGEMENT OF THE TRUSTS

The MIST Trust and the MSF Trust are collectively referred to as the “Trusts”. The Board of Trustees of each Trust (collectively, the “Board”) supervises the Trusts and is responsible for representing the interests of shareholders. The same persons serve as the Trustees of the MIST Trust and the MSF Trust, and as Chairman of the Board and Chairmen of its subcommittees, as described below. The Trustees of each Trust meet periodically throughout the year to oversee the Portfolios’ activities, reviewing, amongst other things, each Portfolio’s performance and its contractual arrangements with various service providers. The Trustees of each Trust elect the officers of the Trust, who are responsible for administering the Trust’s day-to-day operations.

Trustees and Officers

The Trustees and executive officers of the Trusts, as well as their ages and their principal occupations during the past five years, are set forth below. Unless otherwise indicated, the business address of each is c/o MetLife Funds, One Financial Center, Boston, Massachusetts 02111. Each Trustee who is deemed an “interested person,” as such term is defined in the 1940 Act, is referred to as an “Interested Trustee.” Those Trustees who are not “interested persons,” as such term is defined in the 1940 Act, are referred to as “Independent Trustees.” There is no limit to the term a Trustee may serve. Trustees serve until their death, resignation or removal in accordance with the MIST Trust’s and MSF Trust’s respective organizational documents and policies adopted by the Boards of the respective Trusts from time to time. Officers hold office at the pleasure of each Board and serve until their removal or resignation in accordance with the Trusts’ respective organizational documents and policies adopted by the Board of each Trust from time to time.

Trustees of the Trust

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Interested Trustee        
Elizabeth M. Forget* (49)   Trustee, Chairman of the Board, President and Chief Executive Officer   Indefinite;
From
December
2000 to
present		   Senior Vice President, MetLife, Inc.; President, MetLife Advisers, LLC and a predecessor company.   78   Various MetLife-affiliated boards.
Independent Trustees        
Stephen M. Alderman (56)   Trustee   Indefinite;
From
December
2000 to
present		   Shareholder in the law firm of Garfield & Merel, Ltd.   78   Trustee; MSF Trust,** Director, International Truck Leasing Corp.
Robert J. Boulware (59)   Trustee   Indefinite;
From
March
2008 to
present		   Managing Director, Pilgrim Funds, LLC (private equity fund)   78   Trustee, MSF Trust,** Trustee, Vertical Capital Income Fund (closed-end fund); Director, Gainsco, Inc. (auto insurance)
Susan C. Gause (63)   Trustee   Indefinite;
From
March
2008 to
present		   Private Investor.   78   Trustee, MSF Trust,** Trustee and Nominating and Governance Committee Chair, HSBC Funds.**
Nancy Hawthorne (64)   Trustee   Indefinite;
From
April
2012 to
present		   Chief Executive Officer, Clerestory, LLC (corporate advisor)   78   Trustee, MSF Trust,** Director, THL Credit, Inc.,** Director, Avid Technology.**

 

MIST-21

Met Investors Series Trust

Trustees and Officers—(Continued)

 

Name and Age

  

Position(s)
Held with
Registrant

  

Term of Office
and Length of
Time Served

  

Principal Occupation(s) During the Past 5
Years(1)

  

Number of
Portfolios
in Fund
Complex(2)
Overseen
by Trustee

  

Other Directorships Held
by Trustee During
Past 5 Years(1)

Barbara A. Nugent (59)   Trustee   Indefinite;
From
January
2014 to
present		   President, True North Board Governance, LLC (consulting); until December 31, 2013, partner in the law firm of Stradley Ronon Stevens & Young, LLP   78   Trustee, MSF Trust,** Director, Episcopal Healthcare Foundation; until 2014, member, Mutual Fund Directors Forum Advisory Board.
Linda B. Strumpf (68)   Trustee   Indefinite;
From
April
2012 to
present		   Chair of the Investment Committee, Leona M. and Harry B. Helmsley Charitable Trust; until June 2011, Chief Investment Officer, Leona M. and Harry B. Helmsley Charitable Trust   78   Trustee, MSF Trust,** Trustee and Member of Investment Committee, The Pennsylvania State University; Director, Trickle-Up.
Dawn M. Vroegop (49)   Trustee   Indefinite;
From
December
2000 to
present		   Private Investor   78   Trustee, MSF Trust,** Trustee, Driehaus Mutual Funds, Director and Investment Committee Chair, City College of San Francisco.

Executive Officers of the Trust

 

Name and Age

   

Position(s)
Held with
Registrant

   

Term of Office
and Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years(1)

Elizabeth M. Forget (49)    President, Chief Executive Officer, Trustee and Chairman of the Board    From
December
2000 to
present		    See principal occupation information in the table above.
Kristi Slavin (42)    Vice President    From
February
2015		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Peter H. Duffy (60)    Chief Financial Officer and Treasurer    From
May
2012 to
present		    Senior Vice President, MetLife Advisers, LLC; Vice President, MetLife, Inc.
Andrew L. Gangolf (61)    Secretary    From
2011 to
present		    Senior Vice President, MetLife Advisers, LLC; until 2011, Senior Vice President and Assistant General Counsel, AllianceBernstein Investments, Inc.
Steven E. Hartstein (52)    Chief Compliance Officer (“CCO”)    From
February
2014		    Vice President, MetLife, Inc.; CCO, MetLife Advisers, LLC; Executive Director, Morgan Stanley (2009-2013); CCO, Consulting Group Capital Markets Funds (2006-2013).
Alan C. Leland, Jr. (63)    Vice President    From
May
2012 to
present		    Treasurer and Chief Financial Officer, MetLife Advisers, LLC; Vice President, MetLife Group, Inc.; Vice President, MetLife, Inc.

 

* Ms. Forget is an “interested person” of the Trust because of her positions with MetLife Advisers, LLC and her ownership of securities issued by MetLife, Inc. the ultimate parent company of MetLife Advisers, LLC.
** Indicates a directorship with a registered investment company or a company subject to the reporting requirements of the Securities Exchange Act of 1934; as amended.
(1) Previous positions during the past five years with the Trust, MetLife, Inc., or the Adviser are omitted if not materially different.
(2) The Fund Complex includes 48 Portfolios of the Trust and 30 Portfolios of the MSF Trust.

 

MIST-22

Met Investors Series Trust

WMC Large Cap Research Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting held on November 17-18, 2015 (the “November Meeting”), the Boards of Trustees (the “Board”) of the Met Investors Series Trust and Metropolitan Series Fund (“MIST” and “MSF,” respectively, and collectively, the “Trusts”), including a majority of the Trustees who are not considered to be “interested persons” of the Trusts (the “Independent Trustees”) under the Investment Company Act of 1940 (the “1940 Act”), approved the continuation of certain of the Trusts’ advisory agreements (each, an “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the applicable sub-advisory agreements (each a “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and the investment sub-advisers (each a “Sub-Adviser,” and collectively, the “Sub-Advisers”) for the series of the Trusts (each a “Portfolio,” and collectively, the “Portfolios”).

In reaching that decision, the Board reviewed a variety of materials provided for the specific purpose of the annual contract renewal process. In addition, various materials provided to and discussed with the Board throughout the year also informed the Board’s decision to renew the Agreements. That information for each Portfolio included, but was not limited to, investment performance reports, along with periodic reports on various expenses, shareholder services, legal and compliance matters, asset pricing, brokerage commissions and trade execution.

The Board met in person with personnel of the Adviser on September 30, 2015 for the specific purpose of giving preliminary consideration to the proposed continuation of the Agreements (the “September Meeting”) through the review by the Adviser with the Board of the performance and fees experienced by each Portfolio, as well as other information. In considering the Agreements, the Independent Trustees were advised by independent legal counsel throughout the contract renewal process, and met with independent legal counsel in several executive sessions outside of the presence of management.

Information furnished and reviewed specifically in connection with the renewal process included, but was not limited to, a report for each Portfolio prepared by Broadridge (“Broadridge”), an independent organization, and a Portfolio-by-Portfolio profitability analysis that management prepared. In addition, the Independent Trustees received and reviewed a report prepared by JDL Consultants, LLC (“JDL”), an independent consultant to the Independent Trustees (“JDL Report”), which examined the comparative fees, expenses and performance of each Portfolio, based upon the Broadridge reports. Also, the Board reviewed the responses to wide-ranging questions relating to the business, operations and performance of the Adviser and the Sub-Advisers that the Adviser and Sub-Advisers had prepared specifically for the renewal process.

At the November Meeting, the Board, including a majority of the Independent Trustees, concluded that the nature, extent and quality of services provided by the Adviser and each Sub-Adviser supported the renewal of the Agreements. The Board also concluded that the investment performance of each Portfolio was such that each Agreement should continue, and that the fees paid by a Portfolio to the Adviser and, if applicable, the Sub-Adviser appeared to be reasonable in light of nature, extent and quality of the services provided by the Adviser and Sub-Adviser. Further, the Board concluded that the Adviser’s profitability in providing services under the Advisory Agreements did not appear unreasonably high in light of the nature, extent and quality of the services provided by the Adviser. Finally, the Board concluded that the investment advisory fees paid by the Portfolios in some measure shared economies of scale with contractholders. In approving the renewal of each of the Agreements, the Board, including the Independent Trustees, gave attention to all of the information that was furnished. The Board evaluated all information available to it on a Portfolio-by-Portfolio basis, and its decision was made separately with respect to each Portfolio. The following discusses some of the primary factors that generally were relevant to the Board’s decision. The Board did not identify any single factor as controlling, and the Trustees generally attributed different weights to various factors for the various Portfolios.

Nature, extent and quality of services. The Board evaluated the nature, extent and quality of the services that the Adviser, and the Sub-Advisers as relevant, have provided to the Portfolios. The Board considered the Adviser’s services as investment manager to the Portfolios, including its services relating to the oversight of the Sub-Advisers and their investment management activities, trading practices, financial condition, relevant personnel matters and compliance programs, among other things. The Adviser’s services in coordinating and overseeing the activities of the Trusts’ other service providers were also considered. The Board considered information received from the Trusts’ Chief Compliance Officer (“CCO”) regarding the Portfolios’ compliance policies and procedures that were established pursuant to Rule 38a-l under the 1940 Act. In addition, throughout the year, the Board considered the expertise, experience and performance of the personnel of the Adviser who performed the various services that are mentioned above.

The Board also noted that the Adviser’s investment, compliance and legal staff conduct regular, periodic, telephonic and in-person meetings with the Sub-Advisers to review and assess the services that are provided to the Portfolios, and that personnel of the Adviser prepare and present reports to the Independent Trustees regarding those meetings.

 

MIST-23

Met Investors Series Trust

WMC Large Cap Research Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

With respect to the services provided by each of the Sub-Advisers, the Board considered a variety of information that the Adviser and each Sub-Adviser provided. The Board considered each Sub-Adviser’s investment process and philosophy, and the investment performance experienced by the Portfolio (as described in more detail below). The Board took into account that each Sub-Adviser’s responsibilities include the development and maintenance of an investment program for the applicable Portfolio that is 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. In particular, the Board considered, among other things, the Sub-Adviser’s current level of staffing as well as its compensation program and its overall resources. The Board reviewed each Sub-Adviser’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of the Sub-Adviser’s investment and compliance personnel who provide services to the Portfolios. The Board also considered, among other things, the Sub-Adviser’s compliance program and regulatory and disciplinary history. In its review, the Board also took into account information regarding any services and/or payments provided to the Adviser by the Sub-Advisers in connection with marketing activities.

Performance. The Board placed emphasis on the performance of the Portfolios in light of, among other things, its importance to contractholders. The Board considered the Adviser’s quarterly reviews with the Board of detailed information about each Portfolio’s investment strategies and performance results and composition, including discussions regarding the relevant effect of current market conditions. The Board reviewed and considered the reports prepared by Broadridge, which provided a statistical analysis comparing the Portfolios’ investment performance to that of comparable funds underlying variable insurance products (the “Performance Universe”). The Independent Trustees also met separately with a representative of JDL during the September Meeting to review the JDL Report. The Board also compared the performance records of certain Portfolios to those of comparable funds that were managed by the relevant Sub-Adviser. At the November Meeting, the Board considered each Portfolio’s performance for periods subsequent to the performance period covered by the Broadridge reports, and the Adviser’s discussion of the same, including the effect of current market conditions on each Portfolio’s more recent performance.

The Board focused particular attention on Portfolios with less favorable performance records. The Board noted the Adviser’s focus on each Sub-Adviser’s performance and that the Adviser has been active in monitoring and responding to any performance issues with respect to the Portfolios.

Fees and Expenses. The Board gave consideration to the level and method of computing the fees payable under the Agreements. The Board considered the Broadridge report for each of the Portfolios, which included comparisons for each Portfolio of its contractual management and sub-adviser fees (at current and various asset levels), and total expenses, with those of its peers, including as those peers were divided into a broad group of peer funds (“Expense Universe”), a narrower group of peer funds (“Expense Group”), a broad group of peer sub-advised funds (“Sub-advised Expense Universe”), and a narrower group of peer sub-advised funds (“Sub-advised Expense Group”). Broadridge selected the peer funds which were similarly situated funds underlying variable insurance products deemed to be comparable to the Portfolios. The Independent Trustees, with the assistance of JDL, also examined the JDL Report. The Board compared the fee payable to a Sub-Adviser by the Adviser with respect to the Portfolio to the fee payable to the Sub-Adviser by other comparable funds and accounts, to the extent such information was available.

The Board noted that the sub-advisory fees for the Portfolios are paid by the Adviser out of the advisory fee, and that, in the case of an unaffiliated Sub-Adviser, the Adviser negotiates the fee at arm’s length. The Board also considered that the Adviser had entered into expense limitation or management fee waiver agreements with certain of the Portfolios, as identified below, pursuant to which the Adviser had agreed to waive a portion of its advisory fee and/or reimburse certain expenses as a means of limiting a Portfolio’s total annual operating expenses.

Profitability. The Board examined the profitability of the Adviser on a Portfolio-by-Portfolio basis. The Board also considered that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as distributor for the Trusts, and, as such, receives Rule 12b-1 payments to support the distribution of the Portfolios. The Board considered the profitability to the Sub-Advisers and their affiliates as a result of their relationships with the Portfolios, to the extent available, and the Board considered the ability of the Adviser to negotiate with an unaffiliated Sub-Adviser at arm’s length. In reviewing the profitability analyses, the Board recognized that expense allocation methodologies are inherently subjective and various expense allocation methodologies may be reasonable while producing different results.

Economies of scale. The Board also considered each Portfolio’s fees in light of its size. The Board noted the fee schedules for the Portfolios that contain breakpoints that reduce the fee rate above specified asset levels. The Board noted those Portfolios that did not contain breakpoints in the advisory fee and took into account management’s discussion of the same. The Board noted that those Portfolios with advisory fee schedules containing breakpoints generally reflect the inclusion of breakpoints in the sub-advisory fee

 

MIST-24

Met Investors Series Trust

WMC Large Cap Research Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

schedule for such Portfolios. The Board considered the effective fees under the Advisory Agreement and Sub-Advisory Agreement for each Portfolio as a percentage of assets at different asset levels and possible economies of scale that may be realized if the assets of the Portfolio grow. Among other data, the Board examined the effect of a Portfolio’s growth in size on various fee schedules and reviewed the Broadridge and JDL Reports, which compared fees among peers. The Board also generally noted that if a Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses.

Other factors. The Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trusts. Among them, the Board recognized that MetLife Investors Distribution Company, as the distributor for the Trusts, receives payments pursuant to Rule 12b-1 from the Portfolios to compensate for the provision of shareholder services and distribution activities, which could lead to growth in the Trusts’ assets and corresponding benefits from such growth, including economies of scale. The Board considered other benefits that may be realized by each Sub-Adviser and its affiliates from their relationship with the Trusts, including the opportunity to provide advisory services to additional portfolios of the Trusts and reputational benefits. In conjunction with these considerations, the Board noted the ongoing commitment of the Adviser to the Portfolios.

The Board considered possible conflicts of interest in the form of material benefits or detriments to the Trusts resulting from the nature of the Trusts’ and the Adviser’s or the Sub-Advisers’ affiliations and the services that are provided to the Trusts, and the manner in which such conflicts were mitigated.

WMC Large Cap Research Portfolio. The Board also considered the following information in relation to the Agreements with the Adviser and Wellington Management Company LLP regarding the Portfolio:

Among other data relating specifically to the Portfolio’s performance, the Board considered that the Portfolio outperformed both the median of its Performance Universe and its Lipper Index for the one-, three-, and five-year periods ended June 30, 2015. The Board further considered that the Portfolio outperformed its benchmark, the S&P 500 Index, for the one-, three- and five-year periods ended October 31, 2015. The Board further noted that the Sub-Adviser assumed portfolio management responsibilities for the Portfolio effective February 2014 and that performance prior to that date represents that of the previous sub-adviser.

The Board also considered that the Portfolio’s actual management fees and total expenses (exclusive of 12b-1 fees) were below the Expense Group median, Expense Universe median, and Sub-advised Expense Universe median. The Board further noted that the Portfolio’s contractual management fees were above the asset-weighted average of the Expense Group at the Portfolio’s current size. The Board also noted that the Portfolio’s contractual sub-advisory fees were above the average of the Sub-advised Expense Group and below the average of the Sub-advised Expense Universe at the Portfolio’s current size. In addition, the Board considered that the Adviser had negotiated reductions to the Portfolio’s sub-advisory fee schedule and that the Adviser agreed to waive a portion of its advisory fee in order for contractholders to benefit from the lower sub-advisory fee effective December 1, 2015.

 

MIST-25

Item 2. Code of Ethics.

As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer, or persons performing similar functions (the “Code of Ethics”). During the period covered by this report, no material amendments were made to the provisions of the Code of Ethics, nor did the registrant grant any waivers, including any implicit waivers, from any provision of the Code of Ethics.

 

Item 3. Audit Committee Financial Expert.

The registrant’s Board of Trustees has determined that the registrant has at least one “audit committee financial expert” (as defined in Item 3 of Form N-CSR) serving on its audit committee. Susan C. Gause, Nancy Hawthorne, Linda B. Strumpf, and Dawn M. Vroegop have each been determined to be an “audit committee financial expert” and each is “independent” (as each term is defined in Item 3 of Form N-CSR).

 

Item 4. Principal Accountant Fees and Services.

Information provided in response to Item 4 includes amounts billed during the applicable time period for services rendered by Deloitte & Touche LLP (“Deloitte”), the registrant’s principal accountant.

(a) Audit Fees

The aggregate fees billed for professional services rendered by Deloitte for the audit of the registrant’s annual financial statements and for services that are normally provided by Deloitte in connection with statutory and regulatory filings for the fiscal years ended December 31, 2014 and December 31, 2015 were $2,412,613 and $2,533,199, respectively.

(b) Audit-Related Fees

During the fiscal years ended December 31, 2014 and December 31, 2015, Deloitte billed $16,500 and $35,412 respectively, for assurance and related services that relate directly to the operations and financial reporting of the registrant, the registrant’s investment adviser or any other entity controlling, controlled by, or under common control with the registrant’s investment adviser that provides ongoing services to the registrant. Represent fees for services rendered to the registrant as follows: (i) security valuation testing and procedures in connection with select portfolios of the registrant’s semi-annual report for the period ended June 30, 2015; (ii) 17f-2 security count procedures for select portfolios for the years ended December 31, 2015 and 2014; (iii) related to reorganizations involving certain portfolios of the registrant for fiscal year ended December 31, 2015 and 2014 and (iv) related to agreed upon procedures for the registrant’s deferred trustee compensation plan for fiscal year ended December 31, 2015.

(c) Tax Fees

The aggregate fees billed for professional services rendered by Deloitte for tax compliance, tax advice and tax planning in the form of preparation of excise filings and income tax returns for the fiscal years ended December 31, 2014 and December 31, 2015 were $330,020 and $314,315, respectively. Represent fees for services rendered to the registrant for review of tax returns for the year end December 31, 2015 and for tax compliance, tax advice and tax planning in the form of preparation of excise filings and income tax returns for the fiscal year end December 31, 2014.

During the fiscal years ended December 31, 2014 and December 31, 2015, no fees for tax compliance, tax advice or tax planning services that relate directly to the operations and financial reporting of the registrant were billed by Deloitte to the registrant’s investment adviser or any other entity controlling, controlled by, or under common control with the registrant’s investment adviser that provides ongoing services to the registrant.

(d) All Other Fees

The registrant was not billed for any other products or services provided by Deloitte for the fiscal years ended December 31, 2014 and December 31, 2015 other than the services reported in paragraphs (a) through (c) above.

During the fiscal years ended December 31, 2014 and December 31, 2015, no fees for other products or services that relate directly to the operations and financial reporting of the registrant, other than the services reported in paragraphs (a) through (c) above, were billed by Deloitte to the registrant’s investment adviser or any other entity controlling, controlled by, or under common control with the registrant’s investment adviser that provides ongoing services to the registrant.

(e)(1) The registrant’s Audit Committee has established pre-approval procedures pursuant to paragraph (c)(7)(i)(B) of Rule 2-01 of Regulation S-X, which include regular pre-approval procedures and interim pre-approval procedures. Under the regular pre-approval procedures, the Audit Committee pre-approves at its regularly scheduled meetings audit and non-audit services that are required to be pre-approved under paragraph (c)(7) of Rule 2-01 of Regulation S-X. Under the interim pre-approval procedures, any member of the Audit Committee who is an independent Trustee is authorized to pre-approve proposed services that arise between regularly scheduled Audit Committee meetings and that need to commence prior to the next regularly scheduled Audit Committee meeting. Such Audit Committee member must report to the Audit Committee at its next regularly scheduled meeting on the pre-approval decision.

(2) Not applicable.

(f) Not applicable.

(g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant’s principal accountant for non-audit services rendered to the registrant, its investment adviser, and adviser affiliates that provide ongoing services to the registrant for 2014 and 2015 were $0 and $0, respectively.

(h) The Audit Committee of the registrant’s Board of Trustees considered the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X and concluded that such services are compatible with maintaining the principal accountant’s independence.

 

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 included 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) The President and Treasurer of the registrant have concluded, based on their evaluation of the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act) as of a date within 90 days of the filing date of this report on Form N-CSR, that the design and operation of such procedures provide reasonable assurance that information required to be disclosed by the registrant in this report on Form N-CSR is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(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 this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12. Exhibits

(a)(1) Code of Ethics is attached hereto.

(a)(2) The certifications required by Rule 30a-2(a) under the 1940 Act are attached hereto.

(a)(3) Not applicable.

(b) The certifications required by Rule 30a-2(b) under 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: March 4, 2016

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: March 4, 2016

 

By:   /s/ Peter H. Duffy
 

Peter H. Duffy

Chief Financial Officer and Treasurer

Date: March 4, 2016