N-CSR 1 d310418dncsr.htm MML SERIES INVESTMENT FUND MML Series Investment Fund
Table of Contents

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    

  811-02224

 

MML Series Investment Fund

      (Exact name of registrant as specified in charter)   

 

100 Bright Meadow Blvd., Enfield, CT                                    06082

                (Address of principal executive offices)      (Zip code)
Brian Haendiges

100 Bright Meadow Blvd., Enfield, CT                                    06082

(Name and address of agent for service)

Registrant’s telephone number, including area code:      (860) 562-1000                    

Date of fiscal year end:    12/31/2016                    

Date of reporting period:    12/31/2016                 

 

Table of Contents

Item 1. Reports to Stockholders.

 

Table of Contents

LOGO

Table of Contents

Table of Contents

 

President’s Letter to Shareholders (Unaudited)

      1  

Economic and Market Review (Unaudited)

      3  

Portfolio Manager Report (Unaudited)

      6  

Portfolio of Investments

   

MML Conservative Allocation Fund

      25  

MML Balanced Allocation Fund

      26  

MML Moderate Allocation Fund

      27  

MML Growth Allocation Fund

      28  

MML Aggressive Allocation Fund

      29  

MML American Funds® Growth Fund

      30  

MML American Funds® International Fund

      31  

MML American Funds Core Allocation Fund

      32  

Statements of Assets and Liabilities

      34  

Statements of Operations

      38  

Statements of Changes in Net Assets

      40  

Financial Highlights

      44  

Notes to Financial Statements

      52  

Report of Independent Registered Public Accounting Firm

      65  

Trustees and Officers (Unaudited)

     66  

Federal Tax Information (Unaudited)

      70  

Other Information (Unaudited)

   

Proxy Voting

      71  

Quarterly Reporting

      71  

Fund Expenses

     72  

This material must be preceded or accompanied by a current prospectus (or summary prospectus, if available) for the MML Series Investment Fund. Investors should consider a Fund’s investment objective, risks, and charges and expenses carefully before investing. This and other information about the investment company is available in the prospectus (or summary prospectus, if available). Read it carefully before investing.

Table of Contents

MML Series Investment Fund – President’s Letter to Shareholders (Unaudited)

 

To Our Shareholders

 

LOGO

Brian Haendiges

“MassMutual believes that changing market conditions are a way of life for retirement investors – but these same conditions have the potential to reward patient investors who maintain a long-term perspective, instead of reacting to short-term market movements.”

December 31, 2016

Continued strength in U.S. markets in a challenging market environment

I am pleased to present you with the MML Series Investment Fund Annual Report, covering the year ended December 31, 2016 (the “fiscal year”). Domestic stocks outperformed most international equities during the fiscal year, as a strong market environment in the U.S. accelerated. Much of the strength occurred late in the reporting period, due to the surprising Republican victory in the race for the White House – as investors were buoyed by President-elect Trump’s promises for tax abatements and infrastructure spending. Economic difficulties elsewhere in the world – such as the challenging interest rate environment in Japan, uncertainty in Europe and the United Kingdom’s surprising Brexit vote that ratified an eventual exit from the European Union – had virtually no impact on U.S. stock indexes. Nevertheless, during the reporting period, recurring market volatility served as a general reminder for investors that market conditions are cyclical and can change anytime.

In MassMutual’s view, the ongoing uncertainties in markets today highlight the importance of taking a long-term perspective and not reacting to current events or short-term market changes. We also believe retirement investors who follow certain investment guidelines, such as the ones below, may increase their chances of reaching their retirement income goals.

Suggestions for retirement investors under any market conditions

Contribute as much as you can

While it is impossible to control your investments’ performance, you can control how often and how much you save. Contributing to your retirement account on a regular basis and increasing your contribution level as often as you are able, may be one way to help you realize your long-term investment objectives.*

Continue to invest

Some of the most sophisticated investors believe that individuals who can withstand a market downturn have the potential to be rewarded by accumulating larger positions at more favorable prices (relative to those who do not continue investing during a down market). That’s why most financial professionals believe it’s important to stay in the market, regardless of short-term results.

Time may be on your side

For most people, investing for retirement occurs over many decades. While retirement investors often know that the financial markets will be volatile from time to time, seasoned investors tend to understand the wisdom of taking a long-term approach. They know that this can help them navigate the market’s downturns, leverage its upturns, and successfully grow their account balances.

Monitor your asset allocation and diversify

Stocks, bonds, and short-term/money market investments are investment types that typically behave differently depending upon the economic and market environment. Each of these categories contains

 

 

  * Systematic investing and asset allocation do not ensure a profit or protect against loss in a declining market. Systematic investing involves continuous investment in securities regardless of fluctuating price levels. Investors should consider their ability to continue investing through periods of low price levels.

(Continued)

 

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MML Series Investment Fund – President’s Letter to Shareholders (Unaudited) (Continued)

 

an even greater array of sub-categories, such as small-cap stocks, international stocks, and high-yield bonds. Many financial professionals believe that investors can take advantage of different opportunities in the market and reduce the risk of over-exposure to one or two poorly performing investment types by maintaining a portfolio that includes a mix of investment types and sub-categories.

Make informed choices and seek professional guidance

Many financial advisors will suggest that retirement investors select an appropriate combination of investments that aligns with their retirement income goals. Doing so can help you weather the inevitable ups and downs of the markets.

For retirement investors who work with a financial professional

If you work with a financial professional, this may be an excellent time to contact him or her for assistance in assessing whether or not you:

 

•   are saving enough for retirement based on your long-term needs;

 

•   are invested properly, based on your goals and objectives and where you are in your retirement planning journey; and

 

•   feel you are taking the right steps to help reduce the risk you could outlive your retirement savings.

Protect who matters most

MassMutual believes that nothing matters more than the safety and well-being of your loved ones. That’s why we have always been committed to helping our customers put themselves on the path to a more secure financial future. And it’s why we have always encouraged retirement investors to maintain perspective over the long term. In our view, changing market conditions are a way of life for retirement investors, but these same conditions have the potential to reward patient investors who maintain a long-term perspective, instead of reacting to short-term market movements. Thank you for your continued trust in MassMutual.

Sincerely,

 

LOGO

Brian Haendiges

President

The information provided is the opinion of MassMutual Funds Investment Management Group as of 1/1/17 and is subject to change without notice. It is not to be construed as tax, legal or investment advice. Of course, past performance does not guarantee future results.

 

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Table of Contents

MML Series Investment Fund – Economic and Market Overview (Unaudited)

 

December 31, 2016

Economic Overview and Market Commentary

We note three significant and unexpected events that were followed by meaningful market movements in 2016. The first followed Federal Reserve (Fed) Board Chair Janet Yellen’s testimony before the U.S. Senate Committee on Banking, Housing, and Urban Affairs on February 11, 2016, where she confirmed a “slower for longer” plan for interest rate hikes going forward. The second followed the United Kingdom’s surprising June 23 referendum to leave the European Union – commonly referred to as “Brexit” (an abbreviation for “British exit”). The third followed Donald J. Trump’s election as the 45th President of the United States on November 8.

Throughout 2016, the initially sluggish domestic economy started to return more positive reports as modest gross domestic product (GDP) estimates were revised upward. (GDP reflects the total value of goods and services produced in the United States.) Investors responded favorably and domestic equity markets delivered broad positive returns for the fiscal year. Equity returns in the foreign and emerging markets ended the year more mixed.

For the year, the Dow Jones Industrial AverageSM (Dow) grew 16.50% and the broader S&P 500® Index (S&P 500) of large-capitalization U.S. stocks gained 11.96%. The technology-focused NASDAQ Composite® Index managed an 8.87% return, as tech stocks lagged the other indexes following the U.S. election. Small-cap equities outperformed for the year, with the Russell 2000® Index of small-capitalization stocks adding 21.31%. In foreign markets, the MSCI EAFE® Index, a barometer for foreign stocks in developed markets, gained only 1.00%, though the MSCI Emerging Markets Index, a measure of the performance of emerging stock markets throughout the world, rose 11.19%.* While developed foreign markets struggled under the weight of Brexit and longer-term fiscal burdens, emerging markets derived more of their value from domestic interactions and benefited more from that alignment.

Bonds performed well for much of the year, but dropped sharply following the U.S. election, as investors tried to anticipate what political policy might mean for bond markets in 2017 and beyond. The Bloomberg Barclays U.S. Aggregate Bond Index, a broad measure of the U.S. investment-grade bond markets, rose as much as 6% in July, but ended the year up only 2.65%. The performance of shorter-term debt investments continued to reflect the unrelenting low interest rate environment. Yields on the 2-year U.S. Treasury bond closed the year at 1.19%, while 10-year Treasury bonds yielded 2.44% at year end. These higher year-over-year yields reflect the turbulence in the fixed-income markets following the U.S. election. A “risk-on” environment developed as the year unfolded and high-yield bonds benefited. The Bloomberg Barclays U.S. Corporate High-Yield Index, which measures the performance of fixed-rate, below-investment-grade debt from corporate sectors, returned 17.13%.*

These returns were not without market volatility and surprises, however. Before rebounding, major indexes fell sharply through January and into February – until the Fed’s announcement triggered a more sustained period of growth. Markets stuttered briefly in May over concerns that Apple might not be able to sustain its growth in the smartphone market. Following a brief post-Brexit drop in late June, neither the surprising Brexit outcome nor global economic turbulence could disrupt the upward momentum in U.S. markets. Particularly noteworthy is the fact that domestic equity markets added nearly half of their annual returns in the final seven weeks of the year, as investors cheered President-elect Trump’s promises for tax abatements and infrastructure spending.

Q1 2016 – The inflection point

Headwinds affecting markets in late 2015 continued into January and early February of 2016. China’s slowing economy and falling crude oil prices, along with a weak January employment report, stoked fears that a U.S. recession could be on the near-term horizon. By February 11, the S&P 500 had dropped to 1,810. At this point, Fed Chair Janet Yellen signaled that the central bank would be patient in beginning to normalize policy interest rates and that it was unlikely that economic conditions would warrant an increase in the target range for the federal funds rate for at least the next few Open Market Committee meetings. (The federal funds rate is the interest rate that banks and financial institutions charge each other for borrowing funds overnight.)

Headwinds ultimately shifted to tailwinds. The S&P 500 gained nearly 250 points by the end of the first quarter, initiating a rally that would more or less be sustained throughout the second and third quarters of 2016. The employment picture improved, as

 

3

* Indexes are unmanaged, do not incur fees or expenses and cannot be purchased directly for investment.

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MML Series Investment Fund – Economic and Market Overview (Unaudited) (Continued)

 

February’s non-farm payrolls came in stronger than the previous two months, and December 2015 and January 2016 payroll numbers were revised upward. Once again, the quarter recovered what it had lost and ended essentially where it started the year. Despite this, the climate had changed.

Q2 2016 – Domestic markets override negative interest rates and Brexit

While Britain’s historic Brexit vote dominated news at the end of the second quarter, the unusual arrival of negative interest rates for Japan’s sovereign debt proved puzzling for many investors early in the quarter. Both seemed to feed a “flight to quality” reaction that resulted in a stronger U.S. dollar. Neither event, however, derailed the strengthening U.S. economy. By the end of the second quarter, concerns about China’s economy and falling oil prices moderated. U.S. GDP firmed up and the Fed softened its interest rate strategy, taking a more cautious approach. May’s disappointing jobs report created investor concerns that the Fed could seriously consider suspending any interest rate hikes for at least a year. Nevertheless, the quarter ended with broad-based gains across a variety of asset classes, improved consumer spending, low unemployment rates, and better-than-expected corporate earnings reports.

On June 23, global economic focus shifted to the United Kingdom. The Brexit vote pushed European stocks more deeply into negative territory on concerns that the immediate impact might slow growth in the U.K. and the larger European region. Investors also worried that the British vote might encourage other countries to follow suit. Interestingly, emerging market and Pacific country stocks delivered positive returns for the quarter and year-to-date.

Q3 2016 – Campaign rhetoric overshadows economic momentum

By the end of July, it seemed markets had shrugged off Brexit fears. The U.S. economy was gathering steam, as evidenced on several fronts. The U.S. labor market continued to show strength as job openings rose in June and hiring increased. U.S. consumer confidence hit a 12-month high in August, according to the Conference Board’s Consumer Confidence Index®, which reflected improved consumer assessment of economic conditions and the six-month economic outlook. Corporate earnings came in better than expected for the second consecutive quarter, even though it was the fifth consecutive declining quarter. In mid-September, the U.S. Census Bureau announced that real median household income had jumped 5%, the biggest annual increase since they first started gathering this data in 1968. The two major U.S. presidential candidates accepted their party’s nominations in July. As September came to a close, it became more evident that the upcoming election would be both hotly contested and divisive.

Q4 2016 – The Fed takes a back seat

Prior to the November elections, the Fed held the throttle on the markets. In October, speculation about the next rate hike (whether it would happen before the end of the year and how frequently subsequent rate hikes might occur) dominated investor thinking. At the same time, increasingly heated campaign rhetoric served as a drag while investors tried to figure out what the next four years might look like in either case. On the morning following the U.S. election, market futures pointed sharply downward, as the widely expected presidential winner, Hillary Clinton, conceded electoral vote defeat to Donald J. Trump. When markets opened on November 9, buyers surged, however, as investors anticipated the economic impacts of the President-elect delivering on his pro-business and pro-domestic campaign rhetoric. This buoyant investor sentiment launched a year-end rally that pushed the S&P 500 up 5.3% by year-end, with nearly half of the Index’s 11.96% return occurring in the last seven weeks of the year. In December, the Fed did, indeed, raise policy interest rates, but the market throttle now appeared to be in other hands.

Going into 2017, markets have yet to digest the upcoming Trump presidency in an environment where the Fed is forecasting multiple rate hikes. Turning to the global stage, by the end of March 2017, Britain’s Prime Minister, Theresa May, plans to trigger Article 50 of the Lisbon Treaty, which would initiate the two-year process of withdrawing the U.K. from the European Union. Terrorism and military posturing add further tensions to the global environment.

Domestic equity markets delivered solid returns for investors in 2016, but investors endured a steady stream of uncertainty, surprises and volatility throughout. Long-term investors with a view to saving for retirement income pay attention to such things, but maintain a thoughtful and disciplined response to them. Many retirement investors wisely subscribe to the value of a well-

 

4

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MML Series Investment Fund – Economic and Market Overview (Unaudited) (Continued)

 

diversified portfolio, using an appropriate mix of available strategies to benefit from market expansions and mitigate the risks inherent in unexpected events.

The information provided is the opinion of MassMutual Funds Investment Management Group as of 12/31/16 and is subject to change without notice. It is not to be construed as tax, legal or investment advice. Of course, past performance does not guarantee future results.

 

5

Table of Contents

MML Allocation Fund Series – Portfolio Manager Report (Unaudited)

 

What are the investment approaches of the Funds that constitute the MML Allocation Series (the “Series”), and who is the Series’ investment adviser?

The MML Allocation Series comprises five Funds – each of which has a “fund of funds” structure. The five Funds in the Series are MML Conservative Allocation Fund, MML Balanced Allocation Fund, MML Moderate Allocation Fund, MML Growth Allocation Fund, and MML Aggressive Allocation Fund.

Each Fund seeks to achieve as high a total return over time as is considered consistent with prudent investment risk, preservation of capital, and recognition of the Fund’s stated asset allocation. Each Fund invests in a combination of domestic and international mutual funds (“MML Underlying Funds”) using an asset allocation strategy. MML Underlying Funds can include series of the MML Series Investment Fund and MML Series Investment Fund II (which are advised by MML Investment Advisers, LLC (MML Advisers), Oppenheimer Funds (which are advised by OFI Global Asset Management, Inc. (OFI Global Asset Management), a majority owned, indirect subsidiary of MassMutual), and non-affiliated funds. The Series’ investment adviser is MML Advisers.

Through their investment in MML Underlying Funds, the Funds may be exposed to a wide range of securities and other instruments with differing characteristics (such as credit quality, duration, geography, industry, and market capitalization), including, but not limited to, equity securities of small-, mid-, or large-capitalization U.S. or non-U.S. issuers, fixed income securities of U.S. or non-U.S. private or governmental issuers (including “junk” or “high-yield” bonds, including securities in default), inflation-protected securities, bank loans, commodities, real estate, and short-term investments of any kind.

Each Fund’s assets are allocated to its MML Underlying Funds according to an asset allocation strategy stated below. Each Fund may allocate a portion of its assets to “alternative” investments, such as commodities, precious metals, real estate, and foreign currencies.

 

•   MML Conservative Allocation Fund: Approximately 35% to 45% in equity and similar funds and 55% to 65% in fixed income and similar funds, including money market funds.

 

•   MML Balanced Allocation Fund: Approximately 45% to 55% in equity and similar funds and 45% to 55% in fixed income and similar funds, including money market funds.

 

•   MML Moderate Allocation Fund: Approximately 55% to 65% in equity and similar funds and 35% to 45% in fixed income and similar funds, including money market funds.

 

•   MML Growth Allocation Fund: Approximately 70% to 80% in equity and similar funds and 20% to 30% in fixed income and similar funds, including money market funds.

 

•   MML Aggressive Allocation Fund: Approximately 85% to 95% in equity and similar funds and 5% to 15% in fixed income and similar funds, including money market funds.

How did each Fund perform during the 12 months ended December 31, 2016?

 

   

Fund’s Initial
Class Return

  

Custom
Index Return

  

Russell 3000
Index Return

  

MSCI ACWI
ex USA Return

  

Bloomberg Barclays
U.S. Aggregate Bond
Index Return

MML Conservative Allocation Fund   5.78%   5.84%   12.74%   4.50%   2.65%*
MML Balanced Allocation Fund   6.15%   6.66%   12.74%*   4.50%   2.65%
MML Moderate Allocation Fund   6.89%   7.46%   12.74%*   4.50%   2.65%
MML Growth Allocation Fund   7.57%   8.66%   12.74%*   4.50%   2.65%
MML Aggressive Allocation Fund   8.54%   10.13%   12.74%*   4.50%   2.65%

* Benchmark return

 

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MML Allocation Fund Series – Portfolio Manager Report (Unaudited) (Continued)

 

Each of the MML Allocation Series Funds underperformed its respective Custom Index and the Russell 3000 Index. All five Funds outperformed the MSCI ACWI ex USA Index and the Bloomberg Barclays U.S. Aggregate Bond Index for the full year.

MML Allocation Fund Series Custom Indexes

 

•   The Custom MML Conservative Allocation Index comprises the Bloomberg Barclays U.S. Aggregate Bond Index, the Russell 3000 Index, and the MSCI All Country World Index (ACWI) ex USA. The weightings of each index are 60%, 30%, and 10%, respectively.

 

•   The Custom MML Balanced Allocation Index comprises the Bloomberg Barclays U.S. Aggregate Bond Index, the Russell 3000 Index, and the MSCI All Country World Index (ACWI) ex USA. The weightings of each index are 50%, 37.5%, and 12.5%, respectively.

 

•   The Custom MML Moderate Allocation Index comprises the Bloomberg Barclays U.S. Aggregate Bond Index, the Russell 3000 Index, and the MSCI All Country World Index (ACWI) ex USA. The weightings of each index are 40%, 45%, and 15%, respectively.

 

•   The Custom MML Growth Allocation Index comprises the Bloomberg Barclays U.S. Aggregate Bond Index, the Russell 3000 Index, and the MSCI All Country World Index (ACWI) ex USA. The weightings of each index are 25%, 56.25%, and 18.75%, respectively.

 

•   The Custom MML Aggressive Allocation Index comprises the Bloomberg Barclays U.S. Aggregate Bond Index, the Russell 3000 Index, and the MSCI All Country World Index (ACWI) ex USA. The weightings of each index are 10%, 67.5%, and 22.5%, respectively.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Review, beginning on page 3.

Investment adviser discussion of factors that contributed to the Funds’ performance

For the year ended December 31, 2016, the Series Funds delivered positive returns consistent with their respective equity/fixed-income mix profiles across the Series, as U.S. equities (as represented by the S&P 500 Index) returned nearly 12% for the year – and U.S fixed-income investments, as represented by the Bloomberg Barclays U.S. Aggregate Bond Index, returned over 2.6%.

The year 2016 started off on a sour note for the equity markets – turning in the worst starting week to a year in the Dow Jones Industrial Average’s history. By mid-February, the broad market equity indexes were down about 10%, largely driven by a drop in oil prices to about $25 per barrel. A quick rebound rally by mid-April, coinciding with a recovery in oil prices, sent the markets on their way toward positive territory, despite global events such as “Brexit” and a November surprise in the U.S. elections. (Brexit – an abbreviation for “British exit” – was the United Kingdom’s surprising June 23, 2016 referendum to leave the European Union.)

In the fixed-income universe, the recovery in oil sent high-yield bonds to double-digit returns for the year, although the 10-year Treasury was more volatile – rising over 1% to 2.45% – after hitting a low over the summer of about 1.35%. The rise in yields through year end resulted in lower bond prices for the more interest rate-sensitive investment-grade fixed-income sector.

In the equity (stock) components of the Series, performance drivers included an underweight position, relative to the benchmark, in international stocks, which were hit by a rising U.S. dollar. Favorable strategy selection in international Underlying Funds, such as MML International Equity, MML Foreign, and MML Global, also benefited the Series. In the U.S., performance by mid- and small-cap value equity strategies held by the Series Funds provided modest offsets to the more significant detractors in the large-cap equity segment of the Series. In particular, Large Cap Growth was a detractor, as value stocks led their growth counterparts for the year and outperformed by 10%. In addition, selection in large-cap growth Underlying Funds was a meaningful detractor, as managers underweighted “safety and yield” in sectors like consumer staples and struggled on navigating the health care sector during the year. On the value side, large-cap value manager results were mixed, with positive Underlying Fund contributors being MML Focused Equity and MML Equity Income.

 

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MML Allocation Fund Series – Portfolio Manager Report (Unaudited) (Continued)

 

In the fixed-income (bond) components of the Series, allocations to sectors that are not included in the Bloomberg Barclays U.S. Aggregate Bond Index were contributors – such as high-yield bonds, U.S Treasury inflation-protected securities (TIPS), and international bonds. The Series allocation to high-yield bonds declined throughout the year as the oil market recovered and risks in high-yield pricing and debt covenant protections increased. Fixed-income was exceptionally challenging for investors, as yields on many global sovereign bonds in various maturities were negative, something unprecedented in the fixed-income market. Throughout the year, bond investors sought direction from the Federal Reserve (the Fed) to long-awaited increases in interest rates.

Investment adviser outlook

The outcome of the U.S. elections has triggered shifts across the market, as a surprising presidential victory, combined with one political party taking control of both houses of Congress, may signal quite a bit of activity in markets in 2017. Investors appear to have made the transition from focusing on central bank activity as being the market driver to a focus that places far greater importance on policy changes from the incoming president. Since the election, we have observed a rise in consumer and business confidence – and investors have demonstrated expectations of fiscal stimulus through investment in infrastructure, cuts in personal and corporate taxes, deregulation, and changes in health care – all of which have the potential to change consumer costs and reshape the jobs landscape. Many presidents experience a honeymoon period – as we witnessed with the surge in markets through the end of 2016 – but markets will, in our view, need to adjust in 2017 to what we believe will be a bumpy ride through the legislative process.

Investor optimism over a new U.S. president is being challenged by already expensive markets and an economy nearing its second-longest recovery in the post-war era. With expectations building of rising inflation, interest rates, lower profit margins, and a Fed signaling rising rates in 2017, our belief is that good news may already be reflected in risk assets.

 

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MML Allocation Fund Series – Portfolio Manager Report (Unaudited) (Continued)

 

MML Conservative Allocation Fund
Asset Allocation
(% of Net Assets) on 12/31/16		  
   

Fixed Income Funds

      60.5 % 

Equity Funds

      39.6 % 
    

 

 

  

Total Long-Term Investments

      100.1 % 

Other Assets & Liabilities

      (0.1 )% 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  
MML Balanced Allocation Fund
Asset Allocation
(% of Net Assets) on 12/31/16		  
   

Fixed Income Funds

      50.5 % 

Equity Funds

      49.6 % 
    

 

 

  

Total Long-Term Investments

      100.1 % 

Other Assets & Liabilities

      (0.1 )% 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  
 

 

MML Moderate Allocation Fund

Asset Allocation
(% of Net Assets) on 12/31/16

  
   

Equity Funds

      59.6 % 

Fixed Income Funds

      40.5 % 
    

 

 

  

Total Long-Term Investments

      100.1 % 

Other Assets & Liabilities

      (0.1 )% 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  

 

MML Growth Allocation Fund
Asset Allocation
(% of Net Assets) on 12/31/16		  
   

Equity Funds

      74.7 % 

Fixed Income Funds

      25.4 % 
    

 

 

  

Total Long-Term Investments

      100.1 % 

Other Assets & Liabilities

      (0.1 )% 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  
 

 

MML Aggressive Allocation Fund
Asset Allocation
(% of Net Assets) on 12/31/16		  
   

Equity Funds

      89.9 % 

Fixed Income Funds

      10.2 % 
    

 

 

  

Total Long-Term Investments

      100.1 % 

Other Assets & Liabilities

      (0.1 )% 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  

 

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MML Conservative Allocation Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Conservative Allocation Fund Initial Class, the Bloomberg Barclays U.S. Aggregate Bond Index, the Russell 3000 Index, the MSCI ACWI ex USA, and the Custom MML Conservative Allocation Index.

 

       

TOTAL RETURN

  

One Year
1/1/16 -
12/31/16

    

Five Year
Average
Annual
1/1/12 -
12/31/16

    

Since
Inception
Average
Annual
8/31/07 -
12/31/16

  

Initial Class

     5.78%        6.56%        5.08%   

Bloomberg Barclays U.S. Aggregate Bond Index*

     2.65%        2.23%        4.30%   

Russell 3000 Index

     12.74%        14.67%        7.17%   

MSCI ACWI ex USA

     4.50%        5.00%        0.17%   

Custom MML Conservative Allocation Index

     5.84%        6.28%        5.23%   

Hypothetical Investments in MML Conservative Allocation Fund Service Class, the Bloomberg Barclays U.S. Aggregate Bond Index, the Russell 3000 Index, the MSCI ACWI ex USA, and the Custom MML Conservative Allocation Index.

 

       

TOTAL RETURN

  

One Year
1/1/16 -
12/31/16

    

Five Year
Average
Annual
1/1/12 -
12/31/16

    

Since
Inception
Average
Annual
8/15/08 -
12/31/16

  

Service Class

     5.48%        6.28%        5.42%   

Bloomberg Barclays U.S. Aggregate Bond Index*

     2.65%        2.23%        4.22%   

Russell 3000 Index

     12.74%        14.67%        9.17%   

MSCI ACWI ex

USA

     4.50%        5.00%        1.59%   

Custom MML Conservative Allocation Index

     5.84%        6.28%        5.94%   

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

 

LOGO

 

 

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

* Benchmark

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the Bloomberg Barclays U.S. Aggregate Bond Index, the Russell 3000 Index, the MSCI ACWI ex USA, and the Custom MML Conservative Allocation Index are unmanaged, do not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

 

10

Table of Contents

MML Balanced Allocation Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Balanced Allocation Fund Initial Class, the Russell 3000 Index, the Bloomberg Barclays U.S. Aggregate Bond Index, the MSCI ACWI ex USA, and the Custom MML Balanced Allocation Index.

 

       

TOTAL RETURN

  

One Year
1/1/16 -
12/31/16

    

Five Year
Average
Annual
1/1/12 -
12/31/16

    

Since
Inception
Average
Annual
8/31/07 -
12/31/16

  

Initial Class

     6.15%        7.47%        4.98%   

Russell 3000 Index*

     12.74%        14.67%        7.17%   

Bloomberg Barclays U.S. Aggregate Bond Index

     2.65%        2.23%        4.30%   

MSCI ACWI ex USA

     4.50%        5.00%        0.17%   

Custom MML Balanced Allocation Index

     6.66%        7.29%        5.37%   

Hypothetical Investments in MML Balanced Allocation Fund Service Class, the Russell 3000 Index, the Bloomberg Barclays U.S. Aggregate Bond Index, the MSCI ACWI ex USA, and the Custom MML Balanced Allocation Index.

 

       

TOTAL RETURN

  

One Year
1/1/16 -
12/31/16

    

Five Year
Average
Annual
1/1/12 -
12/31/16

    

Since
Inception
Average
Annual
8/15/08 -
12/31/16

  

Service Class

     5.82%        7.19%        5.56%   

Russell 3000 Index*

     12.74%        14.67%        9.17%   

Bloomberg Barclays U.S. Aggregate Bond Index

     2.65%        2.23%        4.22%   

MSCI ACWI ex USA

     4.50%        5.00%        1.59%   

Custom MML Balanced Allocation Index

     6.66%        7.29%        6.28%   

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

 

LOGO

 

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

* Benchmark

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the Russell 3000 Index, the Bloomberg Barclays U.S. Aggregate Bond Index, the MSCI ACWI ex USA, and the Custom MML Balanced Allocation Index are unmanaged, do not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

 

11

Table of Contents

MML Moderate Allocation Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Moderate Allocation Fund Initial Class, the Russell 3000 Index, the Bloomberg Barclays U.S. Aggregate Bond Index, the MSCI ACWI ex USA, and the Custom MML Moderate Allocation Index.

 

       

TOTAL RETURN

  

One Year
1/1/16 -
12/31/16

    

Five Year
Average
Annual
1/1/12 -
12/31/16

    

Since
Inception
Average
Annual
8/31/07 -
12/31/16

  

Initial Class

     6.89%        8.34%        5.15%   

Russell 3000 Index*

     12.74%        14.67%        7.17%   

Bloomberg Barclays U.S. Aggregate Bond Index

     2.65%        2.23%        4.30%   

MSCI ACWI ex

USA

     4.50%        5.00%        0.17%   

Custom MML Moderate Allocation Index

     7.46%        8.29%        5.47%   

Hypothetical Investments in MML Moderate Allocation Fund Service Class, the Russell 3000 Index, the Bloomberg Barclays U.S. Aggregate Bond Index, the MSCI ACWI ex USA, and the Custom MML Moderate Allocation Index.

 

       

TOTAL RETURN

  

One Year
1/1/16 -
12/31/16

    

Five Year
Average
Annual
1/1/12 -
12/31/16

    

Since
Inception
Average
Annual
8/15/08 -
12/31/16

  

Service Class

     6.59%        8.07%        5.95%   

Russell 3000 Index*

     12.74%        14.67%        9.17%   

Bloomberg Barclays U.S. Aggregate Bond Index

     2.65%        2.23%        4.22%   

MSCI ACWI ex

USA

     4.50%        5.00%        1.59%   

Custom MML Moderate Allocation Index

     7.46%        8.29%        6.57%   

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

 

LOGO

 

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

* Benchmark

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the Russell 3000 Index, the Bloomberg Barclays U.S. Aggregate Bond Index, the MSCI ACWI ex USA, and the Custom MML Moderate Allocation Index are unmanaged, do not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

 

12

Table of Contents

MML Growth Allocation Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Growth Allocation Fund Initial Class, the Russell 3000 Index, the Bloomberg Barclays U.S. Aggregate Bond Index, the MSCI ACWI ex USA, and the Custom MML Growth Allocation Index.

 

       

TOTAL RETURN

  

One Year
1/1/16 -
12/31/16

    

Five Year
Average
Annual
1/1/12 -
12/31/16

    

Since
Inception
Average
Annual
8/31/07 -
12/31/16

  

Initial Class

     7.57%        9.67%        5.18%   

Russell 3000 Index*

     12.74%        14.67%        7.17%   

Bloomberg Barclays U.S. Aggregate Bond Index

     2.65%        2.23%        4.30%   

MSCI ACWI ex USA

     4.50%        5.00%        0.17%   

Custom MML Growth Allocation Index

     8.66%        9.78%        5.55%   

Hypothetical Investments in MML Growth Allocation Fund Service Class, the Russell 3000 Index, the Bloomberg Barclays U.S. Aggregate Bond Index, the MSCI ACWI ex USA, and the Custom MML Growth Allocation Index.

 

       

TOTAL RETURN

  

One Year
1/1/16 -
12/31/16

    

Five Year
Average

Annual
1/1/12 -
12/31/16

    

Since
Inception
Average
Annual
8/15/08 -
12/31/16

  

Service Class

     7.23%        9.38%        6.30%   

Russell 3000 Index*

     12.74%        14.67%        9.17%   

Bloomberg Barclays U.S. Aggregate Bond Index

     2.65%        2.23%        4.22%   

MSCI ACWI ex USA

     4.50%        5.00%        1.59%   

Custom MML Growth Allocation Index

     8.66%        9.78%        6.93%   

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

 

LOGO

 

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

* Benchmark

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the Russell 3000 Index, the Bloomberg Barclays U.S. Aggregate Bond Index, the MSCI ACWI ex USA, and the Custom MML Growth Allocation Index are unmanaged, do not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

 

13

Table of Contents

MML Aggressive Allocation Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Aggressive Allocation Fund Initial Class, the Russell 3000 Index, the Bloomberg Barclays U.S. Aggregate Bond Index, the MSCI ACWI ex USA, and the Custom MML Aggressive Allocation Index.

 

       

TOTAL RETURN

  

One Year
1/1/16 -
12/31/16

    

Five Year
Average

Annual

1/1/12 -
12/31/16

    

Since
Inception
Average
Annual
8/31/07 -
12/31/16

  

Initial Class

     8.54%        10.93%        5.25%   

Russell 3000 Index*

     12.74%        14.67%        7.17%   

Bloomberg Barclays U.S. Aggregate Bond Index

     2.65%        2.23%        4.30%   

MSCI ACWI ex USA

     4.50%        5.00%        0.17%   

Custom MML Aggressive Allocation Index

     10.13%        11.49%        5.46%   

Hypothetical Investments in MML Aggressive Allocation Fund Service Class, the Russell 3000 Index, the Bloomberg Barclays U.S. Aggregate Bond Index, the MSCI ACWI ex USA, and the Custom MML Aggressive Allocation Index.

 

       

TOTAL RETURN

  

One Year
1/1/16 -
12/31/16

    

Five Year
Average
Annual
1/1/12 -
12/31/16

    

Since
Inception
Average
Annual
8/15/08 -
12/31/16

  

Service Class

     8.28%        10.66%        6.69%   

Russell 3000 Index*

     12.74%        14.67%        9.17%   

Bloomberg Barclays U.S. Aggregate Bond Index

     2.65%        2.23%        4.22%   

MSCI ACWI ex USA

     4.50%        5.00%        1.59%   

Custom MML Aggressive Allocation Index

     10.13%        11.49%        7.17%   

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

 

LOGO

 

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

* Benchmark

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the Russell 3000 Index, the Bloomberg Barclays U.S. Aggregate Bond Index, the MSCI ACWI ex USA, and the Custom MML Aggressive Allocation Index are unmanaged, do not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

 

14

Table of Contents

MML American Funds Growth Fund – Portfolio Manager Report (Unaudited)

 

What is the investment approach of MML American Funds® Growth Fund, and who is the Fund’s investment adviser?

The Fund seeks to provide investors with growth of capital through a “master feeder” relationship. (See page 52 of this report for information about the “master feeder” relationship.) The Fund invests all of its assets in Class 1 shares of the American Funds Insurance Series – Growth Fund (the “Master Growth Fund”), a series of the American Funds Insurance Series®, a registered open-end investment company, managed by Capital Research and Management Company (Capital Research), which has substantially the same investment objective as the Master Growth Fund. The Master Growth Fund invests primarily in common stocks and seeks to invest in companies that appear to offer superior opportunities for growth of capital. The Master Growth Fund may invest up to 25% of its assets in common stocks and other securities of issuers domiciled outside the United States. The Master Growth Fund may hold a portion of its assets in cash or cash equivalents. The Fund’s investment adviser is MML Investment Advisers, LLC (MML Advisers).

How did the Fund perform during the 12 months ended December 31, 2016?

The Fund returned 9.00%, underperforming the 11.96% return of the S&P 500® Index (the “benchmark”), a widely recognized, unmanaged index representative of common stocks of larger capitalized U.S. companies. The Fund outperformed the 7.08% return of the Russell 1000® Growth Index, an unmanaged index consisting of those Russell 1000 securities (representing the 1,000 largest U.S. companies based on market capitalization) with greater than average growth orientation that tend to exhibit higher price-to-book ratios and higher forecasted growth rates than securities in the value universe.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Overview, beginning on page 3.

Capital Research’s discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2016, the Fund’s health care holdings detracted from full-year performance on both an absolute and relative basis. Specifically, Centene (a leading multiline health care enterprise that provides services to government health care programs); Express Scripts (a pharmacy benefit management company); Vertex Pharmaceuticals; and Regeneron Pharmaceuticals, Inc. (a biotechnology company) were among the top detractors from the Fund’s relative returns.

Elsewhere, a rebound in commodities lifted the energy sector, while financial stocks rose, spurred by rising interest rates and the potential for a less restrictive regulatory environment. Strong stock selection in consumer discretionary and information technology also boosted the Fund’s full-year results. Most notably, Fund holdings Nintendo Co., Ltd. (a Japanese multinational consumer electronics and software company); Charter Communications (an American cable telecommunications company); and ASML (a Dutch company that is a supplier of photolithography systems for the semiconductor industry) were among the Fund’s top contributors to relative returns – with Nintendo’s stock price increasing 50%. An overweight position, relative to the benchmark, and good stock selection in the energy sector were also additive to results, given the turnaround in energy prices.

Overall, the Fund’s modest holdings outside of the United States added relative value. Canada, the Netherlands, and Taiwan were primary contributors, while the United Kingdom and Ireland were the main detractors from the Fund’s full-year performance.

Capital Research’s outlook

As we enter 2017, Fund management is keeping a close watch on the U.S. economy, looking past the rhetoric of the presidential election and evaluating the implications of policy changes on issues ranging from health care and trade to reform regulations and taxes on domestic companies. Our portfolio managers are optimistic that Capital Research’s global research capabilities have the potential to help identify attractive long-term investment opportunities for the Fund moving forward.

 

15

Table of Contents

MML American Funds Growth Fund – Portfolio Manager Report (Unaudited) (Continued)

 

MML American Funds Growth Fund
Asset Allocation
(% of Net Assets) on 12/31/16		  
   

Equity Funds

      100.1 % 
    

 

 

  

Total Long-Term Investments

      100.1 % 

Other Assets & Liabilities

      (0.1 )% 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  

 

16

Table of Contents

MML American Funds Growth Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML American Funds Growth Fund Service Class I, the S&P 500 Index, and the Russell 1000 Growth Index.

 

       

TOTAL RETURN

  

One Year
1/1/16 -
12/31/16

    

Five Year
Average
Annual
1/1/12 -
12/31/16

    

Since
Inception
Average
Annual
8/15/08 -
12/31/16

  

Service Class I

     9.00%        13.76%        7.92%   

S&P 500 Index*

     11.96%        14.66%        9.13%   

Russell 1000 Growth Index

     7.08%        14.50%        9.74%   

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

 

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

* Benchmark

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the S&P 500 Index and the Russell 1000 Growth Index are unmanaged, do not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

 

17

Table of Contents

MML American Funds International Fund – Portfolio Manager Report (Unaudited)

 

What is the investment approach of MML American Funds® International Fund, and who is the Fund’s investment adviser?

The Fund seeks long-term capital growth of assets through a “master-feeder” relationship. (See page 52 of this report for information about the “master feeder” relationship.) The Fund invests all of its assets in Class 1 shares of the American Funds Insurance Series – International Fund (the “Master International Fund”), a series of the American Funds Insurance Series®, a registered open-end investment company managed by Capital Research and Management Company (Capital Research), which has substantially the same investment objective as the Master International Fund. The Master International Fund invests primarily in common stocks of companies domiciled outside the United States, including companies domiciled in developing countries, that Capital Research believes have the potential for growth. The Master International Fund may hold a portion of its assets in cash or cash equivalents. The Fund’s investment adviser is MML Investment Advisers, LLC (MML Advisers).

How did the Fund perform during the 12 months ended December 31, 2016?

The Fund returned 2.97%, underperforming the 4.50% return of MSCI All Country World Index (ACWI) ex USA (the “benchmark”), an unmanaged index representative of stocks domiciled in global developed and emerging markets, excluding the United States. The Fund outperformed the 1.00% return of the MSCI EAFE Index, a widely recognized, unmanaged index representative of equity securities in developed markets around the world, excluding the U.S. and Canada.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Review, beginning on page 3.

Capital Research’s discussion of factors that contributed to the Fund’s performance

The year 2016 was difficult one for non-U.S. stock markets – beginning with worries about China’s slowing growth and property bubble, and continuing with “Brexit” and the implications for companies in the eurozone. “Brexit” (an abbreviation for “British exit”), was the United Kingdom’s surprising June 23, 2016 referendum to leave the European Union. Europe continued its struggles to grow. In the Pacific Rim, Japan continued treading water, without making much progress.

In the United States, the economy strengthened, and so did the dollar, which tends to have a negative impact on emerging markets. One point of consolation for emerging markets was that oil prices rebounded, which helped to soothe fears of a further deflationary environment.

The Fund took advantage of the rally in commodities – as some materials stocks soared – during the year. The Fund’s positive performance was helped especially by miners First Quantum Minerals and Fortescue Metals. The shares of both of these Fund holdings doubled in price during the year. Energy stocks did well, but the Fund’s underweight exposure to the sector, relative to the benchmark, hurt results. Fund holdings in the information technology sector aided returns. There, standouts included Nintendo Co., Ltd. – a Japanese multinational consumer electronics and software company; and Tencent Holdings Limited, a Chinese company that provides media, entertainment, internet and mobile phone services in China. After strong returns in health care in recent years, many Fund holdings within that sector lagged – most notably, Novartis, a Swiss global health care company.

Capital Research’s outlook

In our view, some proposed U.S. policies may lead to inflation and trade barriers for non-U.S. companies, which could have a negative impact on growth and stock markets. Therefore, Fund management strives to have a balanced approach. We look for companies that will be least impacted by macroeconomic-driven events. Consequently, we take a diversified approach, making sure that the Fund invests in different geographies, industries, and companies that can control their own destiny through efficiencies or innovative products.

 

18

Table of Contents

MML American Funds International Fund – Portfolio Manager Report (Unaudited) (Continued)

 

MML American Funds International Fund
Asset Allocation
(% of Net Assets) on 12/31/16		  
   

Equity Funds

      100.1 % 
    

 

 

  

Total Long-Term Investments

      100.1 % 

Other Assets and Liabilities

      (0.1 )% 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  

 

19

Table of Contents

MML American Funds International Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML American Funds International Fund Service Class I, the MSCI ACWI ex USA, and the MSCI EAFE Index.

 

       

TOTAL RETURN

  

One Year
1/1/16 -
12/31/16

    

Five Year
Average
Annual
1/1/12 -
12/31/16

    

Since
Inception
Average
Annual
8/15/08 -
12/31/16

  

Service Class I

     2.97%        6.16%        2.38%   

MSCI ACWI
ex USA*

     4.50%        5.00%        1.59%   

MSCI EAFE Index

     1.00%        6.53%        1.95%   

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

 

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

* Benchmark

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the MSCI ACWI ex USA and the MSCI EAFE Index are unmanaged, do not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

 

20

Table of Contents

MML American Funds Core Allocation Fund – Portfolio Manager Report (Unaudited)

 

What is the investment approach of MML American Funds Core Allocation Fund, and who is the Fund’s investment adviser?

The Fund seeks to achieve as high a total return over time as is considered consistent with prudent investment risk, preservation of capital, and recognition of the Fund’s stated asset allocation. The Fund is a “fund of funds” and seeks to achieve its investment objective by principally investing in a combination of series of the American Funds Insurance Series® (the “American Underlying Funds”), managed by Capital Research and Management Company (“Capital Research”), using a flexible asset allocation approach. The Fund’s investment adviser invests the Fund’s assets in a combination of domestic and international American Underlying Funds. As of the date of this report, it is expected that the Underlying Funds will include Class I shares of the American Funds Insurance Series – Bond Fund, the American Funds Insurance Series – Blue Chip Income and Growth Fund, the American Funds Insurance Series – Growth-Income Fund, and the American Funds Insurance Series – International Fund. The Fund’s investment adviser allocates the Fund’s assets among a variety of different asset classes through investing in American Underlying Funds in response to changing market, economic, and investment conditions. The Fund’s investment adviser is MML Investment Advisers, LLC (MML Advisers).

How did the Fund perform during the 12 months ended December 31, 2016?

The Fund returned 8.97%, underperforming the 11.96% return of the S&P 500® Index (the “benchmark”), a widely recognized, unmanaged index representative of common stocks of larger capitalized U.S. companies. The Fund outperformed the 4.50% return of the MSCI All Country World Index (ACWI) ex USA, an unmanaged index representative of stocks domiciled in global developed and emerging markets, excluding the United States. The Fund outperformed the 2.65% return of the Bloomberg Barclays U.S. Aggregate Bond Index, an unmanaged index of fixed-rate investment-grade securities with at least one year to maturity, combining the Bloomberg Barclays U.S. Treasury Bond Index, the Bloomberg Barclays U.S. Government-Related Bond Index, the Bloomberg Barclays U.S. Corporate Bond Index, and the Bloomberg Barclays U.S. Securitized Bond Index. Finally, the Fund’s 8.97% return outperformed the 7.95% return of the Custom MML Core Allocation Index, which comprises the benchmark (55%), the Bloomberg Barclays U.S. Aggregate Bond Index (35%), and the MSCI ACWI ex USA (10%).

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Review, beginning on page 3.

Capital Research’s discussion of factors that contributed to the Fund’s performance

Although the Fund’s U.S. equity exposure, which is primarily in the large-cap market segment, was a detractor overall relative to an all-cap U.S. equity portfolio, stock selection and a more value orientation in U.S large-cap equities was a benefit to the Fund. An underweight to international equites, relative to a global portfolio, and exposure to high-yield bonds relative to investment-grade bonds were also additive to the Fund’s performance. The Fund continued to maintain a lower risk (standard deviation) of 6.51% relative to its custom benchmark of 7.11% for the year.

The following paragraphs discuss the results of each of the Fund’s underlying portfolio components. Because the Fund invests in both stock- and bond-based portfolios, its overall performance may vary considerably from the broad market indexes listed above, which each measure the performance of a specific group of securities. These component-specific discussions focus on results and positioning versus each component’s main comparative index, not how the Fund as a whole performed or was positioned versus those indexes.

The American Funds Insurance Series – Bond Fund (the “Bond Fund”) outperformed the Bloomberg Barclays U.S. Aggregate Bond Index (the “Index”) for the year. Yields moved higher in the latter half of 2016, with the most significant increase occurring in the wake of the U.S. presidential election. For the Bond Fund, corporate bond selection aided results, particularly in the energy sector. The Bond Fund’s underweight position in mortgages, relative to the benchmark, was helpful as rates began to increase. Stronger expectations for inflation boosted the Bond Fund’s Treasury inflation-protected securities (TIPS) holdings.

The American Funds Insurance Series – Blue Chip Income and Growth Fund (the “Income and Growth Fund”) substantially outperformed the benchmark in 2016. During the year, two Income and Growth Fund holdings – Canadian Natural Resources Limited (an oil and gas exploration, development, and production company) and Halliburton (one of the world’s largest oil field services companies) led the way for energy stocks, which were strong contributors as oil experienced a rebound. Two of the

 

21

Table of Contents

MML American Funds Core Allocation Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Income and Growth Fund’s materials holdings – Freeport-McMoRan, Inc. (an Arizona-based mining company) and Brazilian metals and mining company Vale both doubled during the year. Health care stocks were notable detractors, as top holding Amgen Inc. (an American multinational biopharmaceutical company) lost ground.

The American Funds Insurance Series – Growth-Income Fund (the “Growth-Income Fund”) underperformed the benchmark for the year, as the Growth-Income Fund’s weakest sectors on a relative basis were health care, consumer staples, and financials. Health care was the biggest detractor from relative returns. Specifically, Amgen Inc. (an American multinational biopharmaceutical company); Gilead Sciences, Inc. (a biopharmaceutical company); and Illumina, Inc. (a company that develops, manufactures and markets integrated systems for the analysis of genetic variation and biological function) were the most significant laggards. On the positive side, stock selection in materials contributed the most to the Growth-Income Fund’s returns on a relative basis. As iron ore prices climbed, Brazilian metals and mining company Vale experienced a triple-digit return – making Vale among the top Growth-Income Fund holdings contributing to relative returns. American mining company Freeport McMoRan was another Growth-Income Fund holding that was additive to full-year performance, as its share price rose, after having plummeted 70% in 2015. An overweight position and good stock selection in the energy sector also added to results, given the turnaround in energy prices.

The American Funds Insurance Series – International Fund (the “International Fund”) underperformed the MSCI ACWI ex USA (the “Index”) for the year, as 2016 was a challenging year for non-U.S. stock markets – beginning with worries about China’s slowing growth and property bubble, and continuing with “Brexit” and the implications for companies in the eurozone. “Brexit” (an abbreviation for “British exit”), was the United Kingdom’s surprising June 23, 2016 referendum to leave the European Union. Europe continued its struggles to grow. In the Pacific Rim, Japan continued treading water, without making much progress. In the United States, the economy strengthened, and so did the dollar, which tends to have a negative impact on emerging markets. One point of consolation for emerging markets was that oil prices rebounded, which helped to soothe fears of a further deflationary environment. During the year, the International Fund took advantage of the rally in commodities, as some materials stocks soared. The International Fund’s positive performance was helped especially by miners First Quantum Minerals and Fortescue Metals. The shares of both of these International Fund holdings doubled in price. Energy stocks did well, but the International Fund’s underweight exposure to the sector hurt results. International Fund holdings in the information technology sector aided returns. There, standouts included Nintendo Co., Ltd. – a Japanese multinational consumer electronics and software company – and Tencent Holdings Limited, a Chinese company that provides media, entertainment, internet, and mobile phone services in China. After strong returns in health care in recent years, many International Fund holdings within that sector lagged in 2016 – most notably, Novartis, a Swiss global health care company.

Capital Research’s outlook

We believe that, on the whole, the U.S. economy is in good shape. While the recent stretch of fiscal exuberance has delighted investors and may have the potential to delay the next recession, we prefer markets that run on realism. The Trump administration has created considerable uncertainty with its rather broad statements on trade, tax reform, and spending. As such, we believe that periods of volatility could occur in the months ahead. If this becomes reality, with respect to the Bond Fund, we will search the bond market for promising investment opportunities in an effort to help the Bond Fund withstand the frequently changing market conditions.

With respect to domestic equities, Fund management exercises caution when considering the potential impact on the U.S. economy and markets that could result from the new administration’s approach to health care, infrastructure, fiscal policy, taxes, and trade. Should increased volatility occur, Fund management will search for investment options that they believe could have more favorable valuations in the long term.

Regarding the International Fund, we believe that some proposed U.S. policies may lead to inflation and trade barriers for non-U.S. companies, which could have a negative impact on growth and stock markets. Therefore, Fund management plans to have a balanced approach – which would involve seeking companies that have the potential to be minimally impacted by macroeconomic-driven events. This diversified approach means that the Fund may invest in different geographies, industries, and companies that Fund management believes can control their own destiny through efficiencies or innovative products.

 

22

Table of Contents

MML American Funds Core Allocation Fund – Portfolio Manager Report (Unaudited) (Continued)

 

MML American Funds
Core Allocation Fund
Asset Allocation
(% of Net Assets) on 12/31/16		  
   

Equity Funds

      64.8 % 

Fixed Income Funds

      35.3 % 
    

 

 

  

Total Long-Term Investments

      100.1 % 

Other Assets & Liabilities

      (0.1 )% 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  

 

23

Table of Contents

MML American Funds Core Allocation Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML American Funds Core Allocation Fund Service Class I, the S&P 500 Index, the MSCI ACWI ex USA, the Bloomberg Barclays U.S. Aggregate Bond Index, and the Custom MML Core Allocation Index.

 

       

TOTAL RETURN

  

One Year
1/1/16 -
12/31/16

    

Five Year
Average
Annual

1/1/12 -
12/31/16

    

Since

Inception
Average
Annual
8/15/08 -
12/31/16

  

Service Class I

     8.97%       9.00%       5.91%  

S&P 500 Index*

     11.96%       14.66%       9.13%  
MSCI ACWI ex USA     4.50%       5.00%       1.59%  
Bloomberg Barclays U.S. Aggregate Bond Index     2.65%       2.23%       4.22%  
Custom MML Core Allocation Index     7.95%       9.37%       7.11%  

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

 

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

* Benchmark

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the S&P 500 Index, the MSCI ACWI ex USA, the Bloomberg Barclays U.S. Aggregate Bond Index, and the Custom MML Core Allocation Index are unmanaged, do not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

 

24

Table of Contents

MML Conservative Allocation Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
MUTUAL FUNDS — 100.1%      
Equity Funds — 39.6%      

MML Blue Chip Growth Fund, Initial Class (a)

      948,536       $ 13,260,532   

MML Equity Income Fund, Initial Class (a)

      1,086,900         12,803,678   

MML Equity Index Fund, Class III (a)

      272,727         7,229,980   

MML Focused Equity Fund, Class II (a)

      580,032         7,656,425   

MML Foreign Fund, Initial Class (a)

      1,008,329         9,518,629   

MML Fundamental Growth Fund, Class II (a)

      871,922         9,957,354   

MML Fundamental Value Fund, Class II (a)

      934,193         13,770,003   

MML Global Fund, Class I (a)

      1,047,855         12,092,252   

MML Income & Growth Fund, Initial Class (a)

      1,144,851         13,577,928   

MML International Equity Fund, Class II (a)

      795,236         7,419,548   

MML Large Cap Growth Fund, Initial Class (a)

      364,199         3,871,431   

MML Mid Cap Growth Fund, Initial Class (a)

      556,347         7,983,581   

MML Mid Cap Value Fund, Initial Class (a)

      853,669         10,064,752   

MML Small Cap Growth Equity Fund, Initial Class (a)

      191,703         2,433,051   

MML Small Company Value Fund, Class II (a)

      289,700         4,991,538   

MML Small/Mid Cap Value Fund, Initial Class (a)

      184,477         2,440,628   

Oppenheimer Discovery Mid Cap Growth Fund/VA, Non-Service Shares (a)

      37,243         2,705,704   

Oppenheimer Global Fund/VA, Non-Service Shares (a)

      229,821         8,048,345   

Oppenheimer Global Multi-Alternatives Fund/VA, Non-Service Shares (a)

      3,249,945         32,109,453   

Oppenheimer International Growth Fund/VA, Non-Service Shares (a)

      3,309,102         6,882,933   
     

 

 

  
        188,817,745   
     

 

 

  
Fixed Income Funds — 60.5%      

MML Dynamic Bond Fund, Class II (a)

      6,557,621         64,854,876   

MML High Yield Fund, Class II (a)

      1,547,264         15,364,330   

MML Inflation-Protected and Income Fund, Initial Class (a)

      1,986,984         20,227,497   

MML Managed Bond Fund, Initial Class (a)

      8,380,314         102,593,023   
    Number of
Shares		      Value  

MML Short-Duration Bond Fund, Class II (a)

     2,614,870       $ 25,494,982   

MML Total Return Bond Fund, Class II (a)

     5,876,460         60,351,247   
    

 

 

  
       288,885,955   
    

 

 

  
TOTAL MUTUAL FUNDS
(Cost $493,155,235)		        477,703,700   
    

 

 

  
TOTAL LONG-TERM
INVESTMENTS
(Cost $493,155,235)		        477,703,700   
    

 

 

  
TOTAL INVESTMENTS — 100.1%
(Cost $493,155,235) (b)		        477,703,700   
Other Assets/(Liabilities) — (0.1)%        (351,237 ) 
    

 

 

  
NET ASSETS — 100.0%      $ 477,352,463   
    

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

(a) Affiliated issuer. See Note 7 for a summary of transactions in the investments of affiliated issuers.
(b) See Note 6 for aggregate cost for federal tax purposes.

 

 

 

The accompanying notes are an integral part of the financial statements.

 

25

Table of Contents

MML Balanced Allocation Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
MUTUAL FUNDS — 100.1%      
Equity Funds — 49.6%      

MML Blue Chip Growth Fund, Initial Class (a)

      1,525,592       $ 21,327,777   

MML Equity Income Fund, Initial Class (a)

      1,522,823         17,938,855   

MML Equity Index Fund, Class III (a)

      344,598         9,135,303   

MML Focused Equity Fund, Class II (a)

      826,731         10,912,847   

MML Foreign Fund, Initial Class (a)

      1,767,360         16,683,879   

MML Fundamental Growth Fund, Class II (a)

      1,335,158         15,247,502   

MML Fundamental Value Fund, Class II (a)

      1,216,219         17,927,067   

MML Global Fund, Class I (a)

      1,608,498         18,562,070   

MML Income & Growth Fund, Initial Class (a)

      1,708,600         20,264,000   

MML International Equity Fund, Class II (a)

      1,462,951         13,649,330   

MML Large Cap Growth Fund, Initial Class (a)

      587,861         6,248,966   

MML Mid Cap Growth Fund, Initial Class (a)

      975,060         13,992,109   

MML Mid Cap Value Fund, Initial Class (a)

      1,369,170         16,142,518   

MML Small Cap Growth Equity Fund, Initial Class (a)

      319,938         4,060,581   

MML Small Company Value Fund, Class II (a)

      409,118         7,049,106   

MML Small/Mid Cap Value Fund, Initial Class (a)

      353,523         4,677,114   

Oppenheimer Discovery Mid Cap Growth Fund/VA, Non-Service Shares (a)

      65,125         4,731,357   

Oppenheimer Global Fund/VA, Non-Service Shares (a)

      354,384         12,410,533   

Oppenheimer Global Multi-Alternatives Fund/VA, Non-Service Shares (a)

      4,189,370         41,390,980   

Oppenheimer International Growth Fund/VA, Non-Service Shares (a)

      5,771,175         12,004,043   
     

 

 

  
        284,355,937   
     

 

 

  
Fixed Income Funds — 50.5%      

MML Dynamic Bond Fund, Class II (a)

      6,400,654         63,302,467   

MML High Yield Fund, Class II (a)

      1,596,827         15,856,493   

MML Inflation-Protected and Income Fund, Initial Class (a)

      2,092,360         21,300,226   

MML Managed Bond Fund, Initial Class (a)

      8,228,878         100,739,121   
    Number of
Shares		     Value  

MML Short-Duration Bond Fund, Class II (a)

     2,891,059      $ 28,187,825   

MML Total Return Bond Fund, Class II (a)

     5,879,263        60,380,036   
   

 

 

  
      289,766,168   
   

 

 

  
TOTAL MUTUAL FUNDS
(Cost $591,672,024)		       574,122,105   
   

 

 

  
TOTAL LONG-TERM
INVESTMENTS
(Cost $591,672,024)		       574,122,105   
   

 

 

  
TOTAL INVESTMENTS — 100.1%
(Cost $591,672,024) (b)		       574,122,105   
Other Assets/(Liabilities) — (0.1)%       (410,015 ) 
   

 

 

  
NET ASSETS — 100.0%     $ 573,712,090   
   

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

(a) Affiliated issuer. See Note 7 for a summary of transactions in the investments of affiliated issuers.
(b) See Note 6 for aggregate cost for federal tax purposes.
 

 

The accompanying notes are an integral part of the financial statements.

 

26

Table of Contents

MML Moderate Allocation Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
MUTUAL FUNDS — 100.1%      
Equity Funds — 59.6%      

MML Blue Chip Growth Fund, Initial Class (a)

      7,994,376       $ 111,761,373   

MML Equity Income Fund, Initial Class (a)

      7,706,912         90,787,429   

MML Equity Index Fund, Class III (a)

      1,443,633         38,270,712   

MML Focused Equity Fund, Class II (a)

      3,911,670         51,634,038   

MML Foreign Fund, Initial Class (a)

      8,510,670         80,340,727   

MML Fundamental Growth Fund, Class II (a)

      6,504,519         74,281,602   

MML Fundamental Value Fund, Class II (a)

      7,132,757         105,136,831   

MML Global Fund, Class I (a)

      8,143,690         93,978,184   

MML Income & Growth Fund, Initial Class (a)

      7,277,471         86,310,801   

MML International Equity Fund, Class II (a)

      6,609,648         61,668,017   

MML Large Cap Growth Fund, Initial Class (a)

      3,078,167         32,720,915   

MML Mid Cap Growth Fund, Initial Class (a)

      5,348,661         76,753,279   

MML Mid Cap Value Fund, Initial Class (a)

      7,089,359         83,583,544   

MML Small Cap Growth Equity Fund, Initial Class (a)

      1,642,308         20,843,827   

MML Small Company Value Fund, Class II (a)

      2,290,115         39,458,682   

MML Small/Mid Cap Value Fund, Initial Class (a)

      1,748,910         23,138,079   

MML Strategic Emerging Markets Fund, Class II (a)

      4,604,786         39,785,354   

Oppenheimer Discovery Mid Cap Growth Fund/VA, Non-Service Shares (a)

      328,040         23,832,076   

Oppenheimer Global Fund/VA, Non-Service Shares (a)

      1,800,933         63,068,689   

Oppenheimer Global Multi-Alternatives Fund/VA, Non-Service Shares (a)

      18,221,504         180,028,457   

Oppenheimer International Growth Fund/VA, Non-Service Shares (a)

      19,897,140         41,386,052   
     

 

 

  
        1,418,768,668   
     

 

 

  
Fixed Income Funds — 40.5%      

MML Dynamic Bond Fund, Class II (a)

      21,214,046         209,806,917   

MML High Yield Fund, Class II (a)

      5,059,132         50,237,180   
    Number of
Shares		     Value  

MML Inflation-Protected and Income Fund, Initial Class (a)

     7,471,136      $ 76,056,166   

MML Managed Bond Fund, Initial Class (a)

     27,172,837        332,653,833   

MML Short-Duration Bond Fund, Class II (a)

     10,292,741        100,354,227   

MML Total Return Bond Fund, Class II (a)

     18,940,084        194,514,661   
   

 

 

  
      963,622,984   
   

 

 

  
TOTAL MUTUAL FUNDS
(Cost $2,445,967,785)		       2,382,391,652   
   

 

 

  
TOTAL LONG-TERM
INVESTMENTS
(Cost $2,445,967,785)		       2,382,391,652   
   

 

 

  
TOTAL INVESTMENTS — 100.1%
(Cost $2,445,967,785) (b)		       2,382,391,652   
Other Assets/(Liabilities) — (0.1)%       (1,681,333 ) 
   

 

 

  
NET ASSETS — 100.0%     $ 2,380,710,319   
   

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

(a) Affiliated issuer. See Note 7 for a summary of transactions in the investments of affiliated issuers.
(b) See Note 6 for aggregate cost for federal tax purposes.
 

 

The accompanying notes are an integral part of the financial statements.

 

27

Table of Contents

MML Growth Allocation Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
MUTUAL FUNDS — 100.1%      
Equity Funds — 74.7%      

MML Blue Chip Growth Fund, Initial Class (a)

      6,756,203       $ 94,451,718   

MML Equity Income Fund, Initial Class (a)

      5,761,598         67,871,628   

MML Equity Index Fund, Class III (a)

      1,324,158         35,103,439   

MML Focused Equity Fund, Class II (a)

      4,078,850         53,840,824   

MML Foreign Fund, Initial Class (a)

      7,210,379         68,065,982   

MML Fundamental Growth Fund, Class II (a)

      5,185,134         59,214,229   

MML Fundamental Value Fund, Class II (a)

      5,306,715         78,220,986   

MML Global Fund, Class I (a)

      6,952,467         80,231,464   

MML Income & Growth Fund, Initial Class (a)

      5,998,774         71,145,461   

MML International Equity Fund, Class II (a)

      6,624,099         61,802,842   

MML Large Cap Growth Fund, Initial Class (a)

      2,631,374         27,971,510   

MML Mid Cap Growth Fund, Initial Class (a)

      4,863,579         69,792,352   

MML Mid Cap Value Fund, Initial Class (a)

      6,049,974         71,329,196   

MML Small Cap Growth Equity Fund, Initial Class (a)

      1,363,846         17,309,649   

MML Small Company Value Fund, Class II (a)

      1,952,409         33,640,005   

MML Small/Mid Cap Value Fund, Initial Class (a)

      1,943,414         25,711,368   

MML Strategic Emerging Markets Fund, Class II (a)

      4,844,657         41,857,835   

Oppenheimer Discovery Mid Cap Growth Fund/VA, Non-Service Shares (a)

      308,373         22,403,281   

Oppenheimer Global Fund/VA, Non-Service Shares (a)

      1,541,426         53,980,750   

Oppenheimer Global Multi-Alternatives Fund/VA, Non-Service Shares (a)

      13,653,001         134,891,646   

Oppenheimer International Growth Fund/VA, Non-Service Shares (a)

      15,697,197         32,650,169   
     

 

 

  
        1,201,486,334   
     

 

 

  
Fixed Income Funds — 25.4%      

MML Dynamic Bond Fund, Class II (a)

      8,242,299         81,516,332   

MML High Yield Fund, Class II (a)

      1,378,040         13,683,936   
    Number of
Shares		     Value  

MML Inflation-Protected and Income Fund, Initial Class (a)

     6,381,423      $ 64,962,883   

MML Managed Bond Fund, Initial Class (a)

     10,241,038        125,372,282   

MML Short-Duration Bond Fund, Class II (a)

     4,765,970        46,468,211   

MML Total Return Bond Fund, Class II (a)

     7,429,070        76,296,552   
   

 

 

  
      408,300,196   
   

 

 

  
TOTAL MUTUAL FUNDS
(Cost $1,613,819,422)		       1,609,786,530   
   

 

 

  
TOTAL LONG-TERM
INVESTMENTS
(Cost $1,613,819,422)		       1,609,786,530   
   

 

 

  
TOTAL INVESTMENTS — 100.1%
(Cost $1,613,819,422) (b)		       1,609,786,530   
Other Assets/(Liabilities) — (0.1)%       (979,877 ) 
   

 

 

  
NET ASSETS — 100.0%     $ 1,608,806,653   
   

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

(a) Affiliated issuer. See Note 7 for a summary of transactions in the investments of affiliated issuers.
(b) See Note 6 for aggregate cost for federal tax purposes.
 

 

The accompanying notes are an integral part of the financial statements.

 

28

Table of Contents

MML Aggressive Allocation Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
MUTUAL FUNDS — 100.1%      
Equity Funds — 89.9%      

MML Blue Chip Growth Fund, Initial Class (a)

      607,538       $ 8,493,383   

MML Equity Income Fund, Initial Class (a)

      561,322         6,612,376   

MML Equity Index Fund, Class III (a)

      68,329         1,811,405   

MML Focused Equity Fund, Class II (a)

      372,991         4,923,483   

MML Foreign Fund, Initial Class (a)

      714,459         6,744,490   

MML Fundamental Growth Fund, Class II (a)

      564,841         6,450,487   

MML Fundamental Value Fund, Class II (a)

      592,968         8,740,349   

MML Global Fund, Class I (a)

      692,226         7,988,287   

MML Income & Growth Fund, Initial Class (a)

      592,137         7,022,740   

MML International Equity Fund, Class II (a)

      667,198         6,224,953   

MML Large Cap Growth Fund, Initial Class (a)

      263,752         2,803,682   

MML Mid Cap Growth Fund, Initial Class (a)

      516,877         7,417,192   

MML Mid Cap Value Fund, Initial Class (a)

      641,176         7,559,467   

MML Small Cap Growth Equity Fund, Initial Class (a)

      154,970         1,966,841   

MML Small Company Value Fund, Class II (a)

      208,840         3,598,307   

MML Small/Mid Cap Value Fund, Initial Class (a)

      204,807         2,709,603   

MML Strategic Emerging Markets Fund, Class II (a)

      532,589         4,601,568   

Oppenheimer Discovery Mid Cap Growth Fund/VA, Non-Service Shares (a)

      35,144         2,553,210   

Oppenheimer Global Fund/VA, Non-Service Shares (a)

      154,404         5,407,235   

Oppenheimer Global Multi-Alternatives Fund/VA, Non-Service Shares (a)

      1,191,553         11,772,547   

Oppenheimer International Growth Fund/VA, Non-Service Shares (a)

      1,583,033         3,292,708   
     

 

 

  
        118,694,313   
     

 

 

  
Fixed Income Funds — 10.2%      

MML Dynamic Bond Fund, Class II (a)

      199,325         1,971,322   

MML Inflation-Protected and Income Fund, Initial Class (a)

      350,048         3,563,490   

MML Managed Bond Fund, Initial Class (a)

      261,001         3,195,208   
    Number of
Shares		     Value  

MML Short-Duration Bond Fund, Class II (a)

     289,095      $ 2,818,672   

MML Total Return Bond Fund, Class II (a)

     185,417        1,904,237   
   

 

 

  
      13,452,929   
   

 

 

  
TOTAL MUTUAL FUNDS
(Cost $137,272,665)		       132,147,242   
   

 

 

  
TOTAL LONG-TERM
INVESTMENTS
(Cost $137,272,665)		       132,147,242   
   

 

 

  
TOTAL INVESTMENTS — 100.1% (Cost $137,272,665) (b)       132,147,242   
Other Assets/(Liabilities) — (0.1)%       (92,313 ) 
   

 

 

  
NET ASSETS — 100.0%     $ 132,054,929   
   

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

(a) Affiliated issuer. See Note 7 for a summary of transactions in the investments of affiliated issuers.
(b) See Note 6 for aggregate cost for federal tax purposes.
 

 

The accompanying notes are an integral part of the financial statements.

 

29

Table of Contents

MML American Funds Growth Fund – Portfolio of Investments

 

December 31, 2016

 

    Number of
Shares		     Value  
MUTUAL FUNDS — 100.1%    
Equity Funds — 100.1%    

American Funds Growth Fund, Class 1

     2,080,567      $ 140,001,347   
   

 

 

  
      140,001,347   
   

 

 

  
TOTAL MUTUAL FUNDS
(Cost $135,071,916)		       140,001,347   
 

 

 

  
TOTAL LONG-TERM
INVESTMENTS
(Cost $135,071,916)		       140,001,347   
   

 

 

  
TOTAL INVESTMENTS — 100.1%
(Cost $135,071,916) (a)		       140,001,347   
Other Assets/(Liabilities) — (0.1)%       (160,618 ) 
   

 

 

  
NET ASSETS — 100.0%     $ 139,840,729   
   

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

(a) See Note 6 for aggregate cost for federal tax purposes.

 

The accompanying notes are an integral part of the financial statements.

 

30

Table of Contents

MML American Funds International Fund – Portfolio of Investments

 

December 31, 2016

 

    Number of
Shares		     Value  
MUTUAL FUNDS — 100.1%    
Equity Funds — 100.1%    

American Funds International Fund, Class 1

     3,213,176      $ 54,045,616   
   

 

 

  
      54,045,616   
   

 

 

  
TOTAL MUTUAL FUNDS
(Cost $57,826,748)		       54,045,616   
   

 

 

  
TOTAL LONG-TERM
INVESTMENTS
(Cost $57,826,748)		       54,045,616   
   

 

 

  
TOTAL INVESTMENTS — 100.1% (Cost $57,826,748) (a)       54,045,616   
Other Assets/(Liabilities) — (0.1)%       (73,751 ) 
   

 

 

  
NET ASSETS — 100.0%     $ 53,971,865   
   

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

(a) See Note 6 for aggregate cost for federal tax purposes.

 

The accompanying notes are an integral part of the financial statements.

 

31

Table of Contents

MML American Funds Core Allocation Fund — Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
MUTUAL FUNDS — 100.1%      
Equity Funds — 64.8%      

American Funds Blue Chip Income and Growth Fund, Class 1

      17,319,736       $ 234,336,028   

American Funds Growth-Income Fund, Class 1

      6,324,262         280,860,469   

American Funds International Fund, Class 1

      5,627,397         94,652,819   
     

 

 

  
        609,849,316   
     

 

 

  
Fixed Income Funds — 35.3%      

American Funds Bond Fund, Class 1

      30,798,372         332,622,418   
     

 

 

  
TOTAL MUTUAL FUNDS
(Cost $908,936,811)		         942,471,734   
     

 

 

  
TOTAL LONG-TERM
INVESTMENTS
(Cost $908,936,811)		         942,471,734   
     

 

 

  
TOTAL INVESTMENTS — 100.1% (Cost $908,936,811) (a)         942,471,734   
Other Assets/(Liabilities) — (0.1)%         (1,021,831 ) 
     

 

 

  
NET ASSETS — 100.0%       $ 941,449,903   
     

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

(a) See Note 6 for aggregate cost for federal tax purposes.

 

The accompanying notes are an integral part of the financial statements.

 

32

Table of Contents

 

 

THIS PAGE INTENTIONALLY LEFT BLANK

 

 

 

 

33

Table of Contents

MML Series Investment Fund – Financial Statements

 

Statements of Assets and Liabilities

December 31, 2016

 

       MML
Conservative
Allocation
Fund		        MML
Balanced
Allocation
Fund		  
Assets:          

Investments, at value — unaffiliated issuers (Note 2) (a)

      $ -         $ -   

Investments, at value — affiliated issuers (Note 2 & 7) (b)

        477,703,700           574,122,105   
    

 

 

       

 

 

  

Total investments

        477,703,700           574,122,105   
    

 

 

       

 

 

  

Receivables from:

          

Investments sold

        8,472           564,558   

Investment adviser (Note 3)

        -           -   

Fund shares sold

        9,977           84,719   
    

 

 

       

 

 

  

Total assets

        477,722,149           574,771,382   
    

 

 

       

 

 

  
Liabilities:          

Payables for:

          

Investments purchased

        -           -   

Fund shares repurchased

        15,541           645,873   

Trustees’ fees and expenses (Note 3)

        52,268           62,410   

Affiliates (Note 3):

          

Investment advisory fees

        40,836           48,687   

Administration fees

        -           -   

Service fees

        234,160           274,547   

Accrued expense and other liabilities

        26,881           27,775   
    

 

 

       

 

 

  

Total liabilities

        369,686           1,059,292   
    

 

 

       

 

 

  

Net assets

      $ 477,352,463         $ 573,712,090   
    

 

 

       

 

 

  
Net assets consist of:          

Paid-in capital

      $ 473,796,954         $ 557,837,544   

Undistributed (accumulated) net investment income (loss)

        9,472,309           10,393,930   

Accumulated net realized gain (loss) on investments and foreign currency transactions

        9,534,735           23,030,535   

Net unrealized appreciation (depreciation) on investments and foreign currency translations

        (15,451,535 )         (17,549,919 ) 
    

 

 

       

 

 

  

Net assets

      $ 477,352,463         $ 573,712,090   
    

 

 

       

 

 

  
         

(a)        Cost of investments — unaffiliated issuers:

      $ -         $ -   

(b)        Cost of investments — affiliated issuers:

      $ 493,155,235         $ 591,672,024   

 

The accompanying notes are an integral part of the financial statements.

 

34

Table of Contents

 

MML
Moderate
Allocation
Fund		     MML
Growth
Allocation
Fund		     MML
Aggressive
Allocation
Fund		     MML
American
Funds Growth
Fund		      MML
American
Funds
International
Fund		     MML
American
Funds Core
Allocation
Fund		  
          
$ -      $ -      $ -      $ 140,001,347       $ 54,045,616      $ 942,471,734   
  2,382,391,652        1,609,786,530        132,147,242        -         -        -   

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  
  2,382,391,652        1,609,786,530        132,147,242        140,001,347         54,045,616        942,471,734   

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  
          
  6,943        2,591        -        -         -        448,014   
  -        -        -        -         1,367        -   
  241,037        622,648        271,481        15,690         10,601        599,676   

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  
  2,382,639,632        1,610,411,769        132,418,723        140,017,037         54,057,584        943,519,424   

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  
          
          
  148,797        573,429        245,013        12,057         7,499        -   
  85,091        42,345        25,705        2,829         2,773        1,042,301   
  218,666        192,521        12,387        11,802         6,278        79,208   
          
  201,706        136,417        11,157        17,776         6,868        154,200   
  -        -        -        29,626         11,446        197,601   
  1,231,820        623,050        45,053        85,451         34,634        572,584   
  43,233        37,354        24,479        16,767         16,221        23,627   

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  
  1,929,313        1,605,116        363,794        176,308         85,719        2,069,521   

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  
$ 2,380,710,319      $ 1,608,806,653      $ 132,054,929      $ 139,840,729       $ 53,971,865      $ 941,449,903   

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  
          
$ 2,293,664,782      $ 1,479,176,145      $ 127,805,876      $ 120,222,330       $ 52,134,594      $ 822,378,776   
  39,255,594        22,426,679        1,502,566        460,508         501,528        14,532,415   
  111,366,076        111,236,721        7,871,910        14,228,460         5,116,875        71,003,789   
  (63,576,133 )      (4,032,892 )      (5,125,423 )      4,929,431         (3,781,132 )      33,534,923   

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  
$ 2,380,710,319      $ 1,608,806,653      $ 132,054,929      $ 139,840,729       $ 53,971,865      $ 941,449,903   

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  
          
$ -      $ -      $ -      $ 135,071,916       $ 57,826,748      $ 908,936,811   
$ 2,445,967,785      $ 1,613,819,422      $ 137,272,665      $ -       $ -      $ -   

 

35

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Statements of Assets and Liabilities

December 31, 2016

 

       MML
Conservative
Allocation
Fund		        MML
Balanced
Allocation
Fund		  
Initial Class shares:          

Net assets

      $ 112,988,890         $ 134,715,828   
    

 

 

       

 

 

  

Shares outstanding (a)

        11,736,269           13,883,328   
    

 

 

       

 

 

  

Net asset value, offering price and redemption price per share

      $ 9.63         $ 9.70   
    

 

 

       

 

 

  
Service Class shares:          

Net assets

      $ 364,363,573         $ 438,996,262   
    

 

 

       

 

 

  

Shares outstanding (a)

        38,216,834           45,611,423   
    

 

 

       

 

 

  

Net asset value, offering price and redemption price per share

      $ 9.53         $ 9.62   
    

 

 

       

 

 

  
Service Class I shares:          

Net assets

      $ -         $ -   
    

 

 

       

 

 

  

Shares outstanding (a)

        -           -   
    

 

 

       

 

 

  

Net asset value, offering price and redemption price per share

      $ -         $ -   
    

 

 

       

 

 

  

 

(a) Authorized unlimited number of shares with no par value.

 

The accompanying notes are an integral part of the financial statements.

 

36

Table of Contents

 

MML
Moderate
Allocation
Fund		      MML
Growth
Allocation
Fund		      MML
Aggressive
Allocation
Fund		      MML
American
Funds Growth
Fund		      MML
American
Funds
International
Fund		      MML
American
Funds Core
Allocation
Fund		  
              
$ 411,729,540       $ 607,088,471       $ 58,438,258       $ -       $ -       $ -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  39,665,433         66,272,262         6,040,942         -         -         -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 10.38       $ 9.16       $ 9.67       $ -       $ -       $ -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
$ 1,968,980,779       $ 1,001,718,182       $ 73,616,671       $ -       $ -       $ -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  191,591,487         110,154,091         7,703,239         -         -         -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 10.28       $ 9.09       $ 9.56       $ -       $ -       $ -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
$ -       $ -       $ -       $ 139,840,729       $ 53,971,865       $ 941,449,903   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  -         -         -         11,303,467         5,914,848         78,848,445   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ -       $ -       $ -       $ 12.37       $ 9.12       $ 11.94   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

37

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Statements of Operations

For the Year Ended December 31, 2016

 

       MML
Conservative
Allocation
Fund		        MML
Balanced
Allocation
Fund		  
Investment income (Note 2):          

Dividends — unaffiliated issuers

      $ -         $ -   

Dividends — affiliated issuers (Note 7)

        10,289,478           11,256,363   
    

 

 

       

 

 

  

Total investment income

        10,289,478           11,256,363   
    

 

 

       

 

 

  
Expenses (Note 3):          

Investment advisory fees

        476,167           567,576   

Custody fees

        23,711           23,730   

Audit fees

        30,260           30,336   

Legal fees

        3,396           4,035   

Proxy fees

        985           985   

Shareholder reporting fees

        9,988           11,790   

Trustees’ fees

        28,242           33,557   
    

 

 

       

 

 

  
       572,749           672,009   

Administration fees:

          

Service Class I

        -           -   

Service fees:

          

Service Class

        901,625           1,073,271   

Service Class I

        -           -   
    

 

 

       

 

 

  

Total expenses

        1,474,374           1,745,280   

Expenses waived (Note 3):

          

Service Class I fees reimbursed by adviser

        -           -   
    

 

 

       

 

 

  

Net expenses

        1,474,374           1,745,280   
    

 

 

       

 

 

  

Net investment income (loss)

        8,815,104           9,511,083   
    

 

 

       

 

 

  
Realized and unrealized gain (loss):          

Net realized gain (loss) on:

          

Investment transactions — unaffiliated issuers

        -           -   

Investment transactions — affiliated issuers (Note 7)

        (3,339,902 )         3,444,776   

Realized gain distributions — unaffiliated issuers

        -           -   

Realized gain distributions — affiliated issuers (Note 7)

        15,195,866           21,113,995   
    

 

 

       

 

 

  

Net realized gain (loss)

        11,855,964           24,558,771   
    

 

 

       

 

 

  

Net change in unrealized appreciation (depreciation) on:

          

Investment transactions — unaffiliated issuers

        -           -   

Investment transactions — affiliated issuers

        5,658,961           (1,121,085 ) 
    

 

 

       

 

 

  

Net change in unrealized appreciation (depreciation)

        5,658,961           (1,121,085 ) 
    

 

 

       

 

 

  

Net realized gain (loss) and change in unrealized appreciation (depreciation)

        17,514,925           23,437,686   
    

 

 

       

 

 

  

Net increase (decrease) in net assets resulting from operations

      $ 26,330,029         $ 32,948,769   
    

 

 

       

 

 

  

 

The accompanying notes are an integral part of the financial statements.

 

38

Table of Contents

 

MML
Moderate
Allocation
Fund		     MML
Growth
Allocation
Fund		     MML
Aggressive
Allocation
Fund		      MML
American
Funds Growth
Fund		     MML
American
Funds
International
Fund		     MML
American
Funds Core
Allocation
Fund		  
          
$ -      $ -      $ -       $ 1,352,843      $ 888,819      $ 17,126,422   
  42,420,821        23,531,612        1,554,537         -        -        -   

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
  42,420,821        23,531,612        1,554,537         1,352,843        888,819        17,126,422   

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
          
  2,343,696        1,579,737        124,791         192,301        81,507        1,688,455   
  24,761        24,760        24,720         2,236        2,236        6,851   
  31,862        31,208        29,954         29,960        29,896        30,580   
  18,161        11,953        899         944        399        6,351   
  985        985        985         985        985        985   
  43,971        30,506        3,611         5,374        2,981        26,199   
  138,712        93,391        7,376         7,605        3,252        50,759   

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
  2,602,148        1,772,540        192,336         239,405        121,256        1,810,180   
          
  -        -        -         320,502        135,845        2,144,221   
          
  4,834,796        2,459,261        172,577         -        -        -   
  -        -        -         320,502        135,845        2,144,221   

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
  7,436,944        4,231,801        364,913         880,409        392,946        6,098,622   
          
  -        -        -         -        (12,579 )      -   

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
  7,436,944        4,231,801        364,913         880,409        380,367        6,098,622   

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
  34,983,877        19,299,811        1,189,624         472,434        508,452        11,027,800   

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
          
          
  -        -        -         2,853,440        441,239        22,741,125   
  15,913,622        32,900,980        490,933         -        -        -   
  -        -        -         11,381,877        4,684,773        52,140,166   
  101,641,194        83,561,313        8,025,463         -        -        -   

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
  117,554,816        116,462,293        8,516,396         14,235,317        5,126,012        74,881,291   

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
          
  -        -        -         (3,419,681 )      (4,007,082 )      (12,582,717 ) 
  (494,607 )      (23,017,750 )      635,660         -        -        -   

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
  (494,607 )      (23,017,750 )      635,660         (3,419,681 )      (4,007,082 )      (12,582,717 ) 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
  117,060,209        93,444,543        9,152,056         10,815,636        1,118,930        62,298,574   

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
$ 152,044,086      $ 112,744,354      $ 10,341,680       $ 11,288,070      $ 1,627,382      $ 73,326,374   

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

 

39

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Statements of Changes in Net Assets

 

       MML
Conservative Allocation Fund		  
       Year
Ended
December 31, 2016		        Year
Ended
December 31, 2015		  
Increase (Decrease) in Net Assets:          
Operations:          

Net investment income (loss)

      $ 8,815,104         $ 8,532,224   

Net realized gain (loss) on investment transactions

        11,855,964           26,244,713   

Net change in unrealized appreciation (depreciation) on investments

        5,658,961           (37,319,169 ) 
    

 

 

       

 

 

  

Net increase (decrease) in net assets resulting from operations

        26,330,029           (2,542,232 ) 
    

 

 

       

 

 

  
Distributions to shareholders (Note 2):          

From net investment income:

          

Initial Class

        (2,692,993 )         (3,548,310 ) 

Service Class

        (7,810,262 )         (9,257,469 ) 
    

 

 

       

 

 

  

Total distributions from net investment income

        (10,503,255 )         (12,805,779 ) 
    

 

 

       

 

 

  

From net realized gains:

          

Initial Class

        (5,991,228 )         (8,482,637 ) 

Service Class

        (19,296,742 )         (24,137,599 ) 
    

 

 

       

 

 

  

Total distributions from net realized gains

        (25,287,970 )         (32,620,236 ) 
    

 

 

       

 

 

  
Net fund share transactions (Note 5):          

Initial Class

        (2,460,478 )         (1,290,436 ) 

Service Class

        32,960,765           32,124,904   
    

 

 

       

 

 

  

Increase (decrease) in net assets from fund share transactions

        30,500,287           30,834,468   
    

 

 

       

 

 

  

Total increase (decrease) in net assets

        21,039,091           (17,133,779 ) 
Net assets          

Beginning of year

        456,313,372           473,447,151   
    

 

 

       

 

 

  

End of year

      $ 477,352,463         $ 456,313,372   
    

 

 

       

 

 

  

Undistributed (accumulated) net investment income (loss) included in net assets at end of year

      $ 9,472,309         $ 10,438,968   
    

 

 

       

 

 

  

 

The accompanying notes are an integral part of the financial statements.

 

40

Table of Contents

 

MML
Balanced Allocation Fund		     MML
Moderate Allocation Fund		     MML
Growth Allocation Fund		  
Year
Ended
December 31, 2016		     Year
Ended
December 31, 2015		     Year
Ended
December 31, 2016		     Year
Ended
December 31, 2015		     Year
Ended
December 31, 2016		     Year
Ended
December 31, 2015		  
         
         
$ 9,511,083      $ 9,565,349      $ 34,983,877      $ 33,254,400      $ 19,299,811      $ 18,089,594   
  24,558,771        41,697,369        117,554,816        176,835,004        116,462,293        175,302,009   
  (1,121,085 )      (54,370,281 )      (494,607 )      (232,107,546 )      (23,017,750 )      (206,408,711 ) 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  32,948,769        (3,107,563 )      152,044,086        (22,018,142 )      112,744,354        (13,017,108 ) 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
         
         
  (3,170,342 )      (4,229,838 )      (8,560,018 )      (10,521,815 )      (11,364,240 )      (15,422,196 ) 
  (9,076,660 )      (11,062,307 )      (36,427,389 )      (41,343,113 )      (16,338,690 )      (22,654,401 ) 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  (12,247,002 )      (15,292,145 )      (44,987,407 )      (51,864,928 )      (27,702,930 )      (38,076,597 ) 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
         
  (9,368,018 )      (11,110,139 )      (28,611,812 )      (30,264,718 )      (62,519,828 )      (68,635,702 ) 
  (30,031,130 )      (31,751,368 )      (137,512,376 )      (130,628,347 )      (104,164,195 )      (112,068,753 ) 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  (39,399,148 )      (42,861,507 )      (166,124,188 )      (160,893,065 )      (166,684,023 )      (180,704,455 ) 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
         
  (5,081,384 )      (7,845,258 )      5,105,108        (6,251,096 )      31,458,137        32,647,952   
  25,725,103        42,469,680        95,942,271        322,910,814        49,887,306        112,688,243   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  20,643,719        34,624,422        101,047,379        316,659,718        81,345,443        145,336,195   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  1,946,338        (26,636,793 )      41,979,870        81,883,583        (297,156 )      (86,461,965 ) 
         
  571,765,752        598,402,545        2,338,730,449        2,256,846,866        1,609,103,809        1,695,565,774   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
$ 573,712,090      $ 571,765,752      $ 2,380,710,319      $ 2,338,730,449      $ 1,608,806,653      $ 1,609,103,809   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

$

10,393,930

  

   $ 12,170,055      $ 39,255,594      $ 44,735,030      $ 22,426,679      $ 27,457,310   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

41

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Statements of Changes in Net Assets

 

       MML
Aggressive Allocation Fund		  
       Year
Ended
December 31, 2016		        Year
Ended
December 31, 2015		  
Increase (Decrease) in Net Assets:          
Operations:          

Net investment income (loss)

      $ 1,189,624         $ 983,998   

Net realized gain (loss) on investment transactions

        8,516,396           14,093,956   

Net change in unrealized appreciation (depreciation) on investments

        635,660           (16,481,035 ) 
    

 

 

       

 

 

  

Net increase (decrease) in net assets resulting from operations

        10,341,680           (1,403,081 ) 
    

 

 

       

 

 

  
Distributions to shareholders (Note 2):          

From net investment income:

          

Initial Class

        (870,484 )         (1,172,374 ) 

Service Class

        (924,943 )         (1,250,188 ) 

Service Class I

        -           -   
    

 

 

       

 

 

  

Total distributions from net investment income

        (1,795,427 )         (2,422,562 ) 
    

 

 

       

 

 

  

From net realized gains:

          

Initial Class

        (5,951,535 )         (6,716,268 ) 

Service Class

        (7,461,136 )         (7,984,963 ) 

Service Class I

        -           -   
    

 

 

       

 

 

  

Total distributions from net realized gains

        (13,412,671 )         (14,701,231 ) 
    

 

 

       

 

 

  
Net fund share transactions (Note 5):          

Initial Class

        5,130,219           5,801,096   

Service Class

        8,398,579           15,411,238   

Service Class I

        -           -   
    

 

 

       

 

 

  

Increase (decrease) in net assets from fund share transactions

        13,528,798           21,212,334   
    

 

 

       

 

 

  

Total increase (decrease) in net assets

        8,662,380           2,685,460   
Net assets          

Beginning of year

        123,392,549           120,707,089   
    

 

 

       

 

 

  

End of year

      $ 132,054,929         $ 123,392,549   
    

 

 

       

 

 

  

Undistributed (accumulated) net investment income (loss) included in net assets at end of year

      $ 1,502,566         $ 1,780,744   
    

 

 

       

 

 

  

 

The accompanying notes are an integral part of the financial statements.

 

42

Table of Contents

 

MML
American Funds Growth Fund		     MML
American Funds International Fund		     MML
American Funds Core Allocation Fund		  
Year
Ended
December 31, 2016		     Year
Ended
December 31, 2015		     Year
Ended
December 31, 2016		     Year
Ended
December 31, 2015		     Year
Ended
December 31, 2016		     Year
Ended
December 31, 2015		  
         
         
$ 472,434      $ 265,434      $ 508,452      $ 632,103      $ 11,027,800      $ 9,775,518   
  14,235,317        29,090,901        5,126,012        3,957,007        74,881,291        72,733,915   
  (3,419,681 )      (21,936,851 )      (4,007,082 )      (7,549,023 )      (12,582,717 )      (92,597,078 ) 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  11,288,070        7,419,484        1,627,382        (2,959,913 )      73,326,374        (10,087,645 ) 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
         
         
  -        -        -        -        -        -   
  -        -        -        -        -        -   
  (267,323 )      (845,292 )      (632,920 )      (507,014 )      (16,088,756 )      (10,454,332 ) 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  (267,323 )      (845,292 )      (632,920 )      (507,014 )      (16,088,756 )      (10,454,332 ) 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
         
  -        -        -        -        -        -   
  -        -        -        -        -        -   
  (29,068,974 )      (7,362,462 )      (3,955,087 )      (1,269,671 )      (66,430,452 )      (19,404,002 ) 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  (29,068,974 )      (7,362,462 )      (3,955,087 )      (1,269,671 )      (66,430,452 )      (19,404,002 ) 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
         
  -        -        -        -        -        -   
  -        -        -        -        -        -   
  30,222,393        16,528,308        1,343,819        8,983,872        137,539,582        156,441,371   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  30,222,393        16,528,308        1,343,819        8,983,872        137,539,582        156,441,371   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  12,174,166        15,740,038        (1,616,806 )      4,247,274        128,346,748        116,495,392   
         
  127,666,563        111,926,525        55,588,671        51,341,397        813,103,155        696,607,763   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
$ 139,840,729      $ 127,666,563      $ 53,971,865      $ 55,588,671      $ 941,449,903      $ 813,103,155   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
    
$		  
460,508		  
  		   $ 255,401      $ 501,528      $ 625,998      $ 14,532,415      $ 16,008,733   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

43

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Conservative Allocation Fund

 

          Income (loss) from investment
operations		     Less distributions to shareholders                 Ratios / Supplemental Data  
    Net
asset
value,
beginning
of period		     Net
investment
income
(loss)c		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assetsw		     Net
investment
income
(loss) to
average
daily net
assets		  

Initial Class

  

                    
12/31/16   $ 9.83      $ 0.20      $ 0.37      $ 0.57      $ (0.24 )    $ (0.53 )    $ (0.77 )    $ 9.63        5.78%      $ 112,989        0.12%        2.01%   
12/31/15     10.94        0.21        (0.25 )      (0.04 )      (0.32 )      (0.75 )      (1.07 )      9.83        (0.38% )      117,636        0.12%        1.96%   
12/31/14     11.40        0.25        0.33        0.58        (0.29 )      (0.75 )      (1.04 )      10.94        5.13%        131,214        0.13%        2.22%   
12/31/13     10.81        0.25        0.93        1.18        (0.26 )      (0.33 )      (0.59 )      11.40        11.32%        141,078        0.13%        2.19%   
12/31/12     10.24        0.25        0.90        1.15        (0.21 )      (0.37 )      (0.58 )      10.81        11.40%        140,899        0.13%        2.29%   
Service Class                         
12/31/16   $ 9.74      $ 0.18      $ 0.35      $ 0.53      $ (0.21 )    $ (0.53 )    $ (0.74 )    $ 9.53        5.48%      $ 364,364        0.37%        1.80%   
12/31/15     10.85        0.19        (0.26 )      (0.07 )      (0.29 )      (0.75 )      (1.04 )      9.74        (0.63% )      338,677        0.37%        1.76%   
12/31/14     11.32        0.23        0.31        0.54        (0.26 )      (0.75 )      (1.01 )      10.85        4.83%        342,234        0.38%        2.01%   
12/31/13     10.74        0.22        0.93        1.15        (0.24 )      (0.33 )      (0.57 )      11.32        11.07%        326,916        0.38%        1.96%   
12/31/12     10.18        0.22        0.90        1.12        (0.19 )      (0.37 )      (0.56 )      10.74        11.15%        295,560        0.38%        2.05%   

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover ratex

        24 %       29 %       33 %       33 %       18 % 

 

c Per share amount calculated on the average shares method.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.
w Expenses of the underlying funds are not included in the Fund’s expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying fund.
x Amount does not include the portfolio activity of any underlying fund.

 

The accompanying notes are an integral part of the financial statements.

 

44

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Balanced Allocation Fund

 

          Income (loss) from investment
operations		     Less distributions to shareholders                 Ratios / Supplemental Data  
    Net
asset
value,
beginning
of period		     Net
investment
income
(loss)c		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assetsw		     Net
investment
income
(loss) to
average
daily net
assets		  

Initial Class

  

                      
12/31/16   $ 10.05      $ 0.18      $ 0.43      $ 0.61      $ (0.24 )    $ (0.72 )    $ (0.96 )    $ 9.70        6.15%      $ 134,716        0.12%        1.84%   
12/31/15     11.23        0.19        (0.23 )      (0.04 )      (0.31 )      (0.83 )      (1.14 )      10.05        (0.36% )      144,084        0.12%        1.77%   
12/31/14     11.58        0.24        0.38        0.62        (0.25 )      (0.72 )      (0.97 )      11.23        5.35%        167,530        0.12%        2.05%   
12/31/13     10.85        0.23        1.29        1.52        (0.28 )      (0.51 )      (0.79 )      11.58        14.49%        164,583        0.13%        1.99%   
12/31/12     10.06        0.22        1.01        1.23        (0.19 )      (0.25 )      (0.44 )      10.85        12.40%        148,872        0.13%        2.08%   

Service Class

  

                      
12/31/16   $ 9.98      $ 0.16      $ 0.42      $ 0.58      $ (0.22 )    $ (0.72 )    $ (0.94 )    $ 9.62        5.82%      $ 438,996        0.37%        1.62%   
12/31/15     11.16        0.17        (0.23 )      (0.06 )      (0.29 )      (0.83 )      (1.12 )      9.98        (0.61% )      427,682        0.37%        1.56%   
12/31/14     11.52        0.21        0.37        0.58        (0.22 )      (0.72 )      (0.94 )      11.16        5.07%        430,872        0.37%        1.81%   
12/31/13     10.80        0.20        1.28        1.48        (0.25 )      (0.51 )      (0.76 )      11.52        14.23%        393,650        0.38%        1.75%   
12/31/12     10.02        0.19        1.01        1.20        (0.17 )      (0.25 )      (0.42 )      10.80        12.12%        312,268        0.38%        1.83%   

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover ratex

        18 %       26 %       23 %       22 %       21 % 

 

c Per share amount calculated on the average shares method.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.
w Expenses of the underlying funds are not included in the Fund’s expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying fund.
x Amount does not include the portfolio activity of any underlying fund.

 

The accompanying notes are an integral part of the financial statements.

 

45

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Moderate Allocation Fund

 

          Income (loss) from investment
operations		     Less distributions to shareholders                 Ratios / Supplemental Data  
    Net
asset
value,
beginning
of period		     Net
investment
income
(loss)c		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assetsw		     Net
investment
income
(loss) to
average
daily net
assets		  
Initial Class                       
12/31/16   $ 10.66      $ 0.18      $ 0.54      $ 0.72      $ (0.23 )    $ (0.77 )    $ (1.00 )    $ 10.38        6.89%      $ 411,730        0.11%        1.69%   
12/31/15     11.83        0.18        (0.26 )      (0.08 )      (0.28 )      (0.81 )      (1.09 )      10.66        (0.64% )      416,556        0.11%        1.59%   
12/31/14     12.10        0.21        0.47        0.68        (0.21 )      (0.74 )      (0.95 )      11.83        5.61%        465,943        0.11%        1.76%   
12/31/13     10.96        0.20        1.66        1.86        (0.21 )      (0.51 )      (0.72 )      12.10        17.57%        465,692        0.12%        1.74%   
12/31/12     10.04        0.20        1.11        1.31        (0.16 )      (0.23 )      (0.39 )      10.96        13.17%        410,035        0.12%        1.82%   
Service Class                       
12/31/16   $ 10.57      $ 0.15      $ 0.53      $ 0.68      $ (0.20 )    $ (0.77 )    $ (0.97 )    $ 10.28        6.59%      $ 1,968,981        0.36%        1.45%   
12/31/15     11.74        0.16        (0.26 )      (0.10 )      (0.26 )      (0.81 )      (1.07 )      10.57        (0.86% )      1,922,174        0.36%        1.38%   
12/31/14     12.02        0.19        0.46        0.65        (0.19 )      (0.74 )      (0.93 )      11.74        5.37%        1,790,903        0.36%        1.55%   
12/31/13     10.89        0.18        1.65        1.83        (0.19 )      (0.51 )      (0.70 )      12.02        17.37%        1,480,843        0.37%        1.51%   
12/31/12     9.99        0.17        1.10        1.27        (0.14 )      (0.23 )      (0.37 )      10.89        12.82%        1,060,743        0.37%        1.60%   

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover ratex

        14 %       19 %       19 %       19 %       18 % 

 

c Per share amount calculated on the average shares method.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.
w Expenses of the underlying funds are not included in the Fund’s expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying fund.
x Amount does not include the portfolio activity of any underlying fund.

 

The accompanying notes are an integral part of the financial statements.

 

46

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Growth Allocation Fund

 

          Income (loss) from investment
operations		     Less distributions to shareholders                 Ratios / Supplemental Data  
    Net
asset
value,
beginning
of period		     Net
investment
income
(loss)c		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net assets,
end of the
period
(000’s)		     Ratio of
expenses
to average
daily net
assetsw		     Net
investment
income
(loss) to
average
daily net
assets		  

Initial Class

  

                    
12/31/16   $ 9.69      $ 0.13      $ 0.58      $ 0.71      $ (0.19 )    $ (1.05 )    $ (1.24 )    $ 9.16        7.57%      $ 607,088        0.11%        1.38%   
12/31/15     11.28        0.13        (0.21 )      (0.08 )      (0.28 )      (1.23 )      (1.51 )      9.69        (0.71% )      605,993        0.11%        1.22%   
12/31/14     11.80        0.16        0.52        0.68        (0.19 )      (1.01 )      (1.20 )      11.28        5.77%        660,986        0.11%        1.39%   
12/31/13     10.66        0.16        2.13        2.29        (0.21 )      (0.94 )      (1.15 )      11.80        22.64%        659,823        0.12%        1.36%   
12/31/12     9.53        0.15        1.22        1.37        (0.14 )      (0.10 )      (0.24 )      10.66        14.49%        559,044        0.12%        1.43%   

Service Class

  

                    
12/31/16   $ 9.63      $ 0.11      $ 0.56      $ 0.67      $ (0.16 )    $ (1.05 )    $ (1.21 )    $ 9.09        7.23%      $ 1,001,718        0.36%        1.13%   
12/31/15     11.22        0.11        (0.22 )      (0.11 )      (0.25 )      (1.23 )      (1.48 )      9.63        (0.97% )      1,003,111        0.36%        0.98%   
12/31/14     11.74        0.13        0.52        0.65        (0.16 )      (1.01 )      (1.17 )      11.22        5.56%        1,034,580        0.36%        1.14%   
12/31/13     10.62        0.13        2.11        2.24        (0.18 )      (0.94 )      (1.12 )      11.74        22.25%        995,436        0.37%        1.11%   
12/31/12     9.49        0.12        1.23        1.35        (0.12 )      (0.10 )      (0.22 )      10.62        14.28%        826,960        0.37%        1.18%   

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover ratex

        17 %       22 %       25 %       22 %       27 % 

 

c Per share amount calculated on the average shares method.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.
w Expenses of the underlying funds are not included in the Fund’s expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying fund.
x Amount does not include the portfolio activity of any underlying fund.

 

The accompanying notes are an integral part of the financial statements.

 

47

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Aggressive Allocation Fund

 

          Income (loss) from investment
operations		     Less distributions to shareholders                 Ratios / Supplemental Data  
    Net
asset
value,
beginning
of period		     Net
investment
income
(loss)c,j		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assets
before
expense
waiversw		     Ratio of
expenses
to average
daily net
assets
after
expense
waiversw,j		     Net
investment
income
(loss) to
average
daily net
assets		  

Initial Class

                          
12/31/16   $ 10.10      $ 0.11      $ 0.72      $ 0.83      $ (0.16 )    $ (1.10 )    $ (1.26 )    $ 9.67        8.54%      $ 58,438        0.15%        N/A        1.09%   
12/31/15     11.86        0.10        (0.20 )      (0.10 )      (0.25 )      (1.41 )      (1.66 )      10.10        (0.84% )      55,420        0.16%        N/A        0.92%   
12/31/14     12.38        0.12        0.60        0.72        (0.14 )      (1.10 )      (1.24 )      11.86        5.85%        57,996        0.17%        N/A        0.98%   
12/31/13     10.47        0.11        2.65        2.76        (0.14 )      (0.71 )      (0.85 )      12.38        27.39%        56,721        0.19%        0.19% l      0.94%   
12/31/12     9.12        0.10        1.33        1.43        (0.08 )      -        (0.08 )      10.47        15.73%        45,399        0.20%        0.20% k      0.98%   

Service Class

                          
12/31/16   $ 10.00      $ 0.08      $ 0.72      $ 0.80      $ (0.14 )    $ (1.10 )    $ (1.24 )    $ 9.56        8.28%      $ 73,617        0.40%        N/A        0.84%   
12/31/15     11.76        0.08        (0.21 )      (0.13 )      (0.22 )      (1.41 )      (1.63 )      10.00        (1.07% )      67,973        0.41%        N/A        0.69%   
12/31/14     12.29        0.09        0.59        0.68        (0.11 )      (1.10 )      (1.21 )      11.76        5.61%        62,711        0.42%        N/A        0.77%   
12/31/13     10.40        0.08        2.64        2.72        (0.12 )      (0.71 )      (0.83 )      12.29        27.15%        51,320        0.44%        0.44% l      0.74%   
12/31/12     9.07        0.07        1.32        1.39        (0.06 )      -        (0.06 )      10.40        15.35%        34,472        0.45%        0.45% k      0.72%   

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover ratex

        19 %       22 %       31 %       27 %       35 % 

 

c Per share amount calculated on the average shares method.
j Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund.
k Amount waived had no impact on the ratio of expenses to average daily net assets.
l Expenses incurred during the period fell under the expense cap.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.
w Expenses of the underlying funds are not included in the Fund’s expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying fund.
x Amount does not include the portfolio activity of any underlying fund.

 

The accompanying notes are an integral part of the financial statements.

 

48

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML American Funds Growth Fund

 

          Income (loss) from investment
operations		     Less distributions to shareholders                 Ratios / Supplemental Data  
    Net
asset
value,
beginning
of period		     Net
investment
income
(loss)c,j		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assets
before
expense
waiversu		     Ratio of
expenses
to average
daily net
assets
after
expense
waiversu,j		     Net
investment
income
(loss) to
average
daily net
assets		  
Service Class I                         
12/31/16   $ 14.53      $ 0.05      $ 1.16      $ 1.21      $ (0.03 )    $ (3.34 )    $ (3.37 )    $ 12.37        9.00%      $ 139,841        0.69%        0.69% l      0.37%   
12/31/15     14.67        0.03        0.84        0.87        (0.10 )      (0.91 )      (1.01 )      14.53        6.41%        127,667        0.69%        0.69%l        0.22%   
12/31/14     14.14        0.12        1.00        1.12        (0.06 )      (0.53 )      (0.59 )      14.67        7.99%        111,927        0.70%        0.70%l        0.83%   
12/31/13     11.16        0.07        3.19        3.26        (0.04 )      (0.24 )      (0.28 )      14.14        29.56%        94,167        0.70%        0.70%k        0.55%   
12/31/12     9.61        0.05        1.62        1.67        (0.02 )      (0.10 )      (0.12 )      11.16        17.41%        66,069        0.74%        0.70%        0.44%   

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover ratex

        8 %       7 %       4 %       8 %       6 % 

 

c Per share amount calculated on the average shares method.
j Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund.
k Amount waived had no impact on the ratio of expenses to average daily net assets.
l Expenses incurred during the period fell under the expense cap.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.
u Expenses of the Master Fund are not included in the Fund’s expense ratio. The Fund indirectly bears its proportionate share of the expenses of the Master Fund.
x Amount does not include the portfolio activity of the Master Fund.

 

The accompanying notes are an integral part of the financial statements.

 

49

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML American Funds International Fund

 

          Income (loss) from investment
operations		     Less distributions to shareholders                 Ratios / Supplemental Data  
    Net
asset
value,
beginning
of  period		     Net
investment
income
(loss)c,j		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end  of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assets
before
expense
waiversu		     Ratio of
expenses
to average
daily net
assets
after
expense
waiversu,j		     Net
investment
income
(loss) to
average
daily net
assets		  

Service Class I

  

                        
12/31/16   $ 9.63      $ 0.09      $ 0.21      $ 0.30      $ (0.11 )    $ (0.70 )    $ (0.81 )    $ 9.12        2.97%      $ 53,972        0.72%        0.70%        0.94%   
12/31/15     10.48        0.12        (0.63 )      (0.51 )      (0.10 )      (0.24 )      (0.34 )      9.63        (4.93% )      55,589        0.72%        0.70%        1.14%   
12/31/14     11.27        0.11        (0.43 )      (0.32 )      (0.10 )      (0.37 )      (0.47 )      10.48        (3.09% )      51,341        0.73%        0.70%        1.02%   
12/31/13     9.62        0.10        1.88        1.98        (0.10 )      (0.23 )      (0.33 )      11.27        21.09%        48,455        0.74%        0.70%        0.98%   
12/31/12     8.44        0.10        1.34        1.44        (0.12 )      (0.14 )      (0.26 )      9.62        17.38%        38,624        0.79%        0.70%        1.11%   

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover ratex

        12 %       4 %       6 %       8 %       10 % 

 

c Per share amount calculated on the average shares method.
j Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.
u Expenses of the Master Fund are not included in the Fund’s expense ratio. The Fund indirectly bears its proportionate share of the expenses of the Master Fund.
x Amount does not include the portfolio activity of the Master Fund.

 

The accompanying notes are an integral part of the financial statements.

 

50

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML American Funds Core Allocation Fund

 

          Income (loss) from investment
operations		     Less distributions to shareholders                 Ratios / Supplemental Data  
    Net
asset
value,
beginning
of period		     Net
investment
income
(loss)c,j		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assets
before
expense
waiversw		     Ratio of
expenses
to average
daily net
assets
after
expense
waiversw,j		     Net
investment
income
(loss) to
average
daily net
assets		  
Service Class I                         
12/31/16   $ 12.08      $ 0.16      $ 0.92      $ 1.08      $ (0.24 )    $ (0.98 )    $ (1.22 )    $ 11.94        8.97%      $ 941,450        0.71%        N/A        1.29%   
12/31/15     12.72        0.16        (0.31 )      (0.15 )      (0.17 )      (0.32 )      (0.49 )      12.08        (1.12% )      813,103        0.71%        N/A        1.28%   
12/31/14     12.28        0.21        0.78        0.99        (0.13 )      (0.42 )      (0.55 )      12.72        8.05%        696,608        0.72%        N/A        1.71%   
12/31/13     10.72        0.19        1.73        1.92        (0.15 )      (0.21 )      (0.36 )      12.28        18.30%        550,517        0.72%        0.72%l        1.68%   
12/31/12     10.00        0.17        0.99        1.16        (0.16 )      (0.28 )      (0.44 )      10.72        11.70%        422,997        0.73%        0.73% l      1.63%   

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover ratex

        7 %       3 %       3 %       8 %       8 % 

 

c Per share amount calculated on the average shares method.
j Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund.
l Expenses incurred during the period fell under the expense cap.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.
w Expenses of the underlying funds are not included in the Fund’s expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying fund.
x Amount does not include the portfolio activity of any underlying fund.

 

The accompanying notes are an integral part of the financial statements.

 

51

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Notes to Financial Statements

 

1.   The Funds

MML Series Investment Fund (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a no-load, open-end, management investment company. The Trust is organized under the laws of the Commonwealth of Massachusetts as a Massachusetts business trust pursuant to an Agreement and Declaration of Trust dated December 19, 1984, as restated May 14, 1993, and further amended and restated as of December 15, 2011, as it may be further amended from time to time. The following are eight series of the Trust (each individually referred to as a “Fund” or collectively as the “Funds”):

MML Conservative Allocation Fund (“Conservative Allocation Fund”)

MML Balanced Allocation Fund (“Balanced Allocation Fund”)

MML Moderate Allocation Fund (“Moderate Allocation Fund”)

MML Growth Allocation Fund (“Growth Allocation Fund”)

MML Aggressive Allocation Fund (“Aggressive Allocation Fund”)

MML American Funds® Growth Fund (“American Funds Growth Fund”)

MML American Funds® International Fund (“American Funds International Fund”)

MML American Funds Core Allocation Fund (“American Funds Core Allocation Fund”)

The Trust makes shares of the Funds available for the investment of assets of various separate investment accounts established by Massachusetts Mutual Life Insurance Company (“MassMutual”) and by life insurance companies which are subsidiaries of MassMutual. Shares of the Trust are not offered to the general public. MassMutual, MML Bay State Life Insurance Company, and C.M. Life Insurance Company are the record owners of all of the outstanding shares of the Funds.

The Conservative Allocation Fund, Balanced Allocation Fund, Moderate Allocation Fund, Growth Allocation Fund, and Aggressive Allocation Fund (the “Allocation Funds”) invest their investable assets in shares of series of the Trust and MML Series Investment Fund II (which are advised by MML Investment Advisers, LLC (“MML Advisers”), Oppenheimer Funds (which are advised by OFI Global Asset Management, Inc., a majority-owned, indirect subsidiary of MassMutual), and non-affiliated funds (together, the “Underlying Funds”). The financial statements included herein are those of the Funds. The financial statements of the applicable Underlying Funds are presented separately and can be obtained from the Securities and Exchange Commission’s (“SEC”) EDGAR database on its website at http://www.sec.gov or by calling MML Advisers at 1-888-309-3539. The assets of each of the five Allocation Funds listed above are diversified and a shareholder’s interest is limited to the Underlying Funds in which the shares are invested.

American Funds Growth Fund and American Funds International Fund (each a “Feeder Fund,” collectively the “Feeder Funds”) invest all of their assets in Class 1 shares of the Growth and International Funds, respectively, each a series of the American Funds Insurance Series (each a “Master Fund,” collectively the “Master Funds”). Each Master Fund is an open-end investment company and organized as a Massachusetts business trust. Each Feeder Fund has an investment objective that is consistent with its corresponding Master Fund. Each Master Fund intends to comply with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its taxable income and capital gains to shareholders, which includes the applicable Feeder Fund, to qualify as a regulated investment company. The performance of the Feeder Funds is directly affected by the performance of the Master Funds. The financial statements of the Master Funds, including the Summary Investment Portfolios, are provided separately and should be read in conjunction with the Feeder Funds’ financial statements. As of December 31, 2016, the American Funds Growth Fund and American Funds International Fund owned 0.65% and 0.72% of the Growth and International Master Funds, respectively. The American Funds Core Allocation Fund invests all of its investable assets in shares of various series of American Funds Insurance Series, which are managed by Capital Research and Management Company.

The SEC file number for the American Funds Insurance Series is 811-03857. Additional information related to the Master Funds’ financial reports can be located on the SEC’s EDGAR database on its website at http://www.sec.gov.

Each share class of a Fund represents an interest in the same portfolio of assets. The principal difference among the classes is the level of service and administration fees, and shareholder and distribution service expenses borne by the classes. Because each class will have different fees and expenses, performance and share prices will vary between the classes. The classes of shares are offered to different types of investors, as outlined in the Funds’ Prospectus.

 

52

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Notes to Financial Statements (Continued)

 

 

2.   Significant Accounting Policies

The following is a summary of significant accounting policies followed consistently by each Fund in the preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America (“generally accepted accounting principles”). The preparation of the financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

Investment Valuation

The net asset value of each Fund’s shares is determined once daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), on each day the NYSE is open for trading (a “business day”). The NYSE normally closes at 4:00 p.m. Eastern Time, but may close earlier on some days.

The net asset value of each Fund is based upon the net asset value(s) of its corresponding Master Fund or Underlying Funds. Shares of the Master Fund and Underlying Funds are valued at their closing net asset values as reported on each business day.

Certain Underlying Funds or Master Funds may invest in securities that are traded principally in foreign markets and that trade on weekends and other days when the Funds do not price their shares. As a result, the values of the Funds’ portfolio securities may change on days when the prices of the Funds’ shares are not calculated. The prices of the Funds’ shares will reflect any such changes when the prices of the Funds’ shares are next calculated, which is the next business day.

The Prospectuses and Statements of Additional Information (“SAIs”) for the Underlying Funds or Master Funds, as applicable, explain the valuation methods for the Underlying Funds or Master Funds including the circumstances under which the Underlying Funds or Master Funds, may use fair value pricing and the effects of doing so. Such Prospectuses and SAIs are available on the SEC’s EDGAR database on its website at http://www.sec.gov.

Various inputs may be used to determine the value of the Funds’ investments. The Funds categorize the inputs to valuation techniques used to value their investments into a disclosure hierarchy consisting of three levels as summarized below. The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.

Level 1 – quoted prices (unadjusted) in active markets for identical investments that the Funds can access at the measurement date

Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments)

Each Fund characterized all investments at Level 1, as of December 31, 2016. For each Fund, the level classification by major category of investments is the same as the category presentation in the Portfolio of Investments.

The Fund(s) had no transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy during the year ended December 31, 2016. The Fund(s) recognize transfers between the Levels as of the beginning of the year.

Accounting for Investment Transactions

Investment transactions are accounted for on the trade date. Realized gains and losses on sales of investments and unrealized appreciation and depreciation of investments are computed by the specific identification cost method. Proceeds received from litigation, if any, are included in realized gains on investment transactions for any investments that are no longer held in the portfolio and as a reduction in cost for investments that continue to be held in the portfolio. Interest income, adjusted for amortization of discounts and premiums on debt securities, is earned from the settlement date and is recorded on the accrual basis. Dividend income and distributions including realized gain distributions are recorded on the ex-dividend date. Withholding taxes on foreign interest, dividends, and capital gains have been provided for in accordance with the applicable country’s tax rules and rates. Foreign dividend income is recorded on the ex-dividend date or as soon as practicable after the Fund determines the existence of a

 

53

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Notes to Financial Statements (Continued)

 

dividend declaration after exercising reasonable due diligence. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Funds determine the classification of distributions received as return of capital distributions or capital gain distributions.

Allocation of Operating Activity

In maintaining the records for the Funds, the income and expense accounts are allocated daily to each class of shares. Investment income and loss, and unrealized and realized gains or losses are prorated among the classes of shares based on the relative net assets of each. Expenses are allocated to each class of shares depending on the nature of the expenditures. Administration and service fees, if any, which are directly attributable to a class of shares, are charged to that class’s operations. Expenses of a Fund not directly attributable to the operations of any specific class of shares of the Fund are prorated among the classes to which the expense relates based on relative net assets.

In addition, each Fund will also incur certain fees and expenses indirectly as a shareholder in the Underlying Funds or Master Funds. Because the Underlying Funds have varied expense and fee levels, and the Allocation Funds may own different proportions of Underlying Funds at different times, the amount of fees and expenses indirectly incurred by each of the Allocation Funds will vary.

Foreign Securities

Certain Underlying Funds or Master Funds may invest in foreign securities. Foreign securities, including American Depositary Receipts, are subject to additional risks compared to securities of U.S. issuers, including international trade, currency, political, regulatory, and diplomatic risks. In addition, fluctuations in currency exchange rates may adversely affect the values of foreign securities and the price of a Fund’s shares. Emerging markets securities are subject to greater risks than securities issued in developed foreign markets, including less liquidity, greater price volatility, higher relative rates of inflation, greater political, economic, and social instability, greater custody and operational risks, and greater volatility in currency exchange rates.

Federal Income Tax

It is each Fund’s intent to continue to comply with the provisions of subchapter M of the Internal Revenue Code of 1986, as amended, applicable to a regulated investment company. Under such provisions, the Funds would not be subject to federal income taxes on their ordinary income and net realized capital gains to the extent they are distributed or deemed to have been distributed to their shareholders. Therefore, the Funds have not made any provision for federal income tax.

Dividends and Distributions to Shareholders

Dividends from net investment income and distributions of any net realized capital gains of each Fund are declared and paid annually and at other times as may be required to satisfy tax or regulatory requirements.

Distributions to shareholders are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. As a result, net investment income and net realized capital gains on investment transactions for a reporting period may differ significantly from distributions during such period.

 

54

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Notes to Financial Statements (Continued)

 

 

3.   Advisory Fees and Other Transactions

Investment Advisory Fees

MML Advisers, a wholly-owned subsidiary of MassMutual, serves as investment adviser to each Fund. Under the investment advisory agreements between MML Advisers and the Trust on behalf of each Fund, MML Advisers is responsible for providing investment management services for each Fund. In return for these services, MML Advisers receives advisory fees, based upon each Fund’s average daily net assets, at the following annual rates:

 

 

 

Fund

   

Investment Advisory Fee

Conservative Allocation Fund

    0.10%

Balanced Allocation Fund

    0.10%

Moderate Allocation Fund

    0.10%

Growth Allocation Fund

    0.10%

Aggressive Allocation Fund

    0.10%

American Funds Growth Fund*

    0.15% on the first $500 million; and
   0.125% on any excess over $500 million

American Funds International Fund*

    0.15% on the first $500 million; and
   0.125% on any excess over $500 million

American Funds Core Allocation Fund*

    0.20% on the first $750 million; and
   0.175% on any excess over $750 million

 

 

* Prior to January 1, 2016, the investment advisory fees were as follows:

 

 

 

Fund

   

Investment Advisory Fee

American Funds Growth Fund

    0.15%

American Funds International Fund

    0.15%

American Funds Core Allocation Fund

    0.20%

 

Administration Fees

For the American Funds Growth Fund, American Funds International Fund, and American Funds Core Allocation Fund, under a separate Administrative and Shareholder Services Agreement between the Funds and MML Advisers, MML Advisers is obligated to provide all necessary administrative and shareholder services and bear some of the Fund specific administrative expenses. In return for these services, MML Advisers receives an administrative services fee based upon the average daily net assets of the applicable class of shares of the Funds, at the following annual rates:

 

 

 

     Service Class I  

American Funds Growth Fund

      0.25%   

American Funds International Fund

      0.25%   

American Funds Core Allocation Fund

      0.25%   

 

Distribution and Service Fees

MML Distributors, LLC (the “Distributor”) acts as distributor to the Funds. Pursuant to a Distribution and Services Plan adopted by the Funds pursuant to Rule 12b-1 under the 1940 Act, Service Class shares and Service Class I shares of the Funds pay an annual fee of 0.25% of the average daily net asset value of Service Class shares and Service Class I shares. This fee, or a portion thereof, is paid to: (i) the Distributor for services provided and expenses incurred by it in connection with the distribution of Service Class shares or Service Class I shares, as applicable, of each Fund; and/or (ii) MassMutual for services provided and

 

55

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Notes to Financial Statements (Continued)

 

expenses incurred by it for purposes of maintaining or providing personal services to Service Class and Service Class I shareholders. The Distributor is a wholly-owned subsidiary of MassMutual.

Expense Caps and Waivers

MML Advisers agreed to cap the fees and expenses of the Funds noted below (other than extraordinary litigation and legal expenses, Master Fund Fees and Expenses#, interest expense, short sale dividend and loan expense, or other non-recurring or unusual expenses such as organizational expenses and shareholder meeting expenses) based upon the average daily net assets of the applicable class of shares of the Funds, as follows:

 

 

 

     Service Class I  

American Funds Growth Fund*

      0.70%  

American Funds International Fund*

      0.70%  

 

 

# Master Fund Fees and Expenses are expenses borne indirectly by a Fund through investments in other pooled investment vehicles.
* Expense caps in effect through April 30, 2017.

Expense caps and waiver amounts are reflected as a reduction of expenses on the Statements of Operations.

Deferred Compensation

Trustees of the Funds who are not officers or employees of MassMutual may elect to defer receipt of their annual fees in accordance with terms of a Non-Qualified Deferred Compensation Plan. Amounts deferred shall accrue interest or earnings and shall be recorded on the Funds’ books as other liabilities. Deferred compensation is included within Trustees’ fees and expenses in the Statements of Assets and Liabilities.

Other

Certain officers and trustees of the Funds may also be employees of MassMutual. The compensation of a trustee who is not an employee of MassMutual is borne by the Funds.

4. Purchases and Sales of Investments

Cost of purchases and proceeds from sales of investments in Underlying Funds or Master Funds (excluding short-term investments) for the year ended December 31, 2016, were as follows:

 

 

     Purchases      Sales  
     Long-Term U.S.
Government
Securities		      Other
Long-Term
Securities		      Long-Term U.S.
Government
Securities		      Other
Long-Term
Securities		  

Conservative Allocation Fund

    $         -      $ 132,626,344      $         -      $ 113,905,140  

Balanced Allocation Fund

      -        100,645,738        -        101,040,382  

Moderate Allocation Fund

      -        364,393,926        -        337,863,539  

Growth Allocation Fund

      -        276,107,112        -        286,371,561  

Aggressive Allocation Fund

      -        31,805,459        -        24,271,534  

American Funds Growth Fund

      -        22,589,490        -        9,846,545  

American Funds International Fund

      -        8,650,279        -        6,706,786  

American Funds Core Allocation Fund

      -        179,046,428        -        60,762,194  

 

 

56

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5.   Capital Share Transactions

Changes in shares outstanding for each Fund were as follows:

 

 

 

     Year Ended December 31, 2016      Year Ended December 31, 2015  
     Shares      Amount      Shares      Amount  

Conservative Allocation Fund Initial Class

            

Sold

      1,356,985       $ 13,299,244         1,756,649       $ 18,905,121   

Issued as reinvestment of dividends

      901,788         8,684,221         1,221,416         12,030,947   

Redeemed

      (2,493,168 )       (24,443,943 )       (3,000,297 )       (32,226,504 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease)

      (234,395 )     $ (2,460,478 )       (22,232 )     $ (1,290,436 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Conservative Allocation Fund Service Class

            

Sold

      7,357,528       $ 71,400,199         4,182,198       $ 44,590,385   

Issued as reinvestment of dividends

      2,841,405         27,107,004         3,418,124         33,395,068   

Redeemed

      (6,752,196 )       (65,546,438 )       (4,360,810 )       (45,860,549 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease)

      3,446,737       $ 32,960,765         3,239,512       $ 32,124,904   
  

 

 

     

 

 

     

 

 

     

 

 

  

Balanced Allocation Fund Initial Class

            

Sold

      758,080       $ 7,515,695         670,590       $ 7,374,874   

Issued as reinvestment of dividends

      1,299,312         12,538,360         1,524,849         15,339,977   

Redeemed

      (2,510,382 )       (25,135,439 )       (2,773,827 )       (30,560,109 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease)

      (452,990 )     $ (5,081,384 )       (578,388 )     $ (7,845,258 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Balanced Allocation Fund Service Class

            

Sold

      3,242,682       $ 31,965,320         3,556,395       $ 38,690,272   

Issued as reinvestment of dividends

      4,082,233         39,107,790         4,281,368         42,813,675   

Redeemed

      (4,585,592 )       (45,348,007 )       (3,583,988 )       (39,034,267 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease)

      2,739,323       $ 25,725,103         4,253,775       $ 42,469,680   
  

 

 

     

 

 

     

 

 

     

 

 

  

Moderate Allocation Fund Initial Class

            

Sold

      1,909,387       $ 20,138,659         1,881,741       $ 21,996,513   

Issued as reinvestment of dividends

      3,619,457         37,171,830         3,826,129         40,786,533   

Redeemed

      (4,934,301 )       (52,205,381 )       (6,009,084 )       (69,034,142 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease)

      594,543       $ 5,105,108         (301,214 )     $ (6,251,096 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Moderate Allocation Fund Service Class

            

Sold

      8,936,099       $ 92,912,593         17,299,728       $ 198,445,800   

Issued as reinvestment of dividends

      17,086,421         173,939,765         16,269,769         171,971,460   

Redeemed

      (16,363,697 )       (170,910,087 )       (4,174,971 )       (47,506,446 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease)

      9,658,823       $ 95,942,271         29,394,526       $ 322,910,814   
  

 

 

     

 

 

     

 

 

     

 

 

  

Growth Allocation Fund Initial Class

  

Sold

      1,578,677       $ 14,808,352         1,743,894       $ 19,150,556   

Issued as reinvestment of dividends

      8,209,341         73,884,068         8,692,647         84,057,898   

Redeemed

      (6,047,828 )       (57,234,283 )       (6,497,306 )       (70,560,502 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease)

      3,740,190       $ 31,458,137         3,939,235       $ 32,647,952   
  

 

 

     

 

 

     

 

 

     

 

 

  

Growth Allocation Fund Service Class

  

Sold

      2,613,115       $ 24,405,528         3,281,727       $ 34,772,801   

Issued as reinvestment of dividends

      13,479,070         120,502,885         14,019,059         134,723,154   

Redeemed

      (10,131,162 )       (95,021,107 )       (5,344,473 )       (56,807,712 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease)

      5,961,023       $ 49,887,306         11,956,313       $ 112,688,243   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

57

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Notes to Financial Statements (Continued)

 

     Year Ended December 31, 2016      Year Ended December 31, 2015  
     Shares      Amount      Shares      Amount  

Aggressive Allocation Fund Initial Class

            

Sold

      597,830       $ 5,824,037         515,681       $ 5,777,095   

Issued as reinvestment of dividends

      723,438         6,822,019         784,159         7,888,642   

Redeemed

      (766,148 )       (7,515,837 )       (702,596 )       (7,864,641 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease)

      555,120       $ 5,130,219         597,244       $ 5,801,096   
  

 

 

     

 

 

     

 

 

     

 

 

  

Aggressive Allocation Fund Service Class

            

Sold

      791,226       $ 7,727,853         984,077       $ 11,205,683   

Issued as reinvestment of dividends

      899,794         8,386,079         927,224         9,235,151   

Redeemed

      (787,999 )       (7,715,353 )       (444,298 )       (5,029,596 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease)

      903,021       $ 8,398,579         1,467,003       $ 15,411,238   
  

 

 

     

 

 

     

 

 

     

 

 

  

American Funds Growth Fund Service Class I

            

Sold

      1,129,900       $ 14,971,405         1,352,994       $ 20,149,461   

Issued as reinvestment of dividends

      2,440,624         29,336,297         599,106         8,207,754   

Redeemed

      (1,053,380 )       (14,085,309 )       (793,612 )       (11,828,907 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease)

      2,517,144       $ 30,222,393         1,158,488       $ 16,528,308   
  

 

 

     

 

 

     

 

 

     

 

 

  

American Funds International Fund Service Class I

            

Sold

      471,718       $ 4,419,158         1,042,589       $ 10,938,123   

Issued as reinvestment of dividends

      490,696         4,588,007         182,224         1,776,685   

Redeemed

      (822,096 )       (7,663,346 )       (351,204 )       (3,730,936 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease)

      140,318       $ 1,343,819         873,609       $ 8,983,872   
  

 

 

     

 

 

     

 

 

     

 

 

  

American Funds Core Allocation Fund Service Class I

  

Sold

      9,222,514       $ 111,618,224         12,267,580       $ 154,946,189   

Issued as reinvestment of dividends

      6,975,419         82,519,208         2,526,086         29,858,334   

Redeemed

      (4,649,056 )       (56,597,850 )       (2,241,931 )       (28,363,152 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease)

      11,548,877       $ 137,539,582         12,551,735       $ 156,441,371   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

6.   Federal Income Tax Information

At December 31, 2016, the cost of securities and the unrealized appreciation (depreciation) in the value of investments owned by the Fund(s), as computed on a federal income tax basis, were as follows:

 

 

 

     Federal Income
Tax Cost		      Tax Basis
Unrealized
Appreciation		      Tax Basis
Unrealized
(Depreciation)		     Net Unrealized
Appreciation
(Depreciation)		  

Conservative Allocation Fund

    $ 497,745,172       $ 1,030,090       $ (21,071,562 )    $ (20,041,472 ) 

Balanced Allocation Fund

      593,597,984         3,339,780         (22,815,659 )      (19,475,879 ) 

Moderate Allocation Fund

      2,450,927,743         22,822,675         (91,358,766 )      (68,536,091 ) 

Growth Allocation Fund

      1,617,681,467         41,537,073         (49,432,010 )      (7,894,937 ) 

Aggressive Allocation Fund

      138,250,918         1,015,097         (7,118,773 )      (6,103,676 ) 

American Funds Growth Fund

      135,078,770         4,922,577         -        4,922,577   

American Funds International Fund

      57,870,170         -         (3,824,554 )      (3,824,554 ) 

American Funds Core Allocation Fund

      908,986,963         44,812,696         (11,327,925 )      33,484,771   

 

Net capital loss carryforwards may be applied against any net realized taxable gains in succeeding years, subject to the carryforward period limitations, where applicable. On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by the President. The Modernization Act changed the capital loss carryforward

 

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rules as they relate to regulated investment companies. Capital losses generated in tax years beginning after the date of enactment may now be carried forward indefinitely, and retain the character of the original loss. Under pre-enactment law, capital losses could be carried forward for up to eight tax years as short-term capital losses. The provisions affecting the utilization of capital loss carryforwards under the Modernization Act also require the utilization of post-enactment losses prior to the utilization of pre-enactment losses.

At December 31, 2016, for federal income tax purposes, there were no unused capital losses.

Generally accepted accounting principles in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital.

The tax character of distributions (including capital gain dividends, if any, designated pursuant to Section 852 of the Code) paid during the year ended December 31, 2016, was as follows:

 

 

 

     Ordinary
Income		      Long Term
Capital Gain		      Return of
Capital		  

Conservative Allocation Fund

    $ 10,503,255       $ 25,287,970       $         -   

Balanced Allocation Fund

      12,247,002         39,399,148         -   

Moderate Allocation Fund

      44,987,407         166,124,188         -   

Growth Allocation Fund

      27,702,930         166,684,023         -   

Aggressive Allocation Fund

      1,795,427         13,412,671         -   

American Funds Growth Fund

      267,323         29,068,974         -   

American Funds International Fund

      632,920         3,955,087         -   

American Funds Core Allocation Fund

      16,088,756         66,430,452         -   

 

The tax character of distributions (including capital gain dividends, if any, designated pursuant to Section 852 of the Code) paid during the year ended December 31, 2015, was as follows:

 

 

 

     Ordinary
Income		      Long Term
Capital Gain		      Return of
Capital		  

Conservative Allocation Fund

    $ 13,013,682       $ 32,412,333       $         -   

Balanced Allocation Fund

      15,528,133         42,625,519         -   

Moderate Allocation Fund

      52,556,082         160,201,911         -   

Growth Allocation Fund

      38,564,652         180,216,400         -   

Aggressive Allocation Fund

      2,510,513         14,613,280         -   

American Funds Growth Fund

      845,292         7,362,462         -   

American Funds International Fund

      507,014         1,269,671         -   

American Funds Core Allocation Fund

      10,454,332         19,404,002         -   

 

The following Fund(s) have elected to pass through the foreign tax credit for the year ended December 31, 2016:

 

 

 

     Amount  

Conservative Allocation Fund

    $ 33,466   

Balanced Allocation Fund

      52,952   

Moderate Allocation Fund

      313,244   

Growth Allocation Fund

      289,177   

Aggressive Allocation Fund

      29,017   

American Funds International Fund

      100,969   

American Funds Core Allocation Fund

      273,497   

 

Capital accounts within the financial statements are periodically adjusted for permanent differences between book and tax accounting. These adjustments have no impact on net assets or the results of operations. Temporary book and tax accounting differences will reverse in subsequent periods. At December 31, 2016, temporary book and tax accounting differences were primarily attributable to the deferral of wash sale losses, and deferred Trustee compensation.

 

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At December 31, 2016, the components of distributable earnings on a tax basis were as follows:

 

 

 

     Undistributed
Ordinary
Income		      Undistributed
Long Term
Capital Gain
(Capital Loss
Carryover)		      Other
Temporary
Differences		     Unrealized
Appreciation
(Depreciation)		  

Conservative Allocation Fund

    $ 9,521,709       $ 14,124,671       $ (49,399 )    $ (20,041,472 ) 

Balanced Allocation Fund

      10,452,978         24,956,494         (59,047 )      (19,475,879 ) 

Moderate Allocation Fund

      39,460,334         116,326,034         (204,740 )      (68,536,091 ) 

Growth Allocation Fund

      22,609,852         115,098,767         (183,174 )      (7,894,937 ) 

Aggressive Allocation Fund

      1,514,205         8,850,164         (11,640 )      (6,103,676 ) 

American Funds Growth Fund

      471,529         14,235,313         (11,020 )      4,922,577   

American Funds International Fund

      507,479         5,160,298         (5,952 )      (3,824,554 ) 

American Funds Core Allocation Fund

      14,606,398         71,053,940         (73,982 )      33,484,771   

 

During the year ended December 31, 2016, the following amounts were reclassified due to permanent differences between book and tax accounting:

 

 

 

     Paid-in
Capital		      Accumulated
Net Realized
Gain (Loss) on
Investments		     Undistributed
Net Investment
Income (Loss)		  

Conservative Allocation Fund

    $ 20       $ (721,512 )    $ 721,492   

Balanced Allocation Fund

      24         (959,818 )      959,794   

Moderate Allocation Fund

      84         (4,524,178 )      4,524,094   

Growth Allocation Fund

      71         (3,372,559 )      3,372,488   

Aggressive Allocation Fund

      5         (327,630 )      327,625   

American Funds Growth Fund

      4         -        (4 ) 

American Funds International Fund

      2         -        (2 ) 

American Funds Core Allocation Fund

      25         (3,584,663 )      3,584,638   

 

The Funds did not have any unrecognized tax benefits at December 31, 2016, nor were there any increases or decreases in unrecognized tax benefits for the year then ended. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as an income tax expense in the Statements of Operations. During the year ended December 31, 2016, the Funds did not incur any such interest or penalties. The Funds are subject to examination by U.S. federal and state tax authorities for returns filed for the prior three fiscal years. Foreign taxes are provided for based on the Funds’ understanding of the tax rules and rates that exist in the foreign markets in which they invest.

 

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7.   Investment in Affiliated Issuers

A summary of the Funds’ transactions in the securities of affiliated issuers during the year ended December 31, 2016, was as follows:

 

    Number of
Shares Held
as of
12/31/15		     Purchases     Sales     Number of
Shares Held
as of
12/31/16		     Value as of
12/31/16		     Dividend
Income		     Realized
Gains
Distributions		     Net
Realized
Gain (Loss)		  

Conservative Allocation Fund

                

MML Blue Chip Growth Fund, Initial Class

     1,167,140        351,019        569,623        948,536      $ 13,260,532      $ -      $ 2,273,126      $ (99,743 ) 

MML Dynamic Bond Fund, Class II

     5,963,265        594,356        -        6,557,621        64,854,876        1,857,357        -        -   

MML Equity Income Fund, Initial Class

     1,311,877        406,242        631,219        1,086,900        12,803,678        299,564        1,516,707        267,015   

MML Equity Index Fund, Class III

     -        272,727        -        272,727        7,229,980        -        -        -   

MML Focused Equity Fund, Class II

     494,591        176,061        90,620        580,032        7,656,425        108,541        466,485        115,597   

MML Foreign Fund, Initial Class

     940,166        187,048        118,885        1,008,329        9,518,629        177,787        -        (45,018 ) 

MML Fundamental Growth Fund, Class II

     940,992        304,006        373,076        871,922        9,957,354        81,408        1,428,670        125,219   

MML Fundamental Value Fund, Class II

     1,124,438        276,437        466,682        934,193        13,770,003        232,589        1,202,882        732,256   

MML Global Fund, Class I

     918,807        376,801        247,753        1,047,855        12,092,252        131,066        901,410        587,145   

MML High Yield Fund, Class II

     1,936,560        217,161        606,457        1,547,264        15,364,330        1,213,904        -        (571,046 ) 

MML Income & Growth Fund, Initial Class

     961,082        453,493        269,724        1,144,851        13,577,928        250,130        1,229,107        451,895   

MML Inflation-Protected and Income Fund, Initial Class

     1,831,486        395,799        240,301        1,986,984        20,227,497        480,387        -        (184,804 ) 

MML International Equity Fund, Class II

     1,005,672        150,439        360,875        795,236        7,419,548        179,747        20,097        (365,133 ) 

MML Large Cap Growth Fund, Initial Class

     987,465        282,708        905,974        364,199        3,871,431        14,602        1,014,372        (1,667,439 ) 

MML Managed Bond Fund, Initial Class

     8,526,226        2,177,792        2,323,704        8,380,314        102,593,023        3,131,363        493,049        (1,435,366 ) 

MML Mid Cap Growth Fund, Initial Class

     565,678        151,116        160,447        556,347        7,983,581        -        1,222,322        238,924   

MML Mid Cap Value Fund, Initial Class

     1,012,760        240,429        399,520        853,669        10,064,752        197,509        1,190,141        (179,819 ) 

MML Short-Duration Bond Fund, Class II

     1,705,983        1,552,642        643,755        2,614,870        25,494,982        440,093        -        (185,456 ) 

MML Small Cap Growth Equity Fund, Initial Class

     161,880        73,738        43,915        191,703        2,433,051        -        405,876        (335,652 ) 

MML Small Company Value Fund, Class II

     340,419        94,462        145,181        289,700        4,991,538        34,782        727,702        (507,323 ) 

MML Small/Mid Cap Value Fund, Initial Class

     195,748        52,064        63,335        184,477        2,440,628        13,841        160,360        (37,006 ) 

MML Total Return Bond Fund, Class II

     4,513,410        2,092,090        729,040        5,876,460        60,351,247        838,947        -        (238,005 ) 

Oppenheimer Discovery Mid Cap Growth Fund/VA, Non-Service Shares*

     40,579        8,031        11,367        37,243        2,705,704        -        241,978        26,489   

Oppenheimer Global Fund/VA, Non-Service Shares*

     217,899        69,565        57,643        229,821        8,048,345        84,845        537,798        33,093   

Oppenheimer Global Multi-Alternatives Fund/VA, Non-Service Shares*

     3,090,684        159,261        -        3,249,945        32,109,453        444,023        -        -   

Oppenheimer International Growth Fund/VA, Non-Service Shares*

     3,148,664        929,454        769,016        3,309,102        6,882,933        76,993        163,784        (65,725 ) 
         

 

 

    

 

 

    

 

 

    

 

 

  
          $ 477,703,700      $ 10,289,478      $ 15,195,866      $ (3,339,902 ) 
         

 

 

    

 

 

    

 

 

    

 

 

  

Balanced Allocation Fund

                

MML Blue Chip Growth Fund, Initial Class

     1,712,363        297,182        483,953        1,525,592      $ 21,327,777      $ -      $ 3,119,105      $ 1,316,912   

MML Dynamic Bond Fund, Class II

     6,262,802        390,112        252,260        6,400,654        63,302,467        1,873,230        -        65,588   

MML Equity Income Fund, Initial Class

     1,744,461        283,731        505,369        1,522,823        17,938,855        370,448        1,875,595        1,159,244   

MML Equity Index Fund, Class III

     -        344,598        -        344,598        9,135,303        -        -        -   

MML Focused Equity Fund, Class II

     863,712        111,864        148,845        826,731        10,912,847        157,248        675,819        143,875   

MML Foreign Fund, Initial Class

     1,578,092        361,007        171,739        1,767,360        16,683,879        281,491        -        98,541   

MML Fundamental Growth Fund, Class II

     1,356,886        237,355        259,083        1,335,158        15,247,502        107,505        1,886,689        73,980   

MML Fundamental Value Fund, Class II

     1,548,381        188,746        520,908        1,216,219        17,927,067        292,055        1,510,425        2,110,011   

MML Global Fund, Class I

     1,357,142        390,941        139,585        1,608,498        18,562,070        181,519        1,248,397        499,517   

MML High Yield Fund, Class II

     2,113,483        142,979        659,635        1,596,827        15,856,493        1,371,393        -        (451,593 ) 

MML Income & Growth Fund, Initial Class

     1,581,322        389,860        262,582        1,708,600        20,264,000        348,786        1,713,887        614,271   

MML Inflation-Protected and Income Fund, Initial Class

     2,006,442        257,689        171,771        2,092,360        21,300,226        496,675        -        (180,626 ) 

MML International Equity Fund, Class II

     1,688,153        103,779        328,981        1,462,951        13,649,330        284,232        31,779        (339,239 ) 

MML Large Cap Growth Fund, Initial Class

     1,417,002        187,920        1,017,061        587,861        6,248,966        18,911        1,313,637        (1,327,017 ) 

MML Managed Bond Fund, Initial Class

     8,462,758        1,090,830        1,324,710        8,228,878        100,739,121        2,917,099        461,527        (652,226 ) 

MML Mid Cap Growth Fund, Initial Class

     1,018,445        175,184        218,569        975,060        13,992,109        -        2,056,691        567,751   

 

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    Number of
Shares Held
as of
12/31/15		     Purchases     Sales     Number of
Shares Held
as of
12/31/16		     Value as of
12/31/16		     Dividend
Income		     Realized
Gains
Distributions		     Net
Realized
Gain (Loss)		  

Balanced Allocation Fund (Continued)

                

MML Mid Cap Value Fund, Initial Class

     1,589,173        240,587        460,590        1,369,170      $ 16,142,518      $ 292,909      $ 1,765,005      $ 197,350   

MML Short-Duration Bond Fund, Class II

     2,144,780        1,256,046        509,767        2,891,059        28,187,825        515,012        -        (159,916 ) 

MML Small Cap Growth Equity Fund, Initial Class

     295,911        71,800        47,773        319,938        4,060,581        -        655,552        (305,430 ) 

MML Small Company Value Fund, Class II

     486,852        82,713        160,447        409,118        7,049,106        46,409        970,970        (250,413 ) 

MML Small/Mid Cap Value Fund, Initial Class

     385,482        59,726        91,685        353,523        4,677,114        25,920        300,309        (75,429 ) 

MML Total Return Bond Fund, Class II

     4,817,762        1,554,352        492,851        5,879,263        60,380,036        829,956        -        146,055   

Oppenheimer Discovery Mid Cap Growth Fund/VA, Non-Service Shares*

     73,033        8,018        15,926        65,125        4,731,357        -        407,069        23,996   

Oppenheimer Global Fund/VA, Non-Service Shares*

     346,047        59,643        51,306        354,384        12,410,533        128,828        816,594        293,363   

Oppenheimer Global Multi-Alternatives Fund/VA, Non-Service Shares*

     4,230,578        57,918        99,126        4,189,370        41,390,980        573,388        -        (77,129 ) 

Oppenheimer International Growth Fund/VA, Non-Service Shares*

     6,092,835        473,251        794,911        5,771,175        12,004,043        143,349        304,945        (46,660 ) 
         

 

 

    

 

 

    

 

 

    

 

 

  
          $ 574,122,105      $ 11,256,363      $ 21,113,995      $ 3,444,776   
         

 

 

    

 

 

    

 

 

    

 

 

  

Moderate Allocation Fund

  

            

MML Blue Chip Growth Fund, Initial Class

     8,184,941        1,159,406        1,349,971        7,994,376      $ 111,761,373      $ -      $ 14,451,682      $ 5,562,839   

MML Dynamic Bond Fund, Class II

     19,891,309        1,451,680        128,943        21,214,046        209,806,917        6,065,453        -        33,525   

MML Equity Income Fund, Initial Class

     7,849,388        1,087,494        1,229,970        7,706,912        90,787,429        1,774,232        8,983,038        3,150,380   

MML Equity Index Fund, Class III

     -        1,443,633        -        1,443,633        38,270,712        -        -        -   

MML Focused Equity Fund, Class II

     5,314,303        497,148        1,899,781        3,911,670        51,634,038        968,158        4,160,945        2,262,940   

MML Foreign Fund, Initial Class

     7,686,617        1,279,632        455,579        8,510,670        80,340,727        1,398,979        -        311,107   

MML Fundamental Growth Fund, Class II

     6,304,428        935,899        735,808        6,504,519        74,281,602        511,199        8,971,386        357,392   

MML Fundamental Value Fund, Class II

     6,892,236        1,230,890        990,369        7,132,757        105,136,831        1,422,763        7,358,126        3,491,839   

MML Global Fund, Class I

     8,079,675        1,709,041        1,645,026        8,143,690        93,978,184        1,055,422        7,258,675        6,014,421   

MML High Yield Fund, Class II

     6,660,545        670,753        2,272,166        5,059,132        50,237,180        4,466,397        -        (1,350,981 ) 

MML Income & Growth Fund, Initial Class

     6,906,198        1,019,888        648,615        7,277,471        86,310,801        1,451,754        7,133,725        1,652,811   

MML Inflation-Protected and Income Fund, Initial Class

     7,044,413        837,746        411,023        7,471,136        76,056,166        1,773,292        -        (316,967 ) 

MML International Equity Fund, Class II

     8,224,169        649,640        2,264,161        6,609,648        61,668,017        1,413,714        158,061        (2,249,840 ) 

MML Large Cap Growth Fund, Initial Class

     6,659,363        684,064        4,265,260        3,078,167        32,720,915        88,614        6,155,670        (4,715,521 ) 

MML Managed Bond Fund, Initial Class

     27,926,248        1,747,037        2,500,448        27,172,837        332,653,833        9,783,987        1,533,191        (1,016,761 ) 

MML Mid Cap Growth Fund, Initial Class

     5,220,967        819,204        691,510        5,348,661        76,753,279        -        10,081,881        2,879,969   

MML Mid Cap Value Fund, Initial Class

     8,084,466        1,038,041        2,033,148        7,089,359        83,583,544        1,492,477        8,993,310        2,724,692   

MML Short-Duration Bond Fund, Class II

     7,835,240        4,056,426        1,598,925        10,292,741        100,354,227        1,822,818        -        (564,148 ) 

MML Small Cap Growth Equity Fund, Initial Class

     1,495,898        314,591        168,181        1,642,308        20,843,827        -        3,423,457        (1,128,300 ) 

MML Small Company Value Fund, Class II

     2,639,451        398,600        747,936        2,290,115        39,458,682        256,290        5,362,129        (1,054,496 ) 

MML Small/Mid Cap Value Fund, Initial Class

     1,746,669        379,636        377,395        1,748,910        23,138,079        130,219        1,508,707        (221,405 ) 

MML Strategic Emerging Markets Fund, Class II

     4,949,839        367,214        712,267        4,604,786        39,785,354        193,727        -        (1,050,319 ) 

MML Total Return Bond Fund, Class II

     15,791,998        4,222,961        1,074,875        18,940,084        194,514,661        2,946,324        -        434,037   

Oppenheimer Discovery Mid Cap Growth Fund/VA, Non-Service Shares*

     371,954        32,711        76,625        328,040        23,832,076        -        1,979,908        89,919   

Oppenheimer Global Fund/VA, Non-Service Shares*

     1,369,488        536,066        104,621        1,800,933        63,068,689        519,332        3,291,839        677,325   

Oppenheimer Global Multi-Alternatives Fund/VA, Non-Service Shares*

     18,158,610        251,812        188,918        18,221,504        180,028,457        2,492,933        -        24,151   

Oppenheimer International Growth Fund/VA, Non-Service Shares*

     16,540,251        4,793,006        1,436,117        19,897,140        41,386,052        392,737        835,464        (84,987 ) 
         

 

 

    

 

 

    

 

 

    

 

 

  
          $ 2,382,391,652      $ 42,420,821      $ 101,641,194      $ 15,913,622   
         

 

 

    

 

 

    

 

 

    

 

 

  

 

62

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Notes to Financial Statements (Continued)

 

    Number of
Shares Held
as of
12/31/15		     Purchases     Sales     Number of
Shares Held
as of
12/31/16		     Value as of
12/31/16		     Dividend
Income		     Realized
Gains
Distributions		     Net
Realized
Gain (Loss)		  

Growth Allocation Fund

  

            

MML Blue Chip Growth Fund, Initial Class

     7,224,353        992,179        1,460,329        6,756,203      $ 94,451,718      $ -      $ 12,741,127      $ 7,260,092   

MML Dynamic Bond Fund, Class II

     8,864,352        756,135        1,378,188        8,242,299        81,516,332        2,524,201        -        343,741   

MML Equity Income Fund, Initial Class

     5,960,113        830,186        1,028,701        5,761,598        67,871,628        1,320,000        6,683,239        2,340,890   

MML Equity Index Fund, Class III

     -        1,324,158        -        1,324,158        35,103,439        -        -        -   

MML Focused Equity Fund, Class II

     5,009,056        449,492        1,379,698        4,078,850        53,840,824        906,457        3,895,767        1,823,011   

MML Foreign Fund, Initial Class

     6,575,048        1,398,275        762,944        7,210,379        68,065,982        1,300,812        -        434,911   

MML Fundamental Growth Fund, Class II

     5,526,176        819,277        1,160,319        5,185,134        59,214,229        423,738        7,436,480        584,345   

MML Fundamental Value Fund, Class II

     5,259,437        908,885        861,607        5,306,715        78,220,986        1,104,596        5,712,656        3,830,922   

MML Global Fund, Class I

     7,587,562        983,385        1,618,480        6,952,467        80,231,464        1,011,967        6,959,815        6,873,673   

MML High Yield Fund, Class II

     1,709,366        119,377        450,703        1,378,040        13,683,936        1,145,989        -        (293,778 ) 

MML Income & Growth Fund, Initial Class

     4,641,511        2,080,008        722,745        5,998,774        71,145,461        1,121,328        5,510,057        1,734,716   

MML Inflation-Protected and Income Fund, Initial Class

     6,207,439        580,113        406,129        6,381,423        64,962,883        1,520,054        -        (247,700 ) 

MML International Equity Fund, Class II

     7,033,804        892,357        1,302,062        6,624,099        61,802,842        1,274,176        142,460        (1,538,629 ) 

MML Large Cap Growth Fund, Initial Class

     5,852,306        482,591        3,703,523        2,631,374        27,971,510        63,998        4,445,684        1,255,784   

MML Managed Bond Fund, Initial Class

     9,735,409        1,513,793        1,008,164        10,241,038        125,372,282        3,461,243        524,825        (596,145 ) 

MML Mid Cap Growth Fund, Initial Class

     4,928,272        727,325        792,018        4,863,579        69,792,352        -        9,136,006        5,591,000   

MML Mid Cap Value Fund, Initial Class

     6,623,031        1,011,480        1,584,537        6,049,974        71,329,196        1,126,317        6,786,916        5,535,203   

MML Short-Duration Bond Fund, Class II

     4,041,195        1,508,407        783,632        4,765,970        46,468,211        901,383        -        (274,480 ) 

MML Small Cap Growth Equity Fund, Initial Class

     1,310,125        257,617        203,896        1,363,846        17,309,649        -        2,863,061        (928,703 ) 

MML Small Company Value Fund, Class II

     2,231,233        302,564        581,388        1,952,409        33,640,005        197,662        4,135,499        (264,912 ) 

MML Small/Mid Cap Value Fund, Initial Class

     1,958,155        421,481        436,222        1,943,414        25,711,368        144,380        1,672,763        (247,921 ) 

MML Strategic Emerging Markets Fund, Class II

     4,892,264        587,283        634,890        4,844,657        41,857,835        187,097        -        (1,290,858 ) 

MML Total Return Bond Fund, Class II

     6,991,579        1,099,225        661,734        7,429,070        76,296,552        1,228,455        -        392,783   

Oppenheimer Discovery Mid Cap Growth Fund/VA, Non-Service Shares*

     353,340        28,957        73,924        308,373        22,403,281        -        1,801,541        36,910   

Oppenheimer Global Fund/VA, Non-Service Shares*

     1,041,496        587,271        87,341        1,541,426        53,980,750        387,435        2,455,796        565,690   

Oppenheimer Global Multi-Alternatives Fund/VA, Non-Service Shares*

     14,402,875        189,010        938,884        13,653,001        134,891,646        1,871,188        -        64,442   

Oppenheimer International Growth Fund/VA, Non-Service Shares*

     13,406,401        3,909,337        1,618,541        15,697,197        32,650,169        309,136        657,621        (84,007 ) 
         

 

 

    

 

 

    

 

 

    

 

 

  
          $ 1,609,786,530      $ 23,531,612      $ 83,561,313      $ 32,900,980   
         

 

 

    

 

 

    

 

 

    

 

 

  

Aggressive Allocation Fund

  

            

MML Blue Chip Growth Fund, Initial Class

     634,872        137,538        164,872        607,538      $ 8,493,383      $ -      $ 1,093,500      $ 301,389   

MML Dynamic Bond Fund, Class II

     237,604        13,937        52,216        199,325        1,971,322        64,715        -        14,488   

MML Equity Income Fund, Initial Class

     534,057        117,650        90,385        561,322        6,612,376        124,679        631,257        158,176   

MML Equity Index Fund, Class III

     -        68,329        -        68,329        1,811,405        -        -        -   

MML Focused Equity Fund, Class II

     456,845        84,385        168,239        372,991        4,923,483        88,574        380,671        152,449   

MML Foreign Fund, Initial Class

     629,255        191,117        105,913        714,459        6,744,490        129,509        -        64,535   

MML Fundamental Growth Fund, Class II

     489,197        141,263        65,619        564,841        6,450,487        40,620        712,866        34,053   

MML Fundamental Value Fund, Class II

     466,188        236,271        109,491        592,968        8,740,349        125,114        647,052        361,776   

MML Global Fund, Class I

     667,387        149,075        124,236        692,226        7,988,287        93,084        640,186        347,300   

MML Income & Growth Fund, Initial Class

     413,791        231,778        53,432        592,137        7,022,740        104,674        514,354        108,823   

MML Inflation-Protected and Income Fund, Initial Class

     314,711        62,485        27,148        350,048        3,563,490        80,666        -        (4,139 ) 

MML International Equity Fund, Class II

     673,188        124,044        130,034        667,198        6,224,953        124,215        13,888        (135,712 ) 

MML Large Cap Growth Fund, Initial Class

     522,418        84,724        343,390        263,752        2,803,682        4,942        343,304        (661,212 ) 

MML Managed Bond Fund, Initial Class

     216,089        76,297        31,385        261,001        3,195,208        82,949        12,082        1,100   

MML Mid Cap Growth Fund, Initial Class

     483,289        109,166        75,578        516,877        7,417,192        -        944,976        187,077   

MML Mid Cap Value Fund, Initial Class

     660,236        156,044        175,104        641,176        7,559,467        116,000        698,993        72,647   

 

63

Table of Contents

Notes to Financial Statements (Continued)

 

    Number of
Shares Held
as of
12/31/15		     Purchases     Sales     Number of
Shares Held
as of
12/31/16		     Value as of
12/31/16		     Dividend
Income		     Realized
Gains
Distributions		     Net
Realized
Gain (Loss)		  

Aggressive Allocation Fund (Continued)

 

            

MML Short-Duration Bond Fund, Class II

     278,729       33,422       23,056       289,095       2,818,672       62,033       -       (4,728 ) 

MML Small Cap Growth Equity Fund, Initial Class

     132,887       44,980       22,897       154,970       1,966,841       -       315,205       (213,494 ) 

MML Small Company Value Fund, Class II

     221,501       46,142       58,803       208,840       3,598,307       20,519       429,302       (122,025 ) 

MML Small/Mid Cap Value Fund, Initial Class

     193,691       55,028       43,912       204,807       2,709,603       14,831       171,821       (31,698 ) 

MML Strategic Emerging Markets Fund, Class II

     503,233       103,849       74,493       532,589       4,601,568       20,492       -       (127,933 ) 

MML Total Return Bond Fund, Class II

     166,200       35,258       16,041       185,417       1,904,237       29,923       -       (6,085 ) 

Oppenheimer Discovery Mid Cap Growth Fund/VA, Non-Service Shares*

     35,731       6,369       6,956       35,144       2,553,210       -       189,870       12,494  

Oppenheimer Global Fund/VA, Non-Service Shares*

     91,900       71,093       8,589       154,404       5,407,235       35,593       225,613       (14,488 ) 

Oppenheimer Global Multi-Alternatives Fund/VA, Non-Service Shares*

     1,171,285       35,594       15,326       1,191,553       11,772,547       162,954       -       2,452  

Oppenheimer International Growth Fund/VA, Non-Service Shares*

     1,172,242       557,027       146,236       1,583,033       3,292,708       28,451       60,523       (6,312 ) 
         

 

 

    

 

 

    

 

 

    

 

 

  
          $ 132,147,242     $ 1,554,537     $ 8,025,463     $ 490,933  
         

 

 

    

 

 

    

 

 

    

 

 

  

 

* Fund advised by OFI Global Asset Management, Inc.

 

8.   Indemnifications

Under the Funds’ organizational documents, current and former Trustees and Officers are provided with specified rights to indemnification against liabilities arising in connection with the performance of their duties to the Funds, and shareholders are indemnified against personal liability for obligations of the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.

 

9.   Subsequent Events

In preparation of these financial statements, management has evaluated the events and transactions subsequent to December 31, 2016, through the date when the financial statements were issued, and determined that there are no subsequent events or transactions that would require adjustments to or disclosures in the Funds’ financial statements other than those disclosed below.

Elaine A. Sarsynski resigned as a Trustee of the Trust effective as of February 1, 2017.

 

64

Table of Contents

Report of Independent Registered Public Accounting Firm

 

To the Board of Trustees of MML Series Investment Fund and Shareholders of MML Conservative Allocation Fund, MML Balanced Allocation Fund, MML Moderate Allocation Fund, MML Growth Allocation Fund, MML Aggressive Allocation Fund, MML American Funds Growth Fund, MML American Funds International Fund, and MML American Funds Core Allocation Fund (collectively, the “Funds”):

We have audited the accompanying statements of assets and liabilities of the Funds, including the portfolios of investments, as of December 31, 2016, and the related statements 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 periods presented. These financial statements and financial highlights are the responsibility of the Funds’ 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 Funds are not required to have, nor were we engaged to perform, an audit of their 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 Funds’ 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, 2016, by correspondence with the custodian and transfer agents; when replies were not received from transfer agents, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2016, 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 financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Boston, Massachusetts

February 21, 2017

 

65

Table of Contents

Trustees and Officers (Unaudited)

 

The following table lists the Trust’s Trustees and Officers; their address and age; their position with the Trust; the length of time holding that position with the Trust; their principal occupation(s) during the past five years; the number of portfolios in the fund complex they oversee; and other directorships they hold in companies subject to registration or reporting requirements of the Securities Exchange Act of 1934 (generally called “public companies”) or in registered investment companies. The Trust’s Statements of Additional Information include additional information about the Trust’s Trustees and are available, without charge, upon request by calling 1-888-309-3539 or by writing MML Series Investment Fund, c/o Massachusetts Mutual Life Insurance Company, 100 Bright Meadow Blvd., Enfield, Connecticut 06082-1981, Attention: MassMutual U.S. Product and Marketing.

Disinterested Trustees

 

 

 

Name, Address*, and Age

   

Position(s)
Held with Trust

   

Term of
Office** and
Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years

    Number of
Portfolios in
Fund Complex
Overseen by Trustee		   

Other Directorships

Held by Trustee

Allan W. Blair

Age: 68

    Trustee   

Since

2003

    Retired; President and Chief Executive Officer (1996-2014), Economic Development Council of Western Massachusetts (non-profit development company); President and Chief Executive Officer (1984-2014), Westover Metropolitan Development Corporation (quasi-public development company).    94    Trustee (since 2003), MassMutual Select Funds (open-end investment company); Trustee (since 2012), MML Series Investment Fund II (open-end investment company); Trustee (since 2012), MassMutual Premier Funds (open-end investment company).
Nabil N. El-Hage
Age: 58		   

Trustee

   

Since

2012

 

    Founder and sole member of PR Academy of Executive Education, LLC (since 2016); Chairman (2011-2016), Academy of Executive Education, LLC (predecessor to PR Academy of Executive Education, LLC).    94    Director (2011-2015), Argo Group International Holdings, Ltd. (underwriter of specialty insurance and reinsurance products); Trustee (since 2012), MassMutual Select Funds (open-end investment company); Trustee (since 2005), Chairman (2006-2012), MML Series Investment Fund II (open-end investment company); Trustee (since 2003), Chairman (2006-2012), MassMutual Premier Funds (open-end investment company).
Maria D. Furman
Age: 62		    Trustee   

Since

2012

    Retired.    94    Trustee (since 2011), GMO Series Trust (open-end investment company); Trustee (since 2012), MassMutual Select Funds (open-end investment company); Trustee (since 2005), MML Series Investment Fund II (open-end investment company); Trustee (since 2004), MassMutual Premier Funds (open-end investment company).

R. Alan Hunter, Jr.

Age: 70

   

Chairperson

 

Trustee

   

Since

2016

 

Since

2003

    Retired.    94    Director (since 2007), Actuant Corporation (diversified industrial company); Chairperson (since 2016), Trustee (since 2003), MassMutual Select Funds (open-end investment company); Chairperson (since 2016), Trustee (since 2012), MML Series Investment Fund II (open-end investment company); Chairperson (since 2016), Trustee (since 2012), MassMutual Premier Funds (open-end investment company).

 

66

Table of Contents

Trustees and Officers (Unaudited) (Continued)

 

 

 

Name, Address*, and Age

   

Position(s)
Held with
Trust

   

Term of
Office** and
Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years

    Number of
Portfolios in
Fund Complex
Overseen by Trustee		   

Other Directorships
Held by Trustee

C. Ann Merrifield
Age: 65		    Trustee    Since
2012		    Retired; President and Chief Executive Officer (2012-2014), PathoGenetix (genomics company).    94    Director (since 2015), Juniper Pharmaceuticals Inc. (specialty pharmaceutical company); Director (since 2014), Flexion Therapeutics (specialty pharmaceutical company); Director (since 2014), InVivo Therapeutics (research and clinical-stage biomaterials and biotechnology company); Trustee (since 2012), MassMutual Select Funds (open-end investment company); Trustee (since 2005), MML Series Investment Fund II (open-end investment company); Trustee (since 2004), MassMutual Premier Funds (open-end investment company).

Susan B. Sweeney

Age: 64

    Trustee   

Since

2009

    Retired; Senior Vice President and Chief Investment Officer (2010-2014), Selective Insurance Group (property and casualty company).    96^    Trustee (since 2012), Barings Corporate Investors (closed-end investment company); Trustee (since 2012), Barings Participation Investors (closed-end investment company); Trustee (since 2009), MassMutual Select Funds (open-end investment company); Trustee (since 2012), MML Series Investment Fund II (open-end investment company); Trustee (since 2012), MassMutual Premier Funds (open-end investment company).

 

67

Table of Contents

Trustees and Officers (Unaudited) (Continued)

 

Interested Trustee

 

 

 

Name, Address*, and Age

   

Position(s)
Held with
Trust

   

Term of
Office** and
Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years

    Number of
Portfolios in
Fund Complex
Overseen by Trustee		   

Other Directorships
Held by Trustee

Robert E. Joyal^^

Age: 71

   

Trustee

   

Since

2003

    Retired.    96^    Director (since 2013), Leucadia National Corporation (holding company); Director (since 2012), Ormat Technologies, Inc. (provider of alternative and renewable energy technology); Director (2006-2014), Jefferies Group LLC (investment bank); Trustee (since 2003), Barings Corporate Investors (closed-end investment company); Trustee (since 2003), Barings Participation Investors (closed-end investment company); Trustee (since 2003), MassMutual Select Funds (open-end investment company); Trustee (since 2012), MML Series Investment Fund II (open-end investment company); Trustee (since 2012), MassMutual Premier Funds (open-end investment company).

Principal Officers who are Not Trustees

 

 

 

Name, Address*, and Age

   

Position(s) Held
with Trust

    Term of
Office# and
Length of
Time Served		   

Principal Occupation(s) During Past 5 Years

    Number of
Portfolios in
Fund Complex
Overseen by Officer
Michael C. Eldredge
Age: 52		    Vice President    Since

2009

    Head of Asset Allocation Funds (since 2016), portfolio manager (2014-2016), Head of Investments (2014-2016), MML Advisers; Vice President (since 2008), MassMutual; Vice President (since 2009), MassMutual Select Funds (open-end investment company); Vice President (since 2009), MML Series Investment Fund II (open-end investment company); Vice President (since 2009), MassMutual Premier Funds (open-end investment company).    94

Andrew M. Goldberg

Age: 50

   

Vice President, Secretary, and Chief Legal Officer

 

Assistant Secretary

 

    Since

2008

 

(2001-
2008)

    Assistant Vice President and Counsel (since 2004), MassMutual; Secretary (since 2015), Assistant Secretary (2013-2015), MML Advisers; Vice President, Secretary, and Chief Legal Officer (since 2008), Assistant Secretary (2001-2008), MassMutual Select Funds (open-end investment company); Vice President, Secretary, (formerly known as “Clerk”), and Chief Legal Officer (since 2008), Assistant Clerk (2005-2008), MML Series Investment Fund II (open-end investment company); Vice President, Secretary, (formerly known as “Clerk”), and Chief Legal Officer (since 2008), Assistant Clerk (2004-2008), MassMutual Premier Funds (open-end investment company).    94

Brian K. Haendiges

Age: 56

   

President

Vice President

 

    Since

2016

(2014-
2016)

    Vice President (since 2014), MML Advisers; Senior Vice President (since 2014), Vice President (2010-2014), MassMutual; Vice President (since 2014), MassMutual Select Funds (open-end investment company); President (since 2016), Vice President (2014-2016), MML Series Investment Fund II (open-end investment company); Vice President (since 2014), MassMutual Premier Funds (open-end investment company).    94

Renee Hitchcock

Age: 46

   

Chief Financial Officer and Treasurer

 

Assistant Treasurer

    Since

2016

 

2007-
2016

    Assistant Vice President (since 2015), Director (2007-2015), MassMutual; Chief Financial Officer and Treasurer (since 2016), Assistant Treasurer (2007-2016), MassMutual Select Funds (open-end investment company); Chief Financial Officer and Treasurer (since 2016), Assistant Treasurer (2007-2016), MML Series Investment Fund II (open-end investment company); Chief Financial Officer and Treasurer (since 2016), Assistant Treasurer (2007-2016), MassMutual Premier Funds (open-end investment company).    94

 

68

Table of Contents

Trustees and Officers (Unaudited) (Continued)

 

 

 

Name, Address*, and Age

   

Position(s) Held
with Trust

    Term of
Office# and
Length of
Time Served		   

Principal Occupation(s) During Past 5 Years

    Number of
Portfolios in
Fund Complex
Overseen by Officer

Douglas Steele

Age: 41

   

Vice President

    Since

2016

    Head of Investment Due Diligence (since 2016), MML Advisers; Assistant Vice President (since 2013), Investment Director (2005-2013), MassMutual; Vice President (since 2016), MassMutual Select Funds (open-end investment company); Vice President (since 2016), MML Series Investment Fund II (open-end investment company); Vice President (since 2016), MassMutual Premier Funds (open-end investment company).    94

Philip S. Wellman

Age: 52

    Vice President and Chief Compliance Officer    Since
2007		    Vice President and Chief Compliance Officer (since 2013), MML Advisers; Vice President, Associate General Counsel, and Chief Compliance Officer (Mutual Funds) (since 2014), Vice President, Associate General Counsel, and Chief Compliance Officer (Mutual Funds and Investment Advisory) (2008-2014), MassMutual; Vice President and Chief Compliance Officer (since 2007), MassMutual Select Funds (open-end investment company); Vice President and Chief Compliance Officer (since 2007), MML Series Investment Fund II (open-end investment company); Vice President and Chief Compliance Officer (since 2007), MassMutual Premier Funds (open-end investment company).    94

Eric H. Wietsma

Age: 50

    Vice President    Since

2006

    Director and President (since 2013), MML Advisers; Senior Vice President (since 2010), MassMutual; President (since 2008), Vice President (2006-2008), MassMutual Select Funds (open-end investment company); Vice President (since 2006), MML Series Investment Fund II (open-end investment company); President (since 2008) Vice President (2006-2008), MassMutual Premier Funds (open-end investment company).    94

Tina Wilson

Age: 46

    Vice President    Since
2016		    Vice President and Head of Investments (since 2016), MML Advisers; Senior Vice President (since 2014), Vice President (2009-2014), MassMutual; Vice President (since 2016), MassMutual Select Funds (open-end investment company); Vice President (since 2016), MML Series Investment Fund II (open-end investment company); Vice President (since 2016), MassMutual Premier Funds (open-end investment company).    94

 

 

* The address of each Trustee and Principal Officer is the same as that for the Trust; 100 Bright Meadow Blvd., Enfield, CT 06082-1981.

 

** Each Trustee of the Trust serves until the next meeting of shareholders called for the purpose of electing Trustees and until the election and qualification of his or her successor or until he or she dies, resigns, or is removed. Notwithstanding the foregoing, unless the Trustees determine that it is desirable and in the best interest of the Trust that an exception to the retirement policy of the Trust be made, a Trustee shall retire and cease to serve as a Trustee upon the conclusion of the calendar year in which such Trustee attains the age of seventy-two years.

 

   The Chairperson is elected to hold such office for a term of three years or until their successor is elected and qualified to carry out the duties and responsibilities of their office, or until he or she retires, dies, resigns, is removed, or becomes disqualified. The Chairperson shall hold office at the pleasure of the Trustees.

 

^ Barings Participation Investors and Barings Corporate Investors are deemed to be a part of the Fund Complex, because they are managed by Barings LLC (formerly known as Babson Capital Management LLC), an affiliate of MML Advisers.

 

^^ Mr. Joyal is an “Interested Person,” as that term is defined in the 1940 Act, through his position as a director of Leucadia National Corporation, which controls Jefferies Group LLC, a broker-dealer that may execute portfolio transactions and/or engage in principal transactions with the Funds, other investment companies advised by MML Advisers or holding themselves out to investors as related companies for purposes of investment or investor services, or any other advisory accounts over which MML Advisers has brokerage placement discretion.

 

# The President, Treasurer, and Secretary and such other officers as the Trustees may in their discretion from time to time elect are elected to hold such office until their successor is elected and qualified to carry out the duties and responsibilities of their office, or until he or she dies, resigns, is removed, or becomes disqualified. Each officer shall hold office at the pleasure of the Trustees.

 

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Federal Tax Information (Unaudited)

 

For corporate shareholders, a portion of the ordinary dividends paid during the Fund(s)’ year ended December 31, 2016, qualified for the dividends received deduction, as follows:

 

 

     Dividends Received
Deductions		  

Conservative Allocation Fund

      15.46%  

Balanced Allocation Fund

      19.23%  

Moderate Allocation Fund

      24.24%  

Growth Allocation Fund

      33.02%  

Aggressive Allocation Fund

      97.03%  

American Funds Core Allocation Fund

      46.59%  

 

For the year ended December 31, 2016, the following Fund(s) earned the following foreign sources of income:

 

 

     Amount  

Conservative Allocation Fund

    $ 268,416  

Balanced Allocation Fund

      424,685  

Moderate Allocation Fund

      2,277,636  

Growth Allocation Fund

      2,090,491  

Aggressive Allocation Fund

      207,548  

American Funds International Fund

      5,173,408  

American Funds Core Allocation Fund

      27,311,377  

 

 

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Other Information (Unaudited)

 

Proxy Voting

A description of the policies and procedures that each Fund’s investment adviser uses to vote proxies relating to the Fund’s portfolio securities is available, without charge, upon request, by calling 1-888-309-3539, and on the SEC’s EDGAR database on its website at http://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available, without charge, upon request, on the MassMutual website at http://www.massmutual.com/funds and on the SEC’s EDGAR database on its website at http://www.sec.gov.

Quarterly Reporting

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s EDGAR database on its website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington D.C. Information on the operation of the SEC’s Public Reference Room may be obtained by calling 1-800-SEC-0330.

 

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Other Information (Unaudited) (Continued)

 

Fund Expenses December 31, 2016

 

Expense Examples:

The following information is in regards to expenses for the six months ended December 31, 2016:

As a shareholder of the Funds, you incur ongoing costs, including advisory fees, distribution and/or service (12b-1) fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested for the six months ended December 31, 2016.

Actual Expenses:

The first four columns of the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, 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 under the heading entitled “Operating Expenses Incurred” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes:

The last two columns of the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’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 Fund 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 transactional costs. Therefore, the last two columns of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

 

 

     Beginning
Value		      Annualized
Expense
Ratio		     Ending
Value (Based
on Actual
Returns and
Expenses)		      Operating
Expenses
Incurred*		      Ending
Value (Based
on
Hypothetical
Returns and
Expenses)		      Operating
Expenses
Incurred*		  
Conservative Allocation Fund                 

Initial Class

    $ 1,000        0.12 %    $ 1,025.50      $ 0.61      $ 1,024.50      $ 0.61  

Service Class

      1,000        0.37 %      1,023.30        1.88        1,023.30        1.88  
Balanced Allocation Fund                 

Initial Class

      1,000        0.12 %      1,033.70        0.61        1,024.50        0.61  

Service Class

      1,000        0.37 %      1,032.30        1.89        1,023.30        1.88  
Moderate Allocation Fund                 

Initial Class

      1,000        0.11 %      1,043.40        0.57        1,024.60        0.56  

Service Class

      1,000        0.36 %      1,043.20        1.85        1,023.30        1.83  
Growth Allocation Fund                 

Initial Class

      1,000        0.11 %      1,057.20        0.57        1,024.60        0.56  

Service Class

      1,000        0.36 %      1,054.70        1.86        1,023.30        1.83  
Aggressive Allocation Fund                 

Initial Class

      1,000        0.15 %      1,071.60        0.78        1,024.40        0.76  

Service Class

      1,000        0.40 %      1,071.00        2.08        1,023.10        2.03  

 

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Other Information (Unaudited) (Continued)

 

     Beginning
Value		      Annualized
Expense
Ratio		     Ending
Value (Based
on Actual
Returns and
Expenses)		      Operating
Expenses
Incurred*		      Ending
Value (Based
on
Hypothetical
Returns and
Expenses)		      Operating
Expenses
Incurred*		  
American Funds Growth Fund                 

Service Class I**

    $ 1,000        1.04 %    $ 1,081.90      $ 5.44      $ 1,019.90      $ 5.28  
American Funds International Fund                 

Service Class I**

      1,000        1.24 %      1,044.90        6.37        1,018.90        6.29  
American Funds Core Allocation Fund                 

Service Class I

      1,000        0.71 %      1,038.10        3.64        1,021.60        3.61  

 

 

* Expenses are calculated using the annualized expense ratio for the six months ended December 31, 2016, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 366 days in the year, unless stated otherwise. The annualized expense ratio does not reflect expenses deducted under the variable life insurance or variable annuity contract through which the Funds are invested in. Inclusion of these expenses would increase the annualized expense ratios shown.
** The annualized expense ratio reflects the expenses of both the Feeder Fund and the Master Fund in which it invests.

 

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Underwriter:

MML Distributors, LLC

100 Bright Meadow Blvd.

Enfield, CT 06082-1981

    LOGO

 

 

LOGO

 

©2017 Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001. All rights reserved. www.massmutual.com. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. Investment Adviser: MML Investment Advisers, LLC    RS-41635-00

Table of Contents

LOGO

Table of Contents

Table of Contents

 

President’s Letter to Shareholders (Unaudited)

      1  

Economic and Market Review (Unaudited)

      3  

Portfolio Manager Report (Unaudited)

      6  

Portfolio of Investments

   

MML Blue Chip Growth Fund

      63  

MML Equity Income Fund

      66  

MML Equity Index Fund

      69  

MML Focused Equity Fund

      76  

MML Foreign Fund

      77  

MML Fundamental Growth Fund

      79  

MML Fundamental Value Fund

      82  

MML Global Fund

      85  

MML Growth & Income Fund

      87  

MML Income & Growth Fund

      89  

MML International Equity Fund

      92  

MML Large Cap Growth Fund

      94  

MML Managed Volatility Fund

      96  

MML Mid Cap Growth Fund

      104  

MML Mid Cap Value Fund

      107  

MML Small Cap Growth Equity Fund

      110  

MML Small Company Value Fund

      114  

MML Small/Mid Cap Value Fund

      118  

MML Total Return Bond Fund

     121  

Statements of Assets and Liabilities

      130  

Statements of Operations

      142  

Statements of Changes in Net Assets

      148  

Financial Highlights

      161  

Notes to Financial Statements

      180  

Report of Independent Registered Public Accounting Firm

      214  

Trustees and Officers (Unaudited)

      215  

Federal Tax Information (Unaudited)

      219  

Other Information (Unaudited)

   

Proxy Voting

      220  

Quarterly Reporting

      220  

Trustees Approval of Investment Advisory Contracts

      220  

Fund Expenses

      222  

This material must be preceded or accompanied by a current prospectus (or summary prospectus, if available) for the MML Series Investment Fund. Investors should consider a Fund’s investment objective, risks, and charges and expenses carefully before investing. This and other information about the investment company is available in the prospectus (or summary prospectus, if available). Read it carefully before investing.

Table of Contents

MML Series Investment Fund – President’s Letter to Shareholders (Unaudited)

 

To Our Shareholders

 

LOGO

Brian Haendiges

“MassMutual believes that changing market conditions are a way of life for retirement investors – but these same conditions have the potential to reward patient investors who maintain a long-term perspective, instead of reacting to short-term market movements.”

December 31, 2016

Continued strength in U.S. markets in a challenging market environment

I am pleased to present you with the MML Series Investment Fund Annual Report, covering the year ended December 31, 2016 (the “fiscal year”). Domestic stocks outperformed most international equities during the fiscal year, as a strong market environment in the U.S. accelerated. Much of the strength occurred late in the reporting period, due to the surprising Republican victory in the race for the White House – as investors were buoyed by President-elect Trump’s promises for tax abatements and infrastructure spending. Economic difficulties elsewhere in the world – such as the challenging interest rate environment in Japan, uncertainty in Europe and the United Kingdom’s surprising Brexit vote that ratified an eventual exit from the European Union – had virtually no impact on U.S. stock indexes. Nevertheless, during the reporting period, recurring market volatility served as a general reminder for investors that market conditions are cyclical and can change anytime.

In MassMutual’s view, the ongoing uncertainties in markets today highlight the importance of taking a long-term perspective and not reacting to current events or short-term market changes. We also believe retirement investors who follow certain investment guidelines, such as the ones below, may increase their chances of reaching their retirement income goals.

Suggestions for retirement investors under any market conditions

Contribute as much as you can

While it is impossible to control your investments’ performance, you can control how often and how much you save. Contributing to your retirement account on a regular basis and increasing your contribution level as often as you are able, may be one way to help you realize your long-term investment objectives.*

Continue to invest

Some of the most sophisticated investors believe that individuals who can withstand a market downturn have the potential to be rewarded by accumulating larger positions at more favorable prices (relative to those who do not continue investing during a down market). That’s why most financial professionals believe it’s important to stay in the market, regardless of short-term results.

Time may be on your side

For most people, investing for retirement occurs over many decades. While retirement investors often know that the financial markets will be volatile from time to time, seasoned investors tend to understand the wisdom of taking a long-term approach. They know that this can help them navigate the market’s downturns, leverage its upturns, and successfully grow their account balances.

Monitor your asset allocation and diversify

Stocks, bonds, and short-term/money market investments are investment types that typically behave differently depending upon the economic and market environment. Each of these categories contains

 

 

  * Systematic investing and asset allocation do not ensure a profit or protect against loss in a declining market. Systematic investing involves continuous investment in securities regardless of fluctuating price levels. Investors should consider their ability to continue investing through periods of low price levels.

(Continued)

 

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MML Series Investment Fund – President’s Letter to Shareholders (Unaudited) (Continued)

 

an even greater array of sub-categories, such as small-cap stocks, international stocks, and high-yield bonds. Many financial professionals believe that investors can take advantage of different opportunities in the market and reduce the risk of over-exposure to one or two poorly performing investment types by maintaining a portfolio that includes a mix of investment types and sub-categories.

Make informed choices and seek professional guidance

Many financial advisors will suggest that retirement investors select an appropriate combination of investments that aligns with their retirement income goals. Doing so can help you weather the inevitable ups and downs of the markets.

For retirement investors who work with a financial professional

If you work with a financial professional, this may be an excellent time to contact him or her for assistance in assessing whether or not you:

 

•   are saving enough for retirement based on your long-term needs;

 

•   are invested properly, based on your goals and objectives and where you are in your retirement planning journey; and

 

•   feel you are taking the right steps to help reduce the risk you could outlive your retirement savings.

Protect who matters most

MassMutual believes that nothing matters more than the safety and well-being of your loved ones. That’s why we have always been committed to helping our customers put themselves on the path to a more secure financial future. And it’s why we have always encouraged retirement investors to maintain perspective over the long term. In our view, changing market conditions are a way of life for retirement investors, but these same conditions have the potential to reward patient investors who maintain a long-term perspective, instead of reacting to short-term market movements. Thank you for your continued trust in MassMutual.

Sincerely,

 

LOGO

Brian Haendiges

President

The information provided is the opinion of MassMutual Funds Investment Management Group as of 1/1/17 and is subject to change without notice. It is not to be construed as tax, legal or investment advice. Of course, past performance does not guarantee future results.

 

 

2

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MML Series Investment Fund – Economic and Market Overview (Unaudited)

 

December 31, 2016

Economic Overview and Market Commentary

We note three significant and unexpected events that were followed by meaningful market movements in 2016. The first followed Federal Reserve (Fed) Board Chair Janet Yellen’s testimony before the U.S. Senate Committee on Banking, Housing, and Urban Affairs on February 11, 2016, where she confirmed a “slower for longer” plan for interest rate hikes going forward. The second followed the United Kingdom’s surprising June 23 referendum to leave the European Union – commonly referred to as “Brexit” (an abbreviation for “British exit”). The third followed Donald J. Trump’s election as the 45th President of the United States on November 8.

Throughout 2016, the initially sluggish domestic economy started to return more positive reports as modest gross domestic product (GDP) estimates were revised upward. (GDP reflects the total value of goods and services produced in the United States.) Investors responded favorably and domestic equity markets delivered broad positive returns for the fiscal year. Equity returns in the foreign and emerging markets ended the year more mixed.

For the year, the Dow Jones Industrial AverageSM (Dow) grew 16.50% and the broader S&P 500® Index (S&P 500) of large-capitalization U.S. stocks gained 11.96%. The technology-focused NASDAQ Composite® Index managed an 8.87% return, as tech stocks lagged the other indexes following the U.S. election. Small-cap equities outperformed for the year, with the Russell 2000® Index of small-capitalization stocks adding 21.31%. In foreign markets, the MSCI EAFE® Index, a barometer for foreign stocks in developed markets, gained only 1.00%, though the MSCI Emerging Markets Index, a measure of the performance of emerging stock markets throughout the world, rose 11.19%.* While developed foreign markets struggled under the weight of Brexit and longer-term fiscal burdens, emerging markets derived more of their value from domestic interactions and benefited more from that alignment.

Bonds performed well for much of the year, but dropped sharply following the U.S. election, as investors tried to anticipate what political policy might mean for bond markets in 2017 and beyond. The Bloomberg Barclays U.S. Aggregate Bond Index, a broad measure of the U.S. investment-grade bond markets, rose as much as 6% in July, but ended the year up only 2.65%. The performance of shorter-term debt investments continued to reflect the unrelenting low interest rate environment. Yields on the 2-year U.S. Treasury bond closed the year at 1.19%, while 10-year Treasury bonds yielded 2.44% at year end. These higher year-over-year yields reflect the turbulence in the fixed-income markets following the U.S. election. A “risk-on” environment developed as the year unfolded and high-yield bonds benefited. The Bloomberg Barclays U.S. Corporate High-Yield Index, which measures the performance of fixed-rate, below-investment-grade debt from corporate sectors, returned 17.13%.*

These returns were not without market volatility and surprises, however. Before rebounding, major indexes fell sharply through January and into February – until the Fed’s announcement triggered a more sustained period of growth. Markets stuttered briefly in May over concerns that Apple might not be able to sustain its growth in the smartphone market. Following a brief post-Brexit drop in late June, neither the surprising Brexit outcome nor global economic turbulence could disrupt the upward momentum in U.S. markets. Particularly noteworthy is the fact that domestic equity markets added nearly half of their annual returns in the final seven weeks of the year, as investors cheered President-elect Trump’s promises for tax abatements and infrastructure spending.

Q1 2016 – The inflection point

Headwinds affecting markets in late 2015 continued into January and early February of 2016. China’s slowing economy and falling crude oil prices, along with a weak January employment report, stoked fears that a U.S. recession could be on the near-term horizon. By February 11, the S&P 500 had dropped to 1,810. At this point, Fed Chair Janet Yellen signaled that the central bank would be patient in beginning to normalize policy interest rates and that it was unlikely that economic conditions would warrant an increase in the target range for the federal funds rate for at least the next few Open Market Committee meetings. (The federal funds rate is the interest rate that banks and financial institutions charge each other for borrowing funds overnight.)

 

* Indexes are unmanaged, do not incur fees or expenses and cannot be purchased directly for investment.

 

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MML Series Investment Fund – Economic and Market Overview (Unaudited) (Continued)

 

Headwinds ultimately shifted to tailwinds. The S&P 500 gained nearly 250 points by the end of the first quarter, initiating a rally that would more or less be sustained throughout the second and third quarters of 2016. The employment picture improved, as February’s non-farm payrolls came in stronger than the previous two months, and December 2015 and January 2016 payroll numbers were revised upward. Once again, the quarter recovered what it had lost and ended essentially where it started the year. Despite this, the climate had changed.

Q2 2016 – Domestic markets override negative interest rates and Brexit

While Britain’s historic Brexit vote dominated news at the end of the second quarter, the unusual arrival of negative interest rates for Japan’s sovereign debt proved puzzling for many investors early in the quarter. Both seemed to feed a “flight to quality” reaction that resulted in a stronger U.S. dollar. Neither event, however, derailed the strengthening U.S. economy. By the end of the second quarter, concerns about China’s economy and falling oil prices moderated. U.S. GDP firmed up and the Fed softened its interest rate strategy, taking a more cautious approach. May’s disappointing jobs report created investor concerns that the Fed could seriously consider suspending any interest rate hikes for at least a year. Nevertheless, the quarter ended with broad-based gains across a variety of asset classes, improved consumer spending, low unemployment rates, and better-than-expected corporate earnings reports.

On June 23, global economic focus shifted to the United Kingdom. The Brexit vote pushed European stocks more deeply into negative territory on concerns that the immediate impact might slow growth in the U.K. and the larger European region. Investors also worried that the British vote might encourage other countries to follow suit. Interestingly, emerging market and Pacific country stocks delivered positive returns for the quarter and year-to-date.

Q3 2016 – Campaign rhetoric overshadows economic momentum

By the end of July, it seemed markets had shrugged off Brexit fears. The U.S. economy was gathering steam, as evidenced on several fronts. The U.S. labor market continued to show strength as job openings rose in June and hiring increased. U.S. consumer confidence hit a 12-month high in August, according to the Conference Board’s Consumer Confidence Index®, which reflected improved consumer assessment of economic conditions and the six-month economic outlook. Corporate earnings came in better than expected for the second consecutive quarter, even though it was the fifth consecutive declining quarter. In mid-September, the U.S. Census Bureau announced that real median household income had jumped 5%, the biggest annual increase since they first started gathering this data in 1968. The two major U.S. presidential candidates accepted their party’s nominations in July. As September came to a close, it became more evident that the upcoming election would be both hotly contested and divisive.

Q4 2016 – The Fed takes a back seat

Prior to the November elections, the Fed held the throttle on the markets. In October, speculation about the next rate hike (whether it would happen before the end of the year and how frequently subsequent rate hikes might occur) dominated investor thinking. At the same time, increasingly heated campaign rhetoric served as a drag while investors tried to figure out what the next four years might look like in either case. On the morning following the U.S. election, market futures pointed sharply downward, as the widely expected presidential winner, Hillary Clinton, conceded electoral vote defeat to Donald J. Trump. When markets opened on November 9, buyers surged, however, as investors anticipated the economic impacts of the President-elect delivering on his pro-business and pro-domestic campaign rhetoric. This buoyant investor sentiment launched a year-end rally that pushed the S&P 500 up 5.3% by year-end, with nearly half of the Index’s 11.96% return occurring in the last seven weeks of the year. In December, the Fed did, indeed, raise policy interest rates, but the market throttle now appeared to be in other hands.

Going into 2017, markets have yet to digest the upcoming Trump presidency in an environment where the Fed is forecasting multiple rate hikes. Turning to the global stage, by the end of March 2017, Britain’s Prime Minister, Theresa May, plans to trigger Article 50 of the Lisbon Treaty, which would initiate the two-year process of withdrawing the U.K. from the European Union. Terrorism and military posturing add further tensions to the global environment.

Domestic equity markets delivered solid returns for investors in 2016, but investors endured a steady stream of uncertainty, surprises and volatility throughout. Long-term investors with a view to saving for retirement income pay attention to such things,

 

4

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MML Series Investment Fund – Economic and Market Overview (Unaudited) (Continued)

 

but maintain a thoughtful and disciplined response to them. Many retirement investors wisely subscribe to the value of a well-diversified portfolio, using an appropriate mix of available strategies to benefit from market expansions and mitigate the risks inherent in unexpected events.

The information provided is the opinion of MassMutual Funds Investment Management Group as of 12/31/16 and is subject to change without notice. It is not to be construed as tax, legal or investment advice. Of course, past performance does not guarantee future results.

 

5

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MML Blue Chip Growth Fund – Portfolio Manager Report (Unaudited)

 

What is the investment approach of MML Blue Chip Growth Fund, and who is the Fund’s subadviser?

The Fund seeks long-term capital growth. Income is a secondary objective. Under normal circumstances, the Fund invests at least 80% of net assets (plus the amount of any borrowings for investment purposes) in the common stocks of large- and medium-sized blue chip growth companies. The Fund’s subadviser currently defines blue chip growth companies to mean firms that, in its view, are well-established in their industries and have the potential for above-average earnings growth. The Fund’s subadviser is T. Rowe Price Associates, Inc. (T. Rowe Price).

How did the Fund perform during the 12 months ended December 31, 2016?

The Fund’s Initial Class shares returned 0.91%, underperforming, by a wide margin, the 7.08% return of the Russell 1000® Growth Index (the “benchmark”), an unmanaged index consisting of those Russell 1000 securities (representing the 1,000 largest U.S. companies based on market capitalization) with greater than average growth orientation that tend to exhibit higher price-to-book ratios and higher forecasted growth rates than securities in the value universe. In addition, the Fund substantially underperformed the 11.96% return of the S&P 500® Index, a widely recognized, unmanaged index representative of common stocks of larger capitalized U.S. companies.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

Overall, stock selection was the primary reason for the Fund’s underperformance, relative to the benchmark, for the year ended December 31, 2016. From a sector perspective, health care, information technology, and consumer discretionary were the largest relative detractors, whereas financials and real estate were the leading outperformers.

Health care was the largest relative detractor, mainly due to stock selection, but an underweight allocation to the sector, relative to the benchmark, also hurt performance. Early in the year, shares of Fund holding Alexion Pharmaceuticals sold off along with other larger biotechnology stocks. The company issued disappointing guidance that fell below consensus analyst estimates, and shares declined sharply in the second quarter after the announcement of disappointing results of a phase III clinical trial. Shares of another Fund holding, Allergan, declined earlier in the year when its proposed merger with Pfizer was called off after the U.S. Treasury Department issued a notice aimed at curbing the benefits of tax inversions. (Tax inversion is the practice of relocating a corporation’s legal domicile to a nation that imposes lower taxes, or to a tax haven, usually while keeping its primary operations in its country of origin.) The Fund subsequently trimmed its position in Allergan.

Information technology underperformed on stock selection. The Fund’s overweight exposure to Fund holding salesforce.com, a cloud software firm, detracted from relative returns in the latter half of 2016, largely in response to a lack of clarity surrounding the company’s acquisition strategy. Sentiment weighed on the stock based on its failed efforts to acquire LinkedIn and on rumors of the CEO’s interest in acquiring Twitter. While shares of internet software and services provider Alphabet (the parent company of Google) lagged for the year and weighed on the Fund’s relative performance, this stock remains a top Fund holding.

Consumer discretionary underperformed largely on stock selection. The Fund’s exposure to travel companies Norwegian Cruise Line Holdings and Royal Caribbean Cruises weighed on relative returns due to heightened uncertainty about global travel trends. Challenges facing the industry included terrorist activity around the globe, concerns about the Zika virus, the United Kingdom’s vote to leave the European Union (also known as “Brexit”), and foreign exchange volatility.

Financials outperformed mainly on stock selection, but the Fund’s overweight position in the sector was also beneficial. Fund holding Morgan Stanley, a global investment bank, rose sharply in the second half of the year, along with the broader financials sector. The outcome of the U.S. presidential election caused investors to view the outlook for financials in a positive light amid expectations for reduced regulations, lower corporate taxes, and rising interest rates and inflation, all of which could be materially beneficial to the sector.

 

6

Table of Contents

MML Blue Chip Growth Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Subadviser outlook

Our view is that large-cap growth stock valuations appear relatively attractive versus their value counterparts and compared with small- and mid-cap stocks, which recently recorded strong fourth-quarter and 12-month gains. We are not concerned that interest rates are rising, because moderately rising rates are a sign that the economy is growing. If President-elect Trump’s agenda is pursued successfully, we believe that multinational companies could benefit from improving global growth. Our belief is that large-cap growth stocks have the potential to benefit from a rollback in corporate tax rates and an increase in infrastructure spending in 2017.

 

MML Blue Chip Growth Fund
Largest Holdings
(% of Net Assets) on 12/31/16		  
   

Amazon.com, Inc.

      8.3 % 

Facebook, Inc. Class A

      4.6 % 

Alphabet, Inc. Class C

      4.4 % 

The Priceline Group, Inc.

      4.2 % 

Microsoft Corp.

      3.5 % 

Visa, Inc. Class A

      2.8 % 

MasterCard, Inc. Class A

      2.7 % 

Alphabet, Inc. Class A

      2.5 % 

Danaher Corp.

      2.4 % 

UnitedHealth Group, Inc.

      2.2 % 
    

 

 

  
       37.6 % 
    

 

 

  
MML Blue Chip Growth Fund
Sector Table
(% of Net Assets) on 12/31/16		  
   

Communications

      30.5 % 

Consumer, Non-cyclical

      21.3 % 

Consumer, Cyclical

      14.0 % 

Financial

      13.8 % 

Technology

      11.4 % 

Industrial

      8.0 % 

Utilities

      0.3 % 

Basic Materials

      0.1 % 

Mutual Funds

      0.0 % 
    

 

 

  

Total Long-Term Investments

      99.4 % 

Short-Term Investments and Other Assets and Liabilities

      0.6 % 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  
 

 

7

Table of Contents

MML Blue Chip Growth Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Blue Chip Growth Fund Initial Class, the Russell 1000 Growth Index, and the S&P 500 Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Ten Year
Average
Annual
1/1/07 -
12/31/16		  
Initial Class     0.91%        15.39%        8.32%   
Russell 1000 Growth Index*     7.08%        14.50%        8.33%   
S&P 500 Index     11.96%        14.66%        6.95%   

Hypothetical Investments in MML Blue Chip Growth Fund Service Class, the Russell 1000 Growth Index, and the S&P 500 Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Since
Inception
Average
Annual
8/15/08 -
12/31/16		  
Service Class     0.65%        15.09%        9.52%   
Russell 1000 Growth Index*     7.08%        14.50%        9.74%   
S&P 500 Index     11.96%        14.66%        9.13%   

GROWTH OF $10,000 INVESTMENT FOR THE PAST 10 YEARS

 

LOGO

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

* Benchmark

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the Russell 1000 Growth Index and the S&P 500 Index are unmanaged, do not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

8

Table of Contents

MML Equity Income Fund – Portfolio Manager Report (Unaudited)

 

What is the investment approach of MML Equity Income Fund, and who is the Fund’s subadviser?

The Fund seeks dividend income and long-term capital growth by investing primarily in the common stocks of established companies. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in common stocks, with 65% in the common stocks of well-established companies paying above-average dividends. The Fund’s subadviser currently considers well-established companies to mean companies that it considers to be seasoned companies with relatively long operating histories. The Fund’s subadviser is T. Rowe Price Associates, Inc. (T. Rowe Price).

How did the Fund perform during the 12 months ended December 31, 2016?

The Fund’s Initial Class shares returned 18.68%, outperforming, by a wide margin, the 11.96% return of the S&P 500® Index (the “benchmark”), a widely recognized, unmanaged index representative of common stocks of larger capitalized U.S. companies. In addition, the Fund outperformed the 17.34% return of the Russell 1000® Value Index, an unmanaged index consisting of those Russell 1000 securities (representing the 1,000 largest U.S. companies, based on market capitalization) with greater than average value orientation that tend to exhibit lower price-to-book ratios and lower forecasted growth rates than securities in the growth universe.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2016, sector weightings contributed to the Fund’s performance, relative to the benchmark, as did stock selection. Leading contributors to relative results were the information technology and consumer staples sectors. The telecommunication services, consumer discretionary, and financials sectors detracted from performance.

The information technology sector contributed to relative performance largely due to stock selection. Sector Fund holding, Applied Materials, the leading supplier of equipment services and software used to manufacture semiconductors, benefited from a surge in spending on the latest memory chip technology for mobile devices and displays, as well as from stronger demand in China. An underweight allocation and stock selection in the consumer staples sector also boosted the Fund’s relative results. Agricultural processor Archer-Daniels-Midland, one Fund holding within the sector, performed well, driven by a robust U.S. harvest, higher U.S. exports, and higher ethanol margins.

Stock selection in the telecommunication services sector detracted from relative performance for the year. United Kingdom-based Vodafone was one Fund holding within the sector that declined, driven by negative currency effects and concerns that the Brexit vote, which authorized the U.K.’s departure from the European Union, could lead to higher regulatory hurdles for a potentially synergistic deal with Liberty Global. Significant exposure to the consumer discretionary sector also hindered relative results, as did stock selection in the financials sector. In financials, Fund holding U.K.-based Royal Bank of Scotland suffered from additional provisions for litigation claims, persistently low U.K. interest rates, and higher macroeconomic uncertainty following the Brexit vote.

During the year, the Fund used a kind of derivative called a “right.” (Derivatives are securities that derive their value from the performance of one or more other investments and take the form of a contract between two or more parties. Most derivatives are used for hedging, speculation, or both.) Rights give stockholders the ability to buy stock at a predetermined price (normally at a discount) in proportion to the number of shares already owned. Rights are issued only for a limited time, after which they expire. The Fund held rights at various points throughout the year. These derivatives had a negligible effect on the Fund’s performance.

Subadviser outlook

Despite facing several geopolitical events during the year, the market performed surprisingly well. Issues such as Russia’s activity in Syria, tensions in the Middle East, and provocative actions from North Korea introduced uncertainties that have the potential to escalate into crises. Additionally, electorates in many countries have exhibited levels of responsiveness to populist messages not seen in decades. In the U.S., the market repositioned itself for the expected policy initiatives of the incoming Trump

 

9

Table of Contents

MML Equity Income Fund – Portfolio Manager Report (Unaudited) (Continued)

 

administration, but significant uncertainty remains as to whether actual policy will match expectations. The U.S. dollar remained strong, and in addition to a December rate hike, the U.S. Federal Reserve Board communicated expectations for additional rate increases, as increasing wage pressure and fiscal stimulus could result in higher inflation.

In this environment, we expect increased volatility and modest equity returns in the coming months, as future U.S. policy starts to materialize, allowing market participants to assess the longer-term impact to the global economy. Following recent strength, valuations appear more stretched to us, although they have fallen in traditionally defensive sectors in anticipation of rising U.S. interest rates. Given the environment, we are finding more opportunities to sell than buy; however, the cross-currents in the market continue to provide the Fund with select opportunities to purchase quality companies trading at relatively attractive valuations.

 

MML Equity Income Fund
Largest Holdings
(% of Net Assets) on 12/31/16		  
   

JP Morgan Chase & Co.

      3.5 % 

Exxon Mobil Corp.

      2.7 % 

Microsoft Corp.

      2.1 % 

Morgan Stanley

      2.1 % 

Pfizer, Inc.

      2.0 % 

The Boeing Co.

      2.0 % 

General Electric Co.

      1.9 % 

Total SA

      1.8 % 

Wells Fargo & Co.

      1.7 % 

Johnson & Johnson

      1.7 % 
    

 

 

  
       21.5 % 
    

 

 

  
MML Equity Income Fund
Sector Table
(% of Net Assets) on 12/31/16		  
   

Financial

      26.7 % 

Consumer, Non-cyclical

      13.5 % 

Industrial

      12.7 % 

Energy

      11.0 % 

Utilities

      7.8 % 

Communications

      7.7 % 

Technology

      7.6 % 

Consumer, Cyclical

      6.0 % 

Basic Materials

      4.9 % 

Mutual Funds

      0.0 % 
    

 

 

  

Total Long-Term Investments

      97.9 % 

Short-Term Investments and Other Assets and Liabilities

      2.1 % 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  
 

 

10

Table of Contents

MML Equity Income Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Equity Income Fund Initial Class, the S&P 500 Index, and the Russell 1000 Value Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Ten Year
Average
Annual
1/1/07 -
12/31/16		  
Initial Class     18.68%        12.62%        5.53%   
S&P 500 Index*     11.96%        14.66%        6.95%   
Russell 1000 Value Index     17.34%        14.80%        5.72%   

Hypothetical Investments in MML Equity Income Fund Service Class, the S&P 500 Index, and the Russell 1000 Value Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Since
Inception
Average
Annual
8/15/08 -
12/31/16		  
Service Class     18.46%        12.34%        7.45%   
S&P 500 Index*     11.96%        14.66%        9.13%   
Russell 1000 Value Index     17.34%        14.80%        8.60%   

GROWTH OF $10,000 FOR THE PAST 10 YEARS

 

LOGO

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

 

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

* Benchmark

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the S&P 500 Index and the Russell 1000 Value Index are unmanaged, do not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

11

Table of Contents

MML Equity Index Fund – Portfolio Manager Report (Unaudited)

 

What is the investment approach of MML Equity Index Fund, and who is the Fund’s subadviser?

The Fund’s investment objective is to provide investment results that correspond to the price and yield performance of publicly traded common stocks in the aggregate as represented by the S&P 500® Index* (the “Index”). Under normal circumstances, the Fund invests at least 80% (and, typically, substantially all) of its net assets (plus the amount of any borrowings for investment purposes) in the equity securities of companies included within the Index. The Fund’s subadviser is Northern Trust Investments, Inc. (NTI).

How did the Fund perform during the 12 months ended December 31, 2016?

The Fund’s Class I shares returned 11.48%, slightly underperforming the 11.96% return of the Index, a widely recognized, unmanaged index representative of common stocks of larger capitalized U.S. companies.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

The Fund’s underperformance versus the Index is mainly attributable to the impact of fees and expenses necessary for the management and operation of the Fund. The Index is not subject to fees or expenses, and it is not possible to invest directly in the Index.

For the year ended December 31, 2016, energy and telecommunication services were the strongest-performing sectors within the Index, whereas the health care and real estate sectors returned the worst performances.

The first two weeks of 2016 began with U.S. markets spiraling downward over 8%, as problems with the Chinese economy preoccupied investors and crashing oil prices weighed on investor sentiment. Markets rebounded as global central banks expanded monetary operations yet again in response to signs of slow growth.

The June 23 “Brexit” referendum in Britain brought a surprise victory for the “leave” campaign. Brexit – an abbreviation for “British exit” – was the referendum that authorized the U.K.’s withdrawal from the European Union. The vote resulted in significantly increased volatility across asset classes and caused an immediate drop in global equity markets. U.S. equities rallied in subsequent days, wiping away losses. While many investors had expected two interest rate hikes over the course of the year, weak economic data helped push the U.S. Federal Reserve (the Fed) into delaying a rate increase until December. Federal Open Market Committee projections issued at that time implied the potential for three hikes in 2017.

In November, OPEC approved its first production cut in eight years, pushing oil prices above the $50/barrel mark. U.S. equities finished the year strong after heightened volatility in the run-up to the November presidential election. The majority of the rally was driven by the promise of Republican pro-growth initiatives – including tax reform and regulatory rollbacks – in addition to potential increases in infrastructure spending proposed by the Trump administration.

Jobless claims reached multi-year lows as the year concluded, with a 4.7% national unemployment rate. The yield curve shifted higher and steeper during the fourth quarter as the 10-year Treasury rose above 2.4%. (The yield curve is a graph showing the term structure of interest rates by plotting the yields of all bonds of comparable quality with maturities ranging from the shortest – typically one month – to the longest – typically 30 years – available. The resulting curve shows whether short-term interest rates are higher or lower than long-term rates.) Although inflation remained stubbornly low throughout 2016, investors pushed interest rates upward in anticipation of higher growth and inflation in 2017. These expectations resulted in post-election U.S. dollar strength against foreign currencies.

 

* The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by MML Advisers. Standard & Poor’s®, S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by MML Advisers. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.

 

12

Table of Contents

MML Equity Index Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Subadviser outlook

Although it is impossible to predict the direction that the equity markets will take as we move into 2017 – after its positive performance, overall, in the past year – numerous forces will influence the direction that the market takes moving forward. These include the legislative and policy changes implemented by the Trump administration and the Republican House and Senate, Fed policy, unemployment, and developments on the world stage – such as the continuing impact of the strong dollar, the direction of oil prices, and any additional fallout from the Brexit vote. We believe, however, that the Fund continues to be well positioned to pursue returns that are consistent with those of the Index.

 

MML Equity Index Fund
Largest Holdings
(% of Net Assets) on 12/31/16		  
   

Apple, Inc.

      3.1 % 

Microsoft Corp.

      2.4 % 

Exxon Mobil Corp.

      1.9 % 

Johnson & Johnson

      1.6 % 

Berkshire Hathaway, Inc. Class B

      1.5 % 

JP Morgan Chase & Co.

      1.5 % 

Amazon.com, Inc.

      1.5 % 

General Electric Co.

      1.4 % 

Facebook, Inc. Class A

      1.3 % 

AT&T, Inc.

      1.3 % 
    

 

 

  
       17.5 % 
    

 

 

  
MML Equity Index Fund
Sector Table
(% of Net Assets) on 12/31/16		  
   

Consumer, Non-cyclical

      22.0 % 

Financial

      17.2 % 

Communications

      13.1 % 

Technology

      12.6 % 

Industrial

      9.8 % 

Consumer, Cyclical

      8.8 % 

Energy

      7.3 % 

Utilities

      3.1 % 

Basic Materials

      2.5 % 

Diversified

      0.0 % 
    

 

 

  

Total Long-Term Investments

      96.4 % 

Short-Term Investments and Other Assets and Liabilities

      3.6 % 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  
 

 

13

Table of Contents

MML Equity Index Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Equity Index Fund Class I, Class II, Class III, and the S&P 500 Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Ten Year
Average
Annual
1/1/07 -
12/31/16		  
Class I     11.48%        14.17%        6.52%   
Class II     11.62%        14.35%        6.68%   
Class III     11.69%        14.50%        6.83%   
S&P 500 Index     11.96%        14.66%        6.95%   

Hypothetical Investments in MML Equity Index Fund Service Class I and the S&P 500 Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Since
Inception
Average
Annual
8/15/08 -
12/31/16		  
Service Class I     11.19%        13.88%        8.41%   
S&P 500 Index     11.96%        14.66%        9.13%   

GROWTH OF $10,000 INVESTMENT FOR THE PAST 10 YEARS

 

LOGO

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

 

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the S&P 500 Index is unmanaged, does not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

14

Table of Contents

MML Focused Equity Fund – Portfolio Manager Report (Unaudited)

 

What is the investment approach of MML Focused Equity Fund, and who is the Fund’s subadviser?

The Fund seeks growth of capital over the long-term by investing primarily in equity securities of U.S. companies that the Fund’s subadviser believes are undervalued. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in equity securities. The Fund’s subadviser is Harris Associates L.P. (Harris).

How did the Fund perform during the 12 months ended December 31, 2016?

The Fund’s Class II shares returned 17.96%, outperforming, by a wide margin, the 12.05% return of the Russell 1000® Index (the “benchmark”), a widely recognized, unmanaged index representing the performance of common stocks of larger capitalized U.S. companies.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2016, Fund holdings in the industrials sector produced the largest return for the Fund. There, top Fund holdings included Cummins and Caterpillar, both industrial construction machinery manufacturers. The industrials sector also delivered the best results relative to the benchmark.

The best-performing individual Fund holding was industrials sector holding Cummins, whose quarterly results benefited from ongoing restructuring and cost-reduction initiatives, and earnings per share beat market forecasts for the first and second quarters of 2016. Management repurchased 7 million shares through its third quarter and authorized another $1 billion share repurchase plan to be enacted upon the completion of the first plan. The next-best results came from financial company Goldman Sachs and industrials firm Caterpillar, which both added substantially to the Fund’s performance for the year.

Turning to the downside, the real estate sector supplied the largest negative collective absolute return, owing to the Fund’s single holding within that market segment, real estate management and development company CBRE Group. Energy was the only other sector that declined for the period, as the Fund’s lone underlying energy holding, oil and gas exploration/production firm Anadarko (eliminated in the second quarter), lost value during the holding period.

On a stock-specific basis, real estate holding CBRE Group also diminished the Fund’s full-year performance the most, as its share price declined exclusively in the first half of the year due to various market factors and investors’ anxiety about the business impact from Brexit. (“Brexit” – an abbreviation for “British exit” – was the United Kingdom’s surprising June 2016 referendum to leave the European Union.) CBRE’s second-quarter earnings results reflected weak property sales. This was particularly the case in the U.K., where Brexit caused market-wide property sales to fall 40%, negatively affecting CBRE’s earnings guidance. Fund holdings technology company Intel and energy capital goods firm NOW were the next-greatest detractors from the Fund’s overall return in 2016.

Subadviser outlook

The results of November’s U.S. presidential election prompted upward market movements in the fourth quarter, capping a year in which markets finished stronger than they started. As value investors, we feel that our key task is to see through the haze generated by market pundits who are overly influenced by geopolitical events such as referendums and elections. Instead, we focus on the fundamental drivers of long-term cash flows. We seek to make investment decisions based on a company’s ability to generate and sustain a growing cash flow stream. While the market chased stable stocks in the face of uncertainty, our belief is that the attractive valuations in financials and cyclically exposed areas of the market provide more safety.

 

15

Table of Contents

MML Focused Equity Fund – Portfolio Manager Report (Unaudited) (Continued)

 

MML Focused Equity Fund
Largest Holdings
(% of Net Assets) on 12/31/16		  
   

Wells Fargo & Co.

      7.2 % 

General Motors Co.

      6.7 % 

Alphabet, Inc. Class C

      6.0 % 

JP Morgan Chase & Co.

      5.9 % 

Charter Communications, Inc. Class A

      5.7 % 

American International Group, Inc.

      5.6 % 

HCA Holdings, Inc.

      5.3 % 

CarMax, Inc.

      5.0 % 

Baxter International, Inc.

      4.8 % 

BlackRock, Inc.

      4.6 % 
    

 

 

  
       56.8 % 
    

 

 

  
MML Focused Equity Fund
Sector Table
(% of Net Assets) on 12/31/16		  
   

Financial

      34.5 % 

Communications

      24.5 % 

Consumer, Cyclical

      15.9 % 

Consumer, Non-cyclical

      14.0 % 

Industrial

      8.9 % 
    

 

 

  

Total Long-Term Investments

      97.8 % 

Short-Term Investments and Other Assets and Liabilities

      2.2 % 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  
 

 

16

Table of Contents

MML Focused Equity Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Focused Equity Fund Class II and the Russell 1000 Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Since
Inception
Average
Annual
12/8/11 -
12/31/16		  
Class II     17.96%        14.96%        14.85%   
Russell 1000 Index     12.05%        14.69%        14.42%   

Hypothetical Investments in MML Focused Equity Fund Service Class I and the Russell 1000 Index.

 

     
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Since
Inception
Average
Annual
5/1/12 -
12/31/16		  
Service Class I     17.74%        12.39%   
Russell 1000 Index     12.05%        12.97%   

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

 

LOGO

 

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com

Investors should note that the Fund is a professionally managed mutual fund, while the Russell 1000 Index is unmanaged, does not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund's prospectus with regard to the Fund's investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund's return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

17

Table of Contents

MML Foreign Fund – Portfolio Manager Report (Unaudited)

 

What is the investment approach of MML Foreign Fund, and who is the Fund’s subadviser?

The Fund seeks long-term capital growth by investing, under normal circumstances, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in investments of issuers located outside of the U.S., including those in emerging markets. Under normal market conditions, the Fund invests predominantly in equity securities, consisting primarily to predominantly of common stocks, and, while there are no set percentage targets, the Fund invests predominantly in large- to medium-capitalization companies with market capitalization values greater than $2 billion and may invest a portion in smaller companies. The Fund’s subadviser is Templeton Investment Counsel, LLC (Templeton).

How did the Fund perform during the 12 months ended December 31, 2016?

The Fund’s Initial Class shares returned 1.44%, outperforming the 1.00% return of the MSCI EAFE Index (the “benchmark”), a widely recognized, unmanaged index representative of equity securities in developed markets around the world, excluding the U.S. and Canada.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2016, the Fund’s stock selection in Europe, particularly in France and Germany, benefited its performance, relative to the benchmark. Security selection in Asia was also a performance driver. Within that region, off-benchmark exposure to South Korea contributed significantly to relative returns.

From a sector perspective, stock selection in the information technology sector benefited the Fund’s relative performance. Within the sector, South Korea-based consumer electronics manufacturer Samsung Electronics, a Fund holding that is not a benchmark constituent, was a significant contributor. Security selection in the consumer staples sector also boosted the Fund’s relative performance; specifically, Fund holding Tesco, a U.K.-based grocery retailer, fueled returns. An overweight allocation, relative to the benchmark, in the materials sector also boosted the Fund’s relative performance, and within the sector, a Fund holding that contributed significantly was specialty materials and chemicals manufacturer LANXESS (Germany). Other Fund holdings that helped to drive full-year returns included Subsea 7 (U.K.), an out-of-benchmark offshore energy services provider; and independent oil and gas company Royal Dutch Shell (the Netherlands) – both in the energy sector.

In contrast, the Fund’s sole holding in Israel detracted significantly from relative performance for the year. In Europe, positioning in Sweden, Switzerland, and Italy hampered returns, while off-benchmark exposure to China weighed on results in Asia.

Stock selection and an overweight position in the financials sector detracted from the Fund’s relative performance, as did an overweight stake and security selection in the health care sector. Stock selection in the industrials sector also weighed on relative results. Within financials, Switzerland-based financial services firm Credit Suisse Group and Italy-based commercial bank UniCredit were two Fund holdings that were leading detractors. In the health care sector, one Fund holding that significantly hindered results was generic drug manufacturer Teva Pharmaceutical Industries (Israel). Other Fund holdings that detracted notably included U.K. retailer Marks & Spencer Group in the consumer discretionary sector, U.K. telecommunications firm Vodafone Group in the telecommunication services sector, and Sweden-based health care products and services provider Getinge in the health care sector.

During the period, the U.S. dollar appreciated against most foreign currencies, which also hurt the Fund’s performance because investments in securities with non-U.S. currency exposure lost value as the dollar rose.

Subadviser outlook

A critical lesson we have learned through decades of investing in global equity markets is that returns seem to accrue to value intermittently. Our style of investing has historically produced positive performance over a long-term investment horizon. However, it has rarely been a steady appreciation. While we believe that near-term consolidation is possible should the value rally

 

18

Table of Contents

MML Foreign Fund – Portfolio Manager Report (Unaudited) (Continued)

 

get ahead of itself, we believe the fundamental underpinnings for value’s recovery remain intact, and expect the next leg to be driven by improving earnings. Rate cycles are long and difficult to call, though our view is that signs of a turning point may be emerging. We believe that being properly positioned for these turns is essential to capturing the long-term benefits of the value investment discipline. We expect further financial repression and low real rates (though nominal rates may rise) as indebted governments continue deficit spending. We believe that 2017 looks like a challenging environment for investors in bonds and equity-market bond proxies. Real assets like equities are better positioned, in our view, although investors must be discriminating. While this environment has been, and may remain, painful for some time, we believe the eventual normalization of these extremes represents the most compelling opportunity in equity markets today, and we have positioned the Fund accordingly.

 

MML Foreign Fund
Largest Holdings
(% of Net Assets) on 12/31/16		  
   

Samsung Electronics Co., Ltd.

      3.0 % 

BP PLC

      2.9 % 

Royal Dutch Shell PLC Class B

      2.8 % 

BNP Paribas

      2.0 % 

Roche Holding AG

      2.0 % 

HSBC Holdings PLC

      1.7 % 

Teva Pharmaceutical Industries Ltd. Sponsored ADR (Israel)

      1.7 % 

Sanofi

      1.7 % 

Eni SpA

      1.7 % 

Bayer AG

      1.6 % 
    

 

 

  
       21.1 % 
    

 

 

  
MML Foreign Fund
Sector Table
(% of Net Assets) on 12/31/16		  
   

Financial

      22.6 % 

Consumer, Non-cyclical

      17.1 % 

Energy

      13.7 % 

Industrial

      12.8 % 

Communications

      11.4 % 

Consumer, Cyclical

      7.6 % 

Technology

      6.3 % 

Basic Materials

      5.8 % 

Mutual Funds

      0.6 % 
    

 

 

  

Total Long-Term Investments

      97.9 % 

Short-Term Investments and Other Assets and Liabilities

      2.1 % 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  
 

 

19

Table of Contents

MML Foreign Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Foreign Fund Initial Class and the MSCI EAFE Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Ten Year
Average
Annual
1/1/07 -
12/31/16		  
Initial Class     1.44%        5.40%        0.59%   
MSCI EAFE Index     1.00%        6.53%        0.75%   

Hypothetical Investments in MML Foreign Fund Service Class and the MSCI EAFE Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Since
Inception
Average
Annual
8/15/08 -
12/31/16		  
Service Class     1.18%        5.13%        1.20%   
MSCI EAFE Index     1.00%        6.53%        1.95%   

GROWTH OF $10,000 FOR THE PAST 10 YEARS

 

LOGO

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the MSCI EAFE Index is unmanaged, does not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

 

20

Table of Contents

MML Fundamental Growth Fund – Portfolio Manager Report (Unaudited)

 

What is the investment approach of MML Fundamental Growth Fund, and who is the Fund’s subadviser?

The Fund seeks long-term growth of capital by investing primarily in domestic equity securities that the Fund’s subadviser believes offer the potential for long-term growth. The Fund’s subadviser is Wellington Management Company LLP (Wellington Management).

How did the Fund perform during the 12 months ended December 31, 2016?

The Fund’s Class II shares returned 3.73%, underperforming the 7.08% return of the Russell 1000® Growth Index (the “benchmark”), an unmanaged index consisting of those Russell 1000 securities (representing the 1,000 largest U.S. companies based on market capitalization) with greater than average growth orientation that tend to exhibit higher price-to-book ratios and higher forecasted growth rates than securities in the value universe.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

Security selection within the information technology sector was the greatest driver of the Fund’s underperformance versus its benchmark during the year ended December 31, 2016. Stock selection within the industrials and consumer staples sectors also detracted from relative performance, as did the Fund’s underweight exposure, relative to the benchmark, to the industrials sector. Positive stock selection within the energy and materials sectors helped to partially offset these negative results. The Fund also benefited from its overweight exposure to the information technology sector.

On a stock-specific basis, top detractors from relative performance included Fund holdings First Solar (information technology) and Microsoft (information technology). First Solar is a solar energy solutions company. Though the company was profitable and revenues nearly doubled during the first quarter of 2016, management announced revenues that were below consensus expectations. In addition, the announcement of a leadership transition and ongoing concerns about the impact of the expiration of solar Investment Tax Credit incentives weighed on the stock. The Fund sold its stake in First Solar on these concerns. An underweight position in Microsoft, a developer of software products and services, early in the period weighed on the Fund’s results relative to the benchmark. Not owning benchmark constituents UnitedHealth Group (a managed health care company) and NVIDIA (a company that designs graphics processing units for the gaming market), which both performed well during the period, also hampered the Fund’s relative performance.

Top contributors to benchmark-relative returns included Fund holdings Linear Technology (information technology) and Baker Hughes (energy). Linear Technology designs, manufactures, and markets integrated circuits. Shares rose when semiconductor company Analog Devices announced an offer to acquire the company during the third quarter of 2016. Baker Hughes, an oilfield services company, performed well during the second quarter, following news that the company would merge with General Electric to form a $30 billion oil and gas group.

Subadviser outlook

We anticipate volatility from the fallout of a change in interest rate policy over the coming year. This has been an unprecedented period of time, and we believe there will be challenges for the U.S. Federal Reserve in managing its $4 trillion balance sheet to a level that is more in line with historical levels. We see uncertainty in how this will transpire, but we expect it could be disruptive to global financial markets – potentially affecting asset prices, inflation, and profitability. We also believe these management challenges could impact areas that we and the market cannot foresee.

On a more positive note, we have had many encouraging meetings recently with CEOs who are optimistic about the prospects for their businesses. Based on the information gathered during these meetings, our view is that the potential for deregulation, lower taxes, and a more company-friendly environment has a greater likelihood going forward. The Fund is well positioned for this change.

 

21

Table of Contents

MML Fundamental Growth Fund – Portfolio Manager Report (Unaudited) (Continued)

 

At year end, the Fund held its largest overweight allocations to information technology, with energy being the Fund’s second-largest overweight position. The Fund’s greatest underweight stakes were in the consumer discretionary and consumer staples sectors.

 

MML Fundamental Growth Fund
Largest Holdings
(% of Net Assets) on 12/31/16		  
   

Apple, Inc.

      6.3 % 

Microsoft Corp.

      5.4 % 

Alphabet, Inc. Class C

      5.4 % 

Facebook, Inc. Class A

      3.1 % 

Amazon.com, Inc.

      2.4 % 

PepsiCo, Inc.

      2.3 % 

Oracle Corp.

      2.3 % 

Comcast Corp. Class A

      2.2 % 

Visa, Inc. Class A

      2.0 % 

Amgen, Inc.

      2.0 % 
    

 

 

  
       33.4 % 
    

 

 

  
MML Fundamental Growth Fund
Sector Table
(% of Net Assets) on 12/31/16		  
   

Technology

      24.8 % 

Consumer, Non-cyclical

      24.6 % 

Communications

      22.4 % 

Financial

      7.8 % 

Industrial

      7.6 % 

Energy

      5.3 % 

Consumer, Cyclical

      5.0 % 

Basic Materials

      2.4 % 
    

 

 

  

Total Long-Term Investments

      99.9 % 

Short-Term Investments and Other Assets and Liabilities

      0.1 % 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  
 

 

22

Table of Contents

MML Fundamental Growth Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Fundamental Growth Fund Class II and the Russell 1000 Growth Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Since
Inception
Average
Annual
12/8/11 -
12/31/16		  
Class II     3.73%        12.87%        12.58%   
Russell 1000 Growth Index     7.08%        14.50%        14.09%   

Hypothetical Investments in MML Fundamental Growth Fund Service Class I and the Russell 1000 Growth Index.

 

     
TOTAL RETURN   One Year
1/1/16 -
12/31/16		    

Since
Inception
Average

Annual

5/1/12 -
12/31/16

  
Service Class I     3.54%        10.09%   
Russell 1000 Growth Index     7.08%        12.29%   

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

 

LOGO

 

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com

Investors should note that the Fund is a professionally managed mutual fund, while the Russell 1000 Growth Index is unmanaged, does not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund's prospectus with regard to the Fund's investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund's return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

23

Table of Contents

MML Fundamental Value Fund – Portfolio Manager Report (Unaudited)

 

What is the investment approach of MML Fundamental Value Fund, and who is the Fund’s subadviser?

The Fund seeks long-term total return by investing primarily in equity securities of issuers that the Fund’s subadviser believes are undervalued. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in equity securities, with a focus on companies with large market capitalizations (which the subadviser believes are generally above $2 billion). The Fund’s subadviser is Wellington Management Company LLP (Wellington Management).

How did the Fund perform during the 12 months ended December 31, 2016?

The Fund’s Class II shares returned 13.25%, underperforming the 17.34% return of the Russell 1000® Value Index (the “benchmark”), an unmanaged index consisting of those Russell 1000 securities (representing the 1,000 largest U.S. companies, based on market capitalization) with greater than average value orientation that tend to exhibit lower price-to-book ratios and lower forecasted growth rates than securities in the growth universe.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

Security selection within the financials, industrials, health care, and information technology sectors detracted from the Fund’s relative performance for the year ended December 31, 2016. The Fund’s overweight allocation, relative to the benchmark, to the consumer discretionary sector, which lagged the broader index, also weighed on returns. Negative relative results were partially offset by stronger security selection within the energy sector as well as an underweight exposure to the real estate and financials sectors.

Turning to Fund holdings, top detractors from benchmark-relative performance included Norwegian Cruise Line (in the consumer discretionary sector), Bristol-Myers Squibb (health care), and Invesco (financials). Norwegian Cruise Line, a cruise ship operator, was primarily impacted by investor concerns over demand in Europe and China. However, Fund management believes that the prospects for revenue growth in the cruise industry are good, driven by a favorable supply/demand balance. Bristol-Myers Squibb is a global biopharmaceutical company whose trial for immuno-oncology drug Opdivo failed during the third quarter, driving the stock lower. Fund management maintains a favorable view on the long-term potential of immuno-oncology and the company’s strong position in the space. Invesco’s stock price was negatively impacted during the second quarter of the year, driven largely by their exposure to non-U.S. markets and foreign currencies. Brexit, in particular, weighed on the stock, as about 20% of the company’s earnings per share come from the U.K. business. (“Brexit” – an abbreviation for “British exit” – was the United Kingdom’s surprising June 23, 2016 referendum to leave the European Union.)

Top contributors to benchmark-relative results included Fund holdings Halliburton (energy) and JPMorgan Chase (financials). Shares of Halliburton, an oil field services company, rose with energy prices which, along with recent capital allocation actions, improved the balance sheets and long-term prospects for the company. JPMorgan Chase is a multinational banking and financial services company. Shares of financial stocks broadly, and JPMorgan specifically, benefited from the anticipation that the Trump administration will roll back some post-financial crisis regulations.

Subadviser outlook

We believe that there is the potential for solid growth in the U.S. economy in 2017, supported by continued growth in consumer spending and an increase in investment levels. Inventories, which have hampered growth over the last five quarters, appear to be in better balance heading into 2017, and in our view, should no longer pose a meaningful drag on the economy. We believe that decreased regulation, lower tax rates, and the potential for increased infrastructure spending could also support the economy in the coming year. On the negative side, in our opinion, the strong U.S. dollar and uncertainty surrounding foreign policy and global trade have the potential to weigh on growth in 2017.

At the end of the year, the Fund’s largest overweight allocations were in the consumer discretionary and information technology sectors, and its largest underweight stake was in real estate.

 

24

Table of Contents

MML Fundamental Value Fund – Portfolio Manager Report (Unaudited) (Continued)

 

 

MML Fundamental
Value Fund
Largest Holdings
(% of Net Assets) on 12/31/16		  
   

JP Morgan Chase & Co.

      4.9 % 

Wells Fargo & Co.

      3.9 % 

Cisco Systems, Inc.

      2.9 % 

Citigroup, Inc.

      2.7 % 

The PNC Financial Services Group, Inc.

      2.7 % 

Chevron Corp.

      2.6 % 

Merck & Co., Inc.

      2.6 % 

Intel Corp.

      2.2 % 

General Electric Co.

      2.0 % 

Chubb Ltd.

      1.7 % 
    

 

 

  
       28.2 % 
    

 

 

  
MML Fundamental
Value Fund
Sector Table
(% of Net Assets) on 12/31/16		  
   

Financial

      28.3 % 

Consumer, Non-cyclical

      15.9 % 

Energy

      12.3 % 

Industrial

      11.3 % 

Communications

      10.8 % 

Technology

      8.7 % 

Consumer, Cyclical

      6.3 % 

Utilities

      3.4 % 

Basic Materials

      2.7 % 
    

 

 

  

Total Long-Term Investments

      99.7 % 

Short-Term Investments and Other Assets and Liabilities

      0.3 % 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  
 

 

25

Table of Contents

MML Fundamental Value Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Fundamental Value Fund Class II and the Russell 1000 Value Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Since
Inception
Average
Annual
8/10/10 -
12/31/16		  
Class II     13.25%        13.24%        11.82%   
Russell 1000 Value Index     17.34%        14.80%        13.37%   

Hypothetical Investments in MML Fundamental Value Fund Service Class I and the Russell 1000 Value Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Since
Inception
Average
Annual
5/1/12 -
12/31/16		        
Service Class I     13.05%        11.28%           
Russell 1000 Value Index     17.34%        13.58%           

 

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

 

LOGO

 

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the Russell 1000 Value Index is unmanaged, does not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

26

Table of Contents

MML Global Fund – Portfolio Manager Report (Unaudited)

 

What is the investment approach of MML Global Fund, and who is the Fund’s subadviser?

The Fund seeks long-term capital appreciation by investing primarily in the equity securities of U.S. and foreign companies, including companies in developed and emerging markets. The Fund may invest a large percentage of its assets in issuers in a single country, a small number of countries, or a particular geographic region. The Fund’s subadviser is Massachusetts Financial Services Company (MFS).

How did the Fund perform during the 12 months ended December 31, 2016?

The Fund’s Class I shares returned 7.55%, modestly outperforming the 7.51% return of the MSCI World Index (the “benchmark”), an unmanaged index of issuers listed on the stock exchanges of 22 foreign countries and the U.S.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

Strong security selection in the health care, retail, and transportation sectors benefited the Fund’s relative performance for the year ended December 31, 2016. Within the health care sector, the Fund’s overweight positions, relative to the benchmark in two Fund holdings – cardiovascular medical device maker St. Jude Medical and medical equipment manufacturer Stryker – lifted relative returns. Within the retail sector, the Fund’s overweight stake in luxury goods company LVMH (France) aided relative results. Lastly, within the transportation sector, the Fund’s overweight allocation to strong-performing railroad company Canadian National Railway (Canada) and delivery service company United Parcel Service buoyed relative performance, as both Fund holdings outpaced the benchmark over the reporting period. Fund holdings in other sectors that supported relative full-year returns included media firm Time Warner, financial services firm Goldman Sachs, custody bank State Street, semiconductor manufacturer Microchip Technology, and South Korean microchip and electronics manufacturer Samsung Electronics, which is not a benchmark constituent. The Fund was overweight in all of these holdings.

Detracting from the Fund’s 2016 relative performance were stock selection and an overweight position in the consumer staples sector. Within this sector, overweight positions in beauty product manufacturer Coty and household products manufacturer Reckitt Benckiser Group (United Kingdom) held back relative results, as both Fund holdings lagged the benchmark during the reporting period. In addition, an underweight position in the strong-performing energy sector and security selection in the basic materials sector also weighed on the Fund’s relative returns. Elsewhere, holding back relative performance were overweight positions in several underperforming Fund holdings, including health care products maker Bayer (Germany), satellite television broadcaster Sky (United Kingdom), investment management and banking firm UBS (Switzerland), medical device maker Medtronic, pharmaceutical and diagnostic company Roche Holding (Switzerland), life sciences supply company Thermo Fisher Scientific, and hotel and restaurant operator Whitbread (United Kingdom). Not holding shares of strong-performing global financial services firm JPMorgan Chase also hampered the Fund’s full-year relative performance. During the reporting period, the Fund’s relative currency exposure, resulting primarily from differences between the Fund’s and the benchmark’s exposures to holdings of securities denominated in foreign currencies, detracted from relative performance.

Subadviser outlook

Whether the outcome of the 2016 U.S. presidential election should be considered a positive or negative for investors remains to be seen. But what is clear, both in Europe and in the U.S., is that anti-globalization has become and could remain a potent force. Upcoming national elections in France and Germany, for example, could be impacted to varying degrees by the backlash against globalization. It’s important to keep all of this in perspective, however. One thing investors learned from “Brexit” (an abbreviation for “British exit”), the United Kingdom’s surprising June 2016 referendum to leave the European Union (EU), is that even unexpected outcomes don’t always lead to expected results. Although observers expected equity markets to react poorly to the vote to leave the EU, in the wake of the referendum and after a few days of volatility, U.K. stock markets performed quite well, so investors who reacted rashly to the negative headlines missed the rebound. Our view continues to be that by focusing on company fundamentals rather than headlines, investors can take advantage of investment opportunities that may become available as a result of volatility.

 

27

Table of Contents

MML Global Fund – Portfolio Manager Report (Unaudited) (Continued)

 

MML Global Fund
Largest Holdings
(% of Net Assets) on 12/31/16		  
   

Thermo Fisher Scientific, Inc.

      2.7 % 

Bayer AG

      2.6 % 

Nestle SA

      2.6 % 

Honeywell International, Inc.

      2.5 % 

Time Warner, Inc.

      2.4 % 

Accenture PLC Class A

      2.3 % 

The Walt Disney Co.

      2.3 % 

Reckitt Benckiser Group PLC

      2.1 % 

Visa, Inc. Class A

      2.1 % 

Stryker Corp.

      2.0 % 
    

 

 

  
       23.6 % 
    

 

 

  
MML Global Fund
Sector Table
(% of Net Assets) on 12/31/16		  
   

Consumer, Non-cyclical

      37.2 % 

Industrial

      15.2 % 

Financial

      11.5 % 

Communications

      10.3 % 

Consumer, Cyclical

      7.9 % 

Basic Materials

      7.1 % 

Technology

      7.0 % 

Diversified

      1.8 % 

Energy

      1.4 % 

Mutual Funds

      1.3 % 
    

 

 

  

Total Long-Term Investments

      100.7 % 

Short-Term Investments and Other Assets and Liabilities

      (0.7 )% 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  
 

 

28

Table of Contents

MML Global Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Global Fund Class I, Class II, and the MSCI World Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Ten Year
Average
Annual
1/1/07 -
12/31/16		  
Class I     7.55%        11.82%        3.80%   
Class II     7.54%        11.88%        3.94%   
MSCI World Index     7.51%        10.41%        3.83%   

Hypothetical Investments in MML Global Fund Service Class I and the MSCI World Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Since
Inception
Average
Annual
8/15/08 -
12/31/16		  
Service Class I     7.34%        11.53%        6.00%   
MSCI World Index     7.51%        10.41%        5.37%   

GROWTH OF $10,000 INVESTMENT FOR THE PAST 10 YEARS

 

LOGO

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the MSCI World Index is unmanaged, does not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

29

Table of Contents

MML Growth & Income Fund – Portfolio Manager Report (Unaudited)

 

What is the investment approach of MML Growth & Income Fund, and who is the Fund’s subadviser?

The Fund seeks capital appreciation and income by investing, under normal circumstances, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in equity securities and equity-related securities, including convertible securities, preferred stocks, options, and warrants, of U.S. companies with market capitalizations at the time of purchase greater than $1 billion. The Fund’s subadviser is Massachusetts Financial Services Company (MFS).

How did the Fund perform during the 12 months ended December 31, 2016?

The Fund’s Initial Class shares returned 8.77%, underperforming the 11.96% return of the S&P 500® Index (the “benchmark”), a widely recognized, unmanaged index representative of common stocks of larger capitalized U.S. companies.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2016, stock selection in the health care sector detracted from the Fund’s performance relative to the benchmark. Most notably, specialty pharmaceutical company Valeant Pharmaceuticals International (Canada), which is not a benchmark constituent, was one Fund holding that detracted from relative performance. Similarly, the Fund’s overweight positions, relative to the benchmark, in drug maker Endo Pharmaceuticals (also not represented in the S&P 500 Index), eye care and skin care products company Allergan, health services and information technology company McKesson, life sciences supply company Thermo Fisher Scientific, and pharmaceutical company Eli Lilly dampened relative performance, as all five of these Fund holdings underperformed during the reporting period. We eliminated the Fund’s positions in Valeant Pharmaceuticals and Endo Pharmaceuticals before year end. Elsewhere, the Fund’s overweight positions in information technology company Cognizant Technology and global payments technology company Visa hurt relative results, as did not owning shares of integrated energy company Chevron.

The Fund’s cash and cash equivalents position during the period also detracted from relative performance, since the benchmark holds no cash position. While the Fund strives to be fully invested, it generally also holds a cash position to buy new holdings and to provide liquidity. In the period when markets rose sharply following the U.S. presidential election, holding this cash position further detracted from relative performance.

Contributing to the Fund’s relative performance for the year was its overweight position and stock selection in the financial services sector. With respect to specific Fund holdings, overweight positions in financial services firms Bank of America, JPMorgan Chase, Goldman Sachs, and Morgan Stanley all proved beneficial. In other sectors, the Fund’s overweight positions in media firm Time Warner, energy exploration and production company EOG Resources, global provider of banking and payment technologies Fidelity National Information Services, broadband communications and networking services provider Broadcom, and medical equipment manufacturer Stryker all aided relative performance. Not owning shares of biotechnology firm Gilead Sciences also bolstered the Fund’s relative full-year results.

Subadviser outlook

Whether the outcome of the 2016 U.S. presidential election should be considered a positive or negative for investors remains to be seen. But what is clear, both in Europe and in the U.S., is that anti-globalization has become and could remain a potent force. Upcoming national elections in France and Germany, for example, could be impacted to varying degrees by the backlash against globalization. It’s important to keep all of this in perspective, however. One thing investors learned from “Brexit” (an abbreviation for “British exit”), the United Kingdom’s surprising June 2016 referendum to leave the European Union (EU), is that even unexpected outcomes don’t always lead to expected results. Although observers expected equity markets to react poorly to the vote to leave the EU, in the wake of the referendum and after a few days of volatility, U.K. stock markets performed quite well, so investors who reacted rashly to the negative headlines missed the rebound. Our view continues to be that by focusing on company fundamentals rather than headlines, investors can take advantage of investment opportunities that may become available as a result of volatility.

 

30

Table of Contents

MML Growth & Income Fund – Portfolio Manager Report (Unaudited) (Continued)

 

 

MML Growth & Income Fund
Largest Holdings
(% of Net Assets) on 12/31/16		  
   

JP Morgan Chase & Co.

      4.3 % 

Bank of America Corp.

      3.6 % 

Visa, Inc. Class A

      2.9 % 

Alphabet, Inc. Class A

      2.6 % 

The Goldman Sachs Group, Inc.

      2.5 % 

Thermo Fisher Scientific, Inc.

      2.4 % 

American Tower Corp.

      2.4 % 

Schlumberger Ltd.

      2.3 % 

Broadcom Ltd.

      2.3 % 

Danaher Corp.

      2.1 % 
    

 

 

  
       27.4 % 
    

 

 

  
MML Growth & Income Fund
Sector Table
(% of Net Assets) on 12/31/16		  
   

Consumer, Non-cyclical

      26.3 % 

Financial

      23.3 % 

Technology

      11.7 % 

Communications

      10.7 % 

Industrial

      9.4 % 

Consumer, Cyclical

      7.4 % 

Energy

      4.9 % 

Basic Materials

      3.6 % 

Diversified

      1.5 % 

Utilities

      0.5 % 
    

 

 

  

Total Long-Term Investments

      99.3 % 

Short-Term Investments and Other Assets and Liabilities

      0.7 % 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  
 

 

31

Table of Contents

MML Growth & Income Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Growth & Income Fund Initial Class and the S&P 500 Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Ten Year
Average
Annual
1/1/07 -
12/31/16		  
Initial Class     8.77%        13.99%        4.85%   
S&P 500 Index     11.96%        14.66%        6.95%   

Hypothetical Investments in MML Growth & Income Fund Service Class and the S&P 500 Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Since
Inception
Average
Annual
8/15/08 -
12/31/16		  
Service Class     8.50%        13.72%        7.26%   
S&P 500 Index     11.96%        14.66%        9.13%   

GROWTH OF $10,000 INVESTMENT FOR THE PAST 10 YEARS

LOGO

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the S&P 500 Index is unmanaged, does not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

32

Table of Contents

MML Income & Growth Fund – Portfolio Manager Report (Unaudited)

 

What is the investment approach of MML Income & Growth Fund, and who is the Fund’s subadviser?

The Fund seeks long-term total return and current income by investing primarily in equity securities of dividend paying companies that the Fund’s subadviser believes will both increase in value over the long term and provide current income. The Fund will focus on issuers that have good prospects for capital appreciation. The Fund’s subadviser is BlackRock Investment Management, LLC (BlackRock).

How did the Fund perform during the 12 months ended December 31, 2016?

The Fund’s Initial Class shares returned 16.40%, outperforming the 11.96% return of the S&P 500® Index (the “benchmark”), a widely recognized, unmanaged index representative of common stocks of larger capitalized U.S. companies. The Fund underperformed the 17.34% return of the Russell 1000® Value Index, an unmanaged index consisting of those Russell 1000 securities (representing the 1,000 largest U.S. companies based on market capitalization) with greater than average value orientation that tend to exhibit lower price-to-book ratios and lower forecasted growth rates than securities in the growth universe.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

Entering 2016, Fund management positioned the Fund to benefit from the maturing U.S. business cycle and the slow-growth environment we anticipated could unfold over time. The Fund’s largest sector allocations were in the financials, health care, and industrials sectors.

The largest contributor to relative performance for the year ended December 31, 2016 was stock selection in the health care sector. Notably contributing to the Fund’s performance in that sector were overweight positions, relative to the benchmark, in Fund holdings UnitedHealth Group Inc., a health plan provider; and Quest Diagnostics Inc., a low-cost provider of lab services. UnitedHealth outperformed due to above-consensus growth in its Optum business and robust membership gains within its Medicare, Medicaid, and commercial segments. Shares of Quest Diagnostics advanced due to solid pricing growth amid the continued shift to more complex specialized testing. Within financials, the Fund’s large overweight position in banks also proved beneficial. Bank earnings in the second half of 2016 were generally positive and relative outperformance accelerated following the U.S. presidential election. Valuation multiples expanded during the period, reflecting investor expectations for an acceleration in U.S. nominal gross domestic product (GDP) growth and potentially rising interest rates. (GDP reflects the total value of goods and services produced in the United States.) Momentum in the banking industry also accelerated based on investor expectations for the incoming administration to enact pro-business policies, which could include a reduction in regulatory burdens. Lastly, an underweight position in real estate added to the Fund’s relative performance for the year.

The largest detractor from relative performance in 2016 was a combination of stock selection and allocation decisions in the industrials sector. Notably, underweight stakes in the machinery and airlines industries dampened relative returns. Stock selection in the consumer staples sector also hurt the Fund’s relative full-year performance. There, non-benchmark Fund holding Kroger Co., a grocery store operator, lagged after lowering 2016 projections and reporting lower-than-expected earnings, due in part to food deflation and increasing competition. Lastly, an underweight allocation to the energy sector and the metals & mining industry also detracted from the Fund’s relative returns for the year.

Subadviser outlook

One could characterize our investment outlook for 2017 as cautiously optimistic. Donald Trump’s U.S. presidential election victory has fueled investor expectations for large tax cuts, increased infrastructure spending, and reduced government regulation – and amplified U.S. growth expectations. To the extent that these assumptions can translate to stronger economic growth, our view is that stocks have the potential to reap further gains in this business cycle.

 

33

Table of Contents

MML Income & Growth Fund – Portfolio Manager Report (Unaudited) (Continued)

 

 

MML Income & Growth Fund
Largest Holdings
(% of Net Assets) on 12/31/16		  
   

Bank of America Corp.

      4.2 % 

JP Morgan Chase & Co.

      3.8 % 

Pfizer, Inc.

      3.4 % 

Wells Fargo & Co.

      2.9 % 

Citigroup, Inc.

      2.8 % 

General Electric Co.

      2.6 % 

Microsoft Corp.

      2.2 % 

Oracle Corp.

      2.0 % 

Merck & Co., Inc.

      2.0 % 

Occidental Petroleum Corp.

      1.8 % 
    

 

 

  
       27.7 % 
    

 

 

  
MML Income & Growth Fund
Sector Table
(% of Net Assets) on 12/31/16		  
   

Financial

      27.7 % 

Consumer, Non-cyclical

      21.5 % 

Energy

      12.0 % 

Industrial

      9.1 % 

Technology

      8.5 % 

Communications

      5.7 % 

Utilities

      4.8 % 

Basic Materials

      3.4 % 

Consumer, Cyclical

      3.1 % 
    

 

 

  

Total Long-Term Investments

      95.8 % 

Short-Term Investments and Other Assets and Liabilities

      4.2 % 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  
 

 

34

Table of Contents

MML Income & Growth Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Income & Growth Fund Initial Class, the S&P 500 Index, and the Russell 1000 Value Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Ten Year
Average
Annual
1/1/07 -
12/31/16		  
Initial Class     16.40%        12.12%        4.80%   
S&P 500 Index*     11.96%        14.66%        6.95%   
Russell 1000 Value Index     17.34%        14.80%        5.72%   

Hypothetical Investments in MML Income & Growth Fund Service Class, the S&P 500 Index, and the Russell 1000 Value Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Since
Inception
Average
Annual
8/15/08 -
12/31/16		  
Service Class     16.10%        11.84%        7.10%   
S&P 500 Index*     11.96%        14.66%        9.13%   
Russell 1000 Value Index     17.34%        14.80%        8.60%   

GROWTH OF $10,000 INVESTMENT FOR THE PAST 10 YEARS

LOGO

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

* Benchmark

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the S&P 500 Index and the Russell 1000 Value Index are unmanaged, do not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

35

Table of Contents

MML International Equity Fund – Portfolio Manager Report (Unaudited)

 

What is the investment approach of MML International Equity Fund, and who is the Fund’s subadviser?

The Fund seeks long-term capital growth by investing, under normal circumstances, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in equity securities of non-U.S. companies located in non-U.S. markets throughout the world, including emerging markets. The Fund may invest a substantial portion of its assets in just one region or country and may, but does not currently intend to, invest in U.S. companies. Ordinarily, the Fund’s portfolio typically holds thirty to sixty stocks and the Fund invests in the securities of at least five countries outside the U.S. The Fund’s subadviser is Harris Associates L.P. (Harris).

How did the Fund perform during the 12 months ended December 31, 2016?

The Fund’s Class II shares returned 8.27%, outperforming, by a wide margin, the 2.75% return of the MSCI World Index ex USA (the “benchmark”), an unmanaged index representative of stocks domiciled in 22 global developed markets, excluding the United States.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2016, with respect to both country and sector performance relative to the benchmark, stock selection contributed to the Fund’s results; sector weightings were also beneficial. Country weightings detracted for the reporting period.

From a geographic perspective, Fund holdings in Switzerland, the United Kingdom, and France contributed most to relative performance for the year. Half of the 30 underlying holdings in these countries produced positive absolute returns. Supplying the largest positive returns were three Fund holdings: Switzerland’s materials (metals & mining) company Glencore, U.K.-based financial firm Royal Bank of Scotland, and France’s luxury goods company Kering.

From a sector perspective, the best relative performance came from Fund holdings in the materials sector. Materials also produced the largest positive collective absolute return, mainly driven by underlying metals & mining company Glencore. The industrials sector was the next-greatest positive relative performer – and also generated the next-highest absolute return.

A lack of exposure to Canada detracted most from the Fund’s relative performance. Germany was the next-weakest relative performer, as all four of the Fund’s holdings there lost value. Mexico supplied the third-worst relative results, owing to the Fund’s single underlying holding, media and broadcasting company Grupo Televisa, which declined sharply.

From a sector perspective, Fund holdings in the financials sector produced the worst relative results, as nine of 14 holdings within that market segment declined for the period. A lack of exposure to energy and consumer discretionary holdings made these sectors the next-weakest relative performers.

With respect to currency exposures, the Fund held hedges on the Australian dollar and Swiss franc. (Currency hedges are financial contracts that are put in place to help protect against changes in currency exchange rates.) During the year, approximately 10% of the underlying Australian dollar and 23% of the underlying franc were hedged. We believe these currencies appreciated above the range of their intrinsic values, as measured by purchasing power parity and other economic fundamentals. Overall, currency hedges contributed to the Fund’s cumulative performance for the year.

Subadviser outlook

Major global market movements in the fourth quarter were largely influenced by the result of November’s U.S. presidential election, capping a year in which markets finished stronger than they started. As value investors, we feel that our key task is to see through the haze generated by market pundits who are overly influenced by geopolitical events such as referendums and elections. Instead, we focus on the fundamental drivers of long-term cash flows. We seek to make investment decisions based on a company’s ability to generate and sustain a growing cash flow stream. While the market chased stable stocks in the face of uncertainty, we felt the attractive valuations in financials and cyclically exposed areas of the market provided more safety.

 

36

Table of Contents

MML International Equity Fund – Portfolio Manager Report (Unaudited) (Continued)

 

 

MML International Equity Fund
Largest Holdings
(% of Net Assets) on 12/31/16		  
   

Glencore PLC

      4.2 % 

Lloyds Banking Group PLC

      3.9 % 

BNP Paribas

      3.6 % 

Intesa Sanpaolo SpA

      3.5 % 

Daimler AG

      3.5 % 

Allianz SE

      3.5 % 

Credit Suisse Group

      3.5 % 

CNH Industrial NV

      3.4 % 

Honda Motor Co. Ltd.

      2.5 % 

Toyota Motor Corp.

      2.2 % 
    

 

 

  
       33.8 % 
    

 

 

  
MML International Equity Fund
Sector Table
(% of Net Assets) on 12/31/16		  
   

Financial

      30.7 % 

Consumer, Cyclical

      23.7 % 

Industrial

      16.2 % 

Consumer, Non-cyclical

      12.0 % 

Basic Materials

      6.7 % 

Communications

      3.9 % 

Technology

      2.7 % 

Diversified

      1.7 % 

Mutual Funds

      0.1 % 
    

 

 

  

Total Long-Term Investments

      97.7 % 

Short-Term Investments and Other Assets and Liabilities

      2.3 % 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  
 

 

37

Table of Contents

MML International Equity Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML International Equity Fund Class II and the MSCI World Index ex USA.

 

     
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Since
Inception
Average
Annual
1/7/14 -
12/31/16		  
Class II     8.27%        -0.58%   
MSCI World Index ex USA     2.75%        -1.20%   

Hypothetical Investments in MML International Equity Fund Service Class I and the MSCI World Index ex USA.

 

     
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Since
Inception
Average
Annual
5/1/14 -
12/31/16		  
Service Class I     7.97%        -1.96%   
MSCI World Index ex USA     2.75%        -2.62%   

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

 

LOGO

 

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the MSCI World Index ex USA is unmanaged, does not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

38

Table of Contents

MML Large Cap Growth Fund – Portfolio Manager Report (Unaudited)

 

What is the investment approach of MML Large Cap Growth Fund, and who is the Fund’s subadviser?

The Fund seeks long-term capital appreciation by investing primarily in large-capitalization companies that the Fund’s subadviser believes offer the potential for long-term growth. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in the common stocks of companies whose market capitalizations at the time of purchase are within the market capitalization range of companies included in the Russell 1000® Growth Index. Effective December 7, 2016, Loomis, Sayles & Company, L.P. (Loomis Sayles) replaced Rainier Investment Management, LLC (Rainier) as subadviser to the Fund.

How did the Fund perform during the 12 months ended December 31, 2016?

The Fund’s Initial Class shares returned -0.38%, significantly underperforming the 7.08% return of the Russell 1000 Growth Index (the “benchmark”), an unmanaged index consisting of those Russell 1000 securities (representing the 1,000 largest U.S. companies based on market capitalization) with greater than average growth orientation that tend to exhibit higher price-to-book ratios and higher forecasted growth rates than securities in the value universe.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the time Rainier served as subadviser (January 1, 2016 through December 6, 2016), the Fund underperformed the benchmark primarily due to the growth-oriented technology sector and weakness in health care. The weakest results, relative to the benchmark, came from the technology sector, where underperformance in two Fund holdings – Palo Alto Networks, a provider of enterprise network security; and customer relationship management software company Salesforce.com – weighed on results. An ill-timed exit from another Fund holding, technology giant Apple, also negatively impacted performance. Health care shares also detracted from performance, as several of the Fund’s holdings experienced headwinds from pricing concerns in the biotechnology and pharmaceutical industries.

Contributing to the Fund’s results for the reporting period was Fund holding Applied Materials, which supplies equipment, services, and software to enable the manufacturing of semiconductor chips for electronics, computer display screens, smartphones, televisions, and solar products. It was up 72% for the period. Energy stocks were the top contributor to the Fund’s relative performance: WTI crude oil prices bottomed at $26 per barrel in February of 2016 and rallied to $53 per barrel by year end. Improving economic growth and favorable OPEC commentary regarding production restraints drove the increase. In this environment, several Fund holdings benefited – including Cimarex Energy, Continental Resources, and Concho Resources – all oil exploration and production companies. The Fund’s underweight position, relative to the benchmark, in the real estate sector was also advantageous to relative results. In the cyclical sectors of industrials and materials, the best performers were Delta Air Lines, which traded up on the prospect of positive passenger revenue growth in 2017; defense company Raytheon, which benefited from a strong defense spending landscape; and construction aggregate producer Vulcan Materials, a beneficiary of the Trump administration’s infrastructure spending plans.

For the time Loomis Sayles served as subadviser to the Fund (December 7, through December 31, 2016), stock selection in the information technology, health care, and consumer staples sectors detracted, whereas stock selection in the energy and financials sectors, as well as the Fund’s allocation to the consumer discretionary sector, contributed to relative returns.

Subadviser outlook

The Loomis Sayles investment process is characterized by bottom-up, fundamental research and a long-term investment time horizon. The nature of the process leads to lower portfolio turnover rates, and sector positioning is the result of stock selection. At year end, the Fund held an overweight allocation to the information technology, consumer staples, financials, and energy sectors – and underweight stakes in the consumer discretionary, industrials, and health care sectors. The Fund held no positions in the materials, real estate, telecommunications services, or utilities sectors as of December 31, 2016.

 

39

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MML Large Cap Growth Fund – Portfolio Manager Report (Unaudited) (Continued)

 

 

MML Large Cap Growth Fund
Largest Holdings
(% of Net Assets) on 12/31/16		  
   

Amazon.com, Inc.

      7.0 % 

Facebook, Inc. Class A

      6.2 % 

Cisco Systems, Inc.

      5.1 % 

Visa, Inc. Class A

      4.9 % 

Alibaba Group Holding Ltd. Sponsored ADR (Cayman Islands)

      4.5 % 

QUALCOMM, Inc.

      4.3 % 

Oracle Corp.

      4.1 % 

Monster Beverage Corp.

      3.8 % 

The Procter & Gamble Co.

      3.3 % 

The Coca-Cola Co.

      3.2 % 
    

 

 

  
       46.4 % 
    

 

 

  
MML Large Cap Growth Fund
Sector Table
(% of Net Assets) on 12/31/16		  
   

Consumer, Non-cyclical

      36.0 % 

Communications

      30.5 % 

Technology

      16.8 % 

Industrial

      8.6 % 

Consumer, Cyclical

      2.9 % 

Energy

      2.6 % 

Financial

      1.5 % 
    

 

 

  

Total Long-Term Investments

      98.9 % 

Short-Term Investments and Other Assets and Liabilities

      1.1 % 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  
 

 

40

Table of Contents

MML Large Cap Growth Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Large Cap Growth Fund Initial Class and the Russell 1000 Growth Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		    

Five Year

Average
Annual
1/1/12 -
12/31/16

     Ten Year
Average
Annual
1/1/07 -
12/31/16		  
Initial Class     -0.38%        12.14%        6.04%   
Russell 1000 Growth Index     7.08%        14.50%        8.33%   

Hypothetical Investments in MML Large Cap Growth Fund Service Class and the Russell 1000 Growth Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Since
Inception
Average
Annual
8/15/08 -
12/31/16		  
Service Class     -0.52%        11.86%        7.14%   
Russell 1000 Growth Index     7.08%        14.50%        9.74%   

GROWTH OF $10,000 INVESTMENT FOR THE PAST 10 YEARS

LOGO

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the Russell 1000 Growth Index is unmanaged, does not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

 

41

Table of Contents

MML Managed Volatility Fund – Portfolio Manager Report (Unaudited)

 

What is the investment approach of MML Managed Volatility Fund and who is the Fund’s subadviser?

The Fund seeks to capture the majority of the returns associated with equity market investments, while exposing investors to less risk than other equity investments. Under normal circumstances, the Fund invests in a broadly diversified portfolio of common stocks, while also selling index call options and purchasing index put options. The Fund’s stock portfolio will have approximately 500 stocks, and seeks to duplicate the investment composition and return of the S&P 500® Index* by holding each stock included in the Index in approximately the same proportion as each stock’s relative weighting in the Index. The Fund’s subadviser is Gateway Investment Advisers, LLC (Gateway).

How did the Fund perform during the 12 months ended December 31, 2016?

The Fund’s Initial Class shares returned 3.69%, underperforming the 11.96% return of the S&P 500 Index, a widely recognized, unmanaged index representative of common stocks of larger capitalized U.S. companies. The Fund outperformed the 2.65% return of the Bloomberg Barclays U.S. Aggregate Bond Index, an unmanaged index of fixed-rate investment-grade securities with at least one year to maturity, combining the Bloomberg Barclays U.S. Treasury Bond Index, the Bloomberg Barclays U.S. Government-Related Bond Index, the Bloomberg Barclays U.S. Corporate Bond Index, and the Bloomberg Barclays U.S. Securitized Bond Index.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

The strong equity performance of the Fund’s stock portfolio, which mirrors the S&P 500 Index, drove the Fund’s performance in 2016. As is typically the case in a strongly advancing equity market, the Fund’s return on its equity portfolio was moderated by two factors: its hedging strategy of selling S&P 500 Index call options against 95% or more of the value of its S&P 500 Index equity portfolio; and purchasing out-of-the money S&P 500 Index put options on the equity portfolio to mitigate a sudden severe market decline. (A call option is an agreement that gives the owner the ability – if desired – to buy a specified amount of an underlying security at a specified price within a specified period of time. A put option is an agreement that gives the owner the ability – if desired – to sell a specified amount of an underlying security at a specified price within a specified period of time.) It is the net premium-to-earnings from selling index call options, less the price of protective put options, that is a significant factor affecting the Fund’s performance.

More specifically, the Fund’s relatively modest annual return was attributable to the moderate stock market volatility environment throughout 2016, which limited the net index option premiums received during much of the reporting period. Market volatility, as measured by The Chicago Board Options Exchange Volatility Index (the “VIX”), averaged 15.83 for 2016. It hit a high of 28.14 in early February and a low of 11.27 in mid-December. Except for January and February, the VIX spent much of 2016 in a range between 12 and 16. The VIX briefly spiked over 20 in June, and again in early November. The 20 level is approximately the historical long-term average for the VIX. Unlike 2015, volatility quickly contracted in 2016 after each spike, as the market experienced only brief and shallow selloffs, outside of the January and February declines. The selling of index call options hampered Fund performance, and protective puts also detracted from performance for the year.

Subadviser outlook

As a hedged equity manager, Gateway is more focused on market volatility and its effects on portfolio risk, rather than the equity markets in isolation. Our view is that there are many fundamental factors that could affect the underlying environment for the equity market and cause spikes in volatility – including uncertainty surrounding the pace and timing of further interest rate hikes

 

* The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by MML Advisers. Standard & Poor’s®, S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by MML Advisers. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.

 

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Table of Contents

MML Managed Volatility Fund – Portfolio Manager Report (Unaudited) (Continued)

 

by the Federal Reserve Board, uncertainty surrounding fiscal policy of the new Trump Administration, concerns over the European banking sector, and weakening economic and credit conditions in China. Geopolitical risks continue to fester, such as events surrounding Russia and the Middle East, as well as in Southeast Asia. Upcoming elections in France and Germany could also have an effect on volatility similar to what occurred in the wake of the Brexit vote. (“Brexit” – an abbreviation for “British exit” – was the United Kingdom’s surprising June 23, 2016 referendum to leave the European Union.)

While Gateway’s investment management team does not try to forecast these types of events, we remain vigilant to their possibility and will continue to manage the Fund’s index option positions in line with the objectives of the Fund – which is to maintain a risk profile that allows for potentially upside participation in the equity market, but with lower volatility.

 

MML Managed Volatility Fund
Largest Holdings
(% of Net Assets) on 12/31/16		  
   

Apple, Inc.

      3.2 % 

Microsoft Corp.

      2.5 % 

Exxon Mobil Corp.

      1.9 % 

Johnson & Johnson

      1.6 % 

JP Morgan Chase & Co.

      1.6 % 

Berkshire Hathaway, Inc. Class B

      1.6 % 

Amazon.com, Inc.

      1.5 % 

General Electric Co.

      1.4 % 

Facebook, Inc. Class A

      1.4 % 

AT&T, Inc.

      1.3 % 
    

 

 

  
       18.0 % 
    

 

 

  
MML Managed Volatility Fund
Sector Table
(% of Net Assets) on 12/31/16		  
   

Consumer, Non-cyclical

      22.5 % 

Financial

      18.1 % 

Communications

      13.4 % 

Technology

      12.9 % 

Industrial

      10.1 % 

Consumer, Cyclical

      9.1 % 

Energy

      7.4 % 

Utilities

      3.1 % 

Basic Materials

      2.5 % 

Diversified

      0.0 % 
    

 

 

  

Total Long-Term Investments

      99.1 % 

Short-Term Investments and Other Assets and Liabilities

      0.9 % 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  
 

 

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Table of Contents

MML Managed Volatility Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Managed Volatility Fund Initial Class, the S&P 500 Index, and the Bloomberg Barclays U.S. Aggregate Bond Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Ten Year
Average
Annual
1/1/07 -
12/31/16		  
Initial Class     3.69%        8.26%        2.87%   
S&P 500 Index*     11.96%        14.66%        6.95%   
Bloomberg Barclays U.S. Aggregate Bond Index     2.65%        2.23%        4.34%   

Hypothetical Investments in MML Managed Volatility Fund Service Class, the S&P 500 Index, and the Bloomberg Barclays U.S. Aggregate Bond Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Since
Inception
Average
Annual
8/15/08 -
12/31/16		  
Service Class     3.42%        7.99%        4.31%   
S&P 500 Index*     11.96%        14.66%        9.13%   
Bloomberg Barclays U.S. Aggregate Bond Index     2.65%        2.23%        4.22%   

GROWTH OF $10,000 INVESTMENT FOR THE PAST 10 YEARS

 

LOGO

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

 

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

* Benchmark

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the S&P 500 Index and the Bloomberg Barclays U.S. Aggregate Bond Index are unmanaged, do not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

 

44

Table of Contents

MML Mid Cap Growth Fund – Portfolio Manager Report (Unaudited)

 

What is the investment approach of MML Mid Cap Growth Fund, and who is the Fund’s subadviser?

The Fund seeks long-term capital appreciation by investing primarily in equity securities of mid-capitalization companies that the Fund’s subadviser believes offer the potential for above-average earnings growth. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in a broadly diversified portfolio of common stocks of mid-cap companies whose earnings the subadviser expects to grow at a faster rate than the average company. The Fund’s subadviser is T. Rowe Price Associates, Inc. (T. Rowe Price).

How did the Fund perform during the 12 months ended December 31, 2016?

The Fund’s Initial Class shares returned 6.29%, underperforming the 7.33% return of the Russell Midcap® Growth Index (the “benchmark”), a widely recognized, unmanaged index that measures the performance of those Russell Midcap companies (representing mid-capitalization U.S. common stocks) with higher price-to-book ratios and higher forecasted growth rates than securities in the value universe. The Fund’s 6.29% return underperformed, by a wide margin, the 20.74% return of the S&P MidCap 400® Index, a widely recognized, unmanaged index representative of common stocks of mid-capitalized U.S. companies.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2016, Fund holdings in the financials sector detracted the most from the Fund’s performance – including LPL Financial Holdings, Jones Lang LaSalle, and U.K.-based Willis Towers Watson. Shares of LPL Financial Holdings, the largest independent broker-dealer in the U.S., fell due to an ill-timed, debt-funded share buyback driven by activist investor pressure, as well as a dip in commissions from real estate investment trusts (REITs). The Fund subsequently sold its stake in LPL Financial Holdings. Real estate investment manager Jones Lang LaSalle missed two earnings estimates over the course of the year and faced investor skepticism of its shift toward the lower-margin annuity market as well as its potential exposure to Brexit. (“Brexit” – an abbreviation for “British exit” – was the United Kingdom’s surprising June 2016 referendum to leave the European Union.) Insurance broker and advisory company Willis Towers Watson also struggled, partly due to its exposure to Brexit.

Stock selection and a detrimental underweight, relative to the benchmark, made information technology another area of relative weakness for the Fund during the year. Fund holdings that were underperformers in that market segment included Red Hat and VeriSign. Open-source software leader Red Hat experienced a share price drop due to a sell-off of software names early in the period, a CFO transition, and lower-than-expected billings. VeriSign, which serves as monopoly operator of the dot-com and dot-net domain name registries and also offers security services, struggled in the wake of a prominent U.S. senator’s public call to review pricing terms before renewing VeriSign’s dot-com registry agreement.

Turning to the positive, in telecommunication services, the Fund’s holdings outperformed their benchmark peers – most notably wireless network operator T-Mobile U.S, whose shares rose amid speculation about potential merger and acquisition activity as well as the successful launch of a new unlimited data product. The Fund’s overweight position in industrials and business services also proved beneficial. Stock positioning within the materials sector helped as well, particularly the Fund’s exposure to Martin Marietta Materials, a leading supplier of construction aggregates and heavy building materials. This Fund holding benefited from a cyclical recovery in the aggregates (i.e., road building materials) industry due to increases in highway spending and residential construction.

Subadviser outlook

In the wake of Trump’s inauguration, we would not be surprised to see further market turbulence as the more controversial elements of his agenda work their way through the political process. Many of his stated policy goals could introduce considerable uncertainty into the prospects for some of our holdings. In that case, we hope to take advantage of any short-term volatility to build up positions in firms that we believe may offer superior long-term prospects.

 

45

Table of Contents

MML Mid Cap Growth Fund – Portfolio Manager Report (Unaudited) (Continued)

 

 

MML Mid Cap Growth Fund
Largest Holdings
(% of Net Assets) on 12/31/16		  
   

Textron, Inc.

      2.2 % 

Fiserv, Inc.

      2.2 % 

Willis Towers Watson PLC

      1.9 % 

Teleflex, Inc.

      1.8 % 

Microchip Technology, Inc.

      1.7 % 

Hologic, Inc.

      1.6 % 

AutoZone, Inc.

      1.6 % 

Norwegian Cruise Line Holdings Ltd.

      1.5 % 

IDEX Corp.

      1.5 % 

Dollar General Corp.

      1.5 % 
    

 

 

  
       17.5 % 
    

 

 

  
MML Mid Cap Growth Fund
Sector Table
(% of Net Assets) on 12/31/16		  
   

Consumer, Non-cyclical

      29.1 % 

Industrial

      19.9 % 

Consumer, Cyclical

      16.0 % 

Technology

      11.7 % 

Financial

      9.9 % 

Communications

      4.6 % 

Basic Materials

      3.5 % 

Mutual Funds

      2.9 % 

Energy

      1.7 % 
    

 

 

  

Total Long-Term Investments

      99.3 % 

Short-Term Investments and Other Assets and Liabilities

      0.7 % 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  
 

 

46

Table of Contents

MML Mid Cap Growth Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Mid Cap Growth Fund Initial Class, the Russell Midcap Growth Index, and the S&P MidCap 400 Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Ten Year
Average
Annual
1/1/07 -
12/31/16		  
Initial Class     6.29%        14.86%        9.90%   
Russell Midcap Growth Index*     7.33%        13.51%        7.83%   
S&P MidCap 400 Index     20.74%        15.33%        9.16%   

Hypothetical Investments in MML Mid Cap Growth Fund Service Class, the Russell Midcap Growth Index, and the S&P MidCap 400 Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Since
Inception
Average
Annual
8/15/08 -
12/31/16		  
Service Class     6.02%        14.58%        10.46%   
Russell Midcap Growth Index*     7.33%        13.51%        9.17%   
S&P MidCap 400 Index     20.74%        15.33%        10.46%   

GROWTH OF $10,000 INVESTMENT FOR THE PAST 10 YEARS

LOGO

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

* Benchmark

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the Russell Midcap Growth Index and the S&P MidCap 400 Index are unmanaged, do not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

 

47

Table of Contents

MML Mid Cap Value Fund – Portfolio Manager Report (Unaudited)

 

What is the investment approach of MML Mid Cap Value Fund, and who is the Fund’s subadviser?

The Fund seeks long-term capital growth. Income is a secondary objective. The Fund invests primarily in equity securities of mid-capitalization companies that the Fund’s subadviser believes offer prospects for long-term capital growth. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in equity securities of medium-size companies. The Fund’s subadviser is American Century Investment Management, Inc. (American Century).

How did the Fund perform during the 12 months ended December 31, 2016?

The Fund’s Initial Class shares returned 23.23%, outperforming the 20.00% return of Russell Midcap® Value Index (the “benchmark”), a widely recognized, unmanaged index that measures the performance of those Russell Midcap companies (representing mid-capitalization U.S. common stocks) with lower price-to-book ratios and lower forecasted growth rates than securities in the growth universe.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

During the year ended December 31, 2016, the Fund’s performance benefited, on an absolute basis, from an environment that included improving economic growth, pro-business implications from the outcome of the U.S. presidential election, a high level of merger and acquisition (M&A) activity, and a boost in oil prices driven by an OPEC production agreement. The Fund’s top performers, from a sector perspective, were its holdings in the materials, telecommunication services, and industrials sectors.

On a relative basis, stock selection and an overweight allocation, relative to the benchmark, in the financials sector also helped to drive the Fund’s performance, as stock selection in the insurance industry and an overweight allocation to banks proved particularly beneficial. The momentum in economic growth and the election of Donald Trump boosted the outlook for higher interest rates in the year ahead, which benefited banks. Security selection and an overweight to the industrials sector also helped returns, driven by several stocks in the building products and commercial services and supplies industries. One top contributor was Fund holding Tyco, an Ireland-based security systems company, which merged with Johnson Controls International, a U.S.-based automotive and HVAC parts maker, in September. Semiconductor equipment maker Applied Materials was another top-performing Fund holding; it rose on sales strength. Finally, Fund holding Sysco, a marketer and distributor of food products, boosted the Fund’s full-year results due to its strong earnings.

In terms of detractors, an underweight allocation to the materials sector hampered the Fund’s performance. Materials outperformed on rising commodity prices and increased expectations for infrastructure spending following the U.S. presidential election. Energy stocks were generally strong, due to rising oil prices, but the Fund’s security selection there detracted from relative performance – although the Fund’s overweight stake in energy largely offset its underperforming holdings within the sector. With respect to individual Fund holdings, LifePoint Health was a detractor, as shares of this hospital company lagged on investor concerns over the potential end of the Affordable Care Act, and because the company missed its third-quarter earnings targets.

Though the use of derivatives is not a principal investment strategy, the Fund can use index futures to equitize cash in the portfolio and foreign currency exchange contracts to hedge any foreign currency exposure. (Derivatives are securities that derive their value from the performance of one or more other investments and take the form of a contract between two or more parties. Most derivatives are used for hedging, speculation, or both.) Such derivatives did not have a material impact on Fund performance for the year.

Subadviser outlook

The Fund’s sector weightings experienced some changes during the year due to the large return differential in certain sectors and stocks. The drop in interest rates early in 2016 enabled Fund management to purchase holdings in attractively valued, more

 

48

Table of Contents

MML Mid Cap Value Fund – Portfolio Manager Report (Unaudited) (Continued)

 

cyclical shares. Conversely, a rally in yield-oriented, lower-volatility securities provided Fund management with the opportunity to reduce the Fund’s stake in certain holdings at a profit. The post-election stock rally and rise in interest rates were catalysts for outperformance in many cyclical names – and for the underperformance of more defensive, yield-oriented securities. As such, Fund management reduced the Fund’s allocations to the energy and financials sectors – and increased its stakes in health care, consumer staples, and utilities holdings in the fourth quarter.

 

MML Mid Cap Value Fund
Largest Holdings
(% of Net Assets) on 12/31/16		  
   

Northern Trust Corp.

      3.1 % 

iShares Russell Mid-Cap Value ETF

      2.8 % 

Johnson Controls International PLC

      2.7 % 

Zimmer Biomet Holdings, Inc.

      1.8 % 

Imperial Oil Ltd.

      1.8 % 

EQT Corp.

      1.6 % 

Applied Materials, Inc.

      1.6 % 

Baker Hughes, Inc.

      1.6 % 

Noble Energy, Inc.

      1.6 % 

Weyerhaeuser Co.

      1.5 % 
    

 

 

  
       20.1 % 
    

 

 

  
MML Mid Cap Value Fund
Sector Table
(% of Net Assets) on 12/31/16		  
   

Financial

      27.7 % 

Industrial

      18.5 % 

Consumer, Non-cyclical

      15.0 % 

Energy

      13.1 % 

Utilities

      7.9 % 

Consumer, Cyclical

      7.2 % 

Technology

      5.4 % 

Mutual Funds

      2.7 % 

Communications

      0.7 % 

Basic Materials

      0.2 % 
    

 

 

  

Total Long-Term Investments

      98.4 % 

Short-Term Investments and Other Assets and Liabilities

      1.6 % 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  
 

 

49

Table of Contents

MML Mid Cap Value Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Mid Cap Value Fund Initial Class and the Russell Midcap Value Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Ten Year
Average
Annual
1/1/07 -
12/31/16		  
Initial Class     23.23%        16.61%        9.48%   
Russell Midcap Value Index     20.00%        15.70%        7.59%   

Hypothetical Investments in MML Mid Cap Value Fund Service Class and the Russell Midcap Value Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		    

Five Year
Average
Annual

1/1/12 -
12/31/16

     Since
Inception
Average
Annual
8/15/08 -
12/31/16		  
Service Class     22.86%        16.32%        11.62%   
Russell Midcap Value Index     20.00%        15.70%        10.22%   

GROWTH OF $10,000 INVESTMENT FOR THE PAST 10 YEARS

LOGO

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the Russell Midcap Value Index is unmanaged, does not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

 

50

Table of Contents

MML Small Cap Growth Equity Fund – Portfolio Manager Report (Unaudited)

 

What is the investment approach of MML Small Cap Growth Equity Fund, and who is the Fund’s subadviser?

The Fund seeks long-term capital appreciation by investing primarily in equity securities of smaller companies that the Fund’s subadviser believes offer potential for long-term growth. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in the equity securities of companies whose market capitalizations at the time of purchase are within the market capitalization range of companies included in the Russell 2000® Index or the S&P SmallCap 600 Index. The Fund’s subadviser is Wellington Management Company LLP (Wellington Management). Waddell & Reed Investment Management Company (Waddell & Reed) acted as a co-subadviser to the Fund until April 24, 2016.

How did the Fund perform during the 12 months ended December 31, 2016?

The Fund’s Initial Class shares returned 12.74%, outperforming the 11.32% return of the Russell 2000 Growth Index (the “benchmark”), a widely recognized, unmanaged index that measures the performance of those Russell 2000 Index companies (representing small-capitalization U.S. common stocks) with higher price-to-book ratios and higher forecasted growth rates than securities in the value universe. The Fund’s 12.74% return underperformed, by a wide margin, the 21.31% return of the Russell 2000 Index, a widely recognized, unmanaged index representative of common stocks of smaller capitalized U.S. companies.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the time Waddell & Reed served as co-subadviser (January 1, 2016 through April 24, 2016), the primary source of this Fund component’s performance strength, relative to the benchmark, was its holdings in the health care, consumer discretionary, and industrials sectors. During this time frame, small-cap stocks were down over double digits into February, but ultimately recovered for the most part as recession concerns faded. The underperformance of Fund component holdings in the information technology (IT) sector provided a modest headwind against the strength seen from other sectors. For example, Fund component holdings SPS Commerce (a provider of cloud-based supply chain management software to retailers, suppliers, third-party logistics providers and partners) and Virtusa Corp. (IT outsourcing company) were the top detractors from performance within the IT sector. On the positive side, in health care, Fund component holdings ExamWorks Group (a provider of independent medical examinations, peer and bill reviews, and Medicare compliance) and LDR Holding Corp. (a global medical device company) both contributed to performance. Within consumer discretionary, three Fund component holdings posted results that exceeded expectations: specifically, Kate Spade & Co. (a luxury brand company); Carter’s, Inc. (a leading children’s clothing company); and Five Below (a discount retailer). Finally, Fund component holding Toro Co. (a designer, manufacturer of professional turf maintenance equipment and services) proved to be a material contributor to performance within the industrials sector.

For the Wellington Management component of the Fund, during the year ended December 31, 2016, several of the relatively top-performing Fund component holdings were the subject of acquisitions. These included Cepheid (in the health care sector) and DreamWorks Animation (consumer discretionary). Shares of DreamWorks Animation jumped after management announced its acquisition by Comcast. The Fund sold its DreamWorks position on strength. Late in the third quarter of 2016, Danaher announced its acquisition of Cepheid, a leading global molecular diagnostics company. The Fund sold Cepheid as a result. In the health care sector, Fund component holding Tesaro, a biotechnology company focused on developing treatments for ovarian cancer, drove significant upside performance after announcing positive phase III testing results. Wellington Management trimmed the Fund’s allocation somewhat, but continued to retain its stake in Tesaro as of the end of the year. On the downside, Fund component holdings that were top relative detractors included SunPower (energy), Allscripts Healthcare (health care), and KapStone Paper (materials). SunPower, a leading U.S. solar manufacturer and project developer, was primarily impacted by concerns about residential demand for solar equipment. Allscripts Healthcare, which provides electronic health record technology to health care providers, declined in November following the release of third-quarter 2016 earnings that missed expectations. Finally, shares of KapStone Paper, a large North American containerboard producer, declined early in the period as results disappointed.

 

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Table of Contents

MML Small Cap Growth Equity Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Subadviser outlook

Despite U.S. small-cap stocks being at record highs as we entered 2017, in Wellington Management’s view, there remains much uncertainty surrounding the Trump administration. Though we are optimistic, we see more risk than opportunity in seeking to be early in anticipating potential areas impacted by pending regulatory and legislative changes, when so much remains unclear. We will continue to assess the businesses we hold, and our broader opportunity set as events progress over the coming months.

 

MML Small Cap Growth Equity Fund
Largest Holdings
(% of Net Assets) on 12/31/16		  
   

Insulet Corp.

      1.7 % 

Sterling Bancorp

      1.5 % 

Swift Transportation Co.

      1.4 % 

MB Financial, Inc.

      1.3 % 

Clean Harbors, Inc.

      1.2 % 

Masonite International Corp.

      1.2 % 

Western Alliance Bancorp

      1.2 % 

Kennedy-Wilson Holdings, Inc.

      1.2 % 

Kate Spade & Co.

      1.1 % 

Hannon Armstrong Sustainable Infrastructure Capital, Inc.

      1.1 % 
    

 

 

  
       12.9 % 
    

 

 

  
MML Small Cap Growth Equity Fund
Sector Table
(% of Net Assets) on 12/31/16		  
   

Financial

      21.2 % 

Consumer, Non-cyclical

      17.3 % 

Industrial

      16.8 % 

Consumer, Cyclical

      14.0 % 

Technology

      13.7 % 

Mutual Funds

      8.5 % 

Communications

      6.3 % 

Energy

      4.5 % 

Basic Materials

      3.0 % 

Utilities

      0.9 % 

Diversified

      0.6 % 
    

 

 

  

Total Long-Term Investments

      106.8 % 

Short-Term Investments and Other Assets and Liabilities

      (6.8 )% 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  
 

 

52

Table of Contents

MML Small Cap Growth Equity Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Small Cap Growth Equity Fund Initial Class, the Russell 2000 Growth Index, and the Russell 2000 Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Ten Year
Average
Annual
1/1/07 -
12/31/16		  
Initial Class     12.74%        13.80%        7.51%   
Russell 2000 Growth Index*     11.32%        13.74%        7.76%   
Russell 2000 Index     21.31%        14.46%        7.07%   

Hypothetical Investments in MML Small Cap Growth Equity Fund Service Class, the Russell 2000 Growth Index, and the Russell 2000 Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Since
Inception
Average
Annual
8/15/08 -
12/31/16		  
Service Class     12.46%        13.51%        8.53%   
Russell 2000 Growth Index*     11.32%        13.74%        8.75%   
Russell 2000 Index     21.31%        14.46%        8.79%   

GROWTH OF $10,000 INVESTMENT FOR THE PAST 10 YEARS

 

LOGO

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

 

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

* Benchmark

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the Russell 2000 Growth Index and the Russell 2000 Index are unmanaged, do not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

 

53

Table of Contents

MML Small Company Value Fund – Portfolio Manager Report (Unaudited)

 

What is the investment approach of MML Small Company Value Fund, and who is the Fund’s subadviser?

The Fund seeks long-term capital appreciation by investing primarily in equity securities that the Fund’s subadviser believes are undervalued. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in the securities of companies whose market capitalizations at the time of purchase are within the market capitalization range of companies included in the Russell 2000® Index. The Fund’s subadviser is T. Rowe Price Associates, Inc. (T. Rowe Price).

How did the Fund perform during the 12 months ended December 31, 2016?

The Fund’s Class II shares returned 32.46%, outperforming the 31.74% return of the Russell 2000 Value Index (the “benchmark”), a widely recognized, unmanaged index that measures the performance of those Russell 2000 Index companies (representing small-capitalization U.S. common stocks) with lower price-to-book ratios and lower forecasted growth rates than securities in the growth universe. The Fund significantly outperformed the 21.31% return of the Russell 2000 Index, a widely recognized, unmanaged index representative of common stocks of smaller capitalized U.S. companies.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

Broadly speaking, stock selection accounted for the Fund’s outperformance, relative to the benchmark, for the year ended December 31, 2016, while sector allocation negated some of those gains. Consumer discretionary, information technology, and health care all helped relative results, primarily due to stock selection. Materials, utilities, and consumer staples all hampered performance, also primarily due to stock choices.

The consumer discretionary group added the most value to relative performance, driven by stock choices that more than made up for a detrimental overweight (relative to the benchmark) to the group. LCI Industries, a supplier of components for recreational vehicles and manufactured housing, was one Fund holding that saw a turn in financial status, since dealers have become more comfortable maintaining inventory and the manufactured housing market has seen marked improvement. Information technology was also a source of relative strength for the Fund, due primarily to stock selection.

Stock selection made health care another source of relative strength, offsetting the negative effect of an overweight allocation to the sector. Fund holding WellCare Health Plans, a large Medicaid managed care company, benefited from health care policy continuing to move in a direction that seeks to expand patient access to care, while reducing costs and improving quality.

Materials was the largest source of relative weakness, due to stock selection, partially offset by an overweighting to the group. Myers Industries, a manufacturing polymer manufacturer, was a Fund holding that suffered amid slow industrial activity, low agricultural commodity pricing, and weak tire shipments. Stock selection in the utilities and consumer staples sectors also detracted from relative results. In consumer staples, Fund holding PriceSmart, which operates a chain of international membership warehouse clubs, had a challenging currency environment and aggressive pricing policies that hindered recent gross margins and earning results.

Subadviser outlook

We are still assessing the effects the new Trump administration will have on U.S. stocks. On the policy side, we are carefully watching actions by Congress and cabinet appointments to help us ascertain the policies and priorities of the new administration. The possibility of a sharp rise in interest rates is another concern for stock investors. Higher coupon returns from bonds could draw assets away from equities, and higher rates would mean increased borrowing costs and lower profits for corporations. However, we believe that a moderate increase does not necessarily pose a threat to equity valuations. Stock prices have historically been able to rise alongside interest rates, particularly when yields have remained under 5%. (The yield on the 10-year Treasury note ended the year at 2.45%.)

 

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MML Small Company Value Fund – Portfolio Manager Report (Unaudited) (Continued)

 

 

MML Small Company Value Fund
Largest Holdings
(% of Net Assets) on 12/31/16		  
   

Home Bancshares, Inc.

      2.3 % 

East West Bancorp, Inc.

      1.6 % 

Landstar System, Inc.

      1.6 % 

Littelfuse, Inc.

      1.4 % 

SVB Financial Group

      1.4 % 

Belden, Inc.

      1.4 % 

BankUnited, Inc.

      1.3 % 

West Pharmaceutical Services, Inc.

      1.2 % 

LCI Industries

      1.2 % 

Columbia Banking System, Inc.

      1.2 % 
    

 

 

  
       14.6 % 
    

 

 

  
MML Small Company Value Fund
Sector Table
(% of Net Assets) on 12/31/16		  
   

Financial

      34.9 % 

Industrial

      16.8 % 

Consumer, Non-cyclical

      14.3 % 

Consumer, Cyclical

      9.2 % 

Utilities

      6.0 % 

Technology

      4.3 % 

Basic Materials

      4.3 % 

Energy

      4.2 % 

Mutual Funds

      3.2 % 

Communications

      2.9 % 

Diversified

      1.0 % 
    

 

 

  

Total Long-Term Investments

      101.1 % 

Short-Term Investments and Other Assets and Liabilities

      (1.1 )% 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  
 

 

55

Table of Contents

MML Small Company Value Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Small Company Value Fund Class II, Service Class I, the Russell 2000 Value Index, and the Russell 2000 Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Since
Inception
Average
Annual
2/27/09 -
12/31/16		  
Class II     32.46%        13.83%        18.06%   
Service Class I     32.16%        13.55%        17.76%   
Russell 2000 Value Index*     31.74%        15.07%        18.72%   
Russell 2000 Index     21.31%        14.46%        18.76%   

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

 

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

* Benchmark

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the Russell 2000 Value Index and the Russell 2000 Index are unmanaged, do not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

56

Table of Contents

MML Small/Mid Cap Value Fund – Portfolio Manager Report (Unaudited)

 

What is the investment approach of MML Small/Mid Cap Value Fund, and who is the Fund’s subadviser?

The Fund seeks long-term total return by investing primarily in securities that the Fund’s subadviser believes to be undervalued. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in securities of small- and mid-cap companies. The Fund’s subadviser is AllianceBernstein L.P. (AllianceBernstein).

How did the Fund perform during the 12 months ended December 31, 2016?

The Fund’s Initial Class Shares returned 25.10%, significantly outperforming the 17.59% return of the Russell 2500TM Index (the “benchmark”), an unmanaged index that measures the performance of the 2,500 smallest companies in the Russell 3000® Index, which measures the performance of the 3,000 largest U.S. companies based on market capitalization. The Fund modestly underperformed the 25.20% return of the Russell 2500 Value Index, an unmanaged index representative of common stocks of small- and mid-capitalization U.S. companies with lower price-to-book ratios and lower forecasted growth rates than securities in the growth universe.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2016, smaller-cap stocks outperformed their larger-cap counterparts, as investors perceived smaller shares, in the wake of the U.S. presidential election, to be bigger beneficiaries of future U.S. economic policies.

Overall, stock selection contributed for the period, primarily owing to Fund holdings in the industrials, technology, and consumer discretionary sectors. Underweight positions, relative to the benchmark, in real estate and consumer staples, and an overweight stake in energy also contributed. The Fund’s materials, financials, and energy holdings, an overweight position in the consumer discretionary sector, and an underweight position in financials detracted.

Fund holdings that were leading contributors for the period included Finisar, a manufacturer of optical communications components. The company delivered stronger-than-expected sales and earnings growth driven by robust end-market demand for its high-end telecom and data communication products. Advanced Micro Devices, a maker of microprocessor chips, also contributed to Fund performance during the year, as this Fund holding benefited from new management that refreshed its intellectual property and executed several transactions that improved its balance sheet.

Among the detractors for the year was LifePoint Health, a regional health care provider. Shares of this Fund holding fell on market concerns regarding changes in health care policy under the new administration. Specifically, concerns focused on the possible reduction in or removal of the Affordable Care Act – which could increase the number of uninsured patients the hospital system treats. Similarly, shares of Molina Healthcare, a Medicaid health care provider, fell, due to general weakness in the sector as well as investor concerns that prospective changes in the Medicaid program could adversely impact the company’s profitability.

Subadviser outlook

In our view, as we enter 2017, the equity landscape remains uncertain. While little is sure, prevailing investor sentiment is that there is a strong likelihood that corporate tax rates will decline under the new administration – and the regulatory burden faced by American companies will lessen. Repatriation of corporate cash trapped overseas also seems to be a possibility. While it’s tempting to consider these shifts as inevitable, the reality is they and their impacts are more uncertain, and we don’t share the market’s confident forecast.

Our view is that the best approach remains staying true to our deeper value with a catalyst discipline, and reacting to policy changes as they become more certain. We continue to seek companies that combine attractive value, strong free cash flow, and compelling company- or industry-level catalysts. However, if these trends occur, we believe that many of the Fund’s holdings could benefit from lower tax bills, less regulation, and offshore cash repatriation, if it transpires.

 

57

Table of Contents

MML Small/Mid Cap Value Fund – Portfolio Manager Report (Unaudited) (Continued)

 

 

MML Small/Mid Cap Value Fund
Largest Holdings
(% of Net Assets) on 12/31/16		  
   

Huntington Bancshares, Inc.

      1.8 % 

Synergy Resources Corp.

      1.8 % 

Zions Bancorp

      1.7 % 

Comerica, Inc.

      1.6 % 

Helmerich & Payne, Inc.

      1.6 % 

Anixter International, Inc.

      1.6 % 

Reinsurance Group of America, Inc.

      1.5 % 

American Financial Group, Inc.

      1.5 % 

CDW Corp.

      1.5 % 

Oil States International, Inc.

      1.4 % 
    

 

 

  
       16.0 % 
    

 

 

  
MML Small/Mid Cap Value Fund
Sector Table
(% of Net Assets) on 12/31/16		  
   

Financial

      22.7 % 

Consumer, Cyclical

      16.9 % 

Industrial

      16.7 % 

Consumer, Non-cyclical

      11.7 % 

Energy

      11.7 % 

Technology

      8.3 % 

Communications

      6.3 % 

Utilities

      2.8 % 

Basic Materials

      1.4 % 
    

 

 

  

Total Long-Term Investments

      98.5 % 

Short-Term Investments and Other Assets and Liabilities

      1.5 % 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  
 

 

58

Table of Contents

MML Small/Mid Cap Value Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Small/Mid Cap Value Fund Initial Class, the Russell 2500 Index, and the Russell 2500 Value Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Ten Year
Average
Annual
1/1/07 -
12/31/16		  
Initial Class     25.10%        16.30%        6.02%   
Russell 2500 Index*     17.59%        14.54%        7.69%   
Russell 2500 Value Index     25.20%        15.04%        6.94%   

Hypothetical Investments in MML Small/Mid Cap Value Fund Service Class, the Russell 2500 Index, and the Russell 2500 Value Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Since
Inception
Average
Annual
8/15/08 -
12/31/16		  
Service Class     24.83%        16.02%        10.12%   
Russell 2500 Index*     17.59%        14.54%        9.56%   
Russell 2500 Value Index     25.20%        15.04%        9.64%   

 

GROWTH OF $10,000 INVESTMENT FOR THE PAST 10 YEARS

LOGO

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

* Benchmark

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the Russell 2500 Index and the Russell 2500 Value Index are unmanaged, do not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

 

59

Table of Contents

MML Total Return Bond Fund – Portfolio Manager Report (Unaudited)

 

What is the investment approach of MML Total Return Bond Fund, and who is the Fund’s subadviser?

The Fund seeks maximum total return, consistent with preservation of capital and prudent investment management, by investing, under normal circumstances, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in a diversified portfolio of investment grade fixed income securities (rated Baa3 or higher by Moody’s, BBB- or higher by Standard & Poor’s, BBB- or higher by Fitch, or A-2 by S&P, P-2 by Moody’s, or F-2 by Fitch for short-term debt obligations, or, if unrated, determined by the Fund’s subadviser to be of comparable quality). The Fund’s subadviser is Metropolitan West Asset Management, LLC (MetWest).

How did the Fund perform during the 12 months ended December 31, 2016?

The Fund’s Class II shares returned 2.52%, underperforming the 2.65% return of the Bloomberg Barclays U.S. Aggregate Bond Index (the “benchmark”), an unmanaged index of fixed-rate investment-grade securities with at least one year to maturity, combining the Bloomberg Barclays U.S. Treasury Bond Index, the Bloomberg Barclays U.S. Government-Related Bond Index, the Bloomberg Barclays U.S. Corporate Bond Index, and the Bloomberg Barclays U.S. Securitized Bond Index.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2016, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2016, the defensive duration position of the Fund weighed on returns over the first half of the year, but the drag was reversed, even as duration was extended, as rates rose rapidly into year end. (Duration is a measure of a bond fund’s sensitivity to interest rates. The longer the duration, the greater the price impact on the bond or portfolio when interest rates rise or fall.)

The Fund’s conservative positioning in the bond sector was rewarded early in 2016 when volatility spiked, but in aggregate, weighed on relative performance over the course of the full year. In particular, the Fund’s underweight allocation (relative to the benchmark) to the industrials sector – such as holdings in metals & mining – detracted amid stabilization in commodity-related sectors. The Fund did benefit from an out-of-benchmark allocation to non-agency mortgage-backed securities (MBS). (“Agency” refers to government-sponsored entities that issue bonds backed by mortgage loans, including Ginnie Mae, Fannie Mae, Freddie Mac, and the Federal Home Loan Banks.) Improving fundamentals, such as ongoing home price appreciation that has helped drive down mortgage loan-to-value ratios, contributed, as did technical support stemming from a dearth of new supply.

The Fund’s emphasis within asset-backed securities (ABS) on government-guaranteed student loans also benefited performance for the year, as uncertainty about downgrades subsided as the rating review process neared conclusion. (Bond issuers create securitized bonds by pooling various types of contractual debt – such as mortgages, auto loans, or credit card debt.) The Fund’s commercial MBS (CMBS) positioning continued to represent an overweight allocation, which further contributed to returns as the sector was notably tighter year-over-year. Non-agency CMBS benefited from lower issuance than what was initially expected, a response to significant volatility in February and subsequently tighter lending standards. In contrast, agency CMBS was held back by heavy issuance, but spreads still tightened on solid demand for high-quality assets from banks and dealers. (Spreads represent the difference in yields between comparable Treasury and corporate bonds. Tightening spreads often reflect rising corporate bond prices; widening spreads often reflect falling corporate bond prices.)

The Fund used derivatives to manage the Fund’s duration and the yield curve, which had no material impact on performance for the reporting period. (Derivatives are securities that derive their value from the performance of one or more other investments and take the form of a contract between two or more parties. Most derivatives are used for hedging, speculation, or both.)

Subadviser outlook

Looking ahead, we believe that the Fund’s dampened risk profile will allow Fund management to take advantage of episodic volatility at better price levels than those available at year end, particularly as a post-election run-up in relative valuations has further richened the market to an unwarranted degree. We predicate our perspective on the late-cycle conditions evidenced in

 

60

Table of Contents

MML Total Return Bond Fund – Portfolio Manager Report (Unaudited) (Continued)

 

rising leverage, as well as increased merger and acquisition and shareholder-friendly activity that tends to elevate creditor risks, ultimately resulting in higher levels of yield disparity in compensation. If those market adjustments materialize, we may increase the Fund’s allocations to credit and enhance the Fund’s yield profile vis-a-vis the benchmark. Our view is that these developments could be favorable for prospective returns, while undercurrents within the broad sector could allow for industry and security selection opportunities that also offer potentially good value.

 

MML Total Return Bond Fund
Portfolio Characteristics
(% of Net Assets) on 12/31/16		  
   

U.S. Treasury Obligations

      34.9 % 

U.S. Government Agency Obligations and Instrumentalities

      27.2 % 

Corporate Debt

      23.1 % 

Non-U.S. Government Agency Obligations

      14.1 % 

Municipal Obligations

      1.1 % 

Bank Loans

      0.2 % 
    

 

 

  

Total Long-Term Investments

      100.6 % 

Short-Term Investments and Other Assets and Liabilities

      (0.6 )% 
    

 

 

  

Net Assets

      100.0 % 
    

 

 

  

 

61

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MML Total Return Bond Fund – Portfolio Manager Report (Unaudited) (Continued)

 

Growth of a $10,000 Investment

Hypothetical Investments in MML Total Return Bond Fund Class II and the Bloomberg Barclays U.S. Aggregate Bond Index.

 

       
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Five Year
Average
Annual
1/1/12 -
12/31/16		     Since
Inception
Average
Annual
8/10/10 -
12/31/16		  
Class II     2.52%        2.90%        2.67%   
Bloomberg Barclays U.S. Aggregate Bond Index     2.65%        2.23%        2.92%   

Hypothetical Investments in MML Total Return Bond Fund Service Class I and the Bloomberg Barclays U.S. Aggregate Bond Index.

 

     
TOTAL RETURN   One Year
1/1/16 -
12/31/16		     Since
Inception
Average
Annual
5/1/12 -
12/31/16		  
Service Class I     2.30%        2.06%   
Bloomberg Barclays U.S. Aggregate Bond Index     2.65%        2.08%   

GROWTH OF $10,000 INVESTMENT SINCE INCEPTION

 

LOGO

 

LOGO

 

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

Performance data quoted represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund will fluctuate with market conditions so that shares of the Fund, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by accessing the website www.massmutual.com.

Investors should note that the Fund is a professionally managed mutual fund, while the Bloomberg Barclays U.S. Aggregate Bond Index is unmanaged, does not incur expenses, and cannot be purchased directly by investors. Investors should read the Fund’s prospectus with regard to the Fund’s investment objective, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

 

 

62

Table of Contents

MML Blue Chip Growth Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
EQUITIES — 99.4%   
COMMON STOCK — 99.4%   
Basic Materials — 0.1%   
Chemicals — 0.1%   

E.I. du Pont de Nemours & Co.

      600       $ 44,040   

Ecolab, Inc.

      2,700         316,494   

The Sherwin-Williams Co.

      700         188,118   
     

 

 

  
        548,652   
     

 

 

  
Communications — 30.5%   
Internet — 29.5%   

Alibaba Group Holding Ltd. Sponsored ADR (Cayman Islands) (a)

      80,846         7,099,087   

Alphabet, Inc. Class A (a)

      12,000         9,509,400   

Alphabet, Inc. Class C (a)

      21,456         16,560,170   

Amazon.com, Inc. (a)

      41,900         31,419,553   

Baidu, Inc. Sponsored ADR (Cayman Islands) (a)

      6,200         1,019,342   

Ctrip.com International Ltd. ADR (Cayman Islands) (a)

      40,240         1,609,600   

Equinix, Inc.

      2,100         750,561   

Facebook, Inc. Class A (a)

      152,176         17,507,849   

Netflix, Inc. (a)

      36,500         4,518,700   

The Priceline Group, Inc. (a)

      10,970         16,082,678   

Tencent Holdings Ltd.

      242,100         5,875,810   
     

 

 

  
        111,952,750   
     

 

 

  
Media — 1.0%      

Charter Communications, Inc. Class A (a)

      7,132         2,053,445   

Comcast Corp. Class A

      15,100         1,042,655   

Time Warner, Inc.

      6,700         646,751   

The Walt Disney Co.

      1,600         166,752   
     

 

 

  
        3,909,603   
     

 

 

  
        115,862,353   
     

 

 

  
Consumer, Cyclical — 14.0%   
Airlines — 2.9%   

Alaska Air Group, Inc.

      37,400         3,318,502   

American Airlines Group, Inc.

      145,800         6,807,402   

Delta Air Lines, Inc.

      15,600         767,364   
     

 

 

  
        10,893,268   
     

 

 

  
Apparel — 0.2%      

Hanesbrands, Inc.

      25,400         547,878   
     

 

 

  
Auto Manufacturers — 0.9%      

Ferrari NV

      13,500         784,890   

Tesla Motors, Inc. (a)

      12,397         2,649,115   
     

 

 

  
        3,434,005   
     

 

 

  
Automotive & Parts — 0.3%      

Delphi Automotive PLC

      17,400         1,171,890   
     

 

 

  
     Number of
Shares		      Value  
Leisure Time — 0.4%      

Norwegian Cruise Line Holdings Ltd. (a)

      3,100       $ 131,843   

Royal Caribbean Cruises Ltd.

      18,400         1,509,536   
     

 

 

  
        1,641,379   
     

 

 

  
Lodging — 2.3%      

Hilton Worldwide Holdings, Inc.

      98,928         2,690,842   

Las Vegas Sands Corp.

      26,200         1,399,342   

Marriott International, Inc. Class A

      27,887         2,305,697   

MGM Resorts International (a)

      80,400         2,317,932   
     

 

 

  
        8,713,813   
     

 

 

  
Retail — 7.0%      

AutoZone, Inc. (a)

      2,200         1,737,538   

Coach, Inc.

      12,800         448,256   

Costco Wholesale Corp.

      5,100         816,561   

Dollar General Corp.

      11,000         814,770   

Domino’s Pizza, Inc.

      2,100         334,404   

The Home Depot, Inc.

      31,500         4,223,520   

L Brands, Inc.

      2,600         171,184   

Lowe’s Cos., Inc.

      50,800         3,612,896   

O’Reilly Automotive, Inc. (a)

      13,600         3,786,376   

Ross Stores, Inc.

      42,100         2,761,760   

Starbucks Corp.

      20,500         1,138,160   

Tractor Supply Co.

      11,600         879,396   

Walgreens Boots Alliance, Inc.

      53,300         4,411,108   

Yum! Brands, Inc.

      25,700         1,627,581   
     

 

 

  
        26,763,510   
     

 

 

  
        53,165,743   
     

 

 

  
Consumer, Non-cyclical — 21.3%   
Agriculture — 0.4%   

Philip Morris International, Inc.

      17,700         1,619,373   
     

 

 

  
Beverages — 0.7%      

Constellation Brands, Inc. Class A

      7,600         1,165,156   

Dr. Pepper Snapple Group, Inc.

      900         81,603   

Molson Coors Brewing Co. Class B

      9,200         895,252   

Monster Beverage Corp. (a)

      10,000         443,400   
     

 

 

  
        2,585,411   
     

 

 

  
Biotechnology — 4.1%      

Alexion Pharmaceuticals, Inc. (a)

      33,182         4,059,818   

Biogen, Inc. (a)

      13,400         3,799,972   

Celgene Corp. (a)

      47,300         5,474,975   

Illumina, Inc. (a)

      175         22,407   

Regeneron Pharmaceuticals, Inc. (a)

      400         146,836   

Vertex Pharmaceuticals, Inc. (a)

      25,300         1,863,851   
     

 

 

  
        15,367,859   
     

 

 

  
Commercial Services — 4.0%      

Equifax, Inc.

      952         112,555   

FleetCor Technologies, Inc. (a)

      3,700         523,624   

Global Payments, Inc.

      2,200         152,702   
 

 

The accompanying notes are an integral part of the financial statements.

 

63

Table of Contents

MML Blue Chip Growth Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  

IHS Markit Ltd. (a)

      17,248       $ 610,752   

PayPal Holdings, Inc. (a)

      65,300         2,577,391   

S&P Global, Inc.

      4,700         505,438   

Visa, Inc. Class A

      138,520         10,807,330   
     

 

 

  
        15,289,792   
     

 

 

  
Foods — 0.5%      

The Kraft Heinz Co.

      1,200         104,784   

Mondelez International, Inc. Class A

      38,700         1,715,571   
     

 

 

  
        1,820,355   
     

 

 

  
Health Care – Products — 3.0%      

Becton, Dickinson & Co.

      17,200         2,847,460   

C.R. Bard, Inc.

      1,200         269,592   

Henry Schein, Inc. (a)

      1,300         197,223   

Intuitive Surgical, Inc. (a)

      5,700         3,614,769   

Stryker Corp.

      36,630         4,388,640   
     

 

 

  
        11,317,684   
     

 

 

  
Health Care – Services — 5.7%      

Aetna, Inc.

      36,139         4,481,598   

Anthem, Inc.

      500         71,885   

Centene Corp. (a)

      6,087         343,976   

Cigna Corp.

      10,000         1,333,900   

DENTSPLY SIRONA, Inc.

      3,900         225,147   

Humana, Inc.

      11,900         2,427,957   

Thermo Fisher Scientific, Inc.

      31,271         4,412,338   

UnitedHealth Group, Inc.

      52,800         8,450,112   
     

 

 

  
        21,746,913   
     

 

 

  
Pharmaceuticals — 2.9%      

Allergan PLC (a)

      22,154         4,652,562   

Bristol-Myers Squibb Co.

      26,700         1,560,348   

Cardinal Health, Inc.

      300         21,591   

Eli Lilly & Co.

      9,700         713,435   

McKesson Corp.

      300         42,135   

Merck & Co., Inc.

      14,300         841,841   

Shire PLC Sponsored ADR (Ireland)

      10,719         1,826,303   

Zoetis, Inc.

      27,600         1,477,428   
     

 

 

  
        11,135,643   
     

 

 

  
        80,883,030   
     

 

 

  
Financial — 13.8%   
Banks — 2.1%   

The Bank of New York Mellon Corp.

      48,500         2,297,930   

Citigroup, Inc.

      19,600         1,164,828   

Citizens Financial Group, Inc.

      9,600         342,048   

First Republic Bank

      2,324         214,133   

The Goldman Sachs Group, Inc.

      1,300         311,285   

Northern Trust Corp.

      3,800         338,390   

State Street Corp.

      41,200         3,202,064   

U.S. Bancorp

      2,300         118,151   
     

 

 

  
        7,988,829   
     

 

 

  
     Number of
Shares		      Value  
Diversified Financial — 9.2%      

Ameriprise Financial, Inc.

      2,400       $ 266,256   

BlackRock, Inc.

      2,100         799,134   

The Charles Schwab Corp.

      45,900         1,811,673   

CME Group, Inc.

      6,600         761,310   

Intercontinental Exchange, Inc.

      92,300         5,207,566   

JP Morgan Chase & Co.

      29,800         2,571,442   

MasterCard, Inc. Class A

      99,100         10,232,075   

Morgan Stanley

      195,700         8,268,325   

TD Ameritrade Holding Corp.

      117,100         5,105,560   
     

 

 

  
        35,023,341   
     

 

 

  
Insurance — 0.8%      

Aon PLC

      1,000         111,530   

Chubb Ltd.

      2,100         277,452   

Marsh & McLennan Cos., Inc.

      22,800         1,541,052   

Willis Towers Watson PLC

      7,700         941,556   
     

 

 

  
        2,871,590   
     

 

 

  
Real Estate Investment Trusts (REITS) — 1.7%   

American Tower Corp.

      62,870         6,644,102   
     

 

 

  
        52,527,862   
     

 

 

  
Industrial — 8.0%      
Aerospace & Defense — 1.7%      

The Boeing Co.

      32,400         5,044,032   

General Dynamics Corp.

      400         69,064   

Northrop Grumman Corp.

      4,700         1,093,126   

Raytheon Co.

      1,400         198,800   

Rockwell Collins, Inc.

      2,500         231,900   
     

 

 

  
        6,636,922   
     

 

 

  
Airlines — 0.6%      

United Continental Holdings, Inc. (a)

      33,300         2,426,904   
     

 

 

  
Electronics — 1.1%      

Agilent Technologies, Inc.

      1,700         77,452   

Fortive Corp.

      61,980         3,323,987   

Johnson Controls International PLC

      17,800         733,182   
     

 

 

  
        4,134,621   
     

 

 

  
Machinery – Diversified — 0.3%      

Roper Technologies, Inc.

      5,800         1,061,864   

Wabtec Corp.

      700         58,114   
     

 

 

  
        1,119,978   
     

 

 

  
Manufacturing — 2.7%      

Danaher Corp.

      117,560         9,150,871   

Pentair PLC

      800         44,856   

Textron, Inc.

      18,400         893,504   
     

 

 

  
        10,089,231   
     

 

 

  
Packaging & Containers — 0.3%      

Ball Corp.

      13,500         1,013,445   
     

 

 

  
Transportation — 1.3%      

Canadian Pacific Railway Ltd.

      10,000         1,427,700   

FedEx Corp.

      13,800         2,569,560   
 

 

The accompanying notes are an integral part of the financial statements.

 

64

Table of Contents

MML Blue Chip Growth Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  

J.B. Hunt Transport Services, Inc.

      7,400       $ 718,318   

Kansas City Southern

      300         25,455   

Norfolk Southern Corp.

      1,500         162,105   

Union Pacific Corp.

      400         41,472   
     

 

 

  
        4,944,610   
     

 

 

  
        30,365,711   
     

 

 

  
Technology — 11.4%      
Computers — 0.8%      

Apple, Inc.

      26,167         3,030,662   
     

 

 

  
Semiconductors — 1.9%      

Broadcom Ltd.

      14,700         2,598,519   

Microchip Technology, Inc.

      2,700         173,205   

NXP Semiconductor NV (a)

      45,657         4,474,842   
     

 

 

  
        7,246,566   
     

 

 

  
Software — 8.7%      

Activision Blizzard, Inc.

      3,400         122,774   

Electronic Arts, Inc. (a)

      22,500         1,772,100   

Fidelity National Information Services, Inc.

      17,550         1,327,482   

Fiserv, Inc. (a)

      38,940         4,138,543   

Intuit, Inc.

      8,200         939,802   

Microsoft Corp.

      215,700         13,403,598   

Red Hat, Inc. (a)

      24,248         1,690,086   

Salesforce.com, Inc. (a)

      83,200         5,695,872   

ServiceNow, Inc. (a)

      44,850         3,334,149   

Workday, Inc. Class A (a)

      12,200         806,298   
     

 

 

  
        33,230,704   
     

 

 

  
        43,507,932   
     

 

 

  
Utilities — 0.3%      
Electric — 0.3%      

NextEra Energy, Inc.

      9,900         1,182,654   
     

 

 

  
TOTAL COMMON STOCK
(Cost $261,762,981)		         378,043,937   
  

 

 

  
TOTAL EQUITIES
(Cost $261,762,981)		         378,043,937   
  

 

 

  
MUTUAL FUNDS — 0.0%   
Diversified Financial — 0.0%      

T. Rowe Price Reserve Investment Fund

      1,005         1,005   
     

 

 

  
TOTAL MUTUAL FUNDS
(Cost $1,005)		         1,005   
  

 

 

  
TOTAL LONG-TERM INVESTMENTS
(Cost $261,763,986)		         378,044,942   
  

 

 

  
     Principal
Amount		      Value  
SHORT-TERM INVESTMENTS — 1.0%   
Repurchase Agreement — 1.0%      

State Street Bank & Trust Co. Repurchase Agreement, dated 12/30/16, 0.010%, due 1/03/17 (b)

    $ 3,657,524       $ 3,657,524   
     

 

 

  
TOTAL SHORT-TERM INVESTMENTS
(Cost $3,657,524)		         3,657,524   
  

 

 

  
TOTAL INVESTMENTS — 100.4%
(Cost $265,421,510) (c)		         381,702,466   
Other Assets/(Liabilities) — (0.4)%         (1,603,635 ) 
  

 

 

  
NET ASSETS — 100.0%       $ 380,098,831   
  

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

ADR American Depositary Receipt
(a) Non-income producing security.
(b) Maturity value of $3,657,528. Collateralized by U.S. Government Agency obligations with a rate of 3.125%, maturity date of 5/15/19, and an aggregate market value, including accrued interest, of $3,734,113.
(c) See Note 6 for aggregate cost for federal tax purposes.
 

 

The accompanying notes are an integral part of the financial statements.

 

65

Table of Contents

MML Equity Income Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
EQUITIES — 97.7%   
COMMON STOCK — 96.6%   
Basic Materials — 4.9%      
Chemicals — 2.3%      

CF Industries Holdings, Inc.

      118,800       $ 3,739,824   

E.I. du Pont de Nemours & Co.

      100,200         7,354,680   
     

 

 

  
        11,094,504   
     

 

 

  
Forest Products & Paper — 1.1%      

International Paper Co.

      105,200         5,581,912   
     

 

 

  
Iron & Steel — 0.7%      

Nucor Corp.

      54,900         3,267,648   
     

 

 

  
Mining — 0.8%      

Vulcan Materials Co.

      32,300         4,042,345   
     

 

 

  
        23,986,409   
     

 

 

  
Communications — 7.7%      
Media — 3.8%      

Comcast Corp. Class A

      84,400         5,827,820   

News Corp. Class A

      284,000         3,254,640   

Time Warner, Inc.

      6,433         620,978   

Twenty-First Century Fox, Inc. Class B

      225,700         6,150,325   

The Walt Disney Co.

      26,400         2,751,408   
     

 

 

  
        18,605,171   
     

 

 

  
Telecommunications — 3.9%      

CenturyLink, Inc.

      83,005         1,973,859   

Cisco Systems, Inc.

      198,200         5,989,604   

Telefonica SA

      165,655         1,536,121   

Verizon Communications, Inc.

      155,335         8,291,782   

Vodafone Group PLC

      543,492         1,336,705   
     

 

 

  
        19,128,071   
     

 

 

  
        37,733,242   
     

 

 

  
Consumer, Cyclical — 6.0%      
Airlines — 0.4%      

Southwest Airlines Co.

      36,500         1,819,160   
     

 

 

  
Auto Manufacturers — 0.4%      

Ford Motor Co.

      103,700         1,257,881   

General Motors Co.

      21,949         764,703   
     

 

 

  
        2,022,584   
     

 

 

  
Auto Parts & Equipment — 0.6%      

Adient PLC (a)

      49,681         2,911,307   
     

 

 

  
Leisure Time — 0.7%      

Carnival Corp.

      64,900         3,378,694   
     

 

 

  
Lodging — 0.9%      

Las Vegas Sands Corp.

      86,300         4,609,283   
     

 

 

  
Retail — 2.2%      

Kohl’s Corp.

      75,100         3,708,438   

Macy’s, Inc.

      70,500         2,524,605   

Staples, Inc.

      23,800         215,390   
     Number of
Shares		      Value  

Wal-Mart Stores, Inc.

      59,900       $ 4,140,288   
     

 

 

  
        10,588,721   
     

 

 

  
Toys, Games & Hobbies — 0.8%      

Mattel, Inc.

      148,100         4,080,155   
     

 

 

  
        29,409,904   
     

 

 

  
Consumer, Non-cyclical — 13.5%      
Agriculture — 1.6%      

Archer-Daniels-Midland Co.

      127,800         5,834,070   

Philip Morris International, Inc.

      21,400         1,957,886   
     

 

 

  
        7,791,956   
     

 

 

  
Beverages — 1.7%      

Diageo PLC

      105,392         2,726,606   

PepsiCo, Inc.

      51,700         5,409,371   
     

 

 

  
        8,135,977   
     

 

 

  
Biotechnology — 0.4%      

Gilead Sciences, Inc.

      30,500         2,184,105   
     

 

 

  
Cosmetics & Personal Care — 0.6%      

Avon Products, Inc.

      169,400         853,776   

Coty, Inc. Class A

      120,173         2,200,368   
     

 

 

  
        3,054,144   
     

 

 

  
Foods — 0.6%      

The Hershey Co.

      6,700         692,981   

Kellogg Co.

      32,900         2,425,059   
     

 

 

  
        3,118,040   
     

 

 

  
Health Care – Products — 3.0%      

Becton, Dickinson & Co.

      21,300         3,526,215   

Johnson & Johnson

      73,000         8,410,330   

Medtronic PLC

      39,200         2,792,216   
     

 

 

  
        14,728,761   
     

 

 

  
Health Care – Services — 1.4%      

Anthem, Inc.

      46,300         6,656,551   
     

 

 

  
Pharmaceuticals — 4.2%      

Bristol-Myers Squibb Co.

      67,600         3,950,544   

GlaxoSmithKline PLC

      132,703         2,534,250   

Merck & Co., Inc.

      73,200         4,309,284   

Pfizer, Inc.

      300,254         9,752,250   
     

 

 

  
        20,546,328   
     

 

 

  
        66,215,862   
     

 

 

  
Energy — 11.0%      
Oil & Gas — 10.9%      

Apache Corp.

      76,586         4,860,913   

Canadian Natural Resources Ltd.

      68,600         2,186,968   

Chevron Corp.

      47,600         5,602,520   

EQT Corp.

      21,480         1,404,792   

Exxon Mobil Corp.

      146,800         13,250,168   

Hess Corp.

      95,000         5,917,550   

Occidental Petroleum Corp.

      64,600         4,601,458   
 

 

The accompanying notes are an integral part of the financial statements.

 

66

Table of Contents

MML Equity Income Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  

Royal Dutch Shell PLC A Shares Sponsored ADR (United Kingdom)

      131,400       $ 7,145,532   

Total SA

      169,301         8,642,432   
     

 

 

  
        53,612,333   
     

 

 

  
Oil & Gas Services — 0.1%      

Targa Resources Corp.

      8,400         470,988   
     

 

 

  
        54,083,321   
     

 

 

  
Financial — 26.7%      
Banks — 11.2%      

Bank of America Corp.

      210,177         4,644,911   

The Bank of New York Mellon Corp.

      89,400         4,235,772   

Citigroup, Inc.

      120,500         7,161,315   

Fifth Third Bancorp

      161,900         4,366,443   

KeyCorp

      207,700         3,794,679   

Northern Trust Corp.

      68,600         6,108,830   

The PNC Financial Services Group, Inc.

      37,900         4,432,784   

Royal Bank of Scotland Group PLC (a)

      737,931         2,038,111   

State Street Corp.

      92,400         7,181,328   

U.S. Bancorp

      47,500         2,440,075   

Wells Fargo & Co.

      155,700         8,580,627   
     

 

 

  
        54,984,875   
     

 

 

  
Diversified Financial — 8.1%      

American Express Co.

      81,800         6,059,744   

Ameriprise Financial, Inc.

      56,400         6,257,016   

JP Morgan Chase & Co.

      197,700         17,059,533   

Morgan Stanley

      238,700         10,085,075   

Och-Ziff Capital Management Group LLC Class A

      144,200         477,302   
     

 

 

  
        39,938,670   
     

 

 

  
Insurance — 5.4%      

Chubb Ltd.

      6,908         912,685   

Loews Corp.

      171,700         8,040,711   

Marsh & McLennan Cos., Inc.

      85,500         5,778,945   

MetLife, Inc.

      153,100         8,250,559   

Willis Towers Watson PLC

      18,811         2,300,209   

XL Group Ltd.

      36,900         1,374,894   
     

 

 

  
        26,658,003   
     

 

 

  
Real Estate Investment Trusts (REITS) — 2.0%   

Equity Residential

      46,000         2,960,560   

Rayonier, Inc.

      110,900         2,949,940   

Weyerhaeuser Co.

      123,342         3,711,361   
     

 

 

  
        9,621,861   
     

 

 

  
        131,203,409   
     

 

 

  
     Number of
Shares		      Value  
Industrial — 12.7%      
Aerospace & Defense — 3.6%      

The Boeing Co.

      62,200       $ 9,683,296   

Harris Corp.

      67,535         6,920,311   

United Technologies Corp.

      10,900         1,194,858   
     

 

 

  
        17,798,465   
     

 

 

  
Electrical Components & Equipment — 1.0%   

Emerson Electric Co.

      86,000         4,794,500   
     

 

 

  
Electronics — 1.9%      

Johnson Controls International PLC

      191,415         7,884,384   

TE Connectivity Ltd.

      22,800         1,579,584   
     

 

 

  
        9,463,968   
     

 

 

  
Machinery – Diversified — 1.1%      

Cummins, Inc.

      20,900         2,856,403   

Flowserve Corp.

      52,592         2,527,046   
     

 

 

  
        5,383,449   
     

 

 

  
Manufacturing — 3.5%      

General Electric Co.

      300,500         9,495,800   

Illinois Tool Works, Inc.

      39,800         4,873,908   

Pentair PLC

      50,500         2,831,535   
     

 

 

  
        17,201,243   
     

 

 

  
Transportation — 1.6%      

Union Pacific Corp.

      31,100         3,224,448   

United Parcel Service, Inc. Class B

      39,200         4,493,888   
     

 

 

  
        7,718,336   
     

 

 

  
        62,359,961   
     

 

 

  
Technology — 7.4%      
Computers — 1.0%      

Apple, Inc.

      15,500         1,795,210   

Western Digital Corp.

      45,500         3,091,725   
     

 

 

  
        4,886,935   
     

 

 

  
Semiconductors — 4.1%      

Analog Devices, Inc.

      61,200         4,444,344   

Applied Materials, Inc.

      156,400         5,047,028   

QUALCOMM, Inc.

      95,400         6,220,080   

Texas Instruments, Inc.

      63,500         4,633,595   
     

 

 

  
        20,345,047   
     

 

 

  
Software — 2.3%      

CA, Inc.

      25,300         803,781   

Microsoft Corp.

      168,300         10,458,162   
     

 

 

  
        11,261,943   
     

 

 

  
        36,493,925   
     

 

 

  
Utilities — 6.7%      
Electric — 5.6%      

The AES Corp.

      379,300         4,407,466   

Edison International

      60,600         4,362,594   

Eversource Energy

      4,263         235,445   

Exelon Corp.

      128,200         4,549,818   
 

 

The accompanying notes are an integral part of the financial statements.

 

67

Table of Contents

MML Equity Income Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  

FirstEnergy Corp.

      95,579      $ 2,960,082  

Great Plains Energy, Inc.

      5,256        143,752  

PG&E Corp.

      99,800        6,064,846  

The Southern Co.

      26,500        1,303,535  

Xcel Energy, Inc.

      90,300        3,675,210  
     

 

 

  
        27,702,748  
     

 

 

  
Gas — 1.1%      

NiSource, Inc.

      231,600        5,127,624  
     

 

 

  
        32,830,372  
     

 

 

  
TOTAL COMMON STOCK
(Cost $369,287,858)		         474,316,405  
  

 

 

  
PREFERRED STOCK — 1.1%  
Utilities — 1.1%      
Electric — 1.1%      

DTE Energy Co.
6.500%

      15,505        821,765  

Great Plains Energy, Inc.
7.000%

      25,333        1,281,850  

NextEra Energy, Inc.
6.123%

      64,753        3,171,602  
     

 

 

  
        5,275,217  
     

 

 

  
TOTAL PREFERRED STOCK
(Cost $5,207,012)		         5,275,217  
  

 

 

  
TOTAL EQUITIES
(Cost $374,494,870)		         479,591,622  
  

 

 

  
     Principal
Amount		         
BONDS & NOTES — 0.2%  
CORPORATE DEBT — 0.2%  
Computers — 0.2%      

Western Digital Corp. (b)
10.500% 4/01/24

    $ 695,000        821,838  
     

 

 

  
Pharmaceuticals — 0.0%      

Valeant Pharmaceuticals International (b)
6.375% 10/15/20

      54,000        46,389  
     

 

 

  
TOTAL CORPORATE DEBT
(Cost $731,147)		         868,227  
  

 

 

  
TOTAL BONDS & NOTES
(Cost $731,147)		         868,227  
  

 

 

  
     Number of
Shares		      Value  
MUTUAL FUNDS — 0.0%  
Diversified Financial — 0.0%      

T. Rowe Price Reserve Investment Fund

      1,006      $ 1,006  
     

 

 

  
TOTAL MUTUAL FUNDS
(Cost $1,006)		         1,006  
  

 

 

  
TOTAL LONG-TERM INVESTMENTS
(Cost $375,227,023)		         480,460,855  
  

 

 

  
     Principal
Amount		         
SHORT-TERM INVESTMENTS — 2.0%  
Repurchase Agreement — 2.0%      

State Street Bank & Trust Co. Repurchase Agreement, dated 12/30/16, 0.010%, due 1/03/17 (c)

    $ 9,915,158        9,915,158  
     

 

 

  
Time Deposit — 0.0%      

Euro Time Deposit
0.010% 1/03/17

      43,397        43,397  
     

 

 

  
TOTAL SHORT-TERM INVESTMENTS
(Cost $9,958,555)		         9,958,555  
  

 

 

  
TOTAL INVESTMENTS — 99.9%
(Cost $385,185,578) (d)		         490,419,410  
Other Assets/(Liabilities) — 0.1%         531,171  
  

 

 

  
NET ASSETS — 100.0%       $ 490,950,581  
  

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

ADR American Depositary Receipt
(a) Non-income producing security.
(b) 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. At December 31, 2016, these securities amounted to a value of $868,227 or 0.18% of net assets.
(c) Maturity value of $9,915,169. Collateralized by U.S. Government Agency obligations with rates ranging from 1.625% – 3.125%, maturity dates ranging from 4/30/19 – 5/15/19, and an aggregate market value, including accrued interest, of $10,118,393.
(d) See Note 6 for aggregate cost for federal tax purposes.
 

 

The accompanying notes are an integral part of the financial statements.

 

68

Table of Contents

MML Equity Index Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
EQUITIES — 96.4%   
COMMON STOCK — 96.4%   
Basic Materials — 2.5%      
Chemicals — 2.0%      

Air Products & Chemicals, Inc.

      6,130       $ 881,617   

Albemarle Corp.

      3,199         275,370   

CF Industries Holdings, Inc.

      6,472         203,739   

The Dow Chemical Co.

      31,648         1,810,899   

E.I. du Pont de Nemours & Co.

      24,536         1,800,942   

Eastman Chemical Co.

      4,101         308,436   

Ecolab, Inc.

      7,403         867,780   

FMC Corp.

      3,837         217,021   

International Flavors & Fragrances, Inc.

      2,268         267,238   

LyondellBasell Industries NV Class A

      9,435         809,334   

Monsanto Co.

      12,362         1,300,606   

The Mosaic Co.

      9,964         292,244   

PPG Industries, Inc.

      7,465         707,383   

Praxair, Inc.

      8,053         943,731   

The Sherwin-Williams Co.

      2,290         615,415   
     

 

 

  
        11,301,755   
     

 

 

  
Forest Products & Paper — 0.1%      

International Paper Co.

      11,604         615,708   
     

 

 

  
Iron & Steel — 0.1%      

Nucor Corp.

      8,969         533,835   
     

 

 

  
Mining — 0.3%      

Freeport-McMoRan, Inc. (a)

      35,574         469,221   

Newmont Mining Corp.

      14,975         510,198   

Vulcan Materials Co.

      3,747         468,937   
     

 

 

  
        1,448,356   
     

 

 

  
        13,899,654   
     

 

 

  
Communications — 13.1%      
Advertising — 0.2%      

The Interpublic Group of Companies, Inc.

      11,132         260,600   

Nielsen Holdings PLC

      9,491         398,147   

Omnicom Group, Inc.

      6,671         567,769   
     

 

 

  
        1,226,516   
     

 

 

  
Internet — 6.5%      

Akamai Technologies, Inc. (a)

      4,850         323,398   

Alphabet, Inc. Class A (a)

      8,360         6,624,882   

Alphabet, Inc. Class C (a)

      8,379         6,467,080   

Amazon.com, Inc. (a)

      11,136         8,350,552   

eBay, Inc. (a)

      29,384         872,411   

Equinix, Inc.

      2,021         722,326   

Expedia, Inc.

      3,416         386,964   

F5 Networks, Inc. (a)

      1,838         265,995   

Facebook, Inc. Class A (a)

      66,092         7,603,885   
     Number of
Shares		      Value  

Netflix, Inc. (a)

      12,117       $ 1,500,085   

The Priceline Group, Inc. (a)

      1,394         2,043,688   

Symantec Corp.

      17,490         417,836   

TripAdvisor, Inc. (a)

      3,171         147,039   

VeriSign, Inc. (a)

      2,579         196,184   

Yahoo!, Inc. (a)

      24,793         958,745   
     

 

 

  
        36,881,070   
     

 

 

  
Media — 2.8%      

CBS Corp. Class B

      11,074         704,528   

Charter Communications, Inc. Class A (a)

      6,114         1,760,343   

Comcast Corp. Class A

      67,302         4,647,203   

Discovery Communications, Inc. Series A (a)

      4,194         114,958   

Discovery Communications, Inc. Series C (a)

      6,230         166,839   

News Corp. Class A

      10,576         121,201   

News Corp. Class B

      3,523         41,571   

Scripps Networks Interactive Class A

      2,644         188,702   

TEGNA, Inc.

      5,954         127,356   

Time Warner, Inc.

      21,774         2,101,844   

Twenty-First Century Fox, Inc. Class A

      29,914         838,789   

Twenty-First Century Fox, Inc. Class B

      13,782         375,560   

Viacom, Inc. Class B

      9,840         345,384   

The Walt Disney Co.

      41,349         4,309,393   
     

 

 

  
        15,843,671   
     

 

 

  
Telecommunications — 3.6%      

AT&T, Inc.

      173,383         7,373,979   

CenturyLink, Inc.

      15,451         367,425   

Cisco Systems, Inc.

      141,748         4,283,624   

Corning, Inc.

      26,886         652,523   

Frontier Communications Corp.

      32,563         110,063   

Juniper Networks, Inc.

      10,631         300,432   

Level 3 Communications, Inc. (a)

      8,235         464,125   

Motorola Solutions, Inc.

      4,713         390,661   

Verizon Communications, Inc.

      115,095         6,143,771   
     

 

 

  
        20,086,603   
     

 

 

  
        74,037,860   
     

 

 

  
Consumer, Cyclical — 8.8%      
Airlines — 0.5%      

Alaska Air Group, Inc.

      3,493         309,934   

American Airlines Group, Inc.

      14,625         682,841   

Delta Air Lines, Inc.

      20,785         1,022,414   

Southwest Airlines Co.

      17,376         866,020   
     

 

 

  
        2,881,209   
     

 

 

  
Apparel — 0.6%      

Hanesbrands, Inc.

      10,801         232,978   

Michael Kors Holdings Ltd. (a)

      4,690         201,576   
 

 

The accompanying notes are an integral part of the financial statements.

 

69

Table of Contents

MML Equity Index Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  

Nike, Inc. Class B

      37,752       $ 1,918,934   

Ralph Lauren Corp.

      1,565         141,351   

Under Armour, Inc. Class A (a)

      5,090         147,864   

Under Armour, Inc. Class C (a)

      5,116         128,770   

VF Corp.

      9,375         500,156   
     

 

 

  
        3,271,629   
     

 

 

  
Auto Manufacturers — 0.6%      

Ford Motor Co.

      110,308         1,338,036   

General Motors Co.

      39,195         1,365,554   

PACCAR, Inc.

      9,895         632,291   
     

 

 

  
        3,335,881   
     

 

 

  
Automotive & Parts — 0.2%      

BorgWarner, Inc.

      5,593         220,588   

Delphi Automotive PLC

      7,673         516,776   

The Goodyear Tire & Rubber Co.

      7,286         224,919   
     

 

 

  
        962,283   
     

 

 

  
Distribution & Wholesale — 0.3%      

Fastenal Co.

      8,170         383,826   

Genuine Parts Co.

      4,208         402,032   

LKQ Corp. (a)

      8,744         268,004   

W.W. Grainger, Inc.

      1,543         358,362   
     

 

 

  
        1,412,224   
     

 

 

  
Home Builders — 0.1%      

D.R. Horton, Inc.

      9,648         263,680   

Lennar Corp. Class A

      5,542         237,918   

PulteGroup, Inc.

      8,579         157,682   
     

 

 

  
        659,280   
     

 

 

  
Home Furnishing — 0.1%      

Harman International Industries, Inc.

      1,937         215,317   

Whirlpool Corp.

      2,133         387,715   
     

 

 

  
        603,032   
     

 

 

  
Housewares — 0.1%      

Newell Brands, Inc.

      13,629         608,535   
     

 

 

  
Leisure Time — 0.2%      

Carnival Corp.

      11,844         616,598   

Harley-Davidson, Inc.

      4,964         289,600   

Royal Caribbean Cruises Ltd.

      4,743         389,116   
     

 

 

  
        1,295,314   
     

 

 

  
Lodging — 0.2%      

Marriott International, Inc. Class A

      9,041         747,510   

Wyndham Worldwide Corp.

      3,051         233,005   

Wynn Resorts Ltd.

      2,204         190,668   
     

 

 

  
        1,171,183   
     

 

 

  
Retail — 5.7%      

Advance Auto Parts, Inc.

      2,084         352,446   

AutoNation, Inc. (a)

      1,842         89,613   

AutoZone, Inc. (a)

      812         641,310   

Bed Bath & Beyond, Inc.

      4,286         174,183   

Best Buy Co., Inc.

      7,662         326,938   
     Number of
Shares		      Value  

CarMax, Inc. (a)

      5,421       $ 349,058   

Chipotle Mexican Grill, Inc. (a)

      826         311,666   

Coach, Inc.

      7,959         278,724   

Costco Wholesale Corp.

      12,342         1,976,078   

CVS Health Corp.

      30,111         2,376,059   

Darden Restaurants, Inc.

      3,477         252,847   

Dollar General Corp.

      7,189         532,489   

Dollar Tree, Inc. (a)

      6,678         515,408   

Foot Locker, Inc.

      3,849         272,856   

The Gap, Inc.

      6,083         136,503   

The Home Depot, Inc.

      34,403         4,612,754   

Kohl’s Corp.

      4,985         246,159   

L Brands, Inc.

      6,798         447,580   

Lowe’s Cos., Inc.

      24,575         1,747,774   

Macy’s, Inc.

      8,562         306,605   

McDonald’s Corp.

      23,446         2,853,847   

Nordstrom, Inc.

      3,225         154,574   

O’Reilly Automotive, Inc. (a)

      2,670         743,355   

PVH Corp.

      2,227         200,965   

Ross Stores, Inc.

      11,214         735,638   

Signet Jewelers Ltd.

      1,932         182,110   

Staples, Inc.

      18,060         163,443   

Starbucks Corp.

      41,091         2,281,372   

Target Corp.

      15,886         1,147,446   

Tiffany & Co.

      2,982         230,896   

The TJX Cos., Inc.

      18,428         1,384,496   

Tractor Supply Co.

      3,711         281,331   

Ulta Salon Cosmetics & Fragrance, Inc. (a)

      1,657         422,436   

Urban Outfitters, Inc. (a)

      2,471         70,374   

Wal-Mart Stores, Inc.

      42,508         2,938,153   

Walgreens Boots Alliance, Inc.

      24,162         1,999,647   

Yum! Brands, Inc.

      9,841         623,231   
     

 

 

  
        32,360,364   
     

 

 

  
Textiles — 0.1%      

Cintas Corp.

      2,432         281,042   

Mohawk Industries, Inc. (a)

      1,784         356,229   
     

 

 

  
        637,271   
     

 

 

  
Toys, Games & Hobbies — 0.1%      

Hasbro, Inc.

      3,133         243,716   

Mattel, Inc.

      9,701         267,263   
     

 

 

  
        510,979   
     

 

 

  
        49,709,184   
     

 

 

  
Consumer, Non-cyclical — 22.0%      
Agriculture — 1.7%      

Altria Group, Inc.

      55,022         3,720,587   

Archer-Daniels-Midland Co.

      16,301         744,141   

Philip Morris International, Inc.

      43,771         4,004,609   

Reynolds American, Inc.

      23,345         1,308,254   
     

 

 

  
        9,777,591   
     

 

 

  
 

 

The accompanying notes are an integral part of the financial statements.

 

70

Table of Contents

MML Equity Index Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  
Beverages — 2.0%      

Brown-Forman Corp. Class B

      5,217       $ 234,348   

The Coca-Cola Co.

      109,548         4,541,860   

Constellation Brands, Inc. Class A

      5,027         770,689   

Dr. Pepper Snapple Group, Inc.

      5,225         473,751   

Molson Coors Brewing Co. Class B

      5,202         506,207   

Monster Beverage Corp. (a)

      11,443         507,382   

PepsiCo, Inc.

      40,464         4,233,748   
     

 

 

  
        11,267,985   
     

 

 

  
Biotechnology — 2.2%      

Alexion Pharmaceuticals, Inc. (a)

      6,332         774,720   

Amgen, Inc.

      21,005         3,071,141   

Biogen, Inc. (a)

      6,143         1,742,032   

Celgene Corp. (a)

      21,887         2,533,420   

Gilead Sciences, Inc.

      37,199         2,663,821   

Illumina, Inc. (a)

      4,147         530,982   

Regeneron Pharmaceuticals, Inc. (a)

      2,135         783,737   

Vertex Pharmaceuticals, Inc. (a)

      7,009         516,353   
     

 

 

  
        12,616,206   
     

 

 

  
Commercial Services — 1.9%      

Automatic Data Processing, Inc.

      12,739         1,309,315   

Equifax, Inc.

      3,384         400,090   

Global Payments, Inc.

      4,363         302,836   

H&R Block, Inc.

      6,083         139,848   

Moody’s Corp.

      4,727         445,614   

Paychex, Inc.

      9,092         553,521   

PayPal Holdings, Inc. (a)

      31,688         1,250,725   

Quanta Services, Inc. (a)

      4,192         146,091   

Robert Half International, Inc.

      3,614         176,291   

S&P Global, Inc.

      7,314         786,548   

Total System Services, Inc.

      4,731         231,961   

United Rentals, Inc. (a)

      2,392         252,547   

Verisk Analytics, Inc. (a)

      4,365         354,307   

Visa, Inc. Class A

      52,733         4,114,229   

The Western Union Co.

      13,538         294,045   
     

 

 

  
        10,757,968   
     

 

 

  
Cosmetics & Personal Care — 1.6%   

Colgate-Palmolive Co.

      25,068         1,640,450   

Coty, Inc. Class A

      13,094         239,751   

The Estee Lauder Cos., Inc. Class A

      6,295         481,505   

The Procter & Gamble Co.

      75,539         6,351,319   
     

 

 

  
        8,713,025   
     

 

 

  
Foods — 1.7%      

Campbell Soup Co.

      5,514         333,432   

Conagra Brands, Inc.

      11,753         464,831   

General Mills, Inc.

      16,665         1,029,397   

The Hershey Co.

      3,964         409,997   

Hormel Foods Corp.

      7,700         268,037   

The J.M. Smucker Co.

      3,287         420,933   

Kellogg Co.

      7,110         524,078   

The Kraft Heinz Co.

      16,819         1,468,635   
     Number of
Shares		      Value  

The Kroger Co.

      26,665       $ 920,209   

McCormick & Co., Inc.

      3,269         305,096   

Mondelez International, Inc. Class A

      43,592         1,932,433   

Sysco Corp.

      14,204         786,475   

Tyson Foods, Inc. Class A

      8,210         506,393   

Whole Foods Market, Inc.

      9,064         278,809   
     

 

 

  
        9,648,755   
     

 

 

  
Health Care – Products — 3.7%      

Abbott Laboratories

      41,569         1,596,665   

Baxter International, Inc.

      13,809         612,291   

Becton, Dickinson & Co.

      5,992         991,976   

Boston Scientific Corp. (a)

      38,411         830,830   

C.R. Bard, Inc.

      2,074         465,945   

The Cooper Cos., Inc.

      1,393         243,677   

Edwards Lifesciences Corp. (a)

      6,036         565,573   

Henry Schein, Inc. (a)

      2,270         344,382   

Hologic, Inc. (a)

      7,877         316,025   

Intuitive Surgical, Inc. (a)

      1,096         695,050   

Johnson & Johnson

      76,805         8,848,704   

Medtronic PLC

      38,764         2,761,160   

St. Jude Medical, Inc.

      8,062         646,492   

Stryker Corp.

      8,770         1,050,734   

Varian Medical Systems, Inc. (a)

      2,670         239,713   

Zimmer Biomet Holdings, Inc.

      5,656         583,699   
     

 

 

  
        20,792,916   
     

 

 

  
Health Care – Services — 2.3%      

Aetna, Inc.

      9,904         1,228,195   

Anthem, Inc.

      7,436         1,069,074   

Centene Corp. (a)

      4,859         274,582   

Cigna Corp.

      7,248         966,811   

DaVita, Inc. (a)

      4,404         282,737   

DENTSPLY SIRONA, Inc.

      6,469         373,455   

Envision Healthcare Corp. (a)

      3,364         212,908   

HCA Holdings, Inc. (a)

      8,293         613,848   

Humana, Inc.

      4,209         858,762   

Laboratory Corporation of America Holdings (a)

      2,905         372,944   

Quest Diagnostics, Inc.

      3,935         361,626   

Thermo Fisher Scientific, Inc.

      11,149         1,573,124   

UnitedHealth Group, Inc.

      26,867         4,299,795   

Universal Health Services, Inc. Class B

      2,501         266,056   
     

 

 

  
        12,753,917   
     

 

 

  
Household Products — 0.4%      

Avery Dennison Corp.

      2,466         173,163   

Church & Dwight Co., Inc.

      7,308         322,940   

The Clorox Co.

      3,651         438,193   

Kimberly-Clark Corp.

      10,110         1,153,753   
     

 

 

  
        2,088,049   
     

 

 

  
 

 

The accompanying notes are an integral part of the financial statements.

 

71

Table of Contents

MML Equity Index Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  
Pharmaceuticals — 4.5%      

AbbVie, Inc.

      45,882       $ 2,873,131   

Allergan PLC (a)

      10,592         2,224,426   

AmerisourceBergen Corp.

      4,732         369,995   

Bristol-Myers Squibb Co.

      47,187         2,757,608   

Cardinal Health, Inc.

      9,075         653,128   

Eli Lilly & Co.

      27,431         2,017,550   

Endo International PLC (a)

      5,503         90,634   

Express Scripts Holding Co. (a)

      17,408         1,197,496   

Mallinckrodt PLC (a)

      2,990         148,962   

McKesson Corp.

      6,383         896,492   

Mead Johnson Nutrition Co.

      5,223         369,580   

Merck & Co., Inc.

      77,844         4,582,676   

Mylan NV (a)

      13,001         495,988   

Patterson Cos., Inc.

      2,331         95,641   

Perrigo Co. PLC

      4,060         337,914   

Pfizer, Inc.

      171,335         5,564,961   

Zoetis, Inc.

      13,943         746,369   
     

 

 

  
        25,422,551   
     

 

 

  
        123,838,963   
     

 

 

  
Diversified — 0.0%      
Holding Company – Diversified — 0.0%   

Leucadia National Corp.

      9,032         209,994   
     

 

 

  
Energy — 7.3%      
Energy – Alternate Sources — 0.0%   

First Solar, Inc. (a)

      2,224         71,368   
     

 

 

  
Oil & Gas — 5.7%      

Anadarko Petroleum Corp.

      15,780         1,100,339   

Apache Corp.

      10,713         679,954   

Cabot Oil & Gas Corp.

      13,224         308,913   

Chesapeake Energy Corp. (a)

      20,690         145,244   

Chevron Corp.

      53,297         6,273,057   

Cimarex Energy Co.

      2,689         365,435   

Concho Resources, Inc. (a)

      4,148         550,025   

ConocoPhillips

      34,986         1,754,198   

Devon Energy Corp.

      14,784         675,185   

EOG Resources, Inc.

      16,274         1,645,301   

EQT Corp.

      4,899         320,395   

Exxon Mobil Corp.

      117,076         10,567,280   

Helmerich & Payne, Inc.

      3,088         239,011   

Hess Corp.

      7,582         472,283   

Marathon Oil Corp.

      23,929         414,211   

Marathon Petroleum Corp.

      14,905         750,467   

Murphy Oil Corp.

      4,493         139,867   

Newfield Exploration Co. (a)

      5,513         223,277   

Noble Energy, Inc.

      12,106         460,754   

Occidental Petroleum Corp.

      21,578         1,537,001   

Phillips 66

      12,501         1,080,211   

Pioneer Natural Resources Co.

      4,791         862,715   

Range Resources Corp.

      5,218         179,291   

Southwestern Energy Co. (a)

      13,698         148,212   

Tesoro Corp.

      3,297         288,323   
     Number of
Shares		      Value  

Valero Energy Corp.

      12,782       $ 873,266   
     

 

 

  
        32,054,215   
     

 

 

  
Oil & Gas Services — 1.1%      

Baker Hughes, Inc.

      11,934         775,352   

FMC Technologies, Inc. (a)

      6,462         229,595   

Halliburton Co.

      24,379         1,318,660   

National Oilwell Varco, Inc.

      10,664         399,260   

Schlumberger Ltd.

      39,273         3,296,969   

Transocean Ltd. (a)

      10,769         158,735   
     

 

 

  
        6,178,571   
     

 

 

  
Pipelines — 0.5%      

Kinder Morgan, Inc.

      54,208         1,122,648   

ONEOK, Inc.

      5,962         342,278   

Spectra Energy Corp.

      19,804         813,746   

The Williams Cos., Inc.

      19,293         600,784   
     

 

 

  
        2,879,456   
     

 

 

  
        41,183,610   
     

 

 

  
Financial — 17.2%      
Banks — 6.1%      

Bank of America Corp.

      285,332         6,305,837   

The Bank of New York Mellon Corp.

      29,859         1,414,719   

BB&T Corp.

      22,927         1,078,028   

Capital One Financial Corp.

      13,622         1,188,383   

Citigroup, Inc.

      80,494         4,783,758   

Citizens Financial Group, Inc.

      14,425         513,963   

Comerica, Inc.

      4,832         329,108   

Fifth Third Bancorp

      21,354         575,917   

The Goldman Sachs Group, Inc.

      10,443         2,500,576   

Huntington Bancshares, Inc.

      30,689         405,709   

KeyCorp

      30,532         557,820   

M&T Bank Corp.

      4,399         688,136   

Northern Trust Corp.

      5,912         526,464   

The PNC Financial Services Group, Inc.

      13,742         1,607,264   

Regions Financial Corp.

      34,784         499,498   

State Street Corp.

      10,240         795,853   

SunTrust Banks, Inc.

      13,871         760,824   

U.S. Bancorp

      45,113         2,317,455   

Wells Fargo & Co.

      127,627         7,033,524   

Zions Bancorp

      5,699         245,285   
     

 

 

  
        34,128,121   
     

 

 

  
Diversified Financial — 4.3%      

Affiliated Managers Group, Inc. (a)

      1,562         226,959   

Alliance Data Systems Corp.

      1,625         371,313   

American Express Co.

      21,706         1,607,980   

Ameriprise Financial, Inc.

      4,465         495,347   

BlackRock, Inc.

      3,432         1,306,013   

The Charles Schwab Corp.

      34,063         1,344,467   

CME Group, Inc.

      9,580         1,105,053   

Discover Financial Services

      11,132         802,506   
 

 

The accompanying notes are an integral part of the financial statements.

 

72

Table of Contents

MML Equity Index Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  

E*TRADE Financial Corp. (a)

      7,826       $ 271,171   

Franklin Resources, Inc.

      9,780         387,092   

Intercontinental Exchange, Inc.

      16,819         948,928   

Invesco Ltd.

      11,639         353,127   

JP Morgan Chase & Co.

      101,031         8,717,965   

MasterCard, Inc. Class A

      26,874         2,774,740   

Morgan Stanley

      40,725         1,720,631   

Nasdaq, Inc.

      3,189         214,046   

Navient Corp.

      8,609         141,446   

Synchrony Financial

      22,181         804,505   

T. Rowe Price Group, Inc.

      6,877         517,563   
     

 

 

  
        24,110,852   
     

 

 

  
Insurance — 4.2%      

Aflac, Inc.

      11,525         802,140   

The Allstate Corp.

      10,409         771,515   

American International Group, Inc.

      27,558         1,799,813   

Aon PLC

      7,435         829,226   

Arthur J. Gallagher & Co.

      5,055         262,658   

Assurant, Inc.

      1,584         147,090   

Berkshire Hathaway, Inc. Class B (a)

      53,610         8,737,358   

Chubb Ltd.

      13,137         1,735,660   

Cincinnati Financial Corp.

      4,254         322,241   

The Hartford Financial Services Group, Inc.

      10,673         508,568   

Lincoln National Corp.

      6,456         427,839   

Loews Corp.

      7,826         366,492   

Marsh & McLennan Cos., Inc.

      14,549         983,367   

MetLife, Inc.

      31,036         1,672,530   

Principal Financial Group, Inc.

      7,555         437,132   

The Progressive Corp.

      16,389         581,809   

Prudential Financial, Inc.

      12,142         1,263,497   

Torchmark Corp.

      3,098         228,508   

The Travelers Cos., Inc.

      8,022         982,053   

Unum Group

      6,516         286,248   

Willis Towers Watson PLC

      3,603         440,575   

XL Group Ltd.

      7,635         284,480   
     

 

 

  
        23,870,799   
     

 

 

  
Real Estate — 0.0%      

CBRE Group, Inc. Class A (a)

      8,517         268,200   
     

 

 

  
Real Estate Investment Trusts (REITS) — 2.6%   

American Tower Corp.

      12,001         1,268,266   

Apartment Investment & Management Co. Class A

      4,506         204,798   

AvalonBay Communities, Inc.

      3,859         683,622   

Boston Properties, Inc.

      4,324         543,873   

Crown Castle International Corp.

      10,203         885,314   

Digital Realty Trust, Inc.

      4,484         440,598   

Equity Residential

      10,283         661,814   

Essex Property Trust, Inc.

      1,849         429,892   

Extra Space Storage, Inc.

      3,586         276,983   

Federal Realty Investment Trust

      2,019         286,920   

General Growth Properties, Inc.

      16,489         411,895   
     Number of
Shares		      Value  

HCP, Inc.

      13,216       $ 392,780   

Host Hotels & Resorts, Inc.

      20,977         395,207   

Iron Mountain, Inc.

      7,014         227,815   

Kimco Realty Corp.

      12,039         302,901   

The Macerich Co.

      3,451         244,469   

Mid-America Apartment Communities, Inc.

      3,225         315,792   

Prologis, Inc.

      14,951         789,263   

Public Storage

      4,218         942,723   

Realty Income Corp.

      7,301         419,661   

Simon Property Group, Inc.

      8,853         1,572,913   

SL Green Realty Corp.

      2,850         306,518   

UDR, Inc.

      7,613         277,722   

Ventas, Inc.

      10,024         626,700   

Vornado Realty Trust

      4,839         505,046   

Welltower, Inc.

      10,224         684,292   

Weyerhaeuser Co.

      21,077         634,207   
     

 

 

  
        14,731,984   
     

 

 

  
Savings & Loans — 0.0%      

People’s United Financial, Inc.

      8,654         167,542   
     

 

 

  
        97,277,498   
     

 

 

  
Industrial — 9.8%      
Aerospace & Defense — 2.1%      

Arconic, Inc.

      12,520         232,121   

The Boeing Co.

      16,201         2,522,172   

General Dynamics Corp.

      8,075         1,394,230   

Harris Corp.

      3,518         360,489   

L3 Technologies, Inc.

      2,189         332,969   

Lockheed Martin Corp.

      7,112         1,777,573   

Northrop Grumman Corp.

      4,972         1,156,388   

Raytheon Co.

      8,287         1,176,754   

Rockwell Collins, Inc.

      3,682         341,542   

TransDigm Group, Inc.

      1,418         353,025   

United Technologies Corp.

      21,612         2,369,107   
     

 

 

  
        12,016,370   
     

 

 

  
Airlines — 0.1%      

United Continental Holdings, Inc. (a)

      8,150         593,972   
     

 

 

  
Building Materials — 0.2%      

Fortune Brands Home & Security, Inc.

      4,399         235,171   

Martin Marietta Materials, Inc.

      1,791         396,760   

Masco Corp.

      9,167         289,860   
     

 

 

  
        921,791   
     

 

 

  
Electrical Components & Equipment — 0.3%   

Acuity Brands, Inc.

      1,248         288,113   

AMETEK, Inc.

      6,596         320,566   

Emerson Electric Co.

      18,135         1,011,026   
     

 

 

  
        1,619,705   
     

 

 

  
Electronics — 0.8%      

Agilent Technologies, Inc.

      9,192         418,787   
 

 

The accompanying notes are an integral part of the financial statements.

 

73

Table of Contents

MML Equity Index Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  

Allegion PLC

      2,662       $ 170,368   

Amphenol Corp. Class A

      8,718         585,850   

FLIR Systems, Inc.

      3,812         137,956   

Fortive Corp.

      8,493         455,480   

Garmin Ltd.

      3,198         155,071   

Johnson Controls International PLC

      26,457         1,089,764   

Mettler-Toledo International, Inc. (a)

      736         308,060   

PerkinElmer, Inc.

      3,040         158,536   

TE Connectivity Ltd.

      10,050         696,264   

Waters Corp. (a)

      2,289         307,619   
     

 

 

  
        4,483,755   
     

 

 

  
Engineering & Construction — 0.1%   

Fluor Corp.

      3,994         209,765   

Jacobs Engineering Group, Inc. (a)

      3,370         192,090   
     

 

 

  
        401,855   
     

 

 

  
Environmental Controls — 0.2%      

Republic Services, Inc.

      6,469         369,057   

Stericycle, Inc. (a)

      2,360         181,814   

Waste Management, Inc.

      11,496         815,181   
     

 

 

  
        1,366,052   
     

 

 

  
Hand & Machine Tools — 0.1%      

Snap-on, Inc.

      1,653         283,109   

Stanley Black & Decker, Inc.

      4,256         488,121   
     

 

 

  
        771,230   
     

 

 

  
Machinery – Construction & Mining — 0.4%   

Caterpillar, Inc.

      16,517         1,531,786   

Ingersoll-Rand PLC

      7,291         547,117   
     

 

 

  
        2,078,903   
     

 

 

  
Machinery – Diversified — 0.5%      

Cummins, Inc.

      4,358         595,608   

Deere & Co.

      8,168         841,631   

Flowserve Corp.

      3,620         173,941   

Rockwell Automation, Inc.

      3,645         489,888   

Roper Technologies, Inc.

      2,867         524,890   

Xylem, Inc.

      5,113         253,196   
     

 

 

  
        2,879,154   
     

 

 

  
Manufacturing — 3.2%      

3M Co.

      16,977         3,031,583   

Danaher Corp.

      17,180         1,337,291   

Dover Corp.

      4,401         329,767   

Eaton Corp. PLC

      12,742         854,861   

General Electric Co.

      249,771         7,892,764   

Honeywell International, Inc.

      21,517         2,492,744   

Illinois Tool Works, Inc.

      8,908         1,090,874   

Leggett & Platt, Inc.

      3,710         181,345   

Parker Hannifin Corp.

      3,767         527,380   

Pentair PLC

      4,748         266,220   

Textron, Inc.

      7,630         370,513   
     

 

 

  
        18,375,342   
     

 

 

  
     Number of
Shares		      Value  
Packaging & Containers — 0.2%      

Ball Corp.

      4,938       $ 370,696   

Sealed Air Corp.

      5,459         247,511   

WestRock Co.

      7,116         361,279   
     

 

 

  
        979,486   
     

 

 

  
Transportation — 1.6%      

C.H. Robinson Worldwide, Inc.

      3,963         290,329   

CSX Corp.

      26,458         950,636   

Expeditors International of Washington, Inc.

      5,027         266,230   

FedEx Corp.

      6,910         1,286,642   

J.B. Hunt Transport Services, Inc.

      2,441         236,948   

Kansas City Southern

      3,079         261,253   

Norfolk Southern Corp.

      8,252         891,794   

Ryder System, Inc.

      1,485         110,543   

Union Pacific Corp.

      23,272         2,412,841   

United Parcel Service, Inc. Class B

      19,480         2,233,187   
     

 

 

  
        8,940,403   
     

 

 

  
        55,428,018   
     

 

 

  
Technology — 12.6%      
Computers — 4.9%      

Accenture PLC Class A

      17,514         2,051,415   

Apple, Inc.

      150,557         17,437,512   

Cognizant Technology Solutions Corp. Class A (a)

      17,132         959,906   

CSRA, Inc.

      4,043         128,729   

Hewlett Packard Enterprise Co.

      47,061         1,088,991   

HP, Inc.

      48,331         717,232   

International Business Machines Corp.

      24,428         4,054,804   

NetApp, Inc.

      7,736         272,849   

Seagate Technology PLC

      8,289         316,391   

Teradata Corp. (a)

      3,620         98,355   

Western Digital Corp.

      8,064         547,949   
     

 

 

  
        27,674,133   
     

 

 

  
Office Equipment/Supplies — 0.1%      

Pitney Bowes, Inc.

      5,212         79,170   

Xerox Corp.

      24,397         212,986   
     

 

 

  
        292,156   
     

 

 

  
Semiconductors — 3.2%      

Analog Devices, Inc.

      8,669         629,543   

Applied Materials, Inc.

      30,523         984,977   

Broadcom Ltd.

      11,221         1,983,536   

Intel Corp.

      133,820         4,853,651   

KLA-Tencor Corp.

      4,419         347,687   

Lam Research Corp.

      4,628         489,319   

Linear Technology Corp.

      6,793         423,544   

Microchip Technology, Inc.

      6,110         391,957   

Micron Technology, Inc. (a)

      29,422         644,930   

NVIDIA Corp.

      15,218         1,624,369   

Qorvo, Inc. (a)

      3,550         187,192   
 

 

The accompanying notes are an integral part of the financial statements.

 

74

Table of Contents

MML Equity Index Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  

QUALCOMM, Inc.

      41,702       $ 2,718,970   

Skyworks Solutions, Inc.

      5,203         388,456   

Texas Instruments, Inc.

      28,227         2,059,724   

Xilinx, Inc.

      7,149         431,585   
     

 

 

  
        18,159,440   
     

 

 

  
Software — 4.4%      

Activision Blizzard, Inc.

      19,393         700,281   

Adobe Systems, Inc. (a)

      14,039         1,445,315   

Autodesk, Inc. (a)

      5,532         409,423   

CA, Inc.

      8,941         284,056   

Cerner Corp. (a)

      8,535         404,303   

Citrix Systems, Inc. (a)

      4,405         393,411   

The Dun & Bradstreet Corp.

      1,068         129,570   

Electronic Arts, Inc. (a)

      8,561         674,264   

Fidelity National Information Services, Inc.

      9,272         701,334   

Fiserv, Inc. (a)

      6,133         651,815   

Intuit, Inc.

      6,882         788,746   

Microsoft Corp.

      219,522         13,641,097   

Oracle Corp.

      84,616         3,253,485   

Red Hat, Inc. (a)

      5,028         350,452   

Salesforce.com, Inc. (a)

      18,026         1,234,060   
     

 

 

  
        25,061,612   
     

 

 

  
        71,187,341   
     

 

 

  
Utilities — 3.1%      
Electric — 2.8%      

The AES Corp.

      18,859         219,142   

Alliant Energy Corp.

      6,496         246,133   

Ameren Corp.

      6,872         360,505   

American Electric Power Co., Inc.

      13,865         872,940   

CenterPoint Energy, Inc.

      12,243         301,668   

CMS Energy Corp.

      7,916         329,464   

Consolidated Edison, Inc.

      8,579         632,101   

Dominion Resources, Inc.

      17,668         1,353,192   

DTE Energy Co.

      5,055         497,968   

Duke Energy Corp.

      19,433         1,508,390   

Edison International

      9,175         660,508   

Entergy Corp.

      5,066         372,199   

Eversource Energy

      8,952         494,419   

Exelon Corp.

      26,098         926,218   

FirstEnergy Corp.

      12,035         372,724   

NextEra Energy, Inc.

      13,185         1,575,080   

NRG Energy, Inc.

      8,745         107,214   

PG&E Corp.

      14,256         866,337   

Pinnacle West Capital Corp.

      3,179         248,057   

PPL Corp.

      19,115         650,866   

Public Service Enterprise Group, Inc.

      14,266         625,992   

SCANA Corp.

      4,065         297,883   

The Southern Co.

      27,643         1,359,759   

WEC Energy Group, Inc.

      8,886         521,164   

Xcel Energy, Inc.

      14,296         581,847   
     

 

 

  
        15,981,770   
     

 

 

  
    Number of
Shares		      Value  
Gas — 0.2%     

NiSource, Inc.

     9,255       $ 204,906   

Sempra Energy

     7,030         707,499   
    

 

 

  
       912,405   
    

 

 

  
Water — 0.1%     

American Water Works Co., Inc.

     5,031         364,043   
    

 

 

  
       17,258,218   
    

 

 

  
TOTAL COMMON STOCK
(Cost $334,711,231)		        544,030,340   
  

 

 

  
TOTAL EQUITIES
(Cost $334,711,231)		        544,030,340   
  

 

 

  
TOTAL LONG-TERM INVESTMENTS
(Cost $334,711,231)		        544,030,340   
  

 

 

  
    Principal
Amount		         
SHORT-TERM INVESTMENTS — 3.5%   
Repurchase Agreement — 3.3%   

State Street Bank & Trust Co. Repurchase Agreement, dated 12/30/16, 0.010%, due 1/03/17 (b)

   $ 18,414,468         18,414,468   
    

 

 

  
Time Deposit — 0.0%     

Euro Time Deposit
0.010% 1/03/17

     7,777         7,777   
    

 

 

  
U.S. Treasury Bill — 0.2%     

U.S. Treasury Bill (c)
0.000% 3/02/17

     1,205,000         1,204,060   
    

 

 

  
TOTAL SHORT-TERM INVESTMENTS
(Cost $19,626,319)		        19,626,305   
  

 

 

  
TOTAL INVESTMENTS — 99.9%
(Cost $354,337,550) (d)		        563,656,645   
Other Assets/(Liabilities) — 0.1%        317,910   
  

 

 

  
NET ASSETS — 100.0%      $ 563,974,555   
  

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

(a) Non-income producing security.
(b) Maturity value of $18,414,488. Collateralized by U.S. Government Agency obligations with a rate of 3.125%, maturity date of 5/15/21, and an aggregate market value, including accrued interest, of $18,784,606.
(c) A portion of this security is held as collateral for open futures contracts. (Note 2).
(d) See Note 6 for aggregate cost for federal tax purposes.
 

 

The accompanying notes are an integral part of the financial statements.

 

75

Table of Contents

MML Focused Equity Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
EQUITIES — 97.8%   
COMMON STOCK — 97.8%   
Communications — 24.5%      
Internet — 10.5%      

Alphabet, Inc. Class C (a)

      10,500       $ 8,104,110   

CDW Corp.

      118,000         6,146,620   
     

 

 

  
        14,250,730   
     

 

 

  
Media — 9.8%      

Charter Communications, Inc. Class A (a)

      26,700         7,687,464   

Tribune Media Co. Class A

      161,500         5,649,270   
     

 

 

  
        13,336,734   
     

 

 

  
Telecommunications — 4.2%      

CommScope Holding Co., Inc. (a)

      151,000         5,617,200   
     

 

 

  
        33,204,664   
     

 

 

  
Consumer, Cyclical — 15.9%      
Auto Manufacturers — 6.7%      

General Motors Co.

      264,000         9,197,760   
     

 

 

  
Retail — 9.2%      

CarMax, Inc. (a)

      105,700         6,806,023   

Tiffany & Co.

      73,000         5,652,390   
     

 

 

  
        12,458,413   
     

 

 

  
        21,656,173   
     

 

 

  
Consumer, Non-cyclical — 14.0%      
Health Care – Products — 4.8%      

Baxter International, Inc.

      146,500         6,495,810   
     

 

 

  
Health Care – Services — 5.3%      

HCA Holdings, Inc. (a)

      97,500         7,216,950   
     

 

 

  
Pharmaceuticals — 3.9%      

Quintiles IMS Holdings, Inc. (a)

      70,000         5,323,500   
     

 

 

  
        19,036,260   
     

 

 

  
Financial — 34.5%      
Banks — 10.3%      

The Goldman Sachs Group, Inc.

      17,500         4,190,375   

Wells Fargo & Co.

      177,500         9,782,025   
     

 

 

  
        13,972,400   
     

 

 

  
Diversified Financial — 10.5%      

BlackRock, Inc.

      16,300         6,202,802   

JP Morgan Chase & Co.

      93,500         8,068,115   
     

 

 

  
        14,270,917   
     

 

 

  
Insurance — 10.1%      

American International Group, Inc.

      117,000         7,641,270   

Aon PLC

      55,000         6,134,150   
     

 

 

  
        13,775,420   
     

 

 

  
    Number of
Shares		      Value  
Real Estate — 3.6%     

CBRE Group, Inc. Class A (a)

     154,000       $ 4,849,460   
    

 

 

  
       46,868,197   
    

 

 

  
Industrial — 8.9%     
Machinery – Construction & Mining — 4.5%   

Caterpillar, Inc.

     66,000         6,120,840   
    

 

 

  
Machinery – Diversified — 4.4%     

Cummins, Inc.

     43,200         5,904,144   
    

 

 

  
       12,024,984   
    

 

 

  
TOTAL COMMON STOCK
(Cost $106,580,396)		        132,790,278   
  

 

 

  
TOTAL EQUITIES
(Cost $106,580,396)		        132,790,278   
  

 

 

  
TOTAL LONG-TERM INVESTMENTS
(Cost $106,580,396)		        132,790,278   
  

 

 

  
    Principal
Amount		         
SHORT-TERM INVESTMENTS — 2.3%   
Repurchase Agreement — 2.3%     

State Street Bank & Trust Co. Repurchase Agreement, dated 12/30/16, 0.010%, due 1/03/17 (b)

   $ 3,141,952         3,141,952   
    

 

 

  
TOTAL SHORT-TERM INVESTMENTS
(Cost $3,141,952)		        3,141,952   
  

 

 

  
TOTAL INVESTMENTS — 100.1%
(Cost $109,722,348) (c)		        135,932,230   
Other Assets/(Liabilities) — (0.1)%         (114,098 ) 
  

 

 

  
NET ASSETS — 100.0%       $ 135,818,132   
  

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

(a) Non-income producing security.
(b) Maturity value of $3,141,955. Collateralized by U.S. Government Agency obligations with a rate of 1.625%, maturity date of 4/30/19, and an aggregate market value, including accrued interest, of $3,205,401.
(c) See Note 6 for aggregate cost for federal tax purposes.
 

 

The accompanying notes are an integral part of the financial statements.

 

76

Table of Contents

MML Foreign Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
EQUITIES — 97.3%   
COMMON STOCK — 97.3%   
Bermuda — 0.4%      

Kunlun Energy Co. Ltd

      1,700,000       $ 1,269,101   
     

 

 

  
Brazil — 0.5%      

Embraer SA Sponsored ADR (Brazil)

      84,639         1,629,301   
     

 

 

  
Canada — 0.5%      

Silver Wheaton Corp.

      95,700         1,848,924   
     

 

 

  
Cayman Islands — 2.4%      

Baidu, Inc. Sponsored ADR (Cayman Islands) (a)

      20,070         3,299,709   

Cheung Kong Property Holdings Ltd.

      367,254         2,227,089   

CK Hutchison Holdings Ltd.

      288,754         3,259,774   
     

 

 

  
        8,786,572   
     

 

 

  
China — 3.5%      

China Life Insurance Co. Ltd.

      1,251,000         3,236,332   

China Telecom Corp. Ltd. Class H

      11,037,643         5,083,250   

CRRC Corp. Ltd.

      1,616,100         1,445,489   

Sinopharm Group Co. Ltd. Class H

      568,800         2,333,650   

Weichai Power Co. Ltd. Class H

      273,100         418,823   
     

 

 

  
        12,517,544   
     

 

 

  
France — 10.1%      

AXA SA

      216,747         5,469,374   

BNP Paribas

      114,450         7,290,625   

Cie Generale des Etablissements Michelin Class B

      33,060         3,677,223   

Compagnie de Saint-Gobain

      96,920         4,513,212   

Credit Agricole SA

      208,930         2,590,231   

Sanofi

      76,358         6,175,520   

Total SA

      95,472         4,873,629   

Zodiac Aerospace

      73,100         1,678,120   
     

 

 

  
        36,267,934   
     

 

 

  
Germany — 13.1%      

Bayer AG

      55,810         5,822,432   

Deutsche Boerse AG (a)

      31,620         2,576,023   

Deutsche Lufthansa AG

      128,000         1,653,933   

Deutsche Post AG

      66,911         2,197,239   

HeidelbergCement AG

      48,930         4,564,902   

Infineon Technologies AG

      273,297         4,736,742   

Innogy SE (a) (b)

      88,140         3,064,535   

Lanxess AG

      75,100         4,920,719   

Merck KGaA

      50,900         5,311,964   

Metro AG

      83,660         2,776,382   

MorphoSys AG (a) (c)

      20,350         1,042,262   

SAP AG Sponsored ADR (Germany)

      40,788         3,525,307   

Siemens AG

      37,896         4,658,249   
     

 

 

  
        46,850,689   
     

 

 

  
Hong Kong — 1.9%      

AIA Group Ltd.

      485,200         2,715,308   
     Number of
Shares		      Value  

China Mobile Ltd.

      382,500       $ 4,010,807   
     

 

 

  
        6,726,115   
     

 

 

  
Ireland — 1.5%      

CRH PLC

      160,802         5,557,675   
     

 

 

  
Israel — 1.7%      

Teva Pharmaceutical Industries Ltd. Sponsored ADR (Israel)

      171,799         6,227,714   
     

 

 

  
Italy — 1.9%      

Eni SpA

      371,293         6,019,797   

UniCredit SpA (c)

      331,247         952,264   
     

 

 

  
        6,972,061   
     

 

 

  
Japan — 11.7%      

IHI Corp. (a)

      607,000         1,573,805   

Inpex Corp.

      304,100         3,036,035   

Konica Minolta Holding, Inc.

      446,100         4,419,131   

Nissan Motor Co. Ltd.

      517,770         5,194,532   

Omron Corp.

      120,100         4,596,429   

Panasonic Corp.

      330,300         3,352,215   

SoftBank Group Corp.

      83,700         5,525,652   

Sumitomo Metal Mining Co. Ltd.

      226,000         2,906,826   

Sumitomo Rubber Industries Ltd.

      121,700         1,925,148   

Suntory Beverage & Food Ltd.

      129,100         5,340,690   

Toshiba Corp. (a)

      1,046,000         2,527,186   

Toyota Motor Corp. Sponsored ADR (Japan)

      14,919         1,748,507   
     

 

 

  
        42,146,156   
     

 

 

  
Luxembourg — 0.6%      

Subsea 7 SA (a)

      168,800         2,133,713   
     

 

 

  
Netherlands — 4.9%      

Akzo Nobel NV

      75,670         4,725,701   

ING Groep NV

      378,890         5,332,090   

NN Group NV

      63,590         2,153,331   

QIAGEN NV (a)

      84,700         2,376,289   

SBM Offshore NV

      191,128         2,992,046   
     

 

 

  
        17,579,457   
     

 

 

  
Norway — 1.8%      

Telenor ASA

      316,016         4,711,672   

Yara International ASA

      44,800         1,764,143   
     

 

 

  
        6,475,815   
     

 

 

  
Portugal — 1.0%      

Galp Energia SGPS SA

      242,320         3,602,107   
     

 

 

  
Republic of Korea — 5.9%      

Hana Financial Group, Inc.

      79,353         2,048,480   

Hyundai Mobis

      18,195         3,968,332   

Hyundai Motor Co.

      14,936         1,794,455   

KB Financial Group, Inc. Sponsored ADR (Republic of Korea) (a)

      80,916         2,855,526   
 

 

The accompanying notes are an integral part of the financial statements.

 

77

Table of Contents

MML Foreign Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  

Samsung Electronics Co., Ltd.

      7,180       $ 10,608,866   
     

 

 

  
        21,275,659   
     

 

 

  
Singapore — 3.3%      

DBS Group Holdings, Ltd.

      385,379         4,597,858   

Singapore Telecommunications Ltd.

      340,700         853,466   

Singapore Telecommunications Ltd.

      1,468,000         3,684,117   

United Overseas Bank Ltd.

      201,500         2,827,814   
     

 

 

  
        11,963,255   
     

 

 

  
Spain — 1.1%      

Telefonica SA Sponsored ADR (Spain) (c)

      432,139         3,975,679   
     

 

 

  
Sweden — 0.6%      

Getinge AB Class B

      128,140         2,052,481   
     

 

 

  
Switzerland — 5.9%      

ABB Ltd.

      99,000         2,084,086   

Novartis AG

      54,480         3,962,802   

Roche Holding AG

      31,790         7,243,453   

Swiss Re AG

      40,730         3,858,799   

UBS Group AG

      257,960         4,038,346   
     

 

 

  
        21,187,486   
     

 

 

  
Taiwan — 1.0%      

Taiwan Semiconductor Manufacturing Co. Ltd.

      641,275         3,591,164   
     

 

 

  
Thailand — 1.0%      

Bangkok Bank PCL

      792,100         3,559,625   
     

 

 

  
United Kingdom — 21.0%      

Aviva PLC

      657,655         3,924,297   

BAE Systems PLC

      633,010         4,597,031   

Barclays PLC

      1,857,820         5,103,376   

BP PLC

      1,648,784         10,244,707   

GlaxoSmithKline PLC

      251,884         4,810,269   

Glencore PLC (a)

      721,150         2,423,853   

HSBC Holdings PLC

      781,600         6,278,950   

Johnson Matthey PLC

      61,620         2,407,748   

Kingfisher PLC

      789,544         3,400,070   

LivaNova PLC (a)

      50,930         2,290,322   

Petrofac Ltd.

      190,850         2,039,585   

Royal Dutch Shell PLC Class A

      2,397         66,049   

Royal Dutch Shell PLC Class B

      351,154         10,020,465   

Sky PLC

      398,860         4,852,589   

Standard Chartered PLC (a)

      553,782         4,535,682   

Tesco PLC (a)

      1,373,370         3,495,891   

Vodafone Group PLC Sponsored ADR (United Kingdom)

      195,308         4,771,374   
     

 

 

  
        75,262,258   
     

 

 

  
TOTAL COMMON STOCK
(Cost $346,917,243)		         349,458,485   
  

 

 

  
TOTAL EQUITIES
(Cost $346,917,243)		         349,458,485   
  

 

 

  
    Number of
Shares		     Value  

MUTUAL FUNDS — 0.6%

  

United States — 0.6%    

State Street Navigator Securities Lending Prime Portfolio (d)

     2,095,368      $ 2,095,368   
   

 

 

  
TOTAL MUTUAL FUNDS
(Cost $2,095,368)		       2,095,368   
 

 

 

  
TOTAL LONG-TERM INVESTMENTS
(Cost $349,012,611)		       351,553,853   
 

 

 

  
    Principal
Amount		        
SHORT-TERM INVESTMENTS — 2.6%   
Repurchase Agreement — 2.6%     

State Street Bank & Trust Co. Repurchase Agreement, dated 12/30/16, 0.010%, due 1/03/17 (e)

   $ 9,225,651        9,225,651   
   

 

 

  
TOTAL SHORT-TERM INVESTMENTS
(Cost $9,225,651)		       9,225,651   
   

 

 

  
TOTAL INVESTMENTS — 100.5%
(Cost $358,238,262) (f)		       360,779,504   
Other Assets/(Liabilities) — (0.5)%       (1,711,971 ) 
 

 

 

  
NET ASSETS — 100.0%     $ 359,067,533   
 

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

ADR American Depositary Receipt
(a) Non-income producing security.
(b) 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. At December 31, 2016, these securities amounted to a value of $3,064,535 or 0.85% of net assets.
(c) Denotes all or a portion of security on loan. The total value of securities on loan as of December 31, 2016, was $1,993,224 or 0.56% of net assets. Total securities on loan may not correspond with the amounts identified in the Portfolio of Investments because pending sales may be in the process of recall from the brokers. (Note 2).
(d) Represents investment of security lending collateral. (Note 2).
(e) Maturity value of $9,225,661. Collateralized by U.S. Government Agency obligations with rates ranging from 1.500% – 3.125%, maturity dates ranging from 5/15/19 – 11/30/19, and an aggregate market value, including accrued interest, of $9,411,933.
(f) See Note 6 for aggregate cost for federal tax purposes.
 

 

The accompanying notes are an integral part of the financial statements.

 

78

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MML Fundamental Growth Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
EQUITIES — 99.9%   
COMMON STOCK — 99.9%   
Basic Materials — 2.4%      
Chemicals — 0.4%      

The Sherwin-Williams Co.

      2,304       $ 619,177   
     

 

 

  
Iron & Steel — 0.8%      

Nucor Corp.

      23,992         1,428,004   
     

 

 

  
Mining — 1.2%      

Rio Tinto PLC Sponsored ADR (United Kingdom)

      50,946         1,959,383   
     

 

 

  
        4,006,564   
     

 

 

  
Communications — 22.4%      
Advertising — 0.8%      

Omnicom Group, Inc.

      15,708         1,336,908   
     

 

 

  
Internet — 16.7%      

Alibaba Group Holding Ltd. Sponsored ADR (Cayman Islands) (a)

      11,684         1,025,972   

Alphabet, Inc. Class C (a)

      11,772         9,085,865   

Amazon.com, Inc. (a)

      5,523         4,141,532   

Baidu, Inc. Sponsored ADR (Cayman Islands) (a)

      3,619         595,000   

eBay, Inc. (a)

      64,714         1,921,359   

F5 Networks, Inc. (a)

      11,927         1,726,075   

Facebook, Inc. Class A (a)

      45,261         5,207,278   

GoDaddy, Inc. Class A (a)

      5,343         186,738   

Netflix, Inc. (a)

      7,060         874,028   

The Priceline Group, Inc. (a)

      1,668         2,445,388   

Yandex NV Class A (a)

      57,128         1,149,987   
     

 

 

  
        28,359,222   
     

 

 

  
Media — 4.1%      

Comcast Corp. Class A

      53,189         3,672,700   

Discovery Communications, Inc. Series A (a)

      31,238         856,234   

FactSet Research Systems, Inc.

      3,510         573,639   

Scripps Networks Interactive Class A

      19,848         1,416,552   

Viacom, Inc. Class B

      14,748         517,655   
     

 

 

  
        7,036,780   
     

 

 

  
Telecommunications — 0.8%      

Cisco Systems, Inc.

      42,252         1,276,855   
     

 

 

  
        38,009,765   
     

 

 

  
Consumer, Cyclical — 5.0%      
Lodging — 1.1%      

Las Vegas Sands Corp.

      24,858         1,327,666   

Wyndham Worldwide Corp.

      6,498         496,252   
     

 

 

  
        1,823,918   
     

 

 

  
Retail — 3.9%      

Dollar General Corp.

      9,828         727,960   

The Home Depot, Inc.

      25,118         3,367,821   
     Number of
Shares		      Value  

O’Reilly Automotive, Inc. (a)

      2,218       $ 617,513   

Ross Stores, Inc.

      9,433         618,805   

The TJX Cos., Inc.

      12,819         963,092   

Wal-Mart Stores, Inc.

      4,714         325,832   
     

 

 

  
        6,621,023   
     

 

 

  
        8,444,941   
     

 

 

  
Consumer, Non-cyclical — 24.6%      
Beverages — 2.3%      

PepsiCo, Inc.

      36,998         3,871,101   
     

 

 

  
Biotechnology — 3.5%      

Amgen, Inc.

      23,052         3,370,433   

Celgene Corp. (a)

      2,863         331,392   

Gilead Sciences, Inc.

      30,692         2,197,854   
     

 

 

  
        5,899,679   
     

 

 

  
Commercial Services — 7.7%      

Experian PLC

      42,642         825,387   

Gartner, Inc. (a)

      8,994         909,023   

Global Payments, Inc.

      12,916         896,499   

IHS Markit Ltd. (a)

      47,388         1,678,009   

Paychex, Inc.

      23,098         1,406,206   

PayPal Holdings, Inc. (a)

      47,146         1,860,853   

Vantiv, Inc. Class A (a)

      25,335         1,510,473   

Verisk Analytics, Inc. (a)

      6,529         529,959   

Visa, Inc. Class A

      44,480         3,470,330   
     

 

 

  
        13,086,739   
     

 

 

  
Cosmetics & Personal Care — 0.5%      

Colgate-Palmolive Co.

      13,754         900,062   
     

 

 

  
Foods — 1.1%      

BRF SA Sponsored ADR (Brazil)

      24,991         368,867   

The Hershey Co.

      9,479         980,413   

Mondelez International, Inc. Class A

      12,543         556,031   
     

 

 

  
        1,905,311   
     

 

 

  
Health Care – Products — 3.2%      

Becton, Dickinson & Co.

      6,344         1,050,249   

C.R. Bard, Inc.

      3,441         773,055   

Johnson & Johnson

      16,774         1,932,533   

Medtronic PLC

      13,138         935,820   

Varian Medical Systems, Inc. (a)

      7,421         666,257   
     

 

 

  
        5,357,914   
     

 

 

  
Health Care – Services — 2.5%      

Aetna, Inc.

      16,220         2,011,442   

Anthem, Inc.

      4,517         649,409   

HCA Holdings, Inc. (a)

      12,102         895,790   

ICON PLC (a)

      10,368         779,674   
     

 

 

  
        4,336,315   
     

 

 

  
Pharmaceuticals — 3.8%      

Allergan PLC (a)

      6,171         1,295,972   

Bristol-Myers Squibb Co.

      46,609         2,723,830   
 

 

The accompanying notes are an integral part of the financial statements.

 

79

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MML Fundamental Growth Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  

Cardinal Health, Inc.

      15,150       $ 1,090,345   

Merck & Co., Inc.

      21,486         1,264,881   
     

 

 

  
        6,375,028   
     

 

 

  
        41,732,149   
     

 

 

  
Energy — 5.3%      
Oil & Gas — 3.1%      

BP PLC Sponsored ADR (United Kingdom)

      47,186         1,763,813   

Chevron Corp.

      15,299         1,800,692   

Pioneer Natural Resources Co.

      9,325         1,679,153   
     

 

 

  
        5,243,658   
     

 

 

  
Oil & Gas Services — 2.2%      

Baker Hughes, Inc.

      28,486         1,850,735   

Schlumberger Ltd.

      22,723         1,907,596   
     

 

 

  
        3,758,331   
     

 

 

  
        9,001,989   
     

 

 

  
Financial — 7.8%      
Banks — 1.7%      

Bank of America Corp.

      86,105         1,902,920   

Citigroup, Inc.

      18,107         1,076,099   
     

 

 

  
        2,979,019   
     

 

 

  
Diversified Financial — 4.2%      

Alliance Data Systems Corp.

      4,232         967,012   

Intercontinental Exchange, Inc.

      31,090         1,754,098   

JP Morgan Chase & Co.

      18,801         1,622,338   

MasterCard, Inc. Class A

      27,186         2,806,955   
     

 

 

  
        7,150,403   
     

 

 

  
Insurance — 1.1%      

American International Group, Inc.

      28,181         1,840,501   
     

 

 

  
Real Estate Investment Trusts (REITS) — 0.8%   

Public Storage

      5,988         1,338,318   
     

 

 

  
        13,308,241   
     

 

 

  
Industrial — 7.6%      
Electrical Components & Equipment — 0.5%   

Emerson Electric Co.

      15,113         842,550   
     

 

 

  
Electronics — 0.5%      

Fortive Corp.

      14,434         774,095   
     

 

 

  
Machinery – Construction & Mining — 0.8%   

Caterpillar, Inc.

      15,330         1,421,704   
     

 

 

  
Machinery – Diversified — 1.6%      

Cummins, Inc.

      11,055         1,510,887   

Rockwell Automation, Inc.

      9,044         1,215,514   
     

 

 

  
        2,726,401   
     

 

 

  
Manufacturing — 3.4%      

Danaher Corp.

      11,339         882,628   

Dover Corp.

      12,600         944,118   

Honeywell International, Inc.

      18,853         2,184,120   
     Number of
Shares		      Value  

Parker Hannifin Corp.

      12,794       $ 1,791,160   
     

 

 

  
        5,802,026   
     

 

 

  
Transportation — 0.8%      

C.H. Robinson Worldwide, Inc.

      17,793         1,303,515   
     

 

 

  
        12,870,291   
     

 

 

  
Technology — 24.8%      
Computers — 7.7%      

Amdocs Ltd.

      16,065         935,786   

Apple, Inc.

      92,194         10,677,909   

Jack Henry & Associates, Inc.

      15,677         1,391,804   
     

 

 

  
        13,005,499   
     

 

 

  
Internet — 1.4%      

Check Point Software Technologies Ltd. (a)

      27,705         2,339,964   
     

 

 

  
Semiconductors — 6.3%      

Cirrus Logic, Inc. (a)

      11,578         654,620   

Linear Technology Corp.

      37,987         2,368,489   

Maxim Integrated Products, Inc.

      48,608         1,874,811   

QUALCOMM, Inc.

      33,016         2,152,643   

Texas Instruments, Inc.

      35,649         2,601,308   

Xilinx, Inc.

      17,589         1,061,848   
     

 

 

  
        10,713,719   
     

 

 

  
Software — 9.4%      

Electronic Arts, Inc. (a)

      13,895         1,094,370   

Fiserv, Inc. (a)

      8,828         938,240   

Intuit, Inc.

      6,577         753,790   

Microsoft Corp.

      146,805         9,122,463   

Oracle Corp.

      99,353         3,820,123   

SS&C Technologies Holdings, Inc

      6,854         196,024   
     

 

 

  
        15,925,010   
     

 

 

  
        41,984,192   
     

 

 

  
TOTAL COMMON STOCK
(Cost $146,764,755)		         169,358,132   
  

 

 

  
TOTAL EQUITIES
(Cost $146,764,755)		         169,358,132   
  

 

 

  
TOTAL LONG-TERM INVESTMENTS
(Cost $146,764,755)		         169,358,132   
  

 

 

  
 

 

The accompanying notes are an integral part of the financial statements.

 

80

Table of Contents

MML Fundamental Growth Fund – Portfolio of Investments (Continued)

 

     Principal
Amount		      Value  
SHORT-TERM INVESTMENTS — 0.1%   
Repurchase Agreement — 0.1%      

State Street Bank & Trust Co. Repurchase Agreement, dated 12/30/16, 0.010%, due 1/03/17 (b)

    $ 129,588       $ 129,588   
     

 

 

  
TOTAL SHORT-TERM INVESTMENTS
(Cost $129,588)		         129,588   
  

 

 

  
TOTAL INVESTMENTS — 100.0%
(Cost $146,894,343) (c)		         169,487,720   
Other Assets/(Liabilities) — (0.0)%         (41,443 ) 
  

 

 

  
NET ASSETS — 100.0%       $ 169,446,277   
  

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

ADR American Depositary Receipt
(a) Non-income producing security.
(b) Maturity value of $129,588. Collateralized by U.S. Government Agency obligations with a rate of 1.625%, maturity date of 4/30/19, and an aggregate market value, including accrued interest, of $136,293.
(c) See Note 6 for aggregate cost for federal tax purposes.
 

 

The accompanying notes are an integral part of the financial statements.

 

81

Table of Contents

MML Fundamental Value Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
EQUITIES — 99.7%   
COMMON STOCK — 99.7%   
Basic Materials — 2.7%      
Chemicals — 2.0%      

Agrium, Inc.

      15,980       $ 1,606,789   

The Dow Chemical Co.

      55,480         3,174,566   
     

 

 

  
        4,781,355   
     

 

 

  
Forest Products & Paper — 0.7%      

International Paper Co.

      30,190         1,601,881   
     

 

 

  
        6,383,236   
     

 

 

  
Communications — 10.8%      
Advertising — 0.8%      

Nielsen Holdings PLC

      46,980         1,970,811   
     

 

 

  
Internet — 1.3%      

eBay, Inc. (a)

      39,820         1,182,256   

Liberty Interactive Corp. QVC Group Class A (a)

      87,480         1,747,850   
     

 

 

  
        2,930,106   
     

 

 

  
Media — 3.5%      

CBS Corp. Class B

      50,480         3,211,538   

Comcast Corp. Class A

      39,030         2,695,021   

Thomson Reuters Corp.

      54,010         2,364,558   
     

 

 

  
        8,271,117   
     

 

 

  
Telecommunications — 5.2%      

Cisco Systems, Inc.

      219,980         6,647,796   

Nokia OYJ Sponsored ADR (Finland)

      352,690         1,696,439   

Verizon Communications, Inc.

      70,590         3,768,094   
     

 

 

  
        12,112,329   
     

 

 

  
        25,284,363   
     

 

 

  
Consumer, Cyclical — 6.3%      
Home Builders — 1.0%      

PulteGroup, Inc.

      124,680         2,291,618   
     

 

 

  
Leisure Time — 0.9%      

Norwegian Cruise Line Holdings Ltd. (a)

      50,260         2,137,558   
     

 

 

  
Lodging — 1.7%      

Hilton Worldwide Holdings, Inc.

      143,900         3,914,080   
     

 

 

  
Retail — 2.7%      

CVS Health Corp.

      10,430         823,031   

The Home Depot, Inc.

      15,130         2,028,631   

Lowe’s Cos., Inc.

      25,720         1,829,207   

Signet Jewelers Ltd.

      17,590         1,658,033   
     

 

 

  
        6,338,902   
     

 

 

  
        14,682,158   
     

 

 

  
     Number of
Shares		      Value  
Consumer, Non-cyclical — 15.9%      
Agriculture — 2.7%      

British American Tobacco PLC

      50,559       $ 2,870,685   

Philip Morris International, Inc.

      37,280         3,410,747   
     

 

 

  
        6,281,432   
     

 

 

  
Biotechnology — 0.9%      

Amgen, Inc.

      14,740         2,155,135   
     

 

 

  
Foods — 1.9%      

The Kraft Heinz Co.

      22,506         1,965,224   

Mondelez International, Inc. Class A

      56,480         2,503,758   
     

 

 

  
        4,468,982   
     

 

 

  
Health Care – Products — 1.4%      

Medtronic PLC

      46,889         3,339,904   
     

 

 

  
Health Care – Services — 1.5%      

UnitedHealth Group, Inc.

      21,130         3,381,645   
     

 

 

  
Pharmaceuticals — 7.5%      

Allergan PLC (a)

      12,360         2,595,724   

AstraZeneca PLC Sponsored ADR (United Kingdom)

      80,100         2,188,332   

Bristol-Myers Squibb Co.

      49,440         2,889,274   

Merck & Co., Inc.

      102,040         6,007,095   

Pfizer, Inc.

      35,899         1,165,999   

Roche Holding AG

      11,251         2,563,576   
     

 

 

  
        17,410,000   
     

 

 

  
        37,037,098   
     

 

 

  
Energy — 12.3%      
Oil & Gas — 10.7%      

Anadarko Petroleum Corp.

      21,510         1,499,892   

Canadian Natural Resources Ltd.

      55,350         1,764,558   

Chevron Corp.

      51,050         6,008,585   

EOG Resources, Inc.

      37,200         3,760,920   

Exxon Mobil Corp.

      40,840         3,686,218   

Marathon Oil Corp.

      167,704         2,902,956   

Occidental Petroleum Corp.

      22,150         1,577,745   

Pioneer Natural Resources Co.

      14,400         2,593,008   

Southwestern Energy Co. (a)

      101,550         1,098,771   
     

 

 

  
        24,892,653   
     

 

 

  
Oil & Gas Services — 1.6%      

Halliburton Co.

      69,040         3,734,374   
     

 

 

  
        28,627,027   
     

 

 

  
Financial — 28.3%      
Banks — 13.2%      

Bank of America Corp.

      120,800         2,669,680   

Citigroup, Inc.

      105,280         6,256,790   

The Goldman Sachs Group, Inc.

      13,410         3,211,025   

M&T Bank Corp.

      21,390         3,346,038   

The PNC Financial Services Group, Inc.

      52,940         6,191,862   
 

 

The accompanying notes are an integral part of the financial statements.

 

82

Table of Contents

MML Fundamental Value Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  

Wells Fargo & Co.

      163,450       $ 9,007,729   
     

 

 

  
        30,683,124   
     

 

 

  
Diversified Financial — 8.5%      

BlackRock, Inc.

      8,780         3,341,141   

Intercontinental Exchange, Inc.

      41,060         2,316,605   

Invesco Ltd.

      92,340         2,801,596   

JP Morgan Chase & Co.

      132,550         11,437,740   
     

 

 

  
        19,897,082   
     

 

 

  
Insurance — 6.6%      

American International Group, Inc.

      39,320         2,567,989   

Chubb Ltd.

      30,585         4,040,890   

Marsh & McLennan Cos., Inc.

      41,830         2,827,290   

MetLife, Inc.

      55,150         2,972,033   

Principal Financial Group, Inc.

      33,960         1,964,926   

Unum Group

      24,960         1,096,493   
     

 

 

  
        15,469,621   
     

 

 

  
        66,049,827   
     

 

 

  
Industrial — 11.3%      
Aerospace & Defense — 2.0%      

Triumph Group, Inc.

      45,770         1,212,905   

United Technologies Corp.

      31,460         3,448,645   
     

 

 

  
        4,661,550   
     

 

 

  
Building Materials — 1.0%      

Fortune Brands Home & Security, Inc.

      43,610         2,331,391   
     

 

 

  
Machinery – Construction & Mining — 2.3%   

Caterpillar, Inc.

      22,720         2,107,053   

Ingersoll-Rand PLC

      44,550         3,343,032   
     

 

 

  
        5,450,085   
     

 

 

  
Manufacturing — 4.7%      

3M Co.

      15,300         2,732,121   

Eaton Corp. PLC

      55,080         3,695,317   

General Electric Co.

      144,320         4,560,512   
     

 

 

  
        10,987,950   
     

 

 

  
Transportation — 1.3%      

Union Pacific Corp.

      29,000         3,006,720   
     

 

 

  
        26,437,696   
     

 

 

  
Technology — 8.7%      
Computers — 1.9%      

Apple, Inc.

      13,910         1,611,056   

Cognizant Technology Solutions Corp. Class A (a)

      47,340         2,652,460   
     

 

 

  
        4,263,516   
     

 

 

  
Semiconductors — 5.7%      

Analog Devices, Inc.

      19,300         1,401,566   

Intel Corp.

      138,220         5,013,239   

Maxim Integrated Products, Inc.

      78,580         3,030,831   
    Number of
Shares		      Value  

QUALCOMM, Inc.

     59,730       $ 3,894,396   
    

 

 

  
       13,340,032   
    

 

 

  
Software — 1.1%     

Microsoft Corp.

     41,450         2,575,703   
    

 

 

  
       20,179,251   
    

 

 

  
Utilities — 3.4%     
Electric — 3.4%     

Dominion Resources, Inc.

     16,550         1,267,565   

Edison International

     30,600         2,202,894   

Eversource Energy

     52,080         2,876,378   

NextEra Energy, Inc.

     12,350         1,475,331   
    

 

 

  
       7,822,168   
    

 

 

  
TOTAL COMMON STOCK
(Cost $180,864,972)		        232,502,824   
  

 

 

  
TOTAL EQUITIES
(Cost $180,864,972)		        232,502,824   
  

 

 

  
TOTAL LONG-TERM INVESTMENTS
(Cost $180,864,972)		        232,502,824   
  

 

 

  
    Principal
Amount		         
SHORT-TERM INVESTMENTS — 0.5%   
Repurchase Agreement — 0.5%     

State Street Bank & Trust Co. Repurchase Agreement, dated 12/30/16, 0.010%, due 1/03/17 (b)

   $ 1,151,582         1,151,582   
    

 

 

  
Time Deposit — 0.0%     

Euro Time Deposit
0.010% 1/03/17

     18,060         18,060   
    

 

 

  
TOTAL SHORT-TERM INVESTMENTS
(Cost $1,169,642)		        1,169,642   
  

 

 

  
TOTAL INVESTMENTS — 100.2%
(Cost $182,034,614) (c)		        233,672,466   
Other Assets/(Liabilities) — (0.2)%        (551,844 ) 
  

 

 

  
NET ASSETS — 100.0%      $ 233,120,622   
  

 

 

  
 

 

The accompanying notes are an integral part of the financial statements.

 

83

Table of Contents

MML Fundamental Value Fund – Portfolio of Investments (Continued)

 

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

ADR American Depositary Receipt
(a) Non-income producing security.
(b) Maturity value of $1,151,583. Collateralized by U.S. Government Agency obligations with a rate of 1.625%, maturity date of 4/30/19, and an aggregate market value, including accrued interest, of $1,176,155.
(c) See Note 6 for aggregate cost for federal tax purposes.

Country weightings, as a percentage of net assets, is as follows:

 

United States

      82.3 % 

Ireland

      5.6 % 

United Kingdom

      3.0 % 

Switzerland

      2.8 % 

Bermuda

      2.8 % 

Canada

      2.5 % 

Finland

      0.7 % 
  

 

 

  

Total Long-Term Investments

      99.7 % 

Short-Term Investments and Other Assets and Liabilities

      0.3 % 
  

 

 

  

Net Assets

      100.0 % 
  

 

 

  
 

 

The accompanying notes are an integral part of the financial statements.

 

84

Table of Contents

MML Global Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
EQUITIES — 99.4%   
COMMON STOCK — 99.4%   
Austria — 0.4%      

Erste Group Bank AG

      35,419       $ 1,037,021   
     

 

 

  
Brazil — 0.5%      

AMBEV SA

      260,431         1,284,753   
     

 

 

  
Canada — 1.7%      

Canadian National Railway Co.

      63,350         4,269,790   
     

 

 

  
Cayman Islands — 0.2%      

Sands China Ltd.

      122,000         524,695   
     

 

 

  
Czech Republic — 0.1%      

Komercni Banka AS

      9,190         316,486   
     

 

 

  
Denmark — 0.8%      

Carlsberg A/S Class B

      23,137         1,996,744   
     

 

 

  
France — 7.8%      

Air Liquide

      12,395         1,376,006   

Danone SA

      59,043         3,737,147   

Hermes International

      1,140         467,519   

Legrand SA

      35,020         1,983,264   

LVMH Moet Hennessy Louis Vuitton SE

      23,520         4,484,731   

Pernod-Ricard SA

      39,374         4,265,468   

Schneider Electric SE

      41,310         2,870,535   
     

 

 

  
        19,184,670   
     

 

 

  
Germany — 6.5%      

Bayer AG

      60,782         6,341,141   

Brenntag AG

      15,968         884,850   

Deutsche Boerse AG (a)

      16,768         1,366,058   

Linde AG

      19,525         3,201,595   

Merck KGaA

      20,694         2,159,642   

MTU Aero Engines AG

      17,009         1,962,336   
     

 

 

  
        15,915,622   
     

 

 

  
Ireland — 4.3%      

Accenture PLC Class A

      48,604         5,692,987   

Medtronic PLC

      68,737         4,896,136   
     

 

 

  
        10,589,123   
     

 

 

  
Israel — 1.0%      

Check Point Software Technologies Ltd. (a)

      27,287         2,304,660   
     

 

 

  
Japan — 1.2%      

Hoya Corp.

      35,300         1,479,486   

Kubota Corp.

      103,100         1,467,704   
     

 

 

  
        2,947,190   
     

 

 

  
Mexico — 0.3%      

Grupo Financiero Banorte SAB de CV Class O

      158,353         779,938   
     

 

 

  
     Number of
Shares		      Value  
Netherlands — 2.9%      

Akzo Nobel NV

      42,876       $ 2,677,668   

Heineken NV

      29,090         2,178,936   

Schlumberger Ltd.

      27,379         2,298,467   
     

 

 

  
        7,155,071   
     

 

 

  
Republic of Korea — 0.8%      

Samsung Electronics Co., Ltd.

      1,283         1,895,707   
     

 

 

  
Spain — 0.6%      

Aena SA (b)

      10,337         1,410,302   
     

 

 

  
Sweden — 1.8%      

Svenska Cellulosa AB Class B

      159,281         4,491,288   
     

 

 

  
Switzerland — 8.7%      

Adecco Group AG

      30,399         1,984,734   

Cie Financiere Richemont SA

      35,090         2,323,373   

Julius Baer Group Ltd.

      21,017         933,104   

Nestle SA

      88,330         6,335,566   

Roche Holding AG

      18,624         4,243,538   

Sonova Holding AG

      10,364         1,253,948   

Swiss Re AG

      8,186         775,549   

UBS Group AG

      232,720         3,643,216   
     

 

 

  
        21,493,028   
     

 

 

  
Thailand — 0.2%      

Kasikornbank PCL

      108,100         534,017   
     

 

 

  
United Kingdom — 9.7%      

Burberry Group PLC

      75,168         1,385,548   

Compass Group PLC

      156,243         2,879,921   

Delphi Automotive PLC

      20,535         1,383,032   

Diageo PLC

      187,683         4,855,565   

Reckitt Benckiser Group PLC

      62,186         5,256,849   

Sky PLC

      158,789         1,931,850   

Standard Chartered PLC (a)

      86,861         711,424   

Whitbread PLC

      32,645         1,517,482   

WPP PLC

      181,842         4,065,204   
     

 

 

  
        23,986,875   
     

 

 

  
United States — 49.9%      

3M Co.

      23,896         4,267,109   

American Express Co.

      46,933         3,476,797   

Amphenol Corp. Class A

      24,157         1,623,350   

AutoZone, Inc. (a)

      2,467         1,948,412   

The Bank of New York Mellon Corp.

      93,251         4,418,232   

Charter Communications, Inc. Class A (a)

      5,828         1,677,998   

Cisco Systems, Inc.

      59,602         1,801,172   

Cognizant Technology Solutions Corp. Class A (a)

      31,040         1,739,171   

Colgate-Palmolive Co.

      46,316         3,030,919   

The Cooper Cos., Inc.

      14,765         2,582,841   

Coty, Inc. Class A

      172,560         3,159,574   

DENTSPLY SIRONA, Inc.

      19,863         1,146,691   
 

 

The accompanying notes are an integral part of the financial statements.

 

85

Table of Contents

MML Global Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  

eBay, Inc. (a)

      64,903       $ 1,926,970   

Franklin Resources, Inc.

      59,812         2,367,359   

The Goldman Sachs Group, Inc.

      12,726         3,047,241   

Harley-Davidson, Inc.

      24,109         1,406,519   

Honeywell International, Inc.

      52,256         6,053,858   

International Flavors & Fragrances, Inc.

      6,141         723,594   

Johnson & Johnson

      9,190         1,058,780   

Kellogg Co.

      46,021         3,392,208   

Marriott International, Inc. Class A

      10,902         901,377   

Microchip Technology, Inc. (c)

      23,638         1,516,378   

Monsanto Co.

      23,007         2,420,566   

National Oilwell Varco, Inc.

      23,007         861,382   

NOW, Inc. (a)

      13,449         275,301   

Omnicom Group, Inc.

      26,526         2,257,628   

Oracle Corp.

      106,615         4,099,347   

PayPal Holdings, Inc. (a)

      31,843         1,256,843   

Praxair, Inc.

      15,032         1,761,600   

Sally Beauty Holdings, Inc. (a)

      59,005         1,558,912   

St. Jude Medical, Inc.

      49,878         3,999,717   

State Street Corp.

      63,523         4,937,008   

Stryker Corp.

      41,867         5,016,085   

Thermo Fisher Scientific, Inc.

      46,373         6,543,230   

Time Warner, Inc.

      62,287         6,012,564   

Union Pacific Corp.

      11,817         1,225,187   

United Parcel Service, Inc. Class B

      34,514         3,956,685   

United Technologies Corp.

      25,676         2,814,603   

Urban Outfitters, Inc. (a)

      41,076         1,169,844   

Visa, Inc. Class A

      65,477         5,108,516   

W.W. Grainger, Inc. (c)

      7,223         1,677,542   

The Walt Disney Co.

      54,496         5,679,573   

Waters Corp. (a)

      15,127         2,032,917   

Wynn Resorts Ltd.

      4,919         425,543   

Zimmer Biomet Holdings, Inc.

      44,825         4,625,940   
     

 

 

  
        122,983,083   
     

 

 

  
TOTAL COMMON STOCK
(Cost $213,125,706)		         245,100,063   
  

 

 

  
TOTAL EQUITIES
(Cost $213,125,706)		         245,100,063   
  

 

 

  
MUTUAL FUNDS — 1.3%   
United States — 1.3%      

State Street Navigator Securities Lending Prime Portfolio (d)

      3,209,958         3,209,958   
     

 

 

  
TOTAL MUTUAL FUNDS
(Cost $3,209,958)		         3,209,958   
  

 

 

  
TOTAL LONG-TERM INVESTMENTS
(Cost $216,335,664)		         248,310,021   
  

 

 

  
    Principal
Amount		      Value  
SHORT-TERM INVESTMENTS — 0.5%   
Repurchase Agreement — 0.5%     

State Street Bank & Trust Co. Repurchase Agreement, dated 12/30/16, 0.010%, due 1/03/17 (e)

   $ 1,217,925       $ 1,217,925   
    

 

 

  
Time Deposit — 0.0%     

Euro Time Deposit
0.010% 1/03/17

     18,129         18,129   
    

 

 

  
TOTAL SHORT-TERM INVESTMENTS
(Cost $1,236,054)		        1,236,054   
  

 

 

  
TOTAL INVESTMENTS — 101.2%
(Cost $217,571,718) (f)		        249,546,075   
Other Assets/(Liabilities) — (1.2)%        (2,962,504 ) 
  

 

 

  
NET ASSETS — 100.0%      $ 246,583,571   
  

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

(a) Non-income producing security.
(b) 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. At December 31, 2016, these securities amounted to a value of $1,410,302 or 0.57% of net assets.
(c) Denotes all or a portion of security on loan. The total value of securities on loan as of December 31, 2016, was $3,144,762 or 1.28% of net assets. Total securities on loan may not correspond with the amounts identified in the Portfolio of Investments because pending sales may be in the process of recall from the brokers. (Note 2).
(d) Represents investment of security lending collateral. (Note 2).
(e) Maturity value of $1,217,926. Collateralized by U.S. Government Agency obligations with a rate of 1.625%, maturity date of 4/30/19, and an aggregate market value, including accrued interest, of $1,246,825.
(f) See Note 6 for aggregate cost for federal tax purposes.
 

 

The accompanying notes are an integral part of the financial statements.

 

86

Table of Contents

MML Growth & Income Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
EQUITIES — 99.3%   
COMMON STOCK — 99.3%   
Basic Materials — 3.6%      
Chemicals — 3.6%      

Monsanto Co.

      20,328       $ 2,138,709   

PPG Industries, Inc.

      11,345         1,075,052   

The Sherwin-Williams Co.

      4,773         1,282,696   
     

 

 

  
        4,496,457   
     

 

 

  
Communications — 10.7%      
Advertising — 0.7%      

The Interpublic Group of Companies, Inc.

      34,570         809,284   
     

 

 

  
Internet — 4.6%      

Alphabet, Inc. Class A (a)

      4,140         3,280,743   

Alphabet, Inc. Class C (a)

      3,323         2,564,758   
     

 

 

  
        5,845,501   
     

 

 

  
Media — 5.4%      

Comcast Corp. Class A

      39,163         2,704,205   

Time Warner, Inc.

      18,315         1,767,947   

Twenty-First Century Fox, Inc. Class A

      44,528         1,248,565   

The Walt Disney Co.

      10,313         1,074,821   
     

 

 

  
        6,795,538   
     

 

 

  
        13,450,323   
     

 

 

  
Consumer, Cyclical — 7.4%      
Apparel — 1.3%      

Nike, Inc. Class B

      13,939         708,519   

VF Corp.

      17,836         951,551   
     

 

 

  
        1,660,070   
     

 

 

  
Distribution & Wholesale — 0.8%      

W.W. Grainger, Inc.

      4,414         1,025,151   
     

 

 

  
Housewares — 1.7%      

Newell Brands, Inc.

      48,779         2,177,982   
     

 

 

  
Retail — 3.6%      

AutoZone, Inc. (a)

      1,388         1,096,228   

Costco Wholesale Corp.

      6,961         1,114,526   

Ross Stores, Inc.

      21,568         1,414,861   

Starbucks Corp.

      15,930         884,434   
     

 

 

  
        4,510,049   
     

 

 

  
        9,373,252   
     

 

 

  
Consumer, Non-cyclical — 26.3%      
Beverages — 2.0%      

Diageo PLC

      38,975         1,008,326   

Pernod-Ricard SA

      14,069         1,524,124   
     

 

 

  
        2,532,450   
     

 

 

  
Commercial Services — 4.3%      

Aramark

      23,045         823,167   
     Number of
Shares		      Value  

Gartner, Inc. (a)

      9,719       $ 982,299   

Visa, Inc. Class A

      47,079         3,673,104   
     

 

 

  
        5,478,570   
     

 

 

  
Cosmetics & Personal Care — 2.5%      

Colgate-Palmolive Co.

      19,525         1,277,716   

Coty, Inc. Class A

      24,232         443,688   

The Estee Lauder Cos., Inc. Class A

      9,223         705,467   

The Procter & Gamble Co.

      8,415         707,533   
     

 

 

  
        3,134,404   
     

 

 

  
Foods — 3.1%      

Danone SA

      23,829         1,508,265   

Mondelez International, Inc. Class A

      53,660         2,378,748   
     

 

 

  
        3,887,013   
     

 

 

  
Health Care – Products — 5.9%      

Abbott Laboratories

      19,663         755,256   

Johnson & Johnson

      19,338         2,227,931   

Medtronic PLC

      23,522         1,675,472   

St. Jude Medical, Inc.

      13,458         1,079,197   

Stryker Corp.

      14,630         1,752,820   
     

 

 

  
        7,490,676   
     

 

 

  
Health Care – Services — 2.5%      

Thermo Fisher Scientific, Inc.

      21,863         3,084,869   
     

 

 

  
Household Products — 0.5%      

Kimberly-Clark Corp.

      5,671         647,175   
     

 

 

  
Pharmaceuticals — 5.5%      

Allergan PLC (a)

      8,395         1,763,034   

Eli Lilly & Co.

      24,065         1,769,981   

McKesson Corp.

      8,287         1,163,909   

Mead Johnson Nutrition Co.

      12,928         914,785   

Zoetis, Inc.

      23,933         1,281,134   
     

 

 

  
        6,892,843   
     

 

 

  
        33,148,000   
     

 

 

  
Diversified — 1.5%      
Holding Company – Diversified — 1.5%      

LVMH Moet Hennessy Louis Vuitton SE

      9,513         1,813,914   
     

 

 

  
Energy — 4.9%      
Oil & Gas — 1.7%      

EOG Resources, Inc.

      21,947         2,218,842   
     

 

 

  
Oil & Gas Services — 2.3%      

Schlumberger Ltd.

      34,112         2,863,702   
     

 

 

  
Pipelines — 0.9%      

Enterprise Products Partners LP

      41,136         1,112,318   
     

 

 

  
        6,194,862   
     

 

 

  
 

 

The accompanying notes are an integral part of the financial statements.

 

87

Table of Contents

MML Growth & Income Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  
Financial — 23.3%      
Banks — 8.8%      

Bank of America Corp.

      203,319       $ 4,493,350   

The Goldman Sachs Group, Inc.

      13,292         3,182,770   

State Street Corp.

      10,481         814,583   

U.S. Bancorp

      30,601         1,571,973   

Wells Fargo & Co.

      18,302         1,008,623   
     

 

 

  
        11,071,299   
     

 

 

  
Diversified Financial — 10.9%      

BlackRock, Inc.

      5,086         1,935,427   

The Blackstone Group LP

      35,947         971,647   

JP Morgan Chase & Co.

      62,242         5,370,862   

MasterCard, Inc. Class A

      23,318         2,407,584   

Morgan Stanley

      38,237         1,615,513   

Nasdaq, Inc.

      20,864         1,400,392   
     

 

 

  
        13,701,425   
     

 

 

  
Insurance — 1.2%      

Chubb Ltd.

      11,676         1,542,633   
     

 

 

  
Real Estate Investment Trusts (REITS) — 2.4%   

American Tower Corp.

      29,174         3,083,108   
     

 

 

  
        29,398,465   
     

 

 

  
Industrial — 9.4%      
Aerospace & Defense — 0.8%      

United Technologies Corp.

      9,363         1,026,372   
     

 

 

  
Electrical Components & Equipment — 0.7%   

AMETEK, Inc.

      17,697         860,074   
     

 

 

  
Engineering & Construction — 0.7%      

Fluor Corp.

      15,787         829,133   
     

 

 

  
Manufacturing — 3.9%      

Danaher Corp.

      34,761         2,705,796   

Honeywell International, Inc.

      18,912         2,190,955   
     

 

 

  
        4,896,751   
     

 

 

  
Packaging & Containers — 1.4%      

Crown Holdings, Inc. (a)

      34,164         1,796,002   
     

 

 

  
Transportation — 1.9%      

Canadian National Railway Co.

      35,044         2,361,966   
     

 

 

  
        11,770,298   
     

 

 

  
Technology — 11.7%      
Computers — 6.0%      

Accenture PLC Class A

      22,107         2,589,393   

Apple, Inc.

      9,947         1,152,062   

Cognizant Technology Solutions Corp. Class A (a)

      44,174         2,475,069   

Hewlett Packard Enterprise Co.

      55,817         1,291,605   
     

 

 

  
        7,508,129   
     

 

 

  
Semiconductors — 3.2%      

Broadcom Ltd.

      16,198         2,863,320   

Texas Instruments, Inc.

      16,378         1,195,103   
     

 

 

  
        4,058,423   
     

 

 

  
     Number of
Shares		      Value  
Software — 2.5%      

Adobe Systems, Inc. (a)

      8,910       $ 917,285   

Fidelity National Information Services, Inc.

      30,313         2,292,875   
     

 

 

  
        3,210,160   
     

 

 

  
        14,776,712   
     

 

 

  
Utilities — 0.5%      
Electric — 0.5%      

American Electric Power Co., Inc.

      10,739         676,127   
     

 

 

  
TOTAL COMMON STOCK
(Cost $89,743,386)		         125,098,410   
  

 

 

  
TOTAL EQUITIES
(Cost $89,743,386)		         125,098,410   
  

 

 

  
TOTAL LONG-TERM INVESTMENTS
(Cost $89,743,386)		         125,098,410   
  

 

 

  
     Principal
Amount		         
SHORT-TERM INVESTMENTS — 0.7%   
Repurchase Agreement — 0.7%      

State Street Bank & Trust Co. Repurchase Agreement, dated 12/30/16, 0.010%, due 1/03/17 (b)

    $ 905,307         905,307   
     

 

 

  
Time Deposit — 0.0%      

Euro Time Deposit
0.010% 1/03/17

      8,174         8,174   
     

 

 

  
TOTAL SHORT-TERM INVESTMENTS
(Cost $913,481)		         913,481   
  

 

 

  
TOTAL INVESTMENTS —100.0%
(Cost $90,656,867) (c)		         126,011,891   
Other Assets/(Liabilities) — 0.0%         42,442   
  

 

 

  
NET ASSETS — 100.0%       $ 126,054,333   
  

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

(a) Non-income producing security.
(b) Maturity value of $905,308. Collateralized by U.S. Government Agency obligations with a rate of 1.625%, maturity date of 12/31/19, and an aggregate market value, including accrued interest, of $926,415.
(c) See Note 6 for aggregate cost for federal tax purposes.
 

 

The accompanying notes are an integral part of the financial statements.

 

88

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MML Income & Growth Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
EQUITIES — 95.8%   
COMMON STOCK — 95.8%   
Basic Materials — 3.4%      
Chemicals — 2.9%      

The Dow Chemical Co.

      86,290       $ 4,937,514   

E.I. du Pont de Nemours & Co.

      30,730         2,255,582   

Praxair, Inc.

      6,480         759,391   
     

 

 

  
        7,952,487   
     

 

 

  
Forest Products & Paper — 0.5%      

International Paper Co.

      27,470         1,457,558   
     

 

 

  
        9,410,045   
     

 

 

  
Communications — 5.7%      
Advertising — 1.0%      

Nielsen Holdings PLC

      33,590         1,409,100   

Publicis Groupe SA

      19,080         1,316,245   
     

 

 

  
        2,725,345   
     

 

 

  
Media — 1.7%      

Comcast Corp. Class A

      70,760         4,885,978   
     

 

 

  
Telecommunications — 3.0%      

BCE, Inc.

      16,030         693,137   

Motorola Solutions, Inc.

      28,150         2,333,354   

SK Telecom Co. Ltd. Sponsored ADR (South Korea)

      63,820         1,333,838   

Verizon Communications, Inc.

      73,790         3,938,910   
     

 

 

  
        8,299,239   
     

 

 

  
        15,910,562   
     

 

 

  
Consumer, Cyclical — 3.1%      
Lodging — 0.5%      

Hilton Worldwide Holdings, Inc.

      55,338         1,505,193   
     

 

 

  
Retail — 2.6%      

Dollar General Corp.

      37,490         2,776,884   

The Gap, Inc.

      72,520         1,627,349   

The Home Depot, Inc.

      21,060         2,823,725   
     

 

 

  
        7,227,958   
     

 

 

  
        8,733,151   
     

 

 

  
Consumer, Non-cyclical — 21.5%      
Agriculture — 1.1%      

Altria Group, Inc.

      16,210         1,096,120   

Philip Morris International, Inc.

      10,710         979,858   

Reynolds American, Inc.

      16,558         927,910   
     

 

 

  
        3,003,888   
     

 

 

  
Beverages — 1.8%      

The Coca-Cola Co.

      70,200         2,910,492   

Diageo PLC

      87,010         2,251,044   
     

 

 

  
        5,161,536   
     

 

 

  
Commercial Services — 0.5%      

Experian PLC

      76,924         1,488,956   
     

 

 

  
     Number of
Shares		      Value  
Cosmetics & Personal Care — 1.0%      

The Procter & Gamble Co.

      32,360       $ 2,720,829   
     

 

 

  
Foods — 2.7%      

The Kroger Co.

      108,760         3,753,308   

Mondelez International, Inc. Class A

      31,150         1,380,879   

Unilever NV NY Shares

      55,910         2,295,665   
     

 

 

  
        7,429,852   
     

 

 

  
Health Care – Products — 1.4%      

Becton, Dickinson & Co.

      10,320         1,708,476   

Johnson & Johnson

      18,830         2,169,404   
     

 

 

  
        3,877,880   
     

 

 

  
Health Care – Services — 5.8%      

Aetna, Inc.

      39,992         4,959,408   

Anthem, Inc.

      32,740         4,707,030   

Quest Diagnostics, Inc.

      34,850         3,202,715   

UnitedHealth Group, Inc.

      21,643         3,463,745   
     

 

 

  
        16,332,898   
     

 

 

  
Pharmaceuticals — 7.2%      

AstraZeneca PLC

      74,031         4,014,944   

Mead Johnson Nutrition Co.

      13,580         960,921   

Merck & Co., Inc.

      93,570         5,508,466   

Pfizer, Inc.

      292,350         9,495,528   
     

 

 

  
        19,979,859   
     

 

 

  
        59,995,698   
     

 

 

  
Energy — 12.0%      
Oil & Gas — 11.1%      

Anadarko Petroleum Corp.

      12,590         877,901   

Chevron Corp.

      37,188         4,377,028   

ConocoPhillips

      28,330         1,420,466   

Exxon Mobil Corp.

      46,880         4,231,389   

Hess Corp.

      49,112         3,059,186   

Marathon Oil Corp.

      52,250         904,447   

Marathon Petroleum Corp.

      43,210         2,175,623   

Occidental Petroleum Corp.

      69,964         4,983,536   

Pioneer Natural Resources Co.

      3,830         689,668   

Suncor Energy, Inc.

      121,690         3,978,046   

Total SA Sponsored ADR (France)

      81,473         4,152,679   
     

 

 

  
        30,849,969   
     

 

 

  
Oil & Gas Services — 0.4%      

Schlumberger Ltd.

      14,440         1,212,238   
     

 

 

  
Pipelines — 0.5%      

Spectra Energy Corp.

      29,830         1,225,715   
     

 

 

  
        33,287,922   
     

 

 

  
Financial — 27.7%      
Banks — 14.4%      

Bank of America Corp.

      534,020         11,801,842   

Citigroup, Inc.

      131,020         7,786,518   

The Goldman Sachs Group, Inc.

      13,420         3,213,419   
 

 

The accompanying notes are an integral part of the financial statements.

 

89

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MML Income & Growth Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  

KeyCorp

      74,260       $ 1,356,730   

SunTrust Banks, Inc.

      69,722         3,824,252   

U.S. Bancorp

      79,430         4,080,319   

Wells Fargo & Co.

      144,270         7,950,720   
     

 

 

  
        40,013,800   
     

 

 

  
Diversified Financial — 6.9%      

CME Group, Inc.

      18,200         2,099,370   

Invesco Ltd.

      54,464         1,652,438   

JP Morgan Chase & Co.

      124,080         10,706,863   

Morgan Stanley

      116,890         4,938,602   
     

 

 

  
        19,397,273   
     

 

 

  
Insurance — 6.0%      

The Allstate Corp.

      18,100         1,341,572   

American International Group, Inc.

      70,710         4,618,070   

Marsh & McLennan Cos., Inc.

      19,520         1,319,357   

MetLife, Inc.

      60,860         3,279,746   

Prudential Financial, Inc.

      37,300         3,881,438   

The Travelers Cos., Inc.

      18,720         2,291,702   
     

 

 

  
        16,731,885   
     

 

 

  
Real Estate Investment Trusts (REITS) — 0.4%   

Weyerhaeuser Co.

      34,050         1,024,565   
     

 

 

  
        77,167,523   
     

 

 

  
Industrial — 9.1%      
Aerospace & Defense — 3.2%      

Lockheed Martin Corp.

      12,650         3,161,741   

Northrop Grumman Corp.

      16,740         3,893,389   

Raytheon Co.

      12,860         1,826,120   
     

 

 

  
        8,881,250   
     

 

 

  
Machinery – Diversified — 0.3%      

Rockwell Automation, Inc.

      4,740         637,056   
     

 

 

  
Manufacturing — 4.2%      

3M Co.

      6,390         1,141,063   

General Electric Co.

      229,680         7,257,888   

Honeywell International, Inc.

      29,120         3,373,552   
     

 

 

  
        11,772,503   
     

 

 

  
Transportation — 1.4%      

Union Pacific Corp.

      14,809         1,535,397   

United Parcel Service, Inc. Class B

      21,100         2,418,904   
     

 

 

  
        3,954,301   
     

 

 

  
        25,245,110   
     

 

 

  
Technology — 8.5%      
Computers — 0.4%      

Lenovo Group Ltd.

      1,802,000         1,085,246   
     

 

 

  
Semiconductors — 3.9%      

Intel Corp.

      92,230         3,345,182   

QUALCOMM, Inc.

      42,050         2,741,660   

Samsung Electronics Co., Ltd. GDR (a)

      5,390         4,013,945   
    Number of
Shares		      Value  

Taiwan Semiconductor Manufacturing Co. Ltd. Sponsored ADR (Taiwan)

     32,360       $ 930,350   
    

 

 

  
       11,031,137   
    

 

 

  
Software — 4.2%     

Microsoft Corp.

     96,680         6,007,695   

Oracle Corp.

     146,000         5,613,700   
    

 

 

  
       11,621,395   
    

 

 

  
       23,737,778   
    

 

 

  
Utilities — 4.8%     
Electric — 4.6%     

CMS Energy Corp.

     37,690         1,568,658   

Dominion Resources, Inc.

     36,290         2,779,451   

DTE Energy Co.

     4,870         479,744   

Exelon Corp.

     51,630         1,832,349   

FirstEnergy Corp.

     21,700         672,049   

NextEra Energy, Inc.

     28,150         3,362,799   

Public Service Enterprise Group, Inc.

     50,730         2,226,032   
    

 

 

  
       12,921,082   
    

 

 

  
Water — 0.2%     

American Water Works Co., Inc.

     6,770         489,877   
    

 

 

  
       13,410,959   
    

 

 

  
TOTAL COMMON STOCK
(Cost $214,320,685)		        266,898,748   
  

 

 

  
TOTAL EQUITIES
(Cost $214,320,685)		        266,898,748   
  

 

 

  
TOTAL LONG-TERM INVESTMENTS
(Cost $214,320,685)		        266,898,748   
  

 

 

  
    Principal
Amount		         
SHORT-TERM INVESTMENTS — 4.1%   
Repurchase Agreement — 4.1%     

State Street Bank & Trust Co. Repurchase Agreement, dated 12/30/16, 0.010%, due 1/03/17 (b)

   $ 11,374,171         11,374,171   
    

 

 

  
TOTAL SHORT-TERM INVESTMENTS
(Cost $11,374,171)		        11,374,171   
  

 

 

  
TOTAL INVESTMENTS — 99.9%
(Cost $225,694,856) (c)		        278,272,919   
Other Assets/(Liabilities) — 0.1%        226,802   
  

 

 

  
NET ASSETS — 100.0%      $ 278,499,721   
  

 

 

  
 

 

The accompanying notes are an integral part of the financial statements.

 

90

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MML Income & Growth Fund – Portfolio of Investments (Continued)

 

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

ADR American Depositary Receipt
GDR Global Depositary Receipt
(a) Security exempt from registration under Regulation S of the Securities Act of 1933, which exempts from registration securities offered and sold outside the United States. Security may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933. At December 31, 2016, these securities amounted to a value of $4,013,945 or 1.44% of net assets.
(b) Maturity value of $11,374,183. Collateralized by U.S. Government Agency obligations with a rate of 3.125%, maturity date of 5/15/19, and an aggregate market value, including accrued interest, of $11,605,037.
(c) See Note 6 for aggregate cost for federal tax purposes.
 

 

The accompanying notes are an integral part of the financial statements.

 

91

Table of Contents

MML International Equity Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
EQUITIES — 97.6%   
COMMON STOCK — 97.6%   
Australia — 3.9%      

AMP Ltd.

      830,900       $ 3,014,044   

Orica Ltd.

      227,124         2,885,050   
     

 

 

  
        5,899,094   
     

 

 

  
Cayman Islands — 3.4%      

Baidu, Inc. Sponsored ADR (Cayman Islands) (a)

      18,275         3,004,593   

Melco Crown Entertainment Ltd. ADR (Cayman Islands)

      137,000         2,178,300   
     

 

 

  
        5,182,893   
     

 

 

  
France — 14.8%      

BNP Paribas

      86,050         5,481,505   

Bureau Veritas SA

      137,000         2,654,392   

Danone SA

      42,475         2,688,470   

Kering

      10,855         2,433,526   

LVMH Moet Hennessy Louis Vuitton SE

      13,190         2,515,034   

Pernod-Ricard SA

      18,690         2,024,727   

Safran SA

      31,170         2,244,160   

Sanofi

      3,200         258,803   

Valeo SA

      37,410         2,149,564   
     

 

 

  
        22,450,181   
     

 

 

  
Germany — 10.0%      

Allianz SE

      32,080         5,302,924   

Bayerische Motoren Werke AG

      16,280         1,524,180   

Continental AG

      15,795         3,074,724   

Daimler AG

      71,500         5,306,402   
     

 

 

  
        15,208,230   
     

 

 

  
India — 0.6%      

Infosys Ltd. Sponsored ADR (India)

      64,000         949,120   
     

 

 

  
Indonesia — 1.8%      

Bank Mandiri Persero Tbk PT

      3,268,900         2,795,216   
     

 

 

  
Ireland — 2.9%      

Experian PLC

      83,000         1,606,564   

Willis Towers Watson PLC

      23,479         2,871,012   
     

 

 

  
        4,477,576   
     

 

 

  
Israel — 0.1%      

Check Point Software Technologies Ltd. (a)

      1,400         118,244   
     

 

 

  
Italy — 4.9%      

Intesa Sanpaolo SpA

      2,087,200         5,328,203   

Prada SpA

      642,200         2,167,284   
     

 

 

  
        7,495,487   
     

 

 

  
Japan — 9.1%      

Daiwa Securities Group, Inc.

      476,000         2,924,098   
     Number of
Shares		      Value  

Honda Motor Co. Ltd.

      130,100       $ 3,787,622   

Komatsu Ltd.

      57,800         1,304,614   

Nomura Holdings, Inc.

      36,200         213,384   

Olympus Corp.

      20,400         703,415   

Omron Corp.

      40,400         1,546,176   

Toyota Motor Corp.

      57,300         3,345,143   
     

 

 

  
        13,824,452   
     

 

 

  
Mexico — 1.8%      

Grupo Televisa SAB Sponsored ADR (Mexico)

      129,900         2,713,611   
     

 

 

  
Netherlands — 7.7%      

Akzo Nobel NV

      14,661         915,601   

ASML Holding NV

      6,970         780,944   

CNH Industrial NV

      601,100         5,226,175   

EXOR NV

      60,000         2,587,579   

Koninklijke Philips Electronics NV

      71,015         2,164,609   
     

 

 

  
        11,674,908   
     

 

 

  
Republic of Korea — 1.2%      

Samsung Electronics Co., Ltd.

      1,210         1,787,845   
     

 

 

  
Sweden — 4.3%      

Atlas Copco AB Class B

      27,200         740,315   

Hennes & Mauritz AB Class B

      111,000         3,081,337   

SKF AB Class B

      148,000         2,716,617   
     

 

 

  
        6,538,269   
     

 

 

  
Switzerland — 12.1%      

Cie Financiere Richemont SA

      49,450         3,274,174   

Credit Suisse Group

      368,123         5,256,435   

Kuehne & Nagel International AG

      15,960         2,107,007   

LafargeHolcim Ltd.

      62,970         3,307,851   

Nestle SA

      19,670         1,410,852   

The Swatch Group AG (b)

      9,585         2,980,260   
     

 

 

  
        18,336,579   
     

 

 

  
Taiwan — 0.3%      

Taiwan Semiconductor Manufacturing Co. Ltd.

      73,000         408,803   
     

 

 

  
United Kingdom — 18.7%      

Ashtead Group PLC

      152,700         2,958,349   

Diageo PLC

      115,800         2,995,873   

G4S PLC

      584,700         1,692,079   

Glencore PLC (a)

      1,906,900         6,409,271   

Lloyds Banking Group PLC

      7,705,700         5,925,922   

Meggitt PLC

      242,738         1,370,775   

Royal Bank of Scotland Group PLC (a)

      863,200         2,384,095   

Schroders PLC

      71,600         2,640,893   

Smiths Group PLC

      69,200         1,202,090   

Wolseley PLC

      10,300         629,270   
 

 

The accompanying notes are an integral part of the financial statements.

 

92

Table of Contents

MML International Equity Fund – Portfolio of Investments (Continued)

 

    Number of
Shares		      Value  

WPP PLC

     7,300       $ 163,196   
    

 

 

  
       28,371,813   
    

 

 

  
TOTAL COMMON STOCK
(Cost $146,004,559)		        148,232,321   
  

 

 

  
TOTAL EQUITIES
(Cost $146,004,559)		        148,232,321   
  

 

 

  
MUTUAL FUNDS — 0.1%   
United States — 0.1%     

State Street Navigator Securities Lending Prime Portfolio (c)

     145,010         145,010   
    

 

 

  
TOTAL MUTUAL FUNDS
(Cost $145,010)		        145,010   
  

 

 

  
TOTAL LONG-TERM INVESTMENTS
(Cost $146,149,569)		        148,377,331   
  

 

 

  
    Principal
Amount		         
SHORT-TERM INVESTMENTS — 2.1%   
Repurchase Agreement — 2.1%     

State Street Bank & Trust Co. Repurchase Agreement, dated 12/30/16, 0.010%, due 1/03/17 (d)

   $ 3,166,695         3,166,695   
    

 

 

  
TOTAL SHORT-TERM INVESTMENTS
(Cost $3,166,695)		        3,166,695   
  

 

 

  
TOTAL INVESTMENTS — 99.8%
(Cost $149,316,264) (e)		        151,544,026   
Other Assets/(Liabilities) — 0.2%        272,049   
  

 

 

  
NET ASSETS — 100.0%      $ 151,816,075   
  

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

ADR American Depositary Receipt
(a) Non-income producing security.
(b) Denotes all or a portion of security on loan. The total value of securities on loan as of December 31, 2016, was $138,095 or 0.09% of net assets. Total securities on loan may not correspond with the amounts identified in the Portfolio of Investments because pending sales may be in the process of recall from the brokers. (Note 2).
(c) Represents investment of security lending collateral. (Note 2).
(d) Maturity value of $3,166,699. Collateralized by U.S. Government Agency obligations with a rate of 8.125%,
  maturity date of 8/15/21, and an aggregate market value, including accrued interest, of $3,231,276.
(e) See Note 6 for aggregate cost for federal tax purposes.
 

 

The accompanying notes are an integral part of the financial statements.

 

93

Table of Contents

MML Large Cap Growth Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
EQUITIES — 98.9%   
COMMON STOCK — 98.9%   
Communications — 30.5%      
Internet — 23.5%      

Alibaba Group Holding Ltd. Sponsored ADR (Cayman Islands) (a)

      54,684       $ 4,801,802   

Alphabet, Inc. Class A (a)

      4,058         3,215,762   

Alphabet, Inc. Class C (a)

      4,072         3,142,851   

Amazon.com, Inc. (a)

      9,913         7,433,461   

Facebook, Inc. Class A (a)

      57,283         6,590,409   
     

 

 

  
        25,184,285   
     

 

 

  
Media — 1.9%      

FactSet Research Systems, Inc.

      12,460         2,036,338   
     

 

 

  
Telecommunications — 5.1%      

Cisco Systems, Inc.

      179,132         5,413,369   
     

 

 

  
        32,633,992   
     

 

 

  
Consumer, Cyclical — 2.9%      
Retail — 2.9%      

Yum China Holdings, Inc. (a)

      45,624         1,191,699   

Yum! Brands, Inc.

      30,487         1,930,742   
     

 

 

  
        3,122,441   
     

 

 

  
        3,122,441   
     

 

 

  
Consumer, Non-cyclical — 36.0%      
Beverages — 7.0%      

The Coca-Cola Co.

      82,891         3,436,661   

Monster Beverage Corp. (a)

      92,314         4,093,203   
     

 

 

  
        7,529,864   
     

 

 

  
Biotechnology — 4.7%      

Amgen, Inc.

      14,517         2,122,531   

Regeneron Pharmaceuticals, Inc. (a)

      7,949         2,917,998   
     

 

 

  
        5,040,529   
     

 

 

  
Commercial Services — 8.9%      

Automatic Data Processing, Inc.

      10,435         1,072,509   

SEI Investments Co.

      64,468         3,182,141   

Visa, Inc. Class A

      67,488         5,265,414   
     

 

 

  
        9,520,064   
     

 

 

  
Cosmetics & Personal Care — 3.3%      

The Procter & Gamble Co.

      41,548         3,493,356   
     

 

 

  
Foods — 3.2%      

Danone SA Sponsored ADR (France)

      269,000         3,384,020   
     

 

 

  
Health Care – Products — 2.4%      

Varian Medical Systems, Inc. (a)

      28,280         2,538,978   
     

 

 

  
Pharmaceuticals — 6.5%      

Merck & Co., Inc.

      24,916         1,466,805   

Novartis AG ADR (Switzerland)

      30,684         2,235,022   
     Number of
Shares		      Value  

Novo Nordisk A/S Sponsored ADR (Denmark)

      90,787       $ 3,255,622   
     

 

 

  
        6,957,449   
     

 

 

  
        38,464,260   
     

 

 

  
Energy — 2.6%      
Oil & Gas Services — 2.6%      

Schlumberger Ltd.

      33,490         2,811,485   
     

 

 

  
Financial — 1.5%      
Diversified Financial — 1.5%      

American Express Co.

      21,740         1,610,499   
     

 

 

  
Industrial — 8.6%      
Machinery – Diversified — 2.7%      

Deere & Co.

      27,542         2,837,928   
     

 

 

  
Transportation — 5.9%      

Expeditors International of Washington, Inc.

      62,438         3,306,716   

United Parcel Service, Inc. Class B

      26,650         3,055,156   
     

 

 

  
        6,361,872   
     

 

 

  
        9,199,800   
     

 

 

  
Technology — 16.8%      
Semiconductors — 4.8%      

Analog Devices, Inc.

      7,038         511,100   

QUALCOMM, Inc.

      70,570         4,601,164   
     

 

 

  
        5,112,264   
     

 

 

  
Software — 12.0%      

Autodesk, Inc. (a)

      44,695         3,307,877   

Cerner Corp. (a)

      44,776         2,121,039   

Microsoft Corp.

      47,676         2,962,587   

Oracle Corp.

      114,701         4,410,253   
     

 

 

  
        12,801,756   
     

 

 

  
        17,914,020   
     

 

 

  
TOTAL COMMON STOCK
(Cost $97,690,745)		         105,756,497   
  

 

 

  
TOTAL EQUITIES
(Cost $97,690,745)		         105,756,497   
  

 

 

  
TOTAL LONG-TERM INVESTMENTS
(Cost $97,690,745)		         105,756,497   
  

 

 

  
 

 

The accompanying notes are an integral part of the financial statements.

 

94

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MML Large Cap Growth Fund – Portfolio of Investments (Continued)

 

     Principal
Amount		      Value  
SHORT-TERM INVESTMENTS — 1.1%   
Repurchase Agreement — 1.1%      

State Street Bank & Trust Co. Repurchase Agreement, dated 12/30/16, 0.010%, due 1/03/17 (b)

    $ 1,202,159       $ 1,202,159   
     

 

 

  
TOTAL SHORT-TERM INVESTMENTS
(Cost $1,202,159)		         1,202,159   
  

 

 

  
TOTAL INVESTMENTS —100.0%
(Cost $98,892,904) (c)		         106,958,656   
Other Assets/(Liabilities) — (0.0)%         (38,809 ) 
  

 

 

  
NET ASSETS — 100.0%       $ 106,919,847   
  

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

ADR American Depositary Receipt
(a) Non-income producing security.
(b) Maturity value of $1,202,160. Collateralized by U.S. Government Agency obligations with a rate of 1.625%, maturity date of 12/31/19, and an aggregate market value, including accrued interest, of $1,230,157.
(c) See Note 6 for aggregate cost for federal tax purposes.
 

 

The accompanying notes are an integral part of the financial statements.

 

95

Table of Contents

MML Managed Volatility Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
EQUITIES — 98.7%   
COMMON STOCK — 98.7%   
Basic Materials — 2.5%      
Chemicals — 2.0%      

Air Products & Chemicals, Inc. (a)

      2,032       $ 292,242   

Albemarle Corp. (a)

      1,036         89,179   

CF Industries Holdings, Inc. (a)

      2,266         71,334   

The Dow Chemical Co. (a)

      10,550         603,671   

E.I. du Pont de Nemours & Co. (a)

      8,223         603,568   

Eastman Chemical Co. (a)

      1,353         101,759   

Ecolab, Inc. (a)

      2,509         294,105   

FMC Corp. (a)

      1,167         66,005   

International Flavors & Fragrances, Inc. (a)

      729         85,898   

LyondellBasell Industries NV Class A (a)

      3,201         274,582   

Monsanto Co. (a)

      4,114         432,834   

The Mosaic Co. (a)

      3,453         101,276   

PPG Industries, Inc. (a)

      2,505         237,374   

Praxair, Inc. (a)

      2,682         314,304   

The Sherwin-Williams Co. (a)

      755         202,899   
     

 

 

  
        3,771,030   
     

 

 

  
Forest Products & Paper — 0.1%      

International Paper Co. (a)

      3,800         201,628   
     

 

 

  
Iron & Steel — 0.1%      

Nucor Corp. (a)

      2,904         172,846   
     

 

 

  
Mining — 0.3%      

Freeport-McMoRan, Inc. (a) (b)

      11,290         148,915   

Newmont Mining Corp. (a)

      5,024         171,168   

Vulcan Materials Co. (a)

      1,260         157,689   
     

 

 

  
        477,772   
     

 

 

  
        4,623,276   
     

 

 

  
Communications — 13.4%      
Advertising — 0.2%      

The Interpublic Group of Companies, Inc. (a)

      3,643         85,283   

Nielsen Holdings PLC (a)

      2,973         124,717   

Omnicom Group, Inc. (a)

      2,267         192,945   
     

 

 

  
        402,945   
     

 

 

  
Internet — 6.7%      

Akamai Technologies, Inc. (a) (b)

      1,588         105,888   

Alphabet, Inc. Class A (a) (b)

      2,771         2,195,879   

Alphabet, Inc. Class C (a) (b)

      2,776         2,142,572   

Amazon.com, Inc. (a) (b)

      3,699         2,773,769   

eBay, Inc. (a) (b)

      9,868         292,981   

Equinix, Inc. (a)

      667         238,392   

Expedia, Inc. (a)

      1,107         125,401   

F5 Networks, Inc. (a) (b)

      617         89,292   

Facebook, Inc. Class A (a) (b)

      21,830         2,511,542   
     Number of
Shares		      Value  

Netflix, Inc. (a) (b)

      4,032       $ 499,162   

The Priceline Group, Inc. (a) (b)

      467         684,650   

Symantec Corp. (a)

      5,664         135,313   

TripAdvisor, Inc. (a) (b)

      1,100         51,007   

VeriSign, Inc. (a) (b)

      849         64,583   

Yahoo!, Inc. (a) (b)

      8,294         320,729   
     

 

 

  
        12,231,160   
     

 

 

  
Media — 2.9%      

CBS Corp. Class B (a)

      3,829         243,601   

Charter Communications, Inc. Class A (a) (b)

      2,038         586,781   

Comcast Corp. Class A (a)

      22,576         1,558,873   

Discovery Communications, Inc. Series A (a) (b)

      1,578         43,253   

Discovery Communications, Inc. Series C (a) (b)

      1,970         52,757   

News Corp. Class A (a)

      4,034         46,230   

News Corp. Class B (a)

      798         9,416   

Scripps Networks Interactive Class A (a)

      965         68,872   

TEGNA, Inc. (a)

      1,890         40,427   

Time Warner, Inc. (a)

      7,310         705,634   

Twenty-First Century Fox, Inc. Class A (a)

      10,401         291,644   

Twenty-First Century Fox, Inc. Class B (a)

      4,276         116,521   

Viacom, Inc. Class B (a)

      3,265         114,601   

The Walt Disney Co. (a)

      13,890         1,447,616   
     

 

 

  
        5,326,226   
     

 

 

  
Telecommunications — 3.6%      

AT&T, Inc. (a)

      57,834         2,459,680   

CenturyLink, Inc. (a)

      5,076         120,707   

Cisco Systems, Inc. (a)

      47,401         1,432,458   

Corning, Inc. (a)

      8,862         215,081   

Frontier Communications Corp. (a)

      11,503         38,880   

Juniper Networks, Inc. (a)

      3,405         96,225   

Level 3 Communications, Inc. (a) (b)

      2,726         153,638   

Motorola Solutions, Inc. (a)

      1,522         126,159   

Verizon Communications, Inc. (a)

      38,316         2,045,308   
     

 

 

  
        6,688,136   
     

 

 

  
        24,648,467   
     

 

 

  
Consumer, Cyclical — 9.1%      
Airlines — 0.5%      

Alaska Air Group, Inc. (a)

      1,199         106,387   

American Airlines Group, Inc. (a)

      4,961         231,629   

Delta Air Lines, Inc. (a)

      7,012         344,921   

Southwest Airlines Co. (a)

      5,881         293,109   
     

 

 

  
        976,046   
     

 

 

  
Apparel — 0.6%      

Hanesbrands, Inc. (a)

      3,430         73,985   
 

 

The accompanying notes are an integral part of the financial statements.

 

96

Table of Contents

MML Managed Volatility Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  

Michael Kors Holdings Ltd. (a) (b)

      1,589       $ 68,295   

Nike, Inc. Class B (a)

      12,694         645,236   

Ralph Lauren Corp. (a)

      558         50,398   

Under Armour, Inc. Class A (a) (b)

      1,616         46,945   

Under Armour, Inc. Class C (a) (b)

      1,787         44,979   

VF Corp. (a)

      3,054         162,931   
     

 

 

  
        1,092,769   
     

 

 

  
Auto Manufacturers — 0.6%      

Ford Motor Co. (a)

      36,807         446,469   

General Motors Co. (a)

      13,269         462,292   

PACCAR, Inc. (a)

      3,329         212,723   
     

 

 

  
        1,121,484   
     

 

 

  
Automotive & Parts — 0.2%      

BorgWarner, Inc. (a)

      1,724         67,995   

Delphi Automotive PLC (a)

      2,603         175,312   

The Goodyear Tire & Rubber Co. (a)

      2,615         80,725   
     

 

 

  
        324,032   
     

 

 

  
Distribution & Wholesale — 0.3%      

Fastenal Co. (a)

      2,702         126,940   

Genuine Parts Co. (a)

      1,418         135,476   

LKQ Corp. (a) (b)

      2,888         88,517   

W.W. Grainger, Inc. (a)

      527         122,396   
     

 

 

  
        473,329   
     

 

 

  
Home Builders — 0.1%      

D.R. Horton, Inc. (a)

      3,291         89,943   

Lennar Corp. Class A (a)

      1,839         78,948   

PulteGroup, Inc. (a)

      2,802         51,501   
     

 

 

  
        220,392   
     

 

 

  
Home Furnishing — 0.1%      

Harman International Industries, Inc. (a)

      647         71,920   

Whirlpool Corp. (a)

      680         123,604   
     

 

 

  
        195,524   
     

 

 

  
Housewares — 0.1%      

Newell Brands, Inc. (a)

      4,416         197,174   
     

 

 

  
Leisure Time — 0.3%      

Carnival Corp. (a)

      4,037         210,166   

Harley-Davidson, Inc. (a)

      1,688         98,478   

Royal Caribbean Cruises Ltd. (a)

      1,585         130,033   
     

 

 

  
        438,677   
     

 

 

  
Lodging — 0.2%      

Marriott International, Inc. Class A (a)

      3,057         252,753   

Wyndham Worldwide Corp. (a)

      1,102         84,160   

Wynn Resorts Ltd. (a)

      708         61,249   
     

 

 

  
        398,162   
     

 

 

  
Retail — 5.9%      

Advance Auto Parts, Inc. (a)

      683         115,509   

AutoNation, Inc. (a) (b)

      470         22,865   
     Number of
Shares		      Value  

AutoZone, Inc. (a) (b)

      278       $ 219,562   

Bed Bath & Beyond, Inc. (a)

      1,548         62,911   

Best Buy Co., Inc. (a)

      2,549         108,766   

CarMax, Inc. (a) (b)

      1,786         115,001   

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

      264         99,612   

Coach, Inc. (a)

      2,752         96,375   

Costco Wholesale Corp. (a)

      4,126         660,614   

CVS Health Corp. (a)

      10,034         791,783   

Darden Restaurants, Inc. (a)

      1,189         86,464   

Dollar General Corp. (a)

      2,396         177,472   

Dollar Tree, Inc. (a) (b)

      2,275         175,584   

Foot Locker, Inc. (a)

      1,218         86,344   

The Gap, Inc. (a)

      2,014         45,194   

The Home Depot, Inc. (a)

      11,622         1,558,278   

Kohl’s Corp. (a)

      1,685         83,205   

L Brands, Inc. (a)

      2,216         145,901   

Lowe’s Cos., Inc. (a)

      8,215         584,251   

Macy’s, Inc. (a)

      2,865         102,596   

McDonald’s Corp. (a)

      8,034         977,898   

Nordstrom, Inc. (a)

      995         47,690   

O’Reilly Automotive, Inc. (a) (b)

      889         247,506   

PVH Corp. (a)

      805         72,643   

Ross Stores, Inc. (a)

      3,733         244,885   

Signet Jewelers Ltd. (a)

      663         62,494   

Staples, Inc. (a)

      6,307         57,078   

Starbucks Corp. (a)

      13,819         767,231   

Target Corp. (a)

      5,463         394,592   

Tiffany & Co. (a)

      978         75,727   

The TJX Cos., Inc. (a)

      6,223         467,534   

Tractor Supply Co. (a)

      1,328         100,676   

Ulta Salon Cosmetics & Fragrance, Inc. (a) (b)

      535         136,393   

Urban Outfitters, Inc. (a) (b)

      887         25,262   

Wal-Mart Stores, Inc. (a)

      14,243         984,476   

Walgreens Boots Alliance, Inc. (a)

      8,052         666,384   

Yum! Brands, Inc. (a)

      3,226         204,303   
     

 

 

  
        10,871,059   
     

 

 

  
Textiles — 0.1%      

Cintas Corp. (a)

      788         91,061   

Mohawk Industries, Inc. (a) (b)

      583         116,414   
     

 

 

  
        207,475   
     

 

 

  
Toys, Games & Hobbies — 0.1%      

Hasbro, Inc. (a)

      1,112         86,503   

Mattel, Inc. (a)

      3,075         84,716   
     

 

 

  
        171,219   
     

 

 

  
        16,687,342   
     

 

 

  
Consumer, Non-cyclical — 22.5%      
Agriculture — 1.8%      

Altria Group, Inc. (a)

      18,408         1,244,749   

Archer-Daniels-Midland Co. (a)

      5,481         250,208   

Philip Morris International, Inc. (a)

      14,587         1,334,564   
 

 

The accompanying notes are an integral part of the financial statements.

 

97

Table of Contents

MML Managed Volatility Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  

Reynolds American, Inc. (a)

      7,804       $ 437,336   
     

 

 

  
        3,266,857   
     

 

 

  
Beverages — 2.0%      

Brown-Forman Corp. Class B (a)

      1,590         71,423   

The Coca-Cola Co. (a)

      36,528         1,514,451   

Constellation Brands, Inc. Class A (a)

      1,676         256,948   

Dr. Pepper Snapple Group, Inc. (a)

      1,681         152,416   

Molson Coors Brewing Co. Class B (a)

      1,753         170,584   

Monster Beverage Corp. (a) (b)

      3,826         169,645   

PepsiCo, Inc. (a)

      13,535         1,416,167   
     

 

 

  
        3,751,634   
     

 

 

  
Biotechnology — 2.3%      

Alexion Pharmaceuticals, Inc. (a) (b)

      2,096         256,446   

Amgen, Inc. (a)

      7,034         1,028,441   

Biogen, Inc. (a) (b)

      2,060         584,175   

Celgene Corp. (a) (b)

      7,286         843,354   

Gilead Sciences, Inc. (a)

      12,405         888,322   

Illumina, Inc. (a) (b)

      1,373         175,799   

Regeneron Pharmaceuticals, Inc. (a) (b)

      708         259,900   

Vertex Pharmaceuticals, Inc. (a) (b)

      2,266         166,936   
     

 

 

  
        4,203,373   
     

 

 

  
Commercial Services — 2.0%      

Automatic Data Processing, Inc. (a)

      4,317         443,701   

Equifax, Inc. (a)

      1,109         131,117   

Global Payments, Inc. (a)

      1,452         100,783   

H&R Block, Inc. (a)

      1,881         43,244   

Moody’s Corp. (a)

      1,541         145,270   

Paychex, Inc. (a)

      3,098         188,606   

PayPal Holdings, Inc. (a) (b)

      10,549         416,369   

Quanta Services, Inc. (a) (b)

      1,344         46,839   

Robert Half International, Inc. (a)

      1,168         56,975   

S&P Global, Inc. (a)

      2,503         269,173   

Total System Services, Inc. (a)

      1,495         73,300   

United Rentals, Inc. (a) (b)

      807         85,203   

Verisk Analytics, Inc. (a) (b)

      1,535         124,596   

Visa, Inc. Class A (a)

      17,736         1,383,763   

The Western Union Co. (a)

      4,272         92,788   
     

 

 

  
        3,601,727   
     

 

 

  
Cosmetics & Personal Care — 1.6%      

Colgate-Palmolive Co. (a)

      8,342         545,900   

Coty, Inc. Class A (a)

      4,449         81,461   

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

      2,120         162,159   

The Procter & Gamble Co. (a)

      25,082         2,108,895   
     

 

 

  
        2,898,415   
     

 

 

  
Foods — 1.7%      

Campbell Soup Co. (a)

      1,783         107,818   

Conagra Brands, Inc. (a)

      3,747         148,194   

General Mills, Inc. (a)

      5,730         353,942   
     Number of
Shares		      Value  

The Hershey Co. (a)

      1,308       $ 135,286   

Hormel Foods Corp. (a)

      2,458         85,563   

The J.M. Smucker Co. (a)

      1,143         146,373   

Kellogg Co. (a)

      2,337         172,260   

The Kraft Heinz Co. (a)

      5,579         487,158   

The Kroger Co. (a)

      8,821         304,413   

McCormick & Co., Inc. (a)

      1,071         99,956   

Mondelez International, Inc. Class A (a)

      14,644         649,169   

Sysco Corp. (a)

      4,830         267,437   

Tyson Foods, Inc. Class A (a)

      2,809         173,259   

Whole Foods Market, Inc. (a)

      2,885         88,743   
     

 

 

  
        3,219,571   
     

 

 

  
Health Care – Products — 3.8%      

Abbott Laboratories (a)

      13,801         530,096   

Baxter International, Inc. (a)

      4,613         204,540   

Becton, Dickinson & Co. (a)

      2,033         336,563   

Boston Scientific Corp. (a) (b)

      12,905         279,135   

C.R. Bard, Inc. (a)

      678         152,319   

The Cooper Cos., Inc. (a)

      478         83,617   

Edwards Lifesciences Corp. (a) (b)

      2,054         192,460   

Henry Schein, Inc. (a) (b)

      737         111,810   

Hologic, Inc. (a) (b)

      2,466         98,936   

Intuitive Surgical, Inc. (a) (b)

      367         232,740   

Johnson & Johnson (a)

      25,698         2,960,667   

Medtronic PLC (a)

      12,968         923,711   

St. Jude Medical, Inc. (a)

      2,646         212,183   

Stryker Corp. (a)

      2,916         349,366   

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

      857         76,941   

Zimmer Biomet Holdings, Inc. (a)

      1,859         191,849   
     

 

 

  
        6,936,933   
     

 

 

  
Health Care – Services — 2.3%      

Aetna, Inc. (a)

      3,297         408,861   

Anthem, Inc. (a)

      2,476         355,974   

Centene Corp. (a) (b)

      1,686         95,276   

Cigna Corp. (a)

      2,418         322,537   

DaVita, Inc. (a) (b)

      1,508         96,814   

DENTSPLY SIRONA, Inc. (a)

      2,191         126,486   

Envision Healthcare Corp. (a) (b)

      1,145         72,467   

HCA Holdings, Inc. (a) (b)

      2,785         206,146   

Humana, Inc. (a)

      1,401         285,846   

Laboratory Corporation of America Holdings (a) (b)

      977         125,427   

Quest Diagnostics, Inc. (a)

      1,239         113,864   

Thermo Fisher Scientific, Inc. (a)

      3,716         524,328   

UnitedHealth Group, Inc. (a)

      8,956         1,433,318   

Universal Health Services, Inc. Class B (a)

      903         96,061   
     

 

 

  
        4,263,405   
     

 

 

  
 

 

The accompanying notes are an integral part of the financial statements.

 

98

Table of Contents

MML Managed Volatility Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  
Household Products — 0.4%      

Avery Dennison Corp. (a)

      821       $ 57,651   

Church & Dwight Co., Inc. (a)

      2,370         104,730   

The Clorox Co. (a)

      1,230         147,625   

Kimberly-Clark Corp. (a)

      3,384         386,182   
     

 

 

  
        696,188   
     

 

 

  
Pharmaceuticals — 4.6%      

AbbVie, Inc. (a)

      15,308         958,587   

Allergan PLC (a) (b)

      3,522         739,655   

AmerisourceBergen Corp. (a)

      1,512         118,223   

Bristol-Myers Squibb Co. (a)

      15,690         916,924   

Cardinal Health, Inc. (a)

      2,950         212,311   

Eli Lilly & Co. (a)

      9,125         671,144   

Endo International PLC (a) (b)

      1,794         29,547   

Express Scripts Holding Co. (a) (b)

      5,944         408,888   

Mallinckrodt PLC (a) (b)

      1,090         54,304   

McKesson Corp. (a)

      2,104         295,507   

Mead Johnson Nutrition Co. (a)

      1,774         125,528   

Merck & Co., Inc. (a)

      25,973         1,529,031   

Mylan NV (a) (b)

      4,421         168,661   

Patterson Cos., Inc. (a)

      852         34,958   

Perrigo Co. PLC (a)

      1,332         110,862   

Pfizer, Inc. (a)

      56,975         1,850,548   

Zoetis, Inc. (a)

      4,719         252,608   
     

 

 

  
        8,477,286   
     

 

 

  
        41,315,389   
     

 

 

  
Diversified — 0.0%      
Holding Company – Diversified — 0.0%      

Leucadia National Corp. (a)

      2,905         67,541   
     

 

 

  
Energy — 7.4%      
Energy – Alternate Sources — 0.0%      

First Solar, Inc. (a) (b)

      794         25,479   
     

 

 

  
Oil & Gas — 5.8%      

Anadarko Petroleum Corp. (a)

      5,123         357,227   

Apache Corp. (a)

      3,554         225,572   

Cabot Oil & Gas Corp. (a)

      4,538         106,008   

Chesapeake Energy Corp. (a) (b)

      7,048         49,477   

Chevron Corp. (a)

      17,732         2,087,056   

Cimarex Energy Co. (a)

      850         115,515   

Concho Resources, Inc. (a) (b)

      1,318         174,767   

ConocoPhillips (a)

      11,628         583,028   

Devon Energy Corp. (a)

      4,868         222,322   

EOG Resources, Inc. (a)

      5,124         518,036   

EQT Corp. (a)

      1,682         110,003   

Exxon Mobil Corp. (a)

      38,983         3,518,606   

Helmerich & Payne, Inc. (a)

      1,072         82,973   

Hess Corp. (a)

      2,515         156,659   

Marathon Oil Corp. (a)

      8,143         140,955   

Marathon Petroleum Corp. (a)

      4,973         250,391   

Murphy Oil Corp. (a)

      1,605         49,964   

Newfield Exploration Co. (a) (b)

      1,932         78,246   
     Number of
Shares		      Value  

Noble Energy, Inc. (a)

      4,032       $ 153,458   

Occidental Petroleum Corp. (a)

      7,118         507,015   

Phillips 66 (a)

      4,194         362,403   

Pioneer Natural Resources Co. (a)

      1,594         287,032   

Range Resources Corp. (a)

      1,772         60,886   

Southwestern Energy Co. (a) (b)

      4,854         52,520   

Tesoro Corp. (a)

      1,085         94,883   

Valero Energy Corp. (a)

      4,282         292,546   
     

 

 

  
        10,637,548   
     

 

 

  
Oil & Gas Services — 1.1%      

Baker Hughes, Inc. (a)

      4,033         262,024   

FMC Technologies, Inc. (a) (b)

      1,949         69,248   

Halliburton Co. (a)

      8,064         436,182   

National Oilwell Varco, Inc. (a)

      3,542         132,613   

Schlumberger Ltd. (a)

      13,059         1,096,303   

Transocean Ltd. (a) (b)

      3,645         53,727   
     

 

 

  
        2,050,097   
     

 

 

  
Pipelines — 0.5%      

Kinder Morgan, Inc. (a)

      18,052         373,857   

ONEOK, Inc. (a)

      2,047         117,518   

Spectra Energy Corp. (a)

      6,611         271,646   

The Williams Cos., Inc. (a)

      6,526         203,220   
     

 

 

  
        966,241   
     

 

 

  
        13,679,365   
     

 

 

  
Financial — 17.7%      
Banks — 6.2%      

Bank of America Corp. (a)

      95,915         2,119,721   

The Bank of New York Mellon Corp. (a)

      10,039         475,648   

BB&T Corp. (a)

      7,797         366,615   

Capital One Financial Corp. (a)

      4,765         415,699   

Citigroup, Inc. (a)

      27,320         1,623,628   

Citizens Financial Group, Inc. (a)

      4,950         176,369   

Comerica, Inc. (a)

      1,629         110,951   

Fifth Third Bancorp (a)

      7,135         192,431   

The Goldman Sachs Group, Inc. (a)

      3,543         848,371   

Huntington Bancshares, Inc. (a)

      9,779         129,278   

KeyCorp (a)

      10,065         183,888   

M&T Bank Corp. (a)

      1,459         228,231   

Northern Trust Corp. (a)

      1,972         175,607   

The PNC Financial Services Group, Inc. (a)

      4,643         543,045   

Regions Financial Corp. (a)

      11,423         164,034   

State Street Corp. (a)

      3,447         267,901   

SunTrust Banks, Inc. (a)

      4,637         254,339   

U.S. Bancorp (a)

      15,150         778,255   

Wells Fargo & Co. (a)

      42,705         2,353,473   

Zions Bancorp (a)

      2,004         86,252   
     

 

 

  
        11,493,736   
     

 

 

  
 

 

The accompanying notes are an integral part of the financial statements.

 

99

Table of Contents

MML Managed Volatility Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  
Diversified Financial — 4.4%      

Affiliated Managers Group, Inc. (a) (b)

      537      $ 78,026  

Alliance Data Systems Corp. (a)

      548        125,218  

American Express Co. (a)

      7,281        539,376  

Ameriprise Financial, Inc. (a)

      1,478        163,969  

BlackRock, Inc. (a)

      1,147        436,479  

The Charles Schwab Corp. (a)

      11,406        450,195  

CME Group, Inc. (a)

      3,188        367,736  

Discover Financial Services (a)

      3,810        274,663  

E*TRADE Financial Corp. (a) (b)

      2,729        94,560  

Franklin Resources, Inc. (a)

      3,277        129,704  

Intercontinental Exchange, Inc. (a)

      5,604        316,178  

Invesco Ltd. (a)

      3,832        116,263  

JP Morgan Chase & Co. (a)

      33,962        2,930,581  

MasterCard, Inc. Class A (a)

      9,015        930,799  

Morgan Stanley (a)

      13,784        582,374  

Nasdaq, Inc. (a)

      1,118        75,040  

Navient Corp. (a)

      3,249        53,381  

Synchrony Financial (a)

      7,482        271,372  

T. Rowe Price Group, Inc. (a)

      2,341        176,184  
     

 

 

  
        8,112,098  
     

 

 

  
Insurance — 4.3%      

Aflac, Inc. (a)

      3,868        269,213  

The Allstate Corp. (a)

      3,507        259,939  

American International Group, Inc. (a)

      9,508        620,967  

Aon PLC (a)

      2,499        278,713  

Arthur J. Gallagher & Co. (a)

      1,761        91,502  

Assurant, Inc. (a)

      459        42,623  

Berkshire Hathaway, Inc. Class B (a) (b)

      17,841        2,907,726  

Chubb Ltd. (a)

      4,390        580,007  

Cincinnati Financial Corp. (a)

      1,376        104,232  

The Hartford Financial Services Group, Inc. (a)

      3,597        171,397  

Lincoln National Corp. (a)

      2,068        137,046  

Loews Corp. (a)

      2,645        123,865  

Marsh & McLennan Cos., Inc. (a)

      4,942        334,030  

MetLife, Inc. (a)

      10,341        557,276  

Principal Financial Group, Inc. (a)

      2,529        146,328  

The Progressive Corp. (a)

      5,307        188,399  

Prudential Financial, Inc. (a)

      4,118        428,519  

Torchmark Corp. (a)

      1,117        82,390  

The Travelers Cos., Inc. (a)

      2,733        334,574  

Unum Group (a)

      2,348        103,148  

Willis Towers Watson PLC (a)

      1,190        145,513  

XL Group Ltd. (a)

      2,390        89,051  
     

 

 

  
        7,996,458  
     

 

 

  
Real Estate — 0.1%      

CBRE Group, Inc. Class A (a) (b)

      2,901        91,353  
     

 

 

  
Real Estate Investment Trusts (REITS) — 2.7%  

American Tower Corp. (a)

      4,014        424,200  
     Number of
Shares		      Value  

Apartment Investment & Management Co. Class A (a)

      1,562      $ 70,993  

AvalonBay Communities, Inc. (a)

      1,281        226,929  

Boston Properties, Inc. (a)

      1,424        179,111  

Crown Castle International Corp. (a)

      3,389        294,064  

Digital Realty Trust, Inc. (a)

      1,491        146,506  

Equity Residential (a)

      3,432        220,884  

Essex Property Trust, Inc. (a)

      613        142,522  

Extra Space Storage, Inc. (a)

      1,251        96,627  

Federal Realty Investment Trust (a)

      684        97,203  

General Growth Properties, Inc. (a)

      5,546        138,539  

HCP, Inc. (a)

      4,461        132,581  

Host Hotels & Resorts, Inc. (a)

      7,012        132,106  

Iron Mountain, Inc. (a)

      2,212        71,846  

Kimco Realty Corp. (a)

      3,815        95,985  

The Macerich Co. (a)

      1,060        75,090  

Mid-America Apartment Communities, Inc. (a)

      1,108        108,495  

Prologis, Inc. (a)

      4,918        259,621  

Public Storage (a)

      1,397        312,229  

Realty Income Corp. (a)

      2,520        144,850  

Simon Property Group, Inc. (a)

      2,956        525,192  

SL Green Realty Corp. (a)

      918        98,731  

UDR, Inc. (a)

      2,618        95,505  

Ventas, Inc. (a)

      3,275        204,753  

Vornado Realty Trust (a)

      1,556        162,400  

Welltower, Inc. (a)

      3,359        224,818  

Weyerhaeuser Co. (a)

      6,948        209,065  
     

 

 

  
        4,890,845  
     

 

 

  
Savings & Loans — 0.0%      

People’s United Financial, Inc. (a)

      2,564        49,639  
     

 

 

  
        32,634,129  
     

 

 

  
Industrial — 10.1%      
Aerospace & Defense — 2.2%      

Arconic, Inc. (a)

      4,133        76,626  

The Boeing Co. (a)

      5,469        851,414  

General Dynamics Corp. (a)

      2,722        469,981  

Harris Corp. (a)

      1,158        118,660  

L3 Technologies, Inc. (a)

      722        109,823  

Lockheed Martin Corp. (a)

      2,370        592,358  

Northrop Grumman Corp. (a)

      1,697        394,688  

Raytheon Co. (a)

      2,788        395,896  

Rockwell Collins, Inc. (a)

      1,119        103,799  

TransDigm Group, Inc. (a)

      465        115,766  

United Technologies Corp. (a)

      7,326        803,076  
     

 

 

  
        4,032,087  
     

 

 

  
Airlines — 0.1%      

United Continental Holdings, Inc. (a) (b)

      2,729        198,889  
     

 

 

  
Building Materials — 0.2%      

Fortune Brands Home & Security, Inc. (a)

      1,512        80,832  
 

 

The accompanying notes are an integral part of the financial statements.

 

100

Table of Contents

MML Managed Volatility Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  

Martin Marietta Materials, Inc. (a)

      602       $ 133,361   

Masco Corp. (a)

      2,886         91,255   
     

 

 

  
        305,448   
     

 

 

  
Electrical Components & Equipment — 0.3%   

Acuity Brands, Inc. (a)

      412         95,114   

AMETEK, Inc. (a)

      1,975         95,985   

Emerson Electric Co. (a)

      6,112         340,744   
     

 

 

  
        531,843   
     

 

 

  
Electronics — 0.8%      

Agilent Technologies, Inc. (a)

      3,072         139,960   

Allegion PLC (a)

      987         63,168   

Amphenol Corp. Class A (a)

      2,954         198,509   

FLIR Systems, Inc. (a)

      1,332         48,205   

Fortive Corp. (a)

      2,801         150,218   

Garmin Ltd. (a)

      1,157         56,103   

Johnson Controls International PLC (a)

      8,882         365,850   

Mettler-Toledo International, Inc. (a) (b)

      259         108,407   

PerkinElmer, Inc. (a)

      1,090         56,843   

TE Connectivity Ltd. (a)

      3,318         229,871   

Waters Corp. (a) (b)

      742         99,717   
     

 

 

  
        1,516,851   
     

 

 

  
Engineering & Construction — 0.1%      

Fluor Corp. (a)

      1,351         70,955   

Jacobs Engineering Group, Inc. (a) (b)

      1,173         66,861   
     

 

 

  
        137,816   
     

 

 

  
Environmental Controls — 0.2%      

Republic Services, Inc. (a)

      2,097         119,634   

Stericycle, Inc. (a) (b)

      712         54,852   

Waste Management, Inc. (a)

      3,790         268,749   
     

 

 

  
        443,235   
     

 

 

  
Hand & Machine Tools — 0.1%      

Snap-on, Inc. (a)

      580         99,337   

Stanley Black & Decker, Inc. (a)

      1,380         158,272   
     

 

 

  
        257,609   
     

 

 

  
Machinery – Construction & Mining — 0.4%   

Caterpillar, Inc. (a)

      5,507         510,719   

Ingersoll-Rand PLC (a)

      2,453         184,073   
     

 

 

  
        694,792   
     

 

 

  
Machinery – Diversified — 0.5%      

Cummins, Inc. (a)

      1,453         198,582   

Deere & Co. (a)

      2,726         280,887   

Flowserve Corp. (a)

      1,348         64,771   

Rockwell Automation, Inc. (a)

      1,234         165,850   

Roper Technologies, Inc. (a)

      972         177,954   

Xylem, Inc. (a)

      1,647         81,559   
     

 

 

  
        969,603   
     

 

 

  
Manufacturing — 3.4%      

3M Co. (a)

      5,670         1,012,492   
     Number of
Shares		      Value  

Danaher Corp. (a)

      5,690       $ 442,910   

Dover Corp. (a)

      1,530         114,643   

Eaton Corp. PLC (a)

      4,304         288,755   

General Electric Co. (a)

      84,211         2,661,067   

Honeywell International, Inc. (a)

      7,142         827,401   

Illinois Tool Works, Inc. (a)

      3,015         369,217   

Leggett & Platt, Inc. (a)

      1,226         59,927   

Parker Hannifin Corp. (a)

      1,253         175,420   

Pentair PLC (a)

      1,471         82,479   

Textron, Inc. (a)

      2,509         121,837   
     

 

 

  
        6,156,148   
     

 

 

  
Packaging & Containers — 0.2%      

Ball Corp. (a)

      1,564         117,409   

Sealed Air Corp. (a)

      1,936         87,778   

WestRock Co. (a)

      2,488         126,316   
     

 

 

  
        331,503   
     

 

 

  
Transportation — 1.6%      

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

      1,320         96,703   

CSX Corp. (a)

      8,820         316,903   

Expeditors International of Washington, Inc. (a)

      1,814         96,069   

FedEx Corp. (a)

      2,308         429,750   

J.B. Hunt Transport Services, Inc. (a)

      886         86,004   

Kansas City Southern (a)

      984         83,492   

Norfolk Southern Corp. (a)

      2,759         298,165   

Ryder System, Inc. (a)

      511         38,039   

Union Pacific Corp. (a)

      7,823         811,089   

United Parcel Service, Inc. Class B (a)

      6,487         743,670   
     

 

 

  
        2,999,884   
     

 

 

  
        18,575,708   
     

 

 

  
Technology — 12.9%      
Computers — 5.0%      

Accenture PLC Class A (a)

      5,849         685,093   

Apple, Inc. (a)

      50,642         5,865,357   

Cognizant Technology Solutions Corp. Class A (a) (b)

      5,766         323,069   

CSRA, Inc. (a)

      1,430         45,531   

Hewlett Packard Enterprise Co. (a)

      15,636         361,817   

HP, Inc. (a)

      15,949         236,683   

International Business Machines Corp. (a)

      8,176         1,357,134   

NetApp, Inc. (a)

      2,510         88,528   

Seagate Technology PLC (a)

      2,933         111,953   

Teradata Corp. (a) (b)

      1,361         36,978   

Western Digital Corp. (a)

      2,631         178,777   
     

 

 

  
        9,290,920   
     

 

 

  
Office Equipment/Supplies — 0.1%      

Pitney Bowes, Inc. (a)

      1,997         30,335   

Xerox Corp. (a)

      7,518         65,632   
     

 

 

  
        95,967   
     

 

 

  
 

 

The accompanying notes are an integral part of the financial statements.

 

101

Table of Contents

MML Managed Volatility Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  
Semiconductors — 3.3%      

Analog Devices, Inc. (a)

      2,923       $ 212,268   

Applied Materials, Inc. (a)

      10,273         331,510   

Broadcom Ltd. (a)

      3,718         657,231   

Intel Corp. (a)

      44,410         1,610,751   

KLA-Tencor Corp. (a)

      1,424         112,040   

Lam Research Corp. (a)

      1,460         154,366   

Linear Technology Corp. (a)

      2,258         140,786   

Microchip Technology, Inc. (a)

      2,033         130,417   

Micron Technology, Inc. (a) (b)

      9,755         213,830   

NVIDIA Corp. (a)

      5,080         542,239   

Qorvo, Inc. (a) (b)

      1,280         67,494   

QUALCOMM, Inc. (a)

      13,848         902,890   

Skyworks Solutions, Inc. (a)

      1,736         129,610   

Texas Instruments, Inc. (a)

      9,397         685,699   

Xilinx, Inc. (a)

      2,390         144,284   
     

 

 

  
        6,035,415   
     

 

 

  
Software — 4.5%      

Activision Blizzard, Inc. (a)

      6,541         236,196   

Adobe Systems, Inc. (a) (b)

      4,698         483,659   

Autodesk, Inc. (a) (b)

      1,798         133,070   

CA, Inc. (a)

      2,950         93,722   

Cerner Corp. (a) (b)

      2,921         138,368   

Citrix Systems, Inc. (a) (b)

      1,432         127,892   

The Dun & Bradstreet Corp. (a)

      369         44,767   

Electronic Arts, Inc. (a) (b)

      2,807         221,079   

Fidelity National Information Services, Inc. (a)

      3,110         235,240   

Fiserv, Inc. (a) (b)

      2,068         219,787   

Intuit, Inc. (a)

      2,304         264,061   

Microsoft Corp. (a)

      73,254         4,552,004   

Oracle Corp. (a)

      28,292         1,087,827   

Red Hat, Inc. (a) (b)

      1,705         118,838   

Salesforce.com, Inc. (a) (b)

      6,050         414,183   
     

 

 

  
        8,370,693   
     

 

 

  
        23,792,995   
     

 

 

  
Utilities — 3.1%      
Electric — 2.9%      

The AES Corp. (a)

      6,577         76,425   

Alliant Energy Corp. (a)

      2,106         79,796   

Ameren Corp. (a)

      2,172         113,943   

American Electric Power Co., Inc. (a)

      4,666         293,771   

CenterPoint Energy, Inc. (a)

      3,953         97,402   

CMS Energy Corp. (a)

      2,363         98,348   

Consolidated Edison, Inc. (a)

      2,870         211,462   

Dominion Resources, Inc. (a)

      5,960         456,476   

DTE Energy Co. (a)

      1,586         156,237   

Duke Energy Corp. (a)

      6,496         504,220   

Edison International (a)

      3,085         222,089   

Entergy Corp. (a)

      1,775         130,409   

Eversource Energy (a)

      2,879         159,007   

Exelon Corp. (a)

      8,678         307,982   
     Number of
Shares		      Value  

FirstEnergy Corp. (a)

      3,938       $ 121,960   

NextEra Energy, Inc. (a)

      4,383         523,593   

NRG Energy, Inc. (a)

      3,280         40,213   

PG&E Corp. (a)

      4,659         283,128   

Pinnacle West Capital Corp. (a)

      1,123         87,628   

PPL Corp. (a)

      6,559         223,334   

Public Service Enterprise Group, Inc. (a)

      4,720         207,114   

SCANA Corp. (a)

      1,440         105,523   

The Southern Co. (a)

      9,165         450,826   

WEC Energy Group, Inc. (a)

      2,841         166,625   

Xcel Energy, Inc. (a)

      4,739         192,877   
     

 

 

  
        5,310,388   
     

 

 

  
Gas — 0.1%      

NiSource, Inc. (a)

      3,193         70,693   

Sempra Energy (a)

      2,344         235,900   
     

 

 

  
        306,593   
     

 

 

  
Water — 0.1%      

American Water Works Co., Inc. (a)

      1,653         119,611   
     

 

 

  
        5,736,592   
     

 

 

  
TOTAL COMMON STOCK
(Cost $152,504,124)		         181,760,804   
  

 

 

  
TOTAL EQUITIES
(Cost $152,504,124)		         181,760,804   
  

 

 

  
     Principal
Amount		         
BONDS & NOTES — 0.0%   
CORPORATE DEBT — 0.0%   
Forest Products & Paper — 0.0%      

Sino Forest Corp. (a) (c)
5.000% 8/01/49

    $ 359,000         -   
     

 

 

  
TOTAL CORPORATE DEBT
(Cost $0)		         -   
  

 

 

  
TOTAL BONDS & NOTES
(Cost $0)		         -   
  

 

 

  
     Units         
PURCHASED OPTIONS — 0.4%   
Financial — 0.4%      
Diversified Financial — 0.4%      

S&P 500 Index, Put, Expires 01/20/17, Strike 2,000.00

      98         10,290   

S&P 500 Index, Put, Expires 01/20/17, Strike 2,050.00

      119         18,802   

S&P 500 Index, Put, Expires 02/17/17, Strike 2,025.00

      182         118,300   
 

 

The accompanying notes are an integral part of the financial statements.

 

102

Table of Contents

MML Managed Volatility Fund – Portfolio of Investments (Continued)

 

     Units      Value  

S&P 500 Index, Put, Expires 02/21/17, Strike 1,975.00

      82       $ 31,406   

S&P 500 Index, Put, Expires 03/17/17, Strike 2,000.00

      137         164,400   

S&P 500 Index, Put, Expires 03/17/17, Strike 2,075.00

      186         353,772   
     

 

 

  
        696,970   
     

 

 

  
TOTAL PURCHASED OPTIONS
(Cost $1,171,700)		         696,970   
  

 

 

  
TOTAL LONG-TERM INVESTMENTS
(Cost $153,675,824)		         182,457,774   
  

 

 

  
     Principal
Amount		         
SHORT-TERM INVESTMENTS — 2.8%   
Repurchase Agreement — 2.8%      

State Street Bank & Trust Co. Repurchase Agreement, dated 12/30/16, 0.010%, due 1/03/17 (d)

    $ 5,163,935         5,163,935   
     

 

 

  
Time Deposit — 0.0%      

Euro Time Deposit
0.010% 1/03/17

      1,188         1,188   
     

 

 

  
TOTAL SHORT-TERM INVESTMENTS
(Cost $5,165,123)		         5,165,123   
  

 

 

  
TOTAL INVESTMENTS — 101.9%
(Cost $158,840,947) (e)		         187,622,897   
Other Assets/(Liabilities) — (1.9)%         (3,516,941 ) 
  

 

 

  
NET ASSETS — 100.0%       $ 184,105,956   
  

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

(a) All or a portion of these securities are pledged as collateral for written options. (Note 2).
(b) Non-income producing security.
(c) This security is fair valued in good faith in accordance with procedures approved by the Board of Trustees. At December 31, 2016, these securities amounted to a value of $0 or 0.00% of net assets.
(d) Maturity value of $5,163,941. Collateralized by U.S. Government Agency obligations with a rate of 3.125%, maturity date of 5/15/21, and an aggregate market value, including accrued interest, of $5,270,463.
(e) See Note 6 for aggregate cost for federal tax purposes.
 

 

The accompanying notes are an integral part of the financial statements.

 

103

Table of Contents

MML Mid Cap Growth Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
EQUITIES — 96.4%  
COMMON STOCK — 95.9%  
Basic Materials — 3.5%  
Chemicals — 3.0%  

Air Products & Chemicals, Inc.

      34,000      $ 4,889,880  

Ashland Global Holdings, Inc.

      27,000        2,950,830  

RPM International, Inc.

      69,000        3,714,270  

Valvoline, Inc.

      47,000        1,010,500  
     

 

 

  
        12,565,480  
     

 

 

  
Mining — 0.5%  

Franco-Nevada Corp.

      38,000        2,270,880  
     

 

 

  
        14,836,360  
     

 

 

  
Communications — 4.4%  
Internet — 2.0%  

Dropbox, Inc. (a) (b)

      9,011        86,776  

Equinix, Inc.

      1,000        357,410  

Match Group, Inc. (b) (c)

      48,686        832,530  

TripAdvisor, Inc. (b)

      26,000        1,205,620  

VeriSign, Inc. (b) (c)

      60,000        4,564,200  

Zillow Group, Inc. Class A (b)

      18,000        656,100  

Zillow Group, Inc. Class C (b) (c)

      25,000        911,750  
     

 

 

  
        8,614,386  
     

 

 

  
Media — 0.4%  

FactSet Research Systems, Inc.

      10,000        1,634,300  
     

 

 

  
Telecommunications — 2.0%  

DigitalGlobe, Inc. (b)

      96,000        2,750,400  

Palo Alto Networks, Inc. (b)

      3,000        375,150  

SBA Communications Corp. Class A (b)

      7,000        722,820  

T-Mobile US, Inc. (b)

      76,000        4,370,760  
     

 

 

  
        8,219,130  
     

 

 

  
        18,467,816  
     

 

 

  
Consumer, Cyclical — 16.0%  
Apparel — 0.9%  

Carter’s, Inc.

      24,000        2,073,360  

Hanesbrands, Inc.

      68,000        1,466,760  
     

 

 

  
        3,540,120  
     

 

 

  
Auto Manufacturers — 0.7%  

Ferrari NV

      26,000        1,511,640  

Tesla Motors, Inc. (b)

      6,000        1,282,140  
     

 

 

  
        2,793,780  
     

 

 

  
Automotive & Parts — 0.3%  

WABCO Holdings, Inc. (b)

      13,000        1,379,950  
     

 

 

  
Entertainment — 0.3%  

Vail Resorts, Inc.

      7,864        1,268,542  
     

 

 

  
Home Furnishing — 0.5%  

Harman International Industries, Inc.

      19,000        2,112,040  
     

 

 

  
     Number of
Shares		      Value  
Leisure Time — 2.2%  

Norwegian Cruise Line Holdings Ltd. (b)

      153,000      $ 6,507,090  

Royal Caribbean Cruises Ltd.

      36,000        2,953,440  
     

 

 

  
        9,460,530  
     

 

 

  
Lodging — 2.3%  

Choice Hotels International, Inc.

      17,000        952,850  

Marriott International, Inc. Class A

      77,000        6,366,360  

MGM Resorts International (b)

      89,000        2,565,870  
     

 

 

  
        9,885,080  
     

 

 

  
Retail — 8.8%  

AutoZone, Inc. (b)

      8,500        6,713,215  

Burlington Stores, Inc. (b)

      26,000        2,203,500  

CarMax, Inc. (b) (c)

      81,000        5,215,590  

Coach, Inc.

      123,000        4,307,460  

Dick’s Sporting Goods, Inc.

      31,000        1,646,100  

Dollar General Corp.

      86,000        6,370,020  

L Brands, Inc.

      38,000        2,501,920  

The Michaels Cos., Inc. (b)

      128,000        2,617,600  

O’Reilly Automotive, Inc. (b)

      16,000        4,454,560  

PVH Corp.

      15,000        1,353,600  
     

 

 

  
        37,383,565  
     

 

 

  
        67,823,607  
     

 

 

  
Consumer, Non-cyclical — 28.8%  
Biotechnology — 2.6%  

Alkermes PLC (b)

      94,000        5,224,520  

Illumina, Inc. (b)

      17,000        2,176,680  

Incyte Corp. (b)

      19,000        1,905,130  

Vertex Pharmaceuticals, Inc. (b)

      21,000        1,547,070  
     

 

 

  
        10,853,400  
     

 

 

  
Commercial Services — 9.7%  

Aramark

      77,000        2,750,440  

Equifax, Inc.

      49,605        5,864,799  

FleetCor Technologies, Inc. (b)

      27,000        3,821,040  

Gartner, Inc. (b)

      23,000        2,324,610  

Global Payments, Inc.

      68,000        4,719,880  

IHS Markit Ltd. (b)

      149,000        5,276,090  

KAR Auction Services, Inc.

      68,000        2,898,160  

ManpowerGroup, Inc.

      8,000        710,960  

Sabre Corp.

      102,000        2,544,900  

TransUnion (b)

      25,000        773,250  

Vantiv, Inc. Class A (b)

      76,000        4,531,120  

Verisk Analytics, Inc. (b)

      55,000        4,464,350  

Wework Cos., Inc. Class A (a)

      12,099        392,008  
     

 

 

  
        41,071,607  
     

 

 

  
Foods — 2.2%  

Blue Buffalo Pet Products, Inc. (b)

      52,000        1,250,080  

Conagra Brands, Inc.

      77,000        3,045,350  

Sprouts Farmers Market, Inc. (b)

      117,312        2,219,543  
 

 

The accompanying notes are an integral part of the financial statements.

 

104

Table of Contents

MML Mid Cap Growth Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  

TreeHouse Foods, Inc. (b)

      38,000      $ 2,743,220  
     

 

 

  
        9,258,193  
     

 

 

  
Health Care – Products — 8.4%  

Bruker Corp.

      158,000        3,346,440  

The Cooper Cos., Inc.

      31,000        5,422,830  

Henry Schein, Inc. (b)

      21,000        3,185,910  

Hologic, Inc. (b)

      174,000        6,980,880  

IDEXX Laboratories, Inc. (b)

      21,000        2,462,670  

Intuitive Surgical, Inc. (b)

      7,000        4,439,190  

Teleflex, Inc.

      47,000        7,574,050  

West Pharmaceutical Services, Inc.

      28,000        2,375,240  
     

 

 

  
        35,787,210  
     

 

 

  
Health Care – Services — 4.2%  

Acadia Healthcare Co., Inc. (b)

      44,000        1,456,400  

Catalent, Inc. (b)

      112,000        3,019,520  

DENTSPLY SIRONA, Inc.

      85,000        4,907,050  

Envision Healthcare Corp. (b)

      47,000        2,974,630  

MEDNAX, Inc. (b)

      85,000        5,666,100  
     

 

 

  
        18,023,700  
     

 

 

  
Pharmaceuticals — 1.7%  

Alnylam Pharmaceuticals, Inc. (b)

      21,000        786,240  

Neurocrine Biosciences, Inc. (b)

      8,000        309,600  

Quintiles IMS Holdings, Inc. (b)

      30,000        2,281,500  

TESARO, Inc. (b) (c)

      8,000        1,075,840  

Zoetis, Inc.

      51,000        2,730,030  
     

 

 

  
        7,183,210  
     

 

 

  
        122,177,320  
     

 

 

  
Energy — 1.7%  
Oil & Gas — 1.7%  

ARC Resources Ltd. (c)

      68,000        1,170,432  

Centennial Resource Development, Inc. (a) (b)

      19,204        349,133  

Cimarex Energy Co.

      7,000        951,300  

Concho Resources, Inc. (b)

      9,000        1,193,400  

EQT Corp.

      55,000        3,597,000  
     

 

 

  
        7,261,265  
     

 

 

  
Financial — 9.9%  
Commercial Services — 0.7%  

CoreLogic, Inc. (b)

      86,000        3,167,380  
     

 

 

  
Diversified Financial — 6.0%  

Bats Global Markets, Inc.

      25,000        837,750  

CBOE Holdings, Inc.

      68,000        5,024,520  

E*TRADE Financial Corp. (b)

      59,000        2,044,350  

FNF Group

      187,000        6,350,520  

Intercontinental Exchange, Inc.

      94,000        5,303,480  

TD Ameritrade Holding Corp.

      132,000        5,755,200  
     

 

 

  
        25,315,820  
     

 

 

  
Insurance — 3.0%  

The Progressive Corp.

      132,000        4,686,000  
     Number of
Shares		      Value  

Willis Towers Watson PLC

      66,000      $ 8,070,480  
     

 

 

  
        12,756,480  
     

 

 

  
Real Estate — 0.2%  

Jones Lang LaSalle, Inc.

      9,000        909,360  
     

 

 

  
        42,149,040  
     

 

 

  
Industrial — 19.9%  
Aerospace & Defense — 2.1%  

Harris Corp.

      51,000        5,225,970  

Rockwell Collins, Inc.

      40,000        3,710,400  
     

 

 

  
        8,936,370  
     

 

 

  
Building Materials — 0.8%  

Martin Marietta Materials, Inc.

      15,000        3,322,950  
     

 

 

  
Electrical Components & Equipment — 0.5%  

Acuity Brands, Inc.

      9,000        2,077,740  
     

 

 

  
Electronics — 5.7%  

Agilent Technologies, Inc.

      119,000        5,421,640  

Allegion PLC

      65,000        4,160,000  

Fortive Corp.

      63,000        3,378,690  

Keysight Technologies, Inc. (b)

      130,000        4,754,100  

Mettler-Toledo International, Inc. (b)

      4,000        1,674,240  

Sensata Technologies Holding NV (b)

      119,000        4,635,050  
     

 

 

  
        24,023,720  
     

 

 

  
Environmental Controls — 1.3%  

Stericycle, Inc. (b)

      11,106        855,606  

Waste Connections, Inc.

      60,000        4,715,400  
     

 

 

  
        5,571,006  
     

 

 

  
Machinery – Diversified — 4.5%  

Cognex Corp.

      21,000        1,336,020  

IDEX Corp.

      71,000        6,394,260  

The Middleby Corp. (b)

      15,000        1,932,150  

Roper Technologies, Inc.

      34,000        6,224,720  

Xylem, Inc.

      64,000        3,169,280  
     

 

 

  
        19,056,430  
     

 

 

  
Manufacturing — 2.6%  

Colfax Corp. (b)

      38,000        1,365,340  

Textron, Inc.

      196,000        9,517,760  
     

 

 

  
        10,883,100  
     

 

 

  
Packaging & Containers — 1.0%  

Ball Corp.

      60,000        4,504,200  
     

 

 

  
Transportation — 1.4%  

J.B. Hunt Transport Services, Inc.

      17,000        1,650,190  

Kansas City Southern

      43,000        3,648,550  

Old Dominion Freight Line, Inc. (b)

      8,000        686,320  
     

 

 

  
        5,985,060  
     

 

 

  
        84,360,576  
     

 

 

  
 

 

The accompanying notes are an integral part of the financial statements.

 

105

Table of Contents

MML Mid Cap Growth Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  
Technology — 11.7%   
Computers — 0.4%   

CSRA, Inc.

      56,103       $ 1,786,319   
     

 

 

  
Semiconductors — 3.2%   

KLA-Tencor Corp.

      17,000         1,337,560   

Microchip Technology, Inc.

      111,000         7,120,650   

NXP Semiconductor NV (b)

      30,000         2,940,300   

Xilinx, Inc.

      35,000         2,112,950   
     

 

 

  
        13,511,460   
     

 

 

  
Software — 8.1%   

Atlassian Corp. PLC Class A (b)

      72,000         1,733,760   

Black Knight Financial Services, Inc. Class A (b) (c)

      2,955         111,699   

Electronic Arts, Inc. (b)

      26,000         2,047,760   

Fidelity National Information Services, Inc.

      31,000         2,344,840   

Fiserv, Inc. (b)

      89,000         9,458,920   

Guidewire Software, Inc. (b)

      19,000         937,270   

MSCI, Inc.

      34,000         2,678,520   

Red Hat, Inc. (b)

      72,000         5,018,400   

ServiceNow, Inc. (b)

      17,000         1,263,780   

Splunk, Inc. (b)

      34,000         1,739,100   

SS&C Technologies Holdings, Inc

      69,000         1,973,400   

Tableau Software, Inc. Class A (b)

      30,000         1,264,500   

Veeva Systems, Inc. Class A (b)

      52,000         2,116,400   

Workday, Inc. Class A (b)

      26,000         1,718,340   
     

 

 

  
        34,406,689   
     

 

 

  
        49,704,468   
     

 

 

  
TOTAL COMMON STOCK
(Cost $303,438,872)		         406,780,452   
     

 

 

  
PREFERRED STOCK — 0.5%   
Communications — 0.2%   
Internet — 0.2%   

Dropbox, Inc. Series A (a) (b)

      11,190         107,760   

Dropbox, Inc. Series A 1 (a) (b)

      54,965         529,313   
     

 

 

  
        637,073   
     

 

 

  
Consumer, Non-cyclical — 0.3%   
Commercial Services — 0.3%   

Wework, Inc. Series D 1 (a) (b)

      22,197         719,183   

Wework, Inc. Series D 2 (a) (b)

      17,440         565,056   
     

 

 

  
        1,284,239   
     

 

 

  
TOTAL PREFERRED STOCK
(Cost $1,258,645)		         1,921,312   
     

 

 

  
TOTAL EQUITIES
(Cost $304,697,517)		         408,701,764   
     

 

 

  
    Number of
Shares		      Value  
MUTUAL FUNDS — 2.9%     
Diversified Financial — 2.9%     

State Street Navigator Securities Lending Prime Portfolio (d)

     11,944,642       $ 11,944,642   

T. Rowe Price Government Reserve Investment Fund

     500,780         500,780   
    

 

 

  
TOTAL MUTUAL FUNDS
(Cost $12,445,422)		        12,445,422   
    

 

 

  
TOTAL LONG-TERM INVESTMENTS
(Cost $317,142,939)		        421,147,186   
    

 

 

  
    Principal
Amount		         
SHORT-TERM INVESTMENTS — 3.7%   
Repurchase Agreement — 3.7%   

State Street Bank & Trust Co. Repurchase Agreement, dated 12/30/16, 0.010%, due 1/03/17 (e)

   $ 15,573,326         15,573,326   
    

 

 

  
TOTAL SHORT-TERM INVESTMENTS
(Cost $15,573,326)		        15,573,326   
    

 

 

  
TOTAL INVESTMENTS — 103.0%
(Cost $332,716,265) (f)		        436,720,512   
Other Assets/(Liabilities) — (3.0)%        (12,739,957 ) 
    

 

 

  
NET ASSETS — 100.0%      $ 423,980,555   
  

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

(a) This security is fair valued in good faith in accordance with procedures approved by the Board of Trustees. At December 31, 2016, these securities amounted to a value of $2,749,229 or 0.65% of net assets.
(b) Non-income producing security.
(c) Denotes all or a portion of security on loan. The total value of securities on loan as of December 31, 2016, was $11,665,878 or 2.75% of net assets. Total securities on loan may not correspond with the amounts identified in the Portfolio of Investments because pending sales may be in the process of recall from the brokers. (Note 2).
(d) Represents investment of security lending collateral. (Note 2).
(e) Maturity value of $15,573,344. Collateralized by U.S. Government Agency obligations with a rate of 3.125%, maturity date of 5/15/19, and an aggregate market value, including accrued interest, of $15,888,284.
(f) See Note 6 for aggregate cost for federal tax purposes.
 

 

The accompanying notes are an integral part of the financial statements.

 

106

Table of Contents

MML Mid Cap Value Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
EQUITIES — 95.7%   
COMMON STOCK — 95.7%   
Basic Materials — 0.2%   
Iron & Steel — 0.2%   

Nucor Corp.

      15,595       $ 928,213   
     

 

 

  
Communications — 0.7%   
Telecommunications — 0.7%   

Level 3 Communications, Inc. (a)

      62,850         3,542,226   
     

 

 

  
Consumer, Cyclical — 7.2%   
Apparel — 0.5%   

Ralph Lauren Corp.

      27,070         2,444,962   
     

 

 

  
Auto Manufacturers — 1.1%   

Honda Motor Co. Ltd. Sponsored ADR (Japan)

      140,915         4,113,309   

Oshkosh Corp.

      14,508         937,362   
     

 

 

  
        5,050,671   
     

 

 

  
Automotive & Parts — 1.0%   

Delphi Automotive PLC

      70,994         4,781,446   
     

 

 

  
Home Builders — 0.7%   

PulteGroup, Inc.

      191,721         3,523,832   
     

 

 

  
Leisure Time — 0.7%   

Carnival Corp.

      65,012         3,384,525   
     

 

 

  
Retail — 2.8%   

Advance Auto Parts, Inc.

      30,585         5,172,535   

CST Brands, Inc.

      81,114         3,905,639   

Target Corp.

      62,710         4,529,544   
     

 

 

  
        13,607,718   
     

 

 

  
Toys, Games & Hobbies — 0.4%   

Mattel, Inc.

      63,815         1,758,103   
     

 

 

  
        34,551,257   
     

 

 

  
Consumer, Non-cyclical — 15.0%   
Foods — 6.2%   

Conagra Brands, Inc.

      168,836         6,677,464   

General Mills, Inc.

      59,541         3,677,847   

The J.M. Smucker Co.

      24,299         3,111,730   

Kellogg Co.

      53,870         3,970,758   

Lamb Weston Holdings, Inc. (a)

      48,623         1,840,380   

Mondelez International, Inc. Class A

      136,930         6,070,107   

Sysco Corp.

      72,799         4,030,881   
     

 

 

  
        29,379,167   
     

 

 

  
Health Care – Products — 3.8%   

Abbott Laboratories

      73,961         2,840,842   

Baxter International, Inc.

      71,827         3,184,809   

STERIS PLC

      49,027         3,303,930   

Zimmer Biomet Holdings, Inc.

      84,229         8,692,433   
     

 

 

  
        18,022,014   
     

 

 

  
     Number of
Shares		      Value  
Health Care – Services — 2.7%   

HCA Holdings, Inc. (a)

      19,549       $ 1,447,017   

LifePoint Health, Inc. (a)

      128,256         7,284,941   

Quest Diagnostics, Inc.

      44,249         4,066,483   
     

 

 

  
        12,798,441   
     

 

 

  
Pharmaceuticals — 2.3%   

Cardinal Health, Inc.

      49,460         3,559,636   

Express Scripts Holding Co. (a)

      34,992         2,407,100   

McKesson Corp.

      19,234         2,701,415   

Mead Johnson Nutrition Co.

      35,066         2,481,270   
     

 

 

  
        11,149,421   
     

 

 

  
        71,349,043   
     

 

 

  
Energy — 13.1%   
Oil & Gas — 8.9%   

Anadarko Petroleum Corp.

      91,414         6,374,298   

Cimarex Energy Co.

      14,367         1,952,475   

Devon Energy Corp.

      102,591         4,685,331   

EQT Corp.

      118,104         7,724,002   

Imperial Oil Ltd.

      241,356         8,396,633   

Noble Energy, Inc.

      194,438         7,400,310   

Occidental Petroleum Corp.

      79,915         5,692,345   
     

 

 

  
        42,225,394   
     

 

 

  
Oil & Gas Services — 3.9%   

Baker Hughes, Inc.

      115,441         7,500,202   

FMC Technologies, Inc. (a)

      33,990         1,207,665   

Frank’s International NV

      170,360         2,097,132   

Halliburton Co.

      69,635         3,766,557   

National Oilwell Varco, Inc.

      113,619         4,253,895   
     

 

 

  
        18,825,451   
     

 

 

  
Pipelines — 0.3%   

Spectra Energy Partners LP

      26,917         1,233,875   
     

 

 

  
        62,284,720   
     

 

 

  
Financial — 27.7%   
Banks — 12.8%   

Bank of Hawaii Corp.

      37,480         3,324,101   

BB&T Corp.

      133,837         6,293,016   

Comerica, Inc.

      54,586         3,717,853   

Commerce Bancshares, Inc.

      92,745         5,361,588   

M&T Bank Corp.

      34,087         5,332,229   

Northern Trust Corp.

      168,603         15,014,097   

The PNC Financial Services Group, Inc.

      55,222         6,458,765   

State Street Corp.

      50,194         3,901,078   

SunTrust Banks, Inc.

      66,637         3,655,039   

UMB Financial Corp.

      38,706         2,985,007   

Westamerica Bancorp.

      75,031         4,721,701   
     

 

 

  
        60,764,474   
     

 

 

  
 

 

The accompanying notes are an integral part of the financial statements.

 

107

Table of Contents

MML Mid Cap Value Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  
Diversified Financial — 2.7%   

Ameriprise Financial, Inc.

      39,334       $ 4,363,714   

Invesco Ltd.

      169,216         5,134,014   

T. Rowe Price Group, Inc.

      45,817         3,448,187   
     

 

 

  
        12,945,915   
     

 

 

  
Insurance — 7.0%   

Aflac, Inc.

      33,395         2,324,292   

The Allstate Corp.

      26,604         1,971,888   

Brown & Brown, Inc.

      92,105         4,131,830   

Chubb Ltd.

      52,039         6,875,393   

MetLife, Inc.

      65,961         3,554,638   

ProAssurance Corp.

      44,093         2,478,027   

Reinsurance Group of America, Inc.

      43,526         5,476,877   

Torchmark Corp.

      24,074         1,775,698   

Unum Group

      111,797         4,911,242   
     

 

 

  
        33,499,885   
     

 

 

  
Real Estate Investment Trusts (REITS) — 4.2%   

Boston Properties, Inc.

      2,595         326,399   

Empire State Realty Trust, Inc. Class A

      95,051         1,919,080   

Host Hotels & Resorts, Inc.

      174,676         3,290,896   

MGM Growth Properties LLC Class A

      102,131         2,584,935   

Piedmont Office Realty Trust, Inc. Class A

      190,792         3,989,461   

Welltower, Inc.

      6,203         415,167   

Weyerhaeuser Co.

      243,632         7,330,887   
     

 

 

  
        19,856,825   
     

 

 

  
Savings & Loans — 1.0%   

Capitol Federal Financial, Inc.

      298,428         4,912,125   
     

 

 

  
        131,979,224   
     

 

 

  
Industrial — 18.5%   
Electrical Components & Equipment — 2.0%   

Emerson Electric Co.

      62,779         3,499,929   

Hubbell, Inc.

      50,148         5,852,272   
     

 

 

  
        9,352,201   
     

 

 

  
Electronics — 6.0%   

Johnson Controls International PLC

      313,941         12,931,230   

Keysight Technologies, Inc. (a)

      150,681         5,510,404   

Koninklijke Philips Electronics NV

      181,625         5,536,114   

TE Connectivity Ltd.

      68,096         4,717,691   
     

 

 

  
        28,695,439   
     

 

 

  
Environmental Controls — 1.5%   

Clean Harbors, Inc. (a)

      21,682         1,206,603   

Republic Services, Inc.

      105,675         6,028,759   
     

 

 

  
        7,235,362   
     

 

 

  
Machinery – Construction & Mining — 1.2%   

Ingersoll-Rand PLC

      78,729         5,907,824   
     

 

 

  
     Number of
Shares		      Value  
Machinery – Diversified — 1.4%   

Cummins, Inc.

      30,146       $ 4,120,054   

Rockwell Automation, Inc.

      19,105         2,567,712   
     

 

 

  
        6,687,766   
     

 

 

  
Manufacturing — 2.0%   

ITT, Inc.

      27,981         1,079,227   

Parker Hannifin Corp.

      19,458         2,724,120   

Textron, Inc.

      116,536         5,658,988   
     

 

 

  
        9,462,335   
     

 

 

  
Packaging & Containers — 2.4%   

Bemis Co., Inc.

      39,104         1,869,953   

Sonoco Products Co.

      58,563         3,086,270   

WestRock Co.

      125,092         6,350,921   
     

 

 

  
        11,307,144   
     

 

 

  
Transportation — 2.0%   

CSX Corp.

      121,683         4,372,070   

Heartland Express, Inc.

      255,571         5,203,426   
     

 

 

  
        9,575,496   
     

 

 

  
        88,223,567   
     

 

 

  
Technology — 5.4%   
Computers — 0.5%   

NetApp, Inc.

      73,031         2,575,804   
     

 

 

  
Semiconductors — 4.9%   

Applied Materials, Inc.

      239,223         7,719,726   

Lam Research Corp.

      45,726         4,834,610   

Maxim Integrated Products, Inc.

      150,510         5,805,171   

Teradyne, Inc.

      193,891         4,924,831   
     

 

 

  
        23,284,338   
     

 

 

  
        25,860,142   
     

 

 

  
Utilities — 7.9%   
Electric — 6.5%   

Ameren Corp.

      65,646         3,443,789   

Consolidated Edison, Inc.

      38,967         2,871,089   

Edison International

      97,060         6,987,349   

Eversource Energy

      36,580         2,020,313   

NorthWestern Corp.

      50,583         2,876,655   

PG&E Corp.

      109,032         6,625,875   

Xcel Energy, Inc.

      153,726         6,256,648   
     

 

 

  
        31,081,718   
     

 

 

  
Gas — 1.4%   

Atmos Energy Corp.

      39,984         2,964,814   

Spire, Inc.

      57,117         3,686,902   
     

 

 

  
        6,651,716   
     

 

 

  
        37,733,434   
     

 

 

  
TOTAL COMMON STOCK
(Cost $389,690,435)		         456,451,826   
  

 

 

  
TOTAL EQUITIES
(Cost $389,690,435)		         456,451,826   
  

 

 

  
 

 

The accompanying notes are an integral part of the financial statements.

 

108

Table of Contents

MML Mid Cap Value Fund – Portfolio of Investments (Continued)

 

    Number of
Shares		      Value  
MUTUAL FUNDS — 2.7%   
Diversified Financial — 2.7%   

iShares Russell Mid-Cap Value ETF

     163,186       $ 13,125,050   
    

 

 

  
TOTAL MUTUAL FUNDS
(Cost $12,254,247)		        13,125,050   
  

 

 

  
TOTAL LONG-TERM INVESTMENTS
(Cost $401,944,682)		        469,576,876   
  

 

 

  
    Principal
Amount		         
SHORT-TERM INVESTMENTS — 1.7%   
Repurchase Agreement — 1.7%   

State Street Bank & Trust Co. Repurchase Agreement, dated 12/30/16, 0.010%, due 1/03/17 (b)

   $ 8,006,866         8,006,866   
    

 

 

  
Time Deposit — 0.0%   

Euro Time Deposit
0.010% 1/03/17

     32,346         32,346   
    

 

 

  
TOTAL SHORT-TERM INVESTMENTS
(Cost $8,039,212)		        8,039,212   
  

 

 

  
TOTAL INVESTMENTS — 100.1%
(Cost $409,983,894) (c)		        477,616,088   
Other Assets/(Liabilities) — (0.1)%        (422,107 ) 
  

 

 

  
NET ASSETS — 100.0%      $ 477,193,981   
  

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

ADR American Depositary Receipt
ETF Exchange-Traded Fund
(a) Non-income producing security.
(b) Maturity value of $8,006,875. Collateralized by U.S. Government Agency obligations with a rate of 3.125%, maturity date of 5/15/19, and an aggregate market value, including accrued interest, of $8,169,026.
(c) See Note 6 for aggregate cost for federal tax purposes.
 

 

The accompanying notes are an integral part of the financial statements.

 

109

Table of Contents

MML Small Cap Growth Equity Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
EQUITIES — 98.3%  
COMMON STOCK — 97.4%  
Basic Materials — 3.0%  
Chemicals — 2.8%  

Ingevity Corp. (a)

      16,629      $ 912,267  

Methanex Corp.

      28,832        1,262,841  

Minerals Technologies, Inc.

      11,737        906,683  

Platform Specialty Products Corp. (a)

      155,058        1,521,119  

PolyOne Corp.

      31,365        1,004,935  
     

 

 

  
        5,607,845  
     

 

 

  
Forest Products & Paper — 0.2%  

KapStone Paper and Packaging Corp.

      21,300        469,665  
     

 

 

  
        6,077,510  
     

 

 

  
Communications — 5.9%  
Internet — 2.7%  

Dropbox, Inc. (a) (b)

      10,469        100,816  

GoDaddy, Inc. Class A (a)

      38,854        1,357,947  

Just Eat PLC (a)

      101,567        729,588  

Mimecast Ltd. (a)

      25,800        461,820  

Stamps.com, Inc. (a)

      8,827        1,012,016  

The Trade Desk, Inc. Class A (a)

      1,000        27,670  

Wix.com Ltd. (a)

      23,355        1,040,465  

Zillow Group, Inc. Class C (a)

      21,368        779,291  
     

 

 

  
        5,509,613  
     

 

 

  
Media — 0.5%  

The New York Times Co. Class A

      75,281        1,001,238  
     

 

 

  
Telecommunications — 2.7%  

Arista Networks, Inc. (a)

      11,070        1,071,244  

Ciena Corp. (a)

      50,976        1,244,324  

Gigamon, Inc. (a)

      24,713        1,125,677  

Oclaro, Inc. (a)

      78,800        705,260  

ORBCOMM, Inc. (a)

      22,164        183,296  

Vonage Holdings Corp. (a)

      169,756        1,162,829  
     

 

 

  
        5,492,630  
     

 

 

  
        12,003,481  
     

 

 

  
Consumer, Cyclical — 14.0%  
Airlines — 0.9%  

Spirit Airlines, Inc. (a)

      31,891        1,845,213  
     

 

 

  
Apparel — 0.5%  

Steven Madden Ltd. (a)

      30,700        1,097,525  
     

 

 

  
Automotive & Parts — 0.6%  

Tenneco, Inc. (a)

      21,114        1,318,992  
     

 

 

  
Distribution & Wholesale — 0.8%  

Beacon Roofing Supply, Inc. (a)

      15,904        732,697  

WESCO International, Inc. (a)

      13,528        900,289  
     

 

 

  
        1,632,986  
     

 

 

  
Entertainment — 1.6%  

Cinemark Holdings, Inc.

      28,904        1,108,757  
     Number of
Shares		      Value  

Marriott Vacations Worldwide Corp.

      11,514      $ 976,963  

National CineMedia, Inc.

      74,514        1,097,591  
     

 

 

  
        3,183,311  
     

 

 

  
Home Furnishing — 0.5%  

La-Z-Boy, Inc.

      35,023        1,087,464  
     

 

 

  
Leisure Time — 2.8%  

Acushnet Holdings Corp. (a)

      37,961        748,211  

ClubCorp Holdings, Inc.

      114,537        1,643,606  

Fox Factory Holding Corp. (a)

      36,240        1,005,660  

Lindblad Expeditions Holdings, Inc. (a)

      103,457        977,669  

Planet Fitness, Inc. Class A

      67,202        1,350,760  
     

 

 

  
        5,725,906  
     

 

 

  
Lodging — 0.5%  

Hyatt Hotels Corp. Class A (a)

      17,991        994,183  
     

 

 

  
Retail — 5.8%  

Bloomin’ Brands, Inc.

      59,672        1,075,886  

The Cheesecake Factory, Inc.

      16,651        997,062  

Chico’s FAS, Inc.

      65,772        946,459  

Dick’s Sporting Goods, Inc.

      14,400        764,640  

DSW, Inc. Class A

      32,279        731,120  

FirstCash, Inc.

      13,658        641,926  

Five Below, Inc. (a)

      8,346        333,506  

Kate Spade & Co. (a)

      123,590        2,307,425  

Nu Skin Enterprises, Inc. Class A

      21,950        1,048,771  

Panera Bread Co. Class A (a) (c)

      9,936        2,037,774  

Wingstop, Inc.

      30,975        916,550  
     

 

 

  
        11,801,119  
     

 

 

  
        28,686,699  
     

 

 

  
Consumer, Non-cyclical — 17.3%  
Agriculture — 0.4%  

MGP Ingredients, Inc. (c)

      16,270        813,175  
     

 

 

  
Biotechnology — 2.5%  

Aduro Biotech, Inc. (a) (c)

      33,400        380,760  

Alder Biopharmaceuticals, Inc. (a) (c)

      21,784        453,107  

Bluebird Bio, Inc. (a) (c)

      10,632        655,995  

Coherus Biosciences, Inc. (a)

      10,360        291,634  

Five Prime Therapeutics, Inc. (a)

      16,929        848,312  

Ionis Pharmaceuticals, Inc. (a) (c)

      13,584        649,723  

Ironwood Pharmaceuticals, Inc. (a)

      25,839        395,078  

PTC Therapeutics, Inc. (a)

      26,388        287,893  

Ultragenyx Pharmaceutical, Inc. (a)

      16,249        1,142,467  
     

 

 

  
        5,104,969  
     

 

 

  
Commercial Services — 3.0%  

Cardtronics PLC Class A (a)

      29,396        1,604,140  

CoStar Group, Inc. (a)

      5,231        985,991  

Monro Muffler Brake, Inc.

      16,148        923,666  

TriNet Group, Inc. (a)

      34,100        873,642  

WEX, Inc. (a)

      15,816        1,765,065  
     

 

 

  
        6,152,504  
     

 

 

  
 

 

The accompanying notes are an integral part of the financial statements.

 

110

Table of Contents

MML Small Cap Growth Equity Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  
Foods — 0.9%   

Greencore Group PLC

      258,629       $ 786,312   

Sanderson Farms, Inc. (c)

      11,860         1,117,686   
     

 

 

  
        1,903,998   
     

 

 

  
Health Care – Products — 5.1%   

ABIOMED, Inc. (a)

      7,341         827,184   

Align Technology, Inc. (a)

      16,827         1,617,580   

Bio-Techne Corp.

      7,660         787,678   

Dexcom, Inc. (a)

      8,117         484,585   

Globus Medical, Inc. Class A (a)

      48,245         1,196,958   

Haemonetics Corp. (a)

      21,700         872,340   

Inogen, Inc. (a)

      8,901         597,880   

Insulet Corp. (a)

      91,790         3,458,647   

MiMedx Group, Inc. (a) (c)

      67,400         597,164   
     

 

 

  
        10,440,016   
     

 

 

  
Health Care – Services — 2.6%   

Acadia Healthcare Co., Inc. (a)

      21,926         725,751   

Kindred Healthcare, Inc.

      98,063         769,794   

LifePoint Health, Inc. (a)

      21,290         1,209,272   

Molina Healthcare, Inc. (a)

      19,800         1,074,348   

Surgical Care Affiliates, Inc. (a)

      19,601         906,938   

WellCare Health Plans, Inc. (a)

      3,934         539,273   
     

 

 

  
        5,225,376   
     

 

 

  
Pharmaceuticals — 2.8%   

Aerie Pharmaceuticals, Inc. (a)

      26,536         1,004,388   

Galapagos NV (a)

      12,638         811,233   

Global Blood Therapeutics, Inc. (a)

      19,471         281,356   

Nevro Corp. (a)

      13,219         960,493   

Otonomy, Inc. (a)

      29,293         465,759   

Portola Pharmaceuticals, Inc. (a)

      15,926         357,379   

TESARO, Inc. (a) (c)

      13,236         1,779,977   
     

 

 

  
        5,660,585   
     

 

 

  
        35,300,623   
     

 

 

  
Diversified — 0.6%   
Holding Company – Diversified — 0.6%   

FCB Financial Holdings, Inc. Class A (a)

      25,235         1,203,710   
     

 

 

  
Energy — 4.5%   
Energy – Alternate Sources — 0.8%   

First Solar, Inc. (a) (c)

      22,454         720,549   

Pattern Energy Group, Inc. (c)

      45,779         869,343   
     

 

 

  
        1,589,892   
     

 

 

  
Oil & Gas — 3.1%   

Callon Petroleum Co. (a)

      67,833         1,042,593   

Centennial Resource Development, Inc. (a) (b)

      4,111         74,739   

Centennial Resource Development, Inc. Class A (a) (c)

      36,649         722,718   

Delek US Holdings, Inc.

      46,800         1,126,476   

Ensco PLC Class A

      50,343         489,334   
     Number of
Shares		      Value  

QEP Resources, Inc.

      49,955       $ 919,672   

Resolute Energy Corp. (a)

      1,800         74,142   

Synergy Resources Corp. (a) (c)

      85,803         764,505   

WPX Energy, Inc. (a)

      78,867         1,149,092   
     

 

 

  
        6,363,271   
     

 

 

  
Oil & Gas Services — 0.6%   

Forum Energy Technologies, Inc. (a)

      53,488         1,176,736   
     

 

 

  
        9,129,899   
     

 

 

  
Financial — 21.2%   
Banks — 6.9%   

Ameris Bancorp

      30,725         1,339,610   

ConnectOne Bancorp, Inc.

      42,129         1,093,248   

Great Western Bancorp, Inc.

      30,447         1,327,185   

IBERIABANK Corp.

      6,885         576,619   

MB Financial, Inc.

      56,083         2,648,800   

South State Corp.

      11,961         1,045,391   

State Bank Financial Corp.

      32,689         878,027   

Texas Capital Bancshares, Inc. (a)

      14,911         1,169,022   

United Community Banks, Inc.

      51,512         1,525,785   

Western Alliance Bancorp (a)

      49,157         2,394,437   
     

 

 

  
        13,998,124   
     

 

 

  
Diversified Financial — 2.6%   

Air Lease Corp.

      31,800         1,091,694   

Hannon Armstrong Sustainable Infrastructure Capital, Inc.

      113,568         2,156,656   

WageWorks, Inc. (a)

      12,521         907,773   

WisdomTree Investments, Inc. (c)

      109,764         1,222,771   
     

 

 

  
        5,378,894   
     

 

 

  
Diversified Financial Services — 0.4%   

Blackhawk Network Holdings, Inc. (a)

      23,249         875,906   
     

 

 

  
Insurance — 3.3%   

Assurant, Inc.

      9,184         852,826   

Assured Guaranty Ltd.

      28,842         1,089,363   

eHealth, Inc. (a)

      25,540         272,001   

Horace Mann Educators Corp.

      29,679         1,270,261   

Kemper Corp.

      25,800         1,142,940   

MBIA, Inc. (a)

      60,209         644,236   

MGIC Investment Corp. (a)

      146,578         1,493,630   
     

 

 

  
        6,765,257   
     

 

 

  
Real Estate — 1.6%   

Hilltop Holdings, Inc.

      29,623         882,765   

Kennedy-Wilson Holdings, Inc.

      116,781         2,394,011   
     

 

 

  
        3,276,776   
     

 

 

  
Real Estate Investment Trusts (REITS) — 4.9%   

Coresite Realty Corp.

      14,661         1,163,644   

LaSalle Hotel Properties

      70,681         2,153,650   

Life Storage, Inc.

      11,171         952,440   

MFA Financial, Inc.

      138,764         1,058,769   
 

 

The accompanying notes are an integral part of the financial statements.

 

111

Table of Contents

MML Small Cap Growth Equity Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  

Outfront Media, Inc.

      46,500       $ 1,156,455   

PS Business Parks, Inc.

      10,791         1,257,367   

Redwood Trust, Inc.

      71,672         1,090,131   

Rexford Industrial Realty, Inc.

      48,110         1,115,671   
     

 

 

  
        9,948,127   
     

 

 

  
Savings & Loans — 1.5%   

Sterling Bancorp

      129,679         3,034,488   
     

 

 

  
        43,277,572   
     

 

 

  
Industrial — 16.8%   
Aerospace & Defense — 2.8%   

Astronics Corp. (a)

      18,406         622,859   

Curtiss-Wright Corp.

      9,901         973,862   

HEICO Corp. Class A

      8,470         575,113   

MACOM Technology Solutions Holdings, Inc. (a)

      43,227         2,000,546   

Teledyne Technologies, Inc. (a)

      12,247         1,506,381   
     

 

 

  
        5,678,761   
     

 

 

  
Building Materials — 2.0%   

Armstrong Flooring, Inc. (a)

      32,763         652,311   

Armstrong World Industries, Inc. (a) (c)

      22,586         944,095   

Masonite International Corp. (a)

      36,826         2,423,151   
     

 

 

  
        4,019,557   
     

 

 

  
Electrical Components & Equipment — 0.1%   

SunPower Corp. (a) (c)

      40,716         269,133   
     

 

 

  
Electronics — 1.0%   

Coherent, Inc. (a)

      6,083         835,713   

Watts Water Technologies, Inc. Class A

      17,060         1,112,312   
     

 

 

  
        1,948,025   
     

 

 

  
Environmental Controls — 1.5%   

AquaVenture Holdings Ltd. (a)

      23,000         564,190   

Clean Harbors, Inc. (a)

      45,405         2,526,788   
     

 

 

  
        3,090,978   
     

 

 

  
Hand & Machine Tools — 0.2%   

Regal Beloit Corp.

      7,300         505,525   
     

 

 

  
Machinery – Diversified — 2.6%   

Altra Industrial Motion Corp.

      39,172         1,445,447   

Applied Industrial Technologies, Inc.

      21,004         1,247,637   

The Middleby Corp. (a)

      14,949         1,925,581   

Zebra Technologies Corp. Class A (a)

      7,729         662,839   
     

 

 

  
        5,281,504   
     

 

 

  
Manufacturing — 0.5%   

John Bean Technologies Corp.

      11,815         1,015,499   
     

 

 

  
Metal Fabricate & Hardware — 1.4%   

Advanced Drainage Systems, Inc. (c)

      95,924         1,976,034   

The Timken Co.

      22,800         905,160   
     

 

 

  
        2,881,194   
     

 

 

  
     Number of
Shares		      Value  
Packaging & Containers — 0.4%   

Graphic Packaging Holding Co.

      69,715       $ 870,043   
     

 

 

  
Transportation — 3.8%   

Genesee & Wyoming, Inc. Class A (a)

      15,080         1,046,703   

Kirby Corp. (a)

      31,834         2,116,961   

Knight Transportation, Inc.

      48,013         1,586,830   

Swift Transportation Co. (a) (c)

      120,200         2,928,072   
     

 

 

  
        7,678,566   
     

 

 

  
Trucking & Leasing — 0.5%   

GATX Corp. (c)

      17,626         1,085,409   
     

 

 

  
        34,324,194   
     

 

 

  
Technology — 13.2%   
Computers — 0.3%   

VeriFone Systems, Inc. (a)

      40,316         714,803   
     

 

 

  
Semiconductors — 5.0%   

Cavium, Inc. (a)

      32,622         2,036,918   

Entegris, Inc. (a)

      101,810         1,822,399   

Impinj, Inc. (a) (c)

      23,100         816,354   

Integrated Device Technology, Inc. (a)

      42,192         994,043   

MaxLinear, Inc. Class A (a)

      63,036         1,374,185   

MKS Instruments, Inc.

      24,020         1,426,788   

Monolithic Power Systems, Inc.

      6,895         564,907   

Tower Semiconductor Ltd. (a)

      65,123         1,239,291   
     

 

 

  
        10,274,885   
     

 

 

  
Software — 7.9%   

2U, Inc. (a)

      14,551         438,713   

Allscripts Healthcare Solutions, Inc. (a)

      96,108         981,263   

Aspen Technology, Inc. (a)

      28,115         1,537,328   

BroadSoft, Inc. (a)

      47,715         1,968,244   

Callidus Software, Inc. (a)

      52,060         874,608   

CommVault Systems, Inc. (a)

      12,433         639,056   

Docusign, Inc. Series E (Escrow Shares) (a) (b)

      2,601         -   

Envestnet, Inc. (a)

      21,185         746,771   

EPAM Systems, Inc. (a)

      7,143         459,366   

Fair Isaac Corp.

      12,854         1,532,454   

Five9, Inc. (a)

      35,800         508,002   

Guidewire Software, Inc. (a)

      10,651         525,414   

HubSpot, Inc. (a)

      44,026         2,069,222   

Nutanix, Inc. Class A (a)

      14,135         375,426   

Proofpoint, Inc. (a)

      10,251         724,233   

SS&C Technologies Holdings, Inc

      15,702         449,077   

Telogis (a) (b)

      80,369         255,573   

The Ultimate Software Group, Inc. (a)

      4,868         887,680   

Veeva Systems, Inc. Class A (a)

      27,629         1,124,500   
     

 

 

  
        16,096,930   
     

 

 

  
        27,086,618   
     

 

 

  
 

 

The accompanying notes are an integral part of the financial statements.

 

112

Table of Contents

MML Small Cap Growth Equity Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  
Utilities — 0.9%   
Electric — 0.3%   

8Point3 Energy Partners LP

      51,601       $ 669,782   
     

 

 

  
Gas — 0.6%   

South Jersey Industries, Inc.

      33,390         1,124,909   
     

 

 

  
        1,794,691   
     

 

 

  
TOTAL COMMON STOCK
(Cost $179,664,427)		         198,884,997   
  

 

 

  
PREFERRED STOCK — 0.9%   
Communications — 0.4%   
Internet — 0.4%   

Draftkings Series D (a) (b)

      14,868         59,472   

Draftkings, Inc. Series D 1 (a) (b)

      28,744         146,307   

The Honest Co. (a) (b)

      4,027         139,012   

Veracode, Inc. (a) (b)

      10,688         219,211   

Zuora, Inc. Series F (a) (b)

      69,937         259,466   
     

 

 

  
        823,468   
     

 

 

  
Technology — 0.5%   
Software — 0.5%   

Cloudera, Inc. Series F (a) (b)

      12,068         207,932   

Docusign, Inc. Series B (a) (b)

      456         7,364   

Docusign, Inc. Series B 1 (a) (b)

      136         2,196   

Docusign, Inc. Series D (a) (b)

      327         5,281   

Docusign, Inc. Series E (a) (b)

      7,083         114,390   

Marklogic Corp. Series F (a) (b)

      22,966         236,779   

Telogis (a) (b)

      109,450         481,843   
     

 

 

  
        1,055,785   
     

 

 

  
TOTAL PREFERRED STOCK
(Cost $1,736,191)		         1,879,253   
  

 

 

  
TOTAL EQUITIES
(Cost $181,400,618)		         200,764,250   
  

 

 

  
MUTUAL FUNDS — 8.5%   
Diversified Financial — 8.5%   

iShares Russell 2000 Index Fund (c)

      4,169         562,190   

State Street Navigator Securities Lending Prime Portfolio (d)

      16,856,377         16,856,377   
     

 

 

  
TOTAL MUTUAL FUNDS
(Cost $17,432,502)		         17,418,567   
  

 

 

  
TOTAL LONG-TERM INVESTMENTS
(Cost $198,833,120)		         218,182,817   
  

 

 

  
     Principal
Amount		      Value  
SHORT-TERM INVESTMENTS — 1.5%   
Repurchase Agreement — 1.5%   

State Street Bank & Trust Co. Repurchase Agreement, dated 12/30/16, 0.010%, due 1/03/17 (e)

    $ 3,038,156       $ 3,038,156   
     

 

 

  
Time Deposit — 0.0%   

Euro Time Deposit
0.010% 1/03/17

      8,717         8,717   
     

 

 

  
TOTAL SHORT-TERM INVESTMENTS
(Cost $3,046,873)		         3,046,873   
  

 

 

  
TOTAL INVESTMENTS — 108.3%
(Cost $201,879,993) (f)		         221,229,690   
Other Assets/(Liabilities) — (8.3)%         (17,015,957 ) 
  

 

 

  
NET ASSETS — 100.0%       $ 204,213,733   
  

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

(a) Non-income producing security.
(b) This security is fair valued in good faith in accordance with procedures approved by the Board of Trustees. At December 31, 2016, these securities amounted to a value of $2,310,381 or 1.13% of net assets.
(c) Denotes all or a portion of security on loan. The total value of securities on loan as of December 31, 2016, was $16,431,762 or 8.05% of net assets. Total securities on loan may not correspond with the amounts identified in the Portfolio of Investments because pending sales may be in the process of recall from the brokers. (Note 2).
(d) Represents investment of security lending collateral. (Note 2).
(e) Maturity value of $3,038,160. Collateralized by U.S. Government Agency obligations with a rate of 1.625%, maturity date of 4/30/19, and an aggregate market value, including accrued interest, of $3,104,443.
(f) See Note 6 for aggregate cost for federal tax purposes.
 

 

The accompanying notes are an integral part of the financial statements.

 

113

Table of Contents

MML Small Company Value Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
EQUITIES — 97.9%   
COMMON STOCK — 97.9%   
Basic Materials — 4.3%      
Chemicals — 2.5%      

American Vanguard Corp.

      21,600       $ 413,640   

Innospec, Inc.

      5,983         409,835   

KMG Chemicals, Inc.

      17,000         661,130   

Minerals Technologies, Inc.

      13,700         1,058,325   
     

 

 

  
        2,542,930   
     

 

 

  
Forest Products & Paper — 0.8%      

Clearwater Paper Corp. (a)

      13,000         852,150   
     

 

 

  
Iron & Steel — 1.0%      

Carpenter Technology Corp.

      16,600         600,422   

Reliance Steel & Aluminum Co.

      5,800         461,332   
     

 

 

  
        1,061,754   
     

 

 

  
        4,456,834   
     

 

 

  
Communications — 2.9%      
Internet — 0.9%      

New Media Investment Group, Inc.

      34,800         556,452   

Rightside Group Ltd. (a)

      17,168         141,979   

Safeguard Scientifics, Inc. (a)

      21,500         289,175   
     

 

 

  
        987,606   
     

 

 

  
Media — 0.9%      

Cable One, Inc.

      900         559,557   

Scholastic Corp.

      8,200         389,418   
     

 

 

  
        948,975   
     

 

 

  
Telecommunications — 1.1%      

Harmonic, Inc. (a)

      85,600         428,000   

Ixia (a)

      42,200         679,420   
     

 

 

  
        1,107,420   
     

 

 

  
        3,044,001   
     

 

 

  
Consumer, Cyclical — 9.2%      
Apparel — 0.6%      

Crocs, Inc. (a)

      15,300         104,958   

Steven Madden Ltd. (a)

      16,100         575,575   
     

 

 

  
        680,533   
     

 

 

  
Automotive & Parts — 0.9%      

Dorman Products, Inc. (a)

      12,200         891,332   
     

 

 

  
Distribution & Wholesale — 1.8%      

Beacon Roofing Supply, Inc. (a)

      16,200         746,334   

Pool Corp.

      10,400         1,085,136   
     

 

 

  
        1,831,470   
     

 

 

  
Home Builders — 0.6%      

Cavco Industries, Inc. (a)

      6,600         659,010   
     

 

 

  
Home Furnishing — 0.5%      

Ethan Allen Interiors, Inc.

      13,400         493,790   
     

 

 

  
     Number of
Shares		      Value  
Leisure Time — 1.2%      

LCI Industries

      11,600       $ 1,249,900   
     

 

 

  
Lodging — 0.4%      

ILG, Inc.

      22,700         412,459   
     

 

 

  
Retail — 2.6%      

Fred’s, Inc. Class A (b)

      19,900         369,344   

Genesco, Inc. (a)

      4,700         291,870   

Lumber Liquidators Holdings, Inc. (a) (b)

      21,400         336,836   

Party City Holdco, Inc. (a) (b)

      16,200         230,040   

Pier 1 Imports, Inc.

      24,409         208,453   

PriceSmart, Inc.

      7,200         601,200   

Red Robin Gourmet Burgers, Inc. (a)

      7,600         428,640   

Sportsman’s Warehouse Holdings, Inc. (a)

      31,033         291,400   
     

 

 

  
        2,757,783   
     

 

 

  
Textiles — 0.6%      

Culp, Inc.

      15,700         583,255   
     

 

 

  
        9,559,532   
     

 

 

  
Consumer, Non-cyclical — 14.3%      
Agriculture — 0.4%      

Vector Group Ltd. (b)

      17,879         406,569   
     

 

 

  
Commercial Services — 4.9%      

Aaron’s, Inc.

      27,900         892,521   

American Public Education, Inc. (a)

      16,000         392,800   

Capella Education Co.

      10,700         939,460   

FTI Consulting, Inc. (a)

      10,800         486,864   

Green Dot Corp. Class A (a)

      26,080         614,184   

Hillenbrand, Inc.

      9,130         350,135   

McGrath RentCorp

      16,099         630,920   

Navigant Consulting, Inc. (a)

      31,900         835,142   
     

 

 

  
        5,142,026   
     

 

 

  
Foods — 2.2%      

Nomad Foods Ltd. (a)

      57,800         553,146   

Pinnacle Foods, Inc.

      9,100         486,395   

Post Holdings, Inc. (a)

      6,900         554,691   

SpartanNash Co.

      18,500         731,490   
     

 

 

  
        2,325,722   
     

 

 

  
Health Care – Products — 4.4%      

Atrion Corp.

      2,250         1,141,200   

Haemonetics Corp. (a)

      19,000         763,800   

Halyard Health, Inc. (a)

      21,700         802,466   

Quidel Corp. (a)

      27,600         591,192   

West Pharmaceutical Services, Inc.

      15,300         1,297,899   
     

 

 

  
        4,596,557   
     

 

 

  
Health Care – Services — 2.0%      

The Ensign Group, Inc.

      8,600         191,006   

National Healthcare Corp.

      5,200         394,108   
 

 

The accompanying notes are an integral part of the financial statements.

 

114

Table of Contents

MML Small Company Value Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  

Select Medical Holdings Corp. (a)

      30,600       $ 405,450   

Triple-S Management Corp. Class B (a)

      15,600         322,920   

WellCare Health Plans, Inc. (a)

      5,600         767,648   
     

 

 

  
        2,081,132   
     

 

 

  
Household Products — 0.4%      

CSS Industries, Inc.

      14,900         403,343   
     

 

 

  
        14,955,349   
     

 

 

  
Diversified — 1.0%      
Holding Company – Diversified — 1.0%      

Conyers Park Acquisition Corp. (a)

      18,300         198,555   

National Bank Holdings Corp. Class A

      26,400         841,896   
     

 

 

  
        1,040,451   
     

 

 

  
Energy — 4.2%      
Oil & Gas — 3.2%      

Matador Resources Co. (a) (b)

      32,700         842,352   

Parsley Energy, Inc. Class A (a)

      17,800         627,272   

Rice Energy, Inc. (a)

      18,200         388,570   

Western Refining, Inc.

      16,600         628,310   

WPX Energy, Inc. (a)

      54,900         799,893   
     

 

 

  
        3,286,397   
     

 

 

  
Oil & Gas Services — 1.0%      

Oceaneering International, Inc.

      13,600         383,656   

Tesco Corp.

      47,500         391,875   

TETRA Technologies, Inc. (a)

      58,100         291,662   
     

 

 

  
        1,067,193   
     

 

 

  
        4,353,590   
     

 

 

  
Financial — 34.9%      
Banks — 16.2%      

CoBiz Financial, Inc.

      36,000         608,040   

Columbia Banking System, Inc.

      27,900         1,246,572   

East West Bancorp, Inc.

      33,526         1,704,127   

First Hawaiian, Inc.

      12,342         429,748   

Glacier Bancorp, Inc.

      27,300         989,079   

Home Bancshares, Inc.

      85,450         2,372,946   

Hope Bancorp, Inc.

      36,200         792,418   

Pinnacle Financial Partners, Inc.

      7,500         519,750   

Popular, Inc.

      25,900         1,134,938   

Prosperity Bancshares, Inc.

      17,300         1,241,794   

Sandy Spring Bancorp, Inc.

      8,150         325,919   

SVB Financial Group (a)

      8,350         1,433,361   

Synovus Financial Corp.

      10,200         419,016   

Texas Capital Bancshares, Inc. (a)

      9,300         729,120   

Towne Bank

      35,600         1,183,700   

Webster Financial Corp.

      16,575         899,691   

Wintrust Financial Corp. (b)

      11,900         863,583   
     

 

 

  
        16,893,802   
     

 

 

  
     Number of
Shares		      Value  
Diversified Financial — 1.6%      

Bats Global Markets, Inc.

      17,091       $ 572,720   

Houlihan Lokey, Inc.

      11,326         352,465   

Janus Capital Group, Inc.

      33,800         448,526   

Stifel Financial Corp. (a)

      6,300         314,685   
     

 

 

  
        1,688,396   
     

 

 

  
Insurance — 4.7%      

Assured Guaranty Ltd.

      17,082         645,187   

Employers Holdings, Inc.

      15,200         601,920   

Kinsale Capital Group, Inc.

      11,613         394,958   

ProAssurance Corp.

      20,400         1,146,480   

Radian Group, Inc.

      50,900         915,182   

RenaissanceRe Holdings Ltd.

      2,200         299,684   

Safety Insurance Group, Inc.

      6,000         442,200   

State Auto Financial Corp. Class A

      17,900         479,899   
     

 

 

  
        4,925,510   
     

 

 

  
Real Estate Investment Trusts (REITS) — 8.6%   

Acadia Realty Trust

      23,900         781,052   

American Assets Trust, Inc.

      6,200         267,096   

American Campus Communities, Inc.

      9,900         492,723   

Cedar Realty Trust, Inc.

      113,500         741,155   

Douglas Emmett, Inc.

      14,700         537,432   

EastGroup Properties, Inc.

      12,100         893,464   

First Potomac Realty Trust

      66,090         725,007   

Healthcare Realty Trust, Inc.

      15,100         457,832   

Kilroy Realty Corp.

      9,000         658,980   

Potlatch Corp.

      16,000         666,400   

PS Business Parks, Inc.

      6,200         722,424   

Retail Opportunity Investments Corp.

      18,000         380,340   

Saul Centers, Inc.

      12,200         812,642   

Washington Real Estate Investment Trust

      22,900         748,601   
     

 

 

  
        8,885,148   
     

 

 

  
Savings & Loans — 3.8%      

BankUnited, Inc.

      34,900         1,315,381   

Beneficial Bancorp, Inc.

      42,823         787,943   

Meridian Bancorp, Inc.

      16,700         315,630   

United Financial Bancorp, Inc.

      45,600         828,096   

WSFS Financial Corp.

      14,700         681,345   
     

 

 

  
        3,928,395   
     

 

 

  
        36,321,251   
     

 

 

  
Industrial — 16.8%      
Aerospace & Defense — 0.7%      

Kaman Corp. (b)

      8,300         406,119   

Triumph Group, Inc.

      12,800         339,200   
     

 

 

  
        745,319   
     

 

 

  
Building Materials — 0.6%      

Universal Forest Products, Inc.

      6,400         653,952   
     

 

 

  
 

 

The accompanying notes are an integral part of the financial statements.

 

115

Table of Contents

MML Small Company Value Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  
Electrical Components & Equipment — 4.0%      

Advanced Energy Industries, Inc. (a)

      12,500       $ 684,375   

Belden, Inc.

      18,960         1,417,639   

Energizer Holdings, Inc.

      13,100         584,391   

Littelfuse, Inc.

      9,500         1,441,815   
     

 

 

  
        4,128,220   
     

 

 

  
Electronics — 2.6%      

Analogic Corp.

      5,300         439,635   

Badger Meter, Inc.

      13,600         502,520   

Brady Corp. Class A

      13,900         521,945   

Knowles Corp. (a) (b)

      43,500         726,885   

Methode Electronics, Inc.

      13,200         545,820   
     

 

 

  
        2,736,805   
     

 

 

  
Engineering & Construction — 0.8%      

Aegion Corp. (a)

      34,700         822,390   
     

 

 

  
Environmental Controls — 0.4%      

MSA Safety, Inc.

      6,200         429,846   
     

 

 

  
Machinery – Diversified — 0.6%      

Applied Industrial Technologies, Inc.

      10,100         599,940   
     

 

 

  
Manufacturing — 2.4%      

Colfax Corp. (a)

      10,200         366,486   

ESCO Technologies, Inc.

      17,900         1,014,035   

Matthews International Corp. Class A

      5,700         438,045   

Myers Industries, Inc.

      47,750         682,825   
     

 

 

  
        2,501,391   
     

 

 

  
Metal Fabricate & Hardware — 1.7%      

Circor International, Inc.

      10,500         681,240   

RBC Bearings, Inc. (a)

      6,100         566,141   

Sun Hydraulics Corp.

      12,600         503,622   
     

 

 

  
        1,751,003   
     

 

 

  
Transportation — 3.0%      

Genesee & Wyoming, Inc. Class A (a)

      10,050         697,571   

Kirby Corp. (a)

      6,350         422,275   

Landstar System, Inc.

      19,000         1,620,700   

Universal Logistics Holdings, Inc.

      22,500         367,875   
     

 

 

  
        3,108,421   
     

 

 

  
        17,477,287   
     

 

 

  
Technology — 4.3%      
Computers — 0.5%      

CSRA, Inc.

      18,000         573,120   
     

 

 

  
Semiconductors — 1.9%      

Brooks Automation, Inc.

      25,500         435,285   

Cabot Microelectronics Corp.

      8,800         555,896   

Intersil Corp. Class A

      28,200         628,860   

Rudolph Technologies, Inc. (a)

      15,400         359,590   
     

 

 

  
        1,979,631   
     

 

 

  
     Number of
Shares		      Value  
Software — 1.9%      

Callidus Software, Inc. (a)

      27,900       $ 468,720   

Progress Software Corp.

      19,100         609,863   

SYNNEX Corp.

      7,200         871,344   
     

 

 

  
        1,949,927   
     

 

 

  
        4,502,678   
     

 

 

  
Utilities — 6.0%      
Electric — 2.3%      

El Paso Electric Co.

      11,100         516,150   

NorthWestern Corp.

      15,100         858,737   

NRG Energy, Inc.

      32,800         402,128   

Portland General Electric Co.

      14,800         641,284   
     

 

 

  
        2,418,299   
     

 

 

  
Gas — 3.5%      

Atmos Energy Corp.

      7,200         533,880   

Chesapeake Utilities Corp.

      12,700         850,265   

ONE Gas, Inc.

      17,300         1,106,508   

PNM Resources, Inc.

      33,100         1,135,330   
     

 

 

  
        3,625,983   
     

 

 

  
Water — 0.2%      

California Water Service Group

      6,900         233,910   
     

 

 

  
        6,278,192   
     

 

 

  
TOTAL COMMON STOCK (Cost $72,678,754)         101,989,165   
  

 

 

  
TOTAL EQUITIES (Cost $72,678,754)         101,989,165   
  

 

 

  
MUTUAL FUNDS — 3.2%   
Diversified Financial — 3.2%      

State Street Navigator Securities Lending Prime Portfolio (c)

      3,384,259         3,384,259   

T. Rowe Price Reserve Investment Fund

      1,005         1,005   
     

 

 

  
TOTAL MUTUAL FUNDS (Cost $3,385,264)         3,385,264   
  

 

 

  
TOTAL LONG-TERM INVESTMENTS (Cost $76,064,018)         105,374,429   
  

 

 

  
 

 

The accompanying notes are an integral part of the financial statements.

 

116

Table of Contents

MML Small Company Value Fund – Portfolio of Investments (Continued)

 

     Principal
Amount		      Value  
SHORT-TERM INVESTMENTS — 2.0%   
Repurchase Agreement — 2.0%      

State Street Bank & Trust Co. Repurchase Agreement, dated 12/30/16, 0.010%, due 1/03/17 (d)

    $ 2,098,298       $ 2,098,298   
     

 

 

  
TOTAL SHORT-TERM INVESTMENTS
(Cost $2,098,298)		         2,098,298   
  

 

 

  
TOTAL INVESTMENTS — 103.1% (Cost $78,162,316) (e)         107,472,727   
Other Assets/(Liabilities) — (3.1)%         (3,278,467 ) 
  

 

 

  
NET ASSETS — 100.0%       $ 104,194,260   
  

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

(a) Non-income producing security.
(b) Denotes all or a portion of security on loan. The total value of securities on loan as of December 31, 2016, was $3,300,322 or 3.17% of net assets. Total securities on loan may not correspond with the amounts identified in the Portfolio of Investments because pending sales may be in the process of recall from the brokers. (Note 2).
(c) Represents investment of security lending collateral. (Note 2).
(d) Maturity value of $2,098,300. Collateralized by U.S. Government Agency obligations with a rate of 8.125%, maturity date of 8/15/21, and an aggregate market value, including accrued interest, of $2,143,326.
(e) See Note 6 for aggregate cost for federal tax purposes.
 

 

The accompanying notes are an integral part of the financial statements.

 

117

Table of Contents

MML Small/Mid Cap Value Fund – Portfolio of Investments

 

December 31, 2016

 

     Number of
Shares		      Value  
EQUITIES — 98.5%   
COMMON STOCK — 98.5%   
Basic Materials — 1.4%      
Chemicals — 1.4%      

Huntsman Corp.

      83,950       $ 1,601,766   

Ingevity Corp. (a)

      32,270         1,770,332   
     

 

 

  
        3,372,098   
     

 

 

  
Communications — 6.3%      
Internet — 1.5%      

CDW Corp.

      64,770         3,373,869   
     

 

 

  
Media — 1.0%      

Scholastic Corp.

      48,890         2,321,786   
     

 

 

  
Telecommunications — 3.8%      

Anixter International, Inc. (a)

      44,380         3,596,999   

Finisar Corp. (a)

      86,420         2,615,934   

Infinera Corp. (a)

      147,500         1,252,275   

NETGEAR, Inc. (a)

      25,846         1,404,730   
     

 

 

  
        8,869,938   
     

 

 

  
        14,565,593   
     

 

 

  
Consumer, Cyclical — 16.9%      
Airlines — 1.3%      

SkyWest, Inc.

      84,240         3,070,548   
     

 

 

  
Apparel — 0.7%      

Crocs, Inc. (a)

      219,440         1,505,358   
     

 

 

  
Auto Manufacturers — 1.3%      

Oshkosh Corp.

      48,160         3,111,618   
     

 

 

  
Automotive & Parts — 3.4%      

Dana, Inc.

      164,893         3,129,669   

Lear Corp.

      15,416         2,040,616   

Tenneco, Inc. (a)

      42,881         2,678,776   
     

 

 

  
        7,849,061   
     

 

 

  
Entertainment — 1.2%      

Regal Entertainment Group Class A

      137,100         2,824,260   
     

 

 

  
Home Builders — 2.0%      

CalAtlantic Group, Inc.

      87,020         2,959,550   

PulteGroup, Inc.

      88,060         1,618,543   
     

 

 

  
        4,578,093   
     

 

 

  
Retail — 7.0%      

Big Lots, Inc.

      39,598         1,988,216   

Bloomin’ Brands, Inc.

      168,380         3,035,891   

Brinker International, Inc.

      50,349         2,493,786   

Burlington Stores, Inc. (a)

      20,969         1,777,123   

Caleres, Inc.

      72,380         2,375,512   

The Children’s Place, Inc.

      20,122         2,031,316   

The Michaels Cos., Inc. (a)

      118,890         2,431,300   
     

 

 

  
        16,133,144   
     

 

 

  
        39,072,082   
     

 

 

  
     Number of
Shares		      Value  
Consumer, Non-cyclical — 11.7%      
Commercial Services — 5.6%      

ABM Industries, Inc.

      44,300       $ 1,809,212   

Booz Allen Hamilton Holding Corp.

      84,500         3,047,915   

Genpact Ltd. (a)

      102,377         2,491,856   

Quanta Services, Inc. (a)

      86,230         3,005,116   

Sotheby’s

      67,220         2,679,389   
     

 

 

  
        13,033,488   
     

 

 

  
Foods — 0.6%      

Ingredion, Inc.

      11,372         1,421,045   
     

 

 

  
Health Care – Services — 4.8%      

ICON PLC (a)

      40,930         3,077,936   

LifePoint Health, Inc. (a)

      53,000         3,010,400   

Molina Healthcare, Inc. (a)

      48,590         2,636,494   

WellCare Health Plans, Inc. (a)

      17,630         2,416,720   
     

 

 

  
        11,141,550   
     

 

 

  
Pharmaceuticals — 0.7%      

Horizon Pharma PLC (a)

      94,260         1,525,127   
     

 

 

  
        27,121,210   
     

 

 

  
Energy — 11.7%      
Oil & Gas — 9.1%      

Gulfport Energy Corp. (a)

      83,860         1,814,730   

Helmerich & Payne, Inc.

      46,950         3,633,930   

Oasis Petroleum, Inc. (a)

      155,260         2,350,637   

QEP Resources, Inc.

      176,080         3,241,633   

SM Energy Co.

      85,800         2,958,384   

Southwestern Energy Co. (a)

      117,200         1,268,104   

Synergy Resources Corp. (a)

      463,820         4,132,636   

Western Refining, Inc.

      45,140         1,708,549   
     

 

 

  
        21,108,603   
     

 

 

  
Oil & Gas Services — 2.6%      

Oil States International, Inc. (a)

      84,590         3,299,010   

RPC, Inc.

      134,690         2,668,209   
     

 

 

  
        5,967,219   
     

 

 

  
        27,075,822   
     

 

 

  
Financial — 22.7%      
Banks — 11.1%      

Associated Banc-Corp.

      104,837         2,589,474   

Comerica, Inc.

      55,815         3,801,560   

Fulton Financial Corp.

      141,260         2,655,688   

Huntington Bancshares, Inc.

      313,035         4,138,323   

Synovus Financial Corp.

      57,120         2,346,489   

Texas Capital Bancshares, Inc. (a)

      36,650         2,873,360   

Webster Financial Corp.

      60,663         3,292,788   

Zions Bancorp

      93,615         4,029,189   
     

 

 

  
        25,726,871   
     

 

 

  
Diversified Financial — 0.6%      

OneMain Holdings, Inc. (a)

      58,280         1,290,319   
     

 

 

  
 

 

The accompanying notes are an integral part of the financial statements.

 

118

Table of Contents

MML Small/Mid Cap Value Fund – Portfolio of Investments (Continued)

 

     Number of
Shares		      Value  
Insurance — 7.7%      

American Financial Group, Inc.

      38,320       $ 3,376,758   

Essent Group Ltd. (a)

      97,670         3,161,578   

First American Financial Corp.

      62,570         2,291,939   

The Hanover Insurance Group, Inc.

      15,540         1,414,295   

Reinsurance Group of America, Inc.

      26,890         3,383,569   

Selective Insurance Group, Inc.

      39,740         1,710,807   

Validus Holdings Ltd.

      47,490         2,612,425   
     

 

 

  
        17,951,371   
     

 

 

  
Real Estate Investment Trusts (REITS) — 3.3%   

Education Realty Trust, Inc.

      72,500         3,066,750   

Empire State Realty Trust, Inc. Class A

      66,550         1,343,645   

Gramercy Property Trust

      343,346         3,151,916   
     

 

 

  
        7,562,311   
     

 

 

  
        52,530,872   
     

 

 

  
Industrial — 16.7%      
Aerospace & Defense — 1.7%      

BE Aerospace, Inc.

      19,670         1,183,937   

Esterline Technologies Corp. (a)

      29,570         2,637,644   
     

 

 

  
        3,821,581   
     

 

 

  
Electrical Components & Equipment — 1.4%      

EnerSys

      39,970         3,121,657   
     

 

 

  
Electronics — 3.1%      

Avnet, Inc.

      51,290         2,441,917   

Keysight Technologies, Inc. (a)

      72,000         2,633,040   

Vishay Intertechnology, Inc.

      125,446         2,032,225   
     

 

 

  
        7,107,182   
     

 

 

  
Engineering & Construction — 3.4%      

AECOM (a)

      82,823         3,011,444   

EMCOR Group, Inc.

      23,180         1,640,217   

Tutor Perini Corp. (a)

      110,660         3,098,480   
     

 

 

  
        7,750,141   
     

 

 

  
Hand & Machine Tools — 1.1%      

Regal Beloit Corp.

      37,780         2,616,265   
     

 

 

  
Machinery – Construction & Mining — 0.5%   

Terex Corp.

      36,306         1,144,728   
     

 

 

  
Machinery – Diversified — 1.0%      

SPX FLOW, Inc. (a)

      73,830         2,366,990   
     

 

 

  
Manufacturing — 0.7%      

ITT, Inc.

      43,970         1,695,923   
     

 

 

  
Packaging & Containers — 1.3%      

Graphic Packaging Holding Co.

      245,830         3,067,958   
     

 

 

  
Transportation — 2.5%      

Atlas Air Worldwide Holdings, Inc. (a)

      28,560         1,489,404   
     Number of
Shares		      Value  

Ryder System, Inc.

      28,350       $ 2,110,374   

Werner Enterprises, Inc.

      85,130         2,294,254   
     

 

 

  
        5,894,032   
     

 

 

  
        38,586,457   
     

 

 

  
Technology — 8.3%      
Computers — 3.2%      

Amdocs Ltd.

      50,318         2,931,024   

NCR Corp. (a)

      78,140         3,169,358   

VeriFone Systems, Inc. (a)

      77,580         1,375,493   
     

 

 

  
        7,475,875   
     

 

 

  
Semiconductors — 3.9%      

Advanced Micro Devices, Inc. (a)

      151,180         1,714,381   

Cypress Semiconductor Corp.

      282,270         3,229,169   

Integrated Device Technology, Inc. (a)

      58,170         1,370,485   

Qorvo, Inc. (a)

      52,750         2,781,508   
     

 

 

  
        9,095,543   
     

 

 

  
Software — 1.2%      

Verint Systems, Inc. (a)

      76,740         2,705,085   
     

 

 

  
        19,276,503   
     

 

 

  
Utilities — 2.8%      
Electric — 1.0%      

Portland General Electric Co.

      50,300         2,179,499   
     

 

 

  
Gas — 1.8%      

PNM Resources, Inc.

      82,823         2,840,829   

Southwest Gas Corp.

      18,490         1,416,704   
     

 

 

  
        4,257,533   
     

 

 

  
        6,437,032   
     

 

 

  
TOTAL COMMON STOCK
(Cost $186,817,893)		         228,037,669   
  

 

 

  
TOTAL EQUITIES
(Cost $186,817,893)		         228,037,669   
  

 

 

  
TOTAL LONG-TERM INVESTMENTS
(Cost $186,817,893)		         228,037,669   
  

 

 

  
 

 

The accompanying notes are an integral part of the financial statements.

 

119

Table of Contents

MML Small/Mid Cap Value Fund – Portfolio of Investments (Continued)

 

     Principal
Amount		      Value  
SHORT-TERM INVESTMENTS — 1.6%   
Repurchase Agreement — 1.6%      

State Street Bank & Trust Co. Repurchase Agreement, dated 12/30/16, 0.010%, due 1/03/17 (b)

    $ 3,703,328       $ 3,703,328   
     

 

 

  
TOTAL SHORT-TERM INVESTMENTS
(Cost $3,703,328)		         3,703,328   
  

 

 

  
TOTAL INVESTMENTS — 100.1% (Cost $190,521,221) (c)         231,740,997   
Other Assets/(Liabilities) — (0.1)%         (328,484 ) 
  

 

 

  
NET ASSETS — 100.0%       $ 231,412,513   
  

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

(a) Non-income producing security.
(b) Maturity value of $3,703,332. Collateralized by U.S. Government Agency obligations with a rate of 3.125%, maturity date of 5/15/19, and an aggregate market value, including accrued interest, of $3,781,182.
(c) See Note 6 for aggregate cost for federal tax purposes.
 

 

The accompanying notes are an integral part of the financial statements.

 

120

Table of Contents

MML Total Return Bond Fund – Portfolio of Investments

 

December 31, 2016

 

     Principal
Amount		      Value  
BONDS & NOTES — 100.6%      
BANK LOANS — 0.2%      
Diversified Financial — 0.2%      

Delos Finance SARL, Term Loan B
3.748% 3/06/21

    $ 840,000       $ 845,401   
     

 

 

  
TOTAL BANK LOANS
(Cost $837,073)		         845,401   
  

 

 

  
CORPORATE DEBT — 23.1%      
Aerospace & Defense — 0.2%      

United Technologies Corp. STEP
1.778% 5/04/18

      1,000,000         1,000,218   
     

 

 

  
Airlines — 0.6%      

Continental Airlines Pass-Through Trust
7.250% 5/10/21

      1,752,931         1,958,900   

Northwest Airlines Pass-Through Trust
7.041% 10/01/23

      380,692         436,845   
     

 

 

  
        2,395,745   
     

 

 

  
Auto Manufacturers — 0.4%      

Ford Motor Credit Co. LLC
1.684% 9/08/17

      750,000         748,786   

Ford Motor Credit Co. LLC
2.145% 1/09/18

      500,000         500,724   

General Motors Financial Co., Inc.
4.750% 8/15/17

      500,000         509,484   
     

 

 

  
        1,758,994   
     

 

 

  
Banks — 3.0%      

American Express Centurion Bank
6.000% 9/13/17

      750,000         773,185   

Bank of America Corp.
5.650% 5/01/18

      500,000         523,881   

Bank of America Corp.
6.000% 9/01/17

      500,000         514,489   

CIT Group, Inc. (a)
6.625% 4/01/18

      350,000         368,813   

Citigroup, Inc.
1.550% 8/14/17

      1,350,000         1,350,942   

Citigroup, Inc.
1.850% 11/24/17

      1,000,000         1,001,890   

HBOS PLC (a)
6.750% 5/21/18

      1,100,000         1,159,947   

JP Morgan Chase & Co. 3 mo. USD LIBOR + .550%, FRN 1.432% 4/25/18

      700,000         701,973   

JP Morgan Chase & Co.
2.950% 10/01/26

      895,000         854,267   

Morgan Stanley 3 mo. USD LIBOR +
1.280%, FRN 2.162% 4/25/18

      1,000,000         1,010,465   

Morgan Stanley
5.950% 12/28/17

      500,000         520,415   
     Principal
Amount		      Value  

Wells Fargo & Co.
2.100% 7/26/21

    $ 710,000       $ 690,869   

Wells Fargo & Co.
2.500% 3/04/21

      1,410,000         1,399,552   

Wells Fargo & Co.
3.000% 4/22/26

      475,000         453,260   

Wells Fargo Bank NA
2.150% 12/06/19

      1,000,000         999,380   
     

 

 

  
        12,323,328   
     

 

 

  
Beverages — 0.4%      

Anheuser-Busch InBev Finance, Inc.
3.650% 2/01/26

      299,000         303,542   

Anheuser-Busch InBev Finance, Inc.
4.900% 2/01/46

      551,000         595,559   

Constellation Brands, Inc.
6.000% 5/01/22

      325,000         366,548   

DS Services of America, Inc. (a)
10.000% 9/01/21

      330,000         361,763   
     

 

 

  
        1,627,412   
     

 

 

  
Biotechnology — 0.7%      

Amgen, Inc.
4.400% 5/01/45

      500,000         479,273   

Celgene Corp.
5.000% 8/15/45

      750,000         779,797   

Gilead Sciences, Inc.
3.250% 9/01/22

      600,000         612,436   

Gilead Sciences, Inc.
4.150% 3/01/47

      1,195,000         1,135,015   
     

 

 

  
        3,006,521   
     

 

 

  
Chemicals — 0.1%      

Axalta Coating Systems LLC (a)
4.875% 8/15/24

      180,000         180,000   

Valvoline, Inc. (a)
5.500% 7/15/24

      200,000         207,000   
     

 

 

  
        387,000   
     

 

 

  
Commercial Services — 0.2%      

Catholic Health Initiatives
2.950% 11/01/22

      500,000         486,460   

IHS Markit Ltd. (a)
5.000% 11/01/22

      225,000         233,437   
     

 

 

  
        719,897   
     

 

 

  
Computers — 0.2%      

Apple, Inc.
4.650% 2/23/46

      850,000         917,872   
     

 

 

  
Diversified Financial — 4.0%      

Federal Home Loan Banks STEP
1.250% 6/28/30

      2,010,000         2,012,373   

Federal Home Loan Mortgage Corp.
1.250% 10/02/19

      700,000         696,281   
 

 

The accompanying notes are an integral part of the financial statements.

 

121

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MML Total Return Bond Fund – Portfolio of Investments (Continued)

 

     Principal
Amount		      Value  

GE Capital International Funding Co. Unlimited Co.
4.418% 11/15/35

    $ 780,000       $ 817,368   

General Electric Co.
5.875% 1/14/38

      244,000         307,081   

The Goldman Sachs Group, Inc.
5.950% 1/18/18

      2,100,000         2,187,657   

The Goldman Sachs Group, Inc.
6.150% 4/01/18

      600,000         631,149   

International Lease Finance Corp. (a)
7.125% 9/01/18

      1,000,000         1,077,500   

JP Morgan Chase & Co. 3 mo. USD LIBOR + .520%, FRN
1.426% 2/15/17

      2,700,000         2,701,701   

Merrill Lynch & Co., Inc.
6.875% 4/25/18

      4,400,000         4,676,804   

Morgan Stanley
5.450% 1/09/17

      1,000,000         1,000,492   

Morgan Stanley
5.500% 7/24/20

      250,000         273,802   
     

 

 

  
        16,382,208   
     

 

 

  
Electric — 2.6%      

Commonwealth Edison Co.
3.650% 6/15/46

      535,000         502,773   

Dominion Resources, Inc. (a)
1.875% 12/15/18

      1,000,000         995,347   

Duke Energy Carolinas LLC
4.000% 9/30/42

      1,000,000         993,099   

Duquesne Light Holdings, Inc. (a)
6.400% 9/15/20

      1,500,000         1,673,680   

Emera US Finance LP (a)
2.150% 6/15/19

      1,068,000         1,066,235   

Florida Power & Light Co.
3.800% 12/15/42

      1,200,000         1,180,054   

Jersey Central Power & Light Co. (a)
4.700% 4/01/24

      800,000         851,215   

Jersey Central Power & Light Co.
6.400% 5/15/36

      425,000         468,982   

MidAmerican Energy Co.
4.800% 9/15/43

      1,400,000         1,548,638   

Southern California Edison Co.
3.600% 2/01/45

      400,000         378,360   

Southwestern Electric Power Co.
6.200% 3/15/40

      800,000         960,404   
     

 

 

  
        10,618,787   
     

 

 

  
Engineering & Construction — 0.1%      

SBA Communications Corp. (a)
4.875% 9/01/24

      240,000         237,000   
     

 

 

  
Entertainment — 0.1%      

Churchill Downs, Inc.
5.375% 12/15/21

      175,000         181,562   
     Principal
Amount		      Value  

GLP Capital LP/GLP Financing II, Inc.
5.375% 4/15/26

    $ 200,000       $ 208,580   
     

 

 

  
        390,142   
     

 

 

  
Food Services — 0.0%      

Aramark Services, Inc. (a)
4.750% 6/01/26

      200,000         198,000   
     

 

 

  
Foods — 0.4%      

Kraft Heinz Foods Co.
1.600% 6/30/17

      558,000         558,447   

Lamb Weston Holdings, Inc. (a)
4.875% 11/01/26

      210,000         207,769   

Mondelez International Holdings Netherlands BV (a)
1.625% 10/28/19

      1,195,000         1,171,449   
     

 

 

  
        1,937,665   
     

 

 

  
Gas — 0.6%      

CenterPoint Energy Resources Corp.
6.250% 2/01/37

      1,095,000         1,243,794   

Florida Gas Transmission Co. LLC (a)
7.900% 5/15/19

      1,000,000         1,119,045   

Southern Co. Gas Capital Corp.
2.450% 10/01/23

      100,000         95,910   
     

 

 

  
        2,458,749   
     

 

 

  
Health Care – Services — 1.1%      

Aetna, Inc.
2.800% 6/15/23

      885,000         871,733   

Centene Corp.
4.750% 1/15/25

      400,000         390,500   

DaVita, Inc.
5.000% 5/01/25

      415,000         408,256   

HCA, Inc.
5.000% 3/15/24

      800,000         823,000   

Northwell Healthcare, Inc.
3.979% 11/01/46

      585,000         538,552   

Providence St Joseph Health Obligated Group
2.746% 10/01/26

      845,000         799,919   

RWJ Barnabas Health, Inc.
3.949% 7/01/46

      595,000         548,020   

Tenet Healthcare Corp. 3 mo. USD LIBOR + 3.500%, FRN
4.463% 6/15/20

      350,000         352,625   

Tenet Healthcare Corp.
6.000% 10/01/20

      40,000         41,900   
     

 

 

  
        4,774,505   
     

 

 

  
Household Products — 0.0%      

Spectrum Brands, Inc.
5.750% 7/15/25

      85,000         88,188   
     

 

 

  
Insurance — 1.0%      

Berkshire Hathaway Finance Corp.
4.300% 5/15/43

      500,000         516,566   
 

 

The accompanying notes are an integral part of the financial statements.

 

122

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MML Total Return Bond Fund – Portfolio of Investments (Continued)

 

     Principal
Amount		      Value  

Berkshire Hathaway Finance Corp.
4.400% 5/15/42

    $ 750,000       $ 789,565   

Farmers Exchange Capital III 3 mo. USD LIBOR + 3.454%, VRN (a)
5.454% 10/15/54

      970,000         944,644   

Metropolitan Life Global Funding I (a)
1.950% 9/15/21

      1,100,000         1,069,394   

New York Life Global Funding (a)
1.550% 11/02/18

      750,000         747,855   
     

 

 

  
        4,068,024   
     

 

 

  
Lodging — 0.1%      

Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp.
5.625% 10/15/21

      345,000         356,385   
     

 

 

  
Manufacturing — 0.1%      

Siemens Financieringsmaatschappij NV (a)
2.000% 9/15/23

      550,000         518,947   
     

 

 

  
Media — 0.6%      

CCO Holdings LLC/CCO Holdings Capital Corp (a)
5.875% 4/01/24

      150,000         160,125   

Charter Communications Operating LLC/Charter Communications Operating Capital
4.464% 7/23/22

      875,000         914,402   

Charter Communications Operating LLC/Charter Communications Operating Capital
6.484% 10/23/45

      200,000         231,216   

CSC Holdings LLC (a)
5.500% 4/15/27

      400,000         405,000   

CSC Holdings LLC
8.625% 2/15/19

      100,000         110,500   

DISH DBS Corp.
5.875% 7/15/22

      100,000         105,250   

DISH DBS Corp.
6.750% 6/01/21

      70,000         75,950   

Sirius XM Radio, Inc. (a)
4.250% 5/15/20

      205,000         208,075   

Virgin Media Secured Finance PLC (a)
5.250% 1/15/26

      200,000         197,500   
     

 

 

  
        2,408,018   
     

 

 

  
Oil & Gas — 0.2%      

Gulfport Energy Corp. (a)
6.375% 5/15/25

      200,000         202,540   

Noble Energy, Inc.
5.250% 11/15/43

      140,000         142,606   

Shell International Finance BV
4.375% 5/11/45

      415,000         420,385   
     

 

 

  
        765,531   
     

 

 

  
     Principal
Amount		      Value  
Packaging & Containers — 0.4%      

Amcor Finance USA, Inc. (a)
3.625% 4/28/26

    $ 650,000       $ 636,659   

Ball Corp.
4.375% 12/15/20

      350,000         365,750   

Graphic Packaging International, Inc.
4.125% 8/15/24

      200,000         191,000   

Sealed Air Corp. (a)
5.500% 9/15/25

      390,000         402,675   
     

 

 

  
        1,596,084   
     

 

 

  
Pharmaceuticals — 1.2%      

AbbVie, Inc.
1.800% 5/14/18

      500,000         500,376   

AbbVie, Inc.
3.200% 5/14/26

      357,000         339,659   

AbbVie, Inc.
3.600% 5/14/25

      500,000         495,244   

Actavis Funding SCS
3.800% 3/15/25

      1,350,000         1,351,590   

Actavis Funding SCS
4.750% 3/15/45

      300,000         294,520   

Baxalta, Inc.
2.875% 6/23/20

      725,000         724,819   

Grifols Worldwide Operations Ltd.
5.250% 4/01/22

      200,000         207,000   

Quintiles Transnational Corp. (a)
4.875% 5/15/23

      175,000         177,625   

Shire Acquisitions Investments Ireland DAC
1.900% 9/23/19

      500,000         493,661   

Valeant Pharmaceuticals International, Inc. (a)
5.500% 3/01/23

      400,000         300,000   

Valeant Pharmaceuticals International, Inc. (a)
5.625% 12/01/21

      100,000         77,500   

Valeant Pharmaceuticals International, Inc. (a)
6.125% 4/15/25

      50,000         37,563   
     

 

 

  
        4,999,557   
     

 

 

  
Pipelines — 0.7%      

Boardwalk Pipelines LLC
5.500% 2/01/17

      1,000,000         1,002,664   

Energy Transfer Partners LP
3.600% 2/01/23

      567,000         557,648   

Energy Transfer Partners LP 3 mo. USD LIBOR + 3.018%, FRN
3.903% 11/01/66

      170,000         135,703   

Energy Transfer Partners LP
5.150% 3/15/45

      400,000         383,632   

Rockies Express Pipeline LLC (a)
5.625% 4/15/20

      155,000         163,137   
 

 

The accompanying notes are an integral part of the financial statements.

 

123

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MML Total Return Bond Fund – Portfolio of Investments (Continued)

 

     Principal
Amount		      Value  

Rockies Express Pipeline LLC (a)
6.000% 1/15/19

    $ 75,000       $ 78,750   

Williams Partners LP
3.600% 3/15/22

      683,000         686,614   
     

 

 

  
        3,008,148   
     

 

 

  
Real Estate — 0.4%      

WEA Finance LLC/Westfield UK & Europe Finance PLC (a)
1.750% 9/15/17

      1,550,000         1,550,964   
     

 

 

  
Real Estate Investment Trusts (REITS) — 1.8%   

HCP, Inc.
3.400% 2/01/25

      1,000,000         956,823   

HCP, Inc.
3.875% 8/15/24

      500,000         499,751   

Highwoods Realty LP
5.850% 3/15/17

      1,000,000         1,008,455   

National Retail Properties, Inc.
6.875% 10/15/17

      750,000         779,227   

Realty Income Corp.
2.000% 1/31/18

      750,000         752,116   

Ventas Realty LP
3.500% 2/01/25

      1,500,000         1,476,789   

VEREIT Operating Partnership LP
4.875% 6/01/26

      200,000         202,570   

Welltower, Inc.
4.000% 6/01/25

      830,000         848,253   

Welltower, Inc.
4.125% 4/01/19

      750,000         778,664   
     

 

 

  
        7,302,648   
     

 

 

  
Retail — 0.3%      

CVS Health Corp.
2.875% 6/01/26

      535,000         509,944   

Wal-Mart Stores, Inc.
4.000% 4/11/43

      400,000         401,829   

Walgreens Boots Alliance, Inc.
4.800% 11/18/44

      275,000         282,648   
     

 

 

  
        1,194,421   
     

 

 

  
Semiconductors — 0.1%      

NXP BV/NXP Funding LLC (a)
4.125% 6/01/21

      200,000         206,500   
     

 

 

  
Software — 0.4%      

First Data Corp. (a)
5.000% 1/15/24

      426,000         428,266   

IMS Health, Inc. (a)
5.000% 10/15/26

      200,000         200,500   

Microsoft Corp.
3.750% 2/12/45

      635,000         595,472   

Oracle Corp.
2.400% 9/15/23

      715,000         692,693   
     

 

 

  
        1,916,931   
     

 

 

  
     Principal
Amount		      Value  
Telecommunications — 1.0%      

Altice US Finance I Corp. (a)
5.375% 7/15/23

    $ 425,000       $ 440,938   

AT&T, Inc.
4.125% 2/17/26

      500,000         506,283   

AT&T, Inc.
4.600% 2/15/21

      300,000         317,303   

AT&T, Inc.
4.750% 5/15/46

      750,000         710,564   

Level 3 Financing, Inc. (a)
5.250% 3/15/26

      90,000         89,100   

Level 3 Financing, Inc.
5.625% 2/01/23

      175,000         179,375   

Sprint Communications, Inc. (a)
9.000% 11/15/18

      400,000         441,000   

T-Mobile USA, Inc.
6.250% 4/01/21

      345,000         358,800   

T-Mobile USA, Inc.
6.633% 4/28/21

      80,000         83,500   

T-Mobile USA, Inc.
6.731% 4/28/22

      184,000         192,280   

Verizon Communications, Inc.
4.522% 9/15/48

      600,000         575,347   

Verizon Communications, Inc.
4.862% 8/21/46

      200,000         202,659   
     

 

 

  
        4,097,149   
     

 

 

  
Transportation — 0.1%      

Burlington Northern Santa Fe LLC
4.150% 4/01/45

      265,000         268,738   
     

 

 

  
TOTAL CORPORATE DEBT
(Cost $96,285,086)		         95,480,276   
  

 

 

  
MUNICIPAL OBLIGATIONS — 1.1%      

Alabama Economic Settlement Authority
3.163% 9/15/25

      1,000,000         1,008,650   

City of New York NY
5.206% 10/01/31

      750,000         859,013   

Los Angeles Community College District BAB
6.750% 8/01/49

      900,000         1,295,766   

New York City Water & Sewer System
5.882% 6/15/44

      315,000         407,481   

New York State Dormitory Authority
5.289% 3/15/33

      750,000         874,192   
     

 

 

  
        4,445,102   
     

 

 

  
TOTAL MUNICIPAL OBLIGATIONS
(Cost $4,138,067)		         4,445,102   
  

 

 

  
 

 

The accompanying notes are an integral part of the financial statements.

 

124

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MML Total Return Bond Fund – Portfolio of Investments (Continued)

 

     Principal
Amount		      Value  
NON-U.S. GOVERNMENT AGENCY OBLIGATIONS — 14.1%    
Automobile ABS — 0.3%      

Honda Auto Receivables Owner Trust, Series 2015-4, Class A2
0.820% 7/23/18

    $ 478,060       $ 477,705   

Nissan Auto Receivables Owner Trust, Series 2015-C, Class A2A
0.870% 11/15/18

      488,022         487,632   

Toyota Auto Receivables Owner Trust, Series 2014-A, Class A3
0.670% 12/15/17

      99,850         99,819   
     

 

 

  
        1,065,156   
     

 

 

  
Commercial MBS — 1.6%      

7 WTC Depositor LLC Trust,
Series 2012-7WTC, Class A (a)
4.082% 3/13/31

      111,159         111,927   

BAMLL Commercial Mortgage Securities Trust, Series 2012-PARK, Class A (a)
2.959% 12/10/30

      375,000         377,071   

Banc of America Large Loan, Inc.,
Series 2009-UB2, Class A4AA, VRN (a)
5.722% 2/24/51

      348,990         349,843   

Citigroup Commercial Mortgage Trust, Series 2013-375P, Class A (a)
3.251% 5/10/35

      340,000         346,054   

COMM Mortgage Trust,
Series 2016-787S, Class A (a)
3.545% 2/10/36

      340,000         347,386   

COMM Mortgage Trust,
Series 2013-300P, Class A1 (a)
4.353% 8/10/30

      325,000         351,555   

GS Mortgage Securities Corp.,
Series 2012-ALOH, Class A (a)
3.551% 4/10/34

      370,000         386,631   

JP Morgan Chase Commercial Mortgage Securities Corp., Series 2010-C2, Class A2 (a)
3.616% 11/15/43

      862,629         875,378   

Liberty Street Trust, Series 2016-225L, Class A (a)
3.597% 2/10/36

      340,000         348,505   

RBS Commercial Funding, Inc. Trust, Series 2013-GSP, Class A, VRN (a)
3.834% 1/13/32

      330,000         345,729   

SFAVE Commercial Mortgage Securities Trust, Series 2015-5AVE,
Class A1, VRN (a)
3.872% 1/05/43

      370,000         363,840   

TCW/Trust Co. West
3.220% 1/25/27

      805,000         813,994   
     Principal
Amount		      Value  

Wells Fargo Commercial Mortgage Trust, Series 2010-C1, Class A2 (a)
4.393% 11/15/43

    $ 500,000       $ 532,382   

WF-RBS Commercial Mortgage Trust, Series 2011-C4, Class A4, VRN (a)
4.902% 6/15/44

      800,000         877,165   
     

 

 

  
        6,427,460   
     

 

 

  
Credit Card ABS — 0.2%      

Chase Issuance Trust, Series 2015-A6, Class A6, 1 mo. LIBOR + .250%, FRN
0.954% 5/15/19

      865,000         865,240   
     

 

 

  
Home Equity ABS — 0.7%      

Bear Stearns I Trust, Series 2006-HE1, Class 1M1, 1 mo. USD LIBOR + .410%, FRN
0.994% 12/25/35

      1,560,615         1,560,498   

Wells Fargo Home Equity Trust, Series 2004-2, Class M3, 1 mo. USD LIBOR + 1.050%, FRN
1.642% 10/25/34

      1,555,799         1,463,911   
     

 

 

  
        3,024,409   
     

 

 

  
Other ABS — 1.7%      

Blue Hill CLO Ltd., Series 2013-1A, Class A, 3 mo. USD LIBOR +
1.480%, FRN (a)
2.360% 1/15/26

      950,000         950,290   

Countrywide Asset-Backed Certificates, Series 2006-15, Class A3, VRN
4.902% 10/25/46

      1,763,117         1,615,065   

First Frankin Mortgage Loan Trust, Series 2005-FF7, Class M2, 1 mo. USD LIBOR + .470%, FRN
1.289% 7/25/35

      897,688         886,602   

Magnetite CLO Ltd., Series 2015-12A, Class AR, 3 mo. USD LIBOR +
1.330%, FRN (a)
2.256% 4/15/27

      1,060,000         1,059,998   

RAMP Trust, Series 2005-RS2, Class M2, 1 mo. USD LIBOR +
.480%, FRN
1.236% 2/25/35

      629,146         628,584   

Saxon Asset Securities Trust, Series 2005-1, Class M1, 1 mo. USD LIBOR + .690%, FRN
1.274% 5/25/35

      1,307,500         1,276,499   

Voya CLO Ltd., Series 2014-3A, Class A1, 3 mo. USD LIBOR +
1.420%, FRN (a)
2.302% 7/25/26

      800,000         800,158   
     

 

 

  
        7,217,196   
     

 

 

  
 

 

The accompanying notes are an integral part of the financial statements.

 

125

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MML Total Return Bond Fund – Portfolio of Investments (Continued)

 

     Principal
Amount		      Value  
Student Loans ABS — 4.9%      

Access Group, Inc., Series 2015-1, Class A, 1 mo. USD LIBOR + .700%, FRN (a)
1.292% 7/25/56

    $ 1,044,260       $ 1,032,007   

Collegiate Funding Services Education Loan Trust, Series 2005-A, Class A4, 3 mo. USD LIBOR + .200%, FRN
1.052% 3/28/35

      1,500,000         1,391,837   

Nelnet Student Loan Trust, Series 2015-1A, Class A, 1 mo. USD LIBOR + .590%, FRN (a)
1.174% 4/25/46

      1,652,538         1,552,569   

Nelnet Student Loan Trust, Series 2015-3A, Class A2, 1 mo. USD LIBOR + .600%, FRN (a)
1.184% 2/27/51

      2,075,000         2,023,011   

Pennsylvania Higher Education Assistance Agency, Series 2013-3A, Class A, 1 mo. USD LIBOR + .750%, FRN (a)
1.334% 11/25/42

      1,499,823         1,481,889   

SLC Student Loan Trust, Series 2006-2, Class A6, 3 mo. USD LIBOR + .160%, FRN
1.123% 9/15/39

      2,300,000         2,023,036   

SLC Student Loan Trust, Series 2005-2, Class B, 3 mo. USD LIBOR + .280%, FRN
1.243% 3/15/40

      391,711         328,368   

SLM Student Loan Trust, Series 2007-1, Class A5, 3 mo. USD LIBOR + .090%, FRN
0.972% 1/26/26

      1,991,134         1,971,847   

SLM Student Loan Trust, Series 2005-4, Class B, 3 mo. USD LIBOR +
.180%, FRN
1.062% 7/25/40

      204,966         176,122   

SLM Student Loan Trust, Series 2005-9, Class B, 3 mo. USD LIBOR +
.300%, FRN
1.182% 1/25/41

      199,804         170,475   

SLM Student Loan Trust, Series 2012-1, Class A2, 1 mo. USD LIBOR +
.450%, FRN
1.206% 11/25/20

      335,464         335,209   

SLM Student Loan Trust, Series 2007-6, Class A4, 3 mo. USD LIBOR +
.380%, FRN
1.262% 10/25/24

      1,953,558         1,921,997   

SLM Student Loan Trust, Series 2011-1, Class A1, 1 mo. USD LIBOR +
.520%, FRN
1.276% 3/25/26

      1,020,419         1,018,841   
     Principal
Amount		      Value  

SLM Student Loan Trust, Series 2012-2, Class A, 1 mo. USD LIBOR + .700%, FRN
1.456% 1/25/29

    $ 1,504,313       $ 1,470,488   

SLM Student Loan Trust, Series 2007-6, Class B, 3 mo. USD LIBOR + .850%, FRN
1.732% 4/27/43

      565,340         496,498   

SLM Student Loan Trust, Series 2007-8, Class B, 3 mo. USD LIBOR + 1.000%, FRN
1.882% 4/27/43

      200,203         175,060   

SLM Student Loan Trust, Series 2008-9, Class A, 3 mo. USD LIBOR + 1.500%, FRN
2.382% 4/25/23

      1,444,557         1,446,380   

SLM Student Loan Trust, Series 2008-5, Class B, 3 mo. USD LIBOR + 1.850%, FRN
2.732% 7/25/29

      700,000         651,770   

SLM Student Loan Trust, Series 2008-9, Class B, 3 mo. USD LIBOR + 2.250%, FRN
3.132% 10/25/83

      680,000         657,650   
     

 

 

  
        20,325,054   
     

 

 

  
WL Collateral CMO — 4.7%      

Chase Mortgage Finance Trust,
Series 2007-A1, Class 11A4, FRN
2.800% 3/25/37

      855,827         798,347   

Citigroup Mortgage Loan Trust,
Series 2005-11, Class A2A, 1 year CMT + 2.400%, FRN
2.930% 10/25/35

      1,137,051         1,144,092   

First Horizon Mortgage Pass-Through Trust, Series 2005-AR5, Class 2A1, VRN
2.996% 11/25/35

      1,408,531         1,335,988   

Impac CMB Trust, Series 2005-1, Class 1A1, 1 mo. USD LIBOR +
.520%, FRN
1.276% 4/25/35

      1,687,625         1,557,340   

IndyMac Index Mortgage Loan Trust, Series 2006-AR27, Class 1A3, 1 mo. USD LIBOR + .270%, FRN
1.026% 10/25/36

      2,608,279         1,788,216   

IndyMac Index Mortgage Loan Trust, Series 2005-AR19, Class A1, VRN
3.030% 10/25/35

      1,604,072         1,365,861   

Morgan Stanley Resecuritization Trust, Series 2014-R9, Class 3A, 12 mo. MTA + .840%, FRN (a)
1.362% 11/26/46

      1,589,911         1,528,215   
 

 

The accompanying notes are an integral part of the financial statements.

 

126

Table of Contents

MML Total Return Bond Fund – Portfolio of Investments (Continued)

 

     Principal
Amount		      Value  

Nomura Asset Acceptance Corp. Alternative Loan Trust, Series 2005-AR1, Class M1, 1 mo. LIBOR + 1.070%, FRN
1.662% 2/25/35

    $ 3,073,311       $ 2,893,029   

Nomura Resecuritization Trust, Series 2015-1R, Class 6A1, 1 mo. USD LIBOR + .210%, FRN (a)
0.759% 5/26/47

      1,048,412         1,030,366   

Washington Mutual Mortgage Pass-Through Certificates,
Series 2005-AR13, Class A1A1, 1 mo. USD LIBOR + .290%, FRN
0.882% 10/25/45

      1,419,909         1,361,594   

Washington Mutual Mortgage Pass-Through Certificates, Series 2005-AR2, Class 2A21, 1 mo. USD LIBOR + .330%, FRN
0.922% 1/25/45

      1,357,352         1,306,123   

Washington Mutual Mortgage Pass-Through Certificates, Series 2006-1 Class 3A2
5.750% 2/25/36

      1,492,527         1,405,723   

Wells Fargo Mortgage Backed Securities Trust, Series 2006-AR8, Class 3A1, VRN
2.934% 4/25/36

      1,438,823         1,428,476   

Wells Fargo Mortgage Backed Securities Trust, Series 2004-DD, Class 2A6, VRN
3.014% 1/25/35

      417,322         431,597   
     

 

 

  
        19,374,967   
     

 

 

  
TOTAL NON-U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $57,722,327)		         58,299,482   
  

 

 

  
U.S. GOVERNMENT AGENCY OBLIGATIONS AND INSTRUMENTALITIES — 27.2%    
Pass-Through Securities — 27.2%      

Federal Home Loan Mortgage Corp.

  

Pool #G18622 2.500%
12/01/31

      2,898,464         2,907,974   

Pool #G18592 3.000%
3/01/31

      776,649         798,280   

Pool #G18627 3.000%
12/01/31

      2,190,000         2,250,995   

Pool #G08710 3.000%
6/01/46

      457,308         454,860   

Pool #G08715 3.000%
8/01/46

      3,478,041         3,459,428   

Pool #G08726 3.000%
10/01/46

      3,316,295         3,299,584   
     Principal
Amount		      Value  

Pool #G08732 3.000%
11/01/46

    $ 1,158,046       $ 1,152,211   

Pool #G08737 3.000%
12/01/46

      413,968         411,882   

Pool #G08741 3.000%
12/01/46

      2,830,000         2,815,739   

Pool #G07848 3.500%
4/01/44

      3,189,965         3,302,486   

Pool #G07924 3.500%
1/01/45

      3,276,131         3,376,335   

Pool #G60023 3.500%
4/01/45

      3,348,948         3,457,657   

Pool #G60238 3.500%
10/01/45

      911,008         938,018   

Pool #G08698 3.500%
3/01/46

      4,600,607         4,715,442   

Pool #G08702 3.500%
4/01/46

      1,298,306         1,330,814   

Pool #G08706 3.500%
5/01/46

      569,439         583,698   

Pool #G08711 3.500%
6/01/46

      1,966,344         2,015,733   

Pool #G08716 3.500%
8/01/46

      2,716,667         2,784,902   

Pool #G67700 3.500%
8/01/46

      3,689,158         3,799,689   

Pool #G08722 3.500%
9/01/46

      543,919         557,581   

Pool #G08677 4.000%
11/01/45

      1,299,339         1,366,691   

Pool #G60344 4.000%
12/01/45

      2,231,767         2,362,796   

Pool #G08703 4.000%
4/01/46

      1,006,303         1,057,837   

Pool #G08707 4.000%
5/01/46

      2,258,722         2,373,688   

Federal National Mortgage Association

  

Pool #AM0359 2.310%
8/01/22

      500,000         495,516   

Pool #AM0992 2.340%
11/01/22

      820,000         811,453   

Pool #AM1402 2.420%
11/01/22

      945,000         938,788   

Pool #MA2740 2.500%
9/01/26

      1,883,622         1,919,234   

Pool #AM0827 2.600%
11/01/22

      999,524         1,005,098   

Pool #AN2913 2.610%
11/01/28

      725,000         688,081   

Pool #AM2808 2.700%
3/01/23

      375,000         377,180   

Pool #AN1089 2.740%
3/01/26

      690,000         678,041   
 

 

The accompanying notes are an integral part of the financial statements.

 

127

Table of Contents

MML Total Return Bond Fund – Portfolio of Investments (Continued)

 

     Principal
Amount		      Value  

Pool #AL6829 2.965%
5/01/27

    $ 1,369,662       $ 1,362,499   

Pool #MA1607 3.000%
10/01/33

      914,997         934,763   

Pool #AM9343 3.380%
9/01/30

      650,000         656,605   

Pool #AB4262 3.500%
1/01/32

      1,016,987         1,062,315   

Pool #MA1512 3.500%
7/01/33

      448,800         468,382   

Pool #MA1148 3.500%
8/01/42

      3,053,199         3,140,621   

Pool #469621 3.650%
11/01/21

      1,596,588         1,681,638   

Pool #AL7916 3.820%
1/01/29

      1,733,701         1,827,520   

Pool #AM4108 3.850%
8/01/25

      380,557         402,968   

Pool #AM4109 3.850%
8/01/25

      423,370         448,301   

Pool #466960 3.890%
12/01/20

      1,140,949         1,205,870   

Pool #466919 3.930%
1/01/21

      1,475,916         1,563,270   

Pool #AM4236 3.940%
8/01/25

      630,187         670,909   

Pool #468551 3.980%
7/01/21

      1,230,000         1,310,906   

Pool #AL9027 4.000%
9/01/46

      2,552,146         2,687,429   

Pool #AL9549 4.000%
9/01/46

      1,205,000         1,268,874   

Pool #AM5165 4.080%
1/01/29

      653,073         699,981   

Pool #931504 4.500%
7/01/39

      133,138         145,989   

Pool #986268 5.000%
7/01/38

      2,112         2,317   

Pool #AD6374 5.000%
5/01/40

      44,788         49,057   

Pool #AE6338 5.000%
11/01/40

      58,063         63,560   

Pool #AI2733 5.000%
5/01/41

      448,838         491,337   

Pool #977014 5.500%
5/01/38

      48,678         54,958   

Pool #985524 5.500%
6/01/38

      43,997         49,372   

Pool #988578 5.500%
8/01/38

      342,913         384,800   

Pool #995482 5.500%
1/01/39

      231,917         262,057   

Federal National Mortgage Association TBA

  

Pool #3348 2.500%
3/01/29 (b)

      2,580,000         2,585,845   
     Principal
Amount		      Value  

Pool #1312 3.000%
9/01/28 (b)

    $ 1,665,000       $ 1,708,836   

Pool #4241 3.000%
5/01/44 (b)

      4,165,000         4,140,921   

Pool #1963 3.500%
1/01/44 (b)

      4,020,000         4,120,500   

Pool #9174 4.000%
12/01/42 (b)

      4,445,000         4,672,806   

Government National Mortgage Association, Pool #MA3736 3.500% 6/20/46

      1,232,746         1,283,115   

Government National Mortgage Association II

  

Pool #MA4126 3.000%
12/20/46

      2,945,000         2,987,679   

Pool #MA3521 3.500%
3/20/46

      1,394,219         1,451,077   

Pool #MA3597 3.500%
4/20/46

      896,682         933,250   

Pool #MA3663 3.500%
5/20/46

      639,667         665,803   

Pool #MA3937 3.500%
9/20/46

      495,195         516,124   

Government National Mortgage Association II TBA

  

Pool #188 3.000%
12/01/44 (b)

      2,020,000         2,045,881   

Pool #207 3.500%
8/01/44 (b)

      3,590,000         3,733,039   
     

 

 

  
        112,228,885   
     

 

 

  
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS AND INSTRUMENTALITIES
(Cost $113,792,214)		         112,228,885   
  

 

 

  
U.S. TREASURY OBLIGATIONS — 34.9%   
U.S. Treasury Bonds & Notes — 34.9%   

U.S. Treasury Bond
2.875% 11/15/46

      15,265,000         14,739,073   

U.S. Treasury Inflation Index
0.375% 7/15/25

      4,757,026         4,731,186   

U.S. Treasury Inflation Index
0.750% 2/15/45

      3,259,106         3,066,626   

U.S. Treasury Inflation Index
1.375% 2/15/44

      1,431,281         1,561,973   

U.S. Treasury Note
0.750% 10/31/17

      6,115,000         6,109,058   

U.S. Treasury Note
0.750% 10/31/18

      8,470,000         8,408,832   

U.S. Treasury Note
1.000% 12/31/17

      3,475,000         3,477,257   

U.S. Treasury Note
1.000% 11/30/18

      9,015,000         8,985,860   

U.S. Treasury Note
1.250% 10/31/21

      4,955,000         4,804,947   
 

 

The accompanying notes are an integral part of the financial statements.

 

128

Table of Contents

MML Total Return Bond Fund – Portfolio of Investments (Continued)

 

    Principal
Amount		     Value  

U.S. Treasury Note
1.500% 12/31/18

   $ 20,095,000     $ 20,209,604  

U.S. Treasury Note
1.500% 1/31/19

     3,925,000       3,946,158  

U.S. Treasury Note
1.500% 1/31/22

     8,885,000       8,683,786  

U.S. Treasury Note
1.750% 11/30/21

     14,435,000       14,328,288  

U.S. Treasury Note
2.000% 12/31/21

     21,225,000       21,298,627  

U.S. Treasury Note
2.000% 11/15/26

     20,360,000       19,593,320  
   

 

 

  
      143,944,595  
   

 

 

  
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $144,602,542)		       143,944,595  
 

 

 

  
TOTAL BONDS & NOTES
(Cost $417,377,309)		       415,243,741  
 

 

 

  
TOTAL LONG-TERM INVESTMENTS
(Cost $417,377,309)		       415,243,741  
 

 

 

  
SHORT-TERM INVESTMENTS — 10.6%  
Repurchase Agreement — 6.7%    

State Street Bank & Trust Co. Repurchase Agreement, dated 12/30/16,
0.010%, due 1/03/17 (c)

     27,469,182       27,469,182  
   

 

 

  
Sovereign Debt Obligations — 3.8%  

Japan Treasury Discount Bill JPY (d) 0.000% 1/10/17

     1,200,000,000       10,267,328  

Japan Treasury Discount Bill JPY (d) 0.000% 3/13/17

     630,000,000       5,393,382  
   

 

 

  
      15,660,710  
   

 

 

  
U.S. Treasury Bill — 0.1%    

U.S. Treasury Bill (e)
0.000% 4/06/17

     223,000       222,697  
   

 

 

  
TOTAL SHORT-TERM INVESTMENTS
(Cost $45,096,323)		       43,352,589  
 

 

 

  
TOTAL INVESTMENTS — 111.2% (Cost $462,473,632) (f)       458,596,330  
Other Assets/(Liabilities) — (11.2)%       (46,241,857 ) 
 

 

 

  
NET ASSETS — 100.0%     $ 412,354,473  
 

 

 

  

Notes to Portfolio of Investments

Percentages are stated as a percent of net assets.

ABS Asset-Backed Security
BAB Build America Bonds
CLO Collateralized Loan Obligation
CMO Collateralized Mortgage Obligation
CMT Constant Maturity Treasury Index
FRN Floating Rate Note
MBS Mortgage-Backed Security
MTA Monthly Treasury Average Index
STEP Step Up Bond
TBA To Be Announced
VRN Variable Rate Note
WL Whole Loan
(a) 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. At December 31, 2016, these securities amounted to a value of $37,865,426 or 9.18% of net assets.
(b) A portion of this security is purchased on a when-issued, delayed-delivery or forward commitment basis. (Note 2).
(c) Maturity value of $27,469,212. Collateralized by U.S. Government Agency obligations with a rate of 2.250%, maturity date of 7/31/21, and an aggregate market value, including accrued interest, of $28,018,584.
(d) The principal amount of the security is in foreign currency. The market value is in U.S. dollars.
(e) A portion of this security is held as collateral for open futures contracts. (Note 2).
(f) See Note 6 for aggregate cost for federal tax purposes.
 

 

The accompanying notes are an integral part of the financial statements.

 

129

Table of Contents

MML Series Investment Fund – Financial Statements

 

Statements of Assets and Liabilities

December 31, 2016

 

       MML
Blue Chip
Growth Fund		        MML
Equity
Income Fund		  
Assets:          

Investments, at value (Note 2) (a)

      $ 378,044,942        $ 480,460,855  

Repurchase agreements, at value (b)

        3,657,524          9,915,158  

Other short-term investments, at value (Note 2) (c)

        -          43,397  
    

 

 

       

 

 

  

Total investments (d)

        381,702,466          490,419,410  
    

 

 

       

 

 

  

Foreign currency, at value (e)

        -          123  

Receivables from:

          

Investments sold

        484,502          84,730  

Fund shares sold

        120,935          106,717  

Interest and dividends

        188,379          912,639  

Foreign taxes withheld

        -          -  
    

 

 

       

 

 

  

Total assets

        382,496,282          491,523,619  
    

 

 

       

 

 

  
Liabilities:          

Payables for:

          

Investments purchased

        1,874,516          -  

Fund shares repurchased

        137,233          85,755  

Securities on loan (Note 2)

        -          -  

Trustees’ fees and expenses (Note 3)

        53,292          81,423  

Variation margin on open derivative instruments (Note 2)

        -          -  

Affiliates (Note 3):

          

Investment advisory fees

        247,976          314,215  

Administration fees

        -          -  

Service fees

        28,740          45,325  

Accrued expense and other liabilities

        55,694          46,320  
    

 

 

       

 

 

  

Total liabilities

        2,397,451          573,038  
    

 

 

       

 

 

  

Net assets

      $ 380,098,831        $ 490,950,581  
    

 

 

       

 

 

  
Net assets consist of:          

Paid-in capital

      $ 233,349,460        $ 343,181,045  

Undistributed (accumulated) net investment income (loss)

        (33,171 )         10,818,884  

Accumulated net realized gain (loss) on investments and foreign currency transactions

        30,501,554          31,716,500  

Net unrealized appreciation (depreciation) on investments and foreign currency translations

        116,280,988          105,234,152  
    

 

 

       

 

 

  

Net assets

      $ 380,098,831        $ 490,950,581  
    

 

 

       

 

 

  
         

(a)        Cost of investments:

      $ 261,763,986        $ 375,227,023  

(b)        Cost of repurchase agreements:

      $ 3,657,524        $ 9,915,158  

(c)        Cost of other short-term investments:

      $ -        $ 43,397  

(d)        Securities on loan with market value of:

      $ -        $ -  

(e)        Cost of foreign currency:

      $ -        $ 123  

 

The accompanying notes are an integral part of the financial statements.

 

130

Table of Contents

 

MML
Equity
Index Fund		      MML
Focused
Equity Fund		      MML
Foreign
Fund		     MML
Fundamental
Growth Fund		      MML
Fundamental
Value Fund		  
          
$ 544,030,340      $ 132,790,278      $ 351,553,853     $ 169,358,132      $ 232,502,824  
  18,414,468        3,141,952        9,225,651       129,588        1,151,582  
  1,211,837        -        -       -        18,060  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  
  563,656,645        135,932,230        360,779,504       169,487,720        233,672,466  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  
  -        -        15,775       -        -  
          
  -        -        25,490       107,960        -  
  11,744        59,756        44,502       69,543        69,787  
  668,165        45,852        434,252       115,192        285,440  
  -        -        425,767       527        51,407  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  
  564,336,554        136,037,838        361,725,290       169,780,942        234,079,100  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  
          
          
  -        -        52,866       118,352        651,202  
  6,406        68,228        71,411       40,089        90,784  
  -        -        2,095,368       -        -  
  102,071        16,156        58,338       20,795        25,431  
  80,053        -        -       -        -  
          
  44,866        84,316        272,472       91,267        119,959  
  50,178        18,068        -       22,081        29,990  
  25,993        4,033        6,832       2,464        5,489  
  52,432        28,905        100,470       39,617        35,623  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  
  361,999        219,706        2,657,757       334,665        958,478  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  
$ 563,974,555      $ 135,818,132      $ 359,067,533     $ 169,446,277      $ 233,120,622  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  
          
$ 334,108,373      $ 95,424,192      $ 369,717,851     $ 131,587,209      $ 161,309,232  
  8,699,279        1,607,936        7,399,681       1,372,286        4,200,172  
  11,971,926        12,576,122        (20,556,313 )      13,893,405        15,977,367  
  209,194,977        26,209,882        2,506,314       22,593,377        51,633,851  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  
$ 563,974,555      $ 135,818,132      $ 359,067,533     $ 169,446,277      $ 233,120,622  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  
          
$ 334,711,231      $ 106,580,396      $ 349,012,611     $ 146,764,755      $ 180,864,972  
$ 18,414,468      $ 3,141,952      $ 9,225,651     $ 129,588      $ 1,151,582  
$ 1,211,851      $ -      $ -     $ -      $ 18,060  
$ -      $ -      $ 1,993,224     $ -      $ -  
$ -      $ -      $ 15,815     $ -      $ -  

 

131

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Statements of Assets and Liabilities

December 31, 2016

 

       MML
Blue Chip
Growth Fund		        MML
Equity
Income Fund		  
Initial Class shares:          

Net assets

      $ 332,687,932         $ 413,303,858   
    

 

 

       

 

 

  

Shares outstanding (a)

        23,803,773           35,073,014   
    

 

 

       

 

 

  

Net asset value, offering price and redemption price per share

      $ 13.98         $ 11.78   
    

 

 

       

 

 

  
Class I shares:          

Net assets

      $ -         $ -   
    

 

 

       

 

 

  

Shares outstanding (a)

        -           -   
    

 

 

       

 

 

  

Net asset value, offering price and redemption price per share

      $ -         $ -   
    

 

 

       

 

 

  
Class II shares:          

Net assets

      $ -         $ -   
    

 

 

       

 

 

  

Shares outstanding (a)

        -           -   
    

 

 

       

 

 

  

Net asset value, offering price and redemption price per share

      $ -         $ -   
    

 

 

       

 

 

  
Class III shares:          

Net assets

      $ -         $ -   
    

 

 

       

 

 

  

Shares outstanding (a)

        -           -   
    

 

 

       

 

 

  

Net asset value, offering price and redemption price per share

      $ -         $ -   
    

 

 

       

 

 

  
Service Class shares:          

Net assets

      $ 47,410,899         $ 77,646,723   
    

 

 

       

 

 

  

Shares outstanding (a)

        3,480,116           6,649,714   
    

 

 

       

 

 

  

Net asset value, offering price and redemption price per share

      $ 13.62         $ 11.68   
    

 

 

       

 

 

  
Service Class I shares::          

Net assets

      $ -         $ -   
    

 

 

       

 

 

  

Shares outstanding (a)

        -           -   
    

 

 

       

 

 

  

Net asset value, offering price and redemption price per share

      $ -         $ -   
    

 

 

       

 

 

  

 

(a) Authorized unlimited number of shares with no par value.

 

The accompanying notes are an integral part of the financial statements.

 

132

Table of Contents

 

MML
Equity
Index Fund		      MML
Focused
Equity Fund		      MML
Foreign
Fund		      MML
Fundamental
Growth Fund		      MML
Fundamental
Value Fund		  
           
$ -       $ -       $ 348,836,482       $ -       $ -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  -         -         36,958,606         -         -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ -       $ -       $ 9.44       $ -       $ -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
           
$ 66,342,998       $ -       $ -       $ -       $ -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  2,500,566         -         -         -         -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 26.53       $ -       $ -       $ -       $ -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
           
$ 175,525,450       $ 128,989,570       $ -       $ 165,183,026       $ 223,801,367   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  6,610,845         9,770,274         -         14,461,574         15,182,852   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 26.55       $ 13.20       $ -       $ 11.42       $ 14.74   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
           
$ 279,940,934       $ -       $ -       $ -       $ -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  10,560,363         -         -         -         -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 26.51       $ -       $ -       $ -       $ -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
           
$ -       $ -       $ 10,231,051       $ -       $ -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  -         -         1,090,682         -         -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ -       $ -       $ 9.38       $ -       $ -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
           
$ 42,165,173       $ 6,828,562       $ -       $ 4,263,251       $ 9,319,255   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  1,632,088         521,054         -         377,645         639,792   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 25.84       $ 13.11       $ -       $ 11.29       $ 14.57   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

133

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Statements of Assets and Liabilities

December 31, 2016

 

       MML
Global Fund		        MML
Growth &
Income Fund		  
Assets:          

Investments, at value (Note 2) (a)

      $ 248,310,021        $ 125,098,410  

Repurchase agreements, at value (b)

        1,217,925          905,307  

Other short-term investments, at value (Note 2) (c)

        18,129          8,174  
    

 

 

       

 

 

  

Total investments (d)

        249,546,075          126,011,891  
    

 

 

       

 

 

  

Foreign currency, at value (e)

        16,551          1  

Receivables from:

          

Investments sold

        -          -  

Open forward foreign currency contracts (Note 2)

        -          -  

Investment adviser (Note 3)

        -          -  

Fund shares sold

        62,170          106,379  

Interest and dividends

        205,134          128,389  

Foreign taxes withheld

        254,012          -  
    

 

 

       

 

 

  

Total assets

        250,083,942          126,246,660  
    

 

 

       

 

 

  
Liabilities:          

Payables for:

          

Investments purchased

        -          -  

Written options outstanding, at value (Note 2) (f)

        -          -  

Open forward foreign currency contracts (Note 2)

        -          -  

Fund shares repurchased

        43,746          67,182  

Securities on loan (Note 2)

        3,209,958          -  

Trustees’ fees and expenses (Note 3)

        24,440          28,812  

Affiliates (Note 3):

          

Investment advisory fees

        125,204          53,557  

Administration fees

        31,301          -  

Service fees

        7,695          13,886  

Accrued expense and other liabilities

        58,027          28,890  
    

 

 

       

 

 

  

Total liabilities

        3,500,371          192,327  
    

 

 

       

 

 

  

Net assets

      $ 246,583,571        $ 126,054,333  
    

 

 

       

 

 

  
Net assets consist of:          

Paid-in capital

      $ 193,598,102        $ 103,811,944  

Undistributed (accumulated) net investment income (loss)

        2,804,692          1,261,399  

Accumulated net realized gain (loss) on investments and foreign currency transactions

        18,228,309          (14,374,034 ) 

Net unrealized appreciation (depreciation) on investments and foreign currency translations

        31,952,468          35,355,024  
    

 

 

       

 

 

  

Net assets

      $ 246,583,571        $ 126,054,333  
    

 

 

       

 

 

  
         

(a)        Cost of investments:

      $ 216,335,664        $ 89,743,386  

(b)        Cost of repurchase agreements:

      $ 1,217,925        $ 905,307  

(c)        Cost of other short-term investments:

      $ 18,129        $ 8,174  

(d)        Securities on loan with market value of:

      $ 3,144,762        $ -  

(e)        Cost of foreign currency:

      $ 16,586        $ 1  

(f)         Premiums on written options:

      $ -        $ -  

 

The accompanying notes are an integral part of the financial statements.

 

134

Table of Contents

 

MML
Income &
Growth Fund		      MML
International
Equity Fund		     MML
Large Cap
Growth Fund		      MML
Managed
Volatility Fund		     MML
Mid Cap
Growth Fund		  
         
$ 266,898,748      $ 148,377,331     $ 105,756,497      $ 182,457,774     $ 421,147,186  
  11,374,171        3,166,695       1,202,159        5,163,935       15,573,326  
  -        -       -        1,188       -  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  
  278,272,919        151,544,026       106,958,656        187,622,897       436,720,512  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  
  1,093        10,781       -        17,721       1,646  
         
  -        110,150       -        -       295,617  
  -        294,394       -        -       -  
  -        9,897       -        -       -  
  55,107        36,047       69,402        7,517       67,216  
  465,091        78,024       56,756        234,125       224,528  
  -        340,620       5,816        -       -  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  
  278,794,210        152,423,939       107,090,630        187,882,260       437,309,519  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  
         
         
  -        235,954       -        -       818,764  
  -        -       -        3,424,740       -  
  -        370       -        -       -  
  53,643        20,337       38,832        70,783       123,916  
  -        145,010       -        -       11,944,642  
  32,799        9,525       26,451        50,474       60,755  
         
  154,103        104,188       70,062        117,565       279,394  
  -        19,535       -        -       -  
  12,083        624       2,216        20,475       44,113  
  41,861        72,321       33,222        92,267       57,380  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  
  294,489        607,864       170,783        3,776,304       13,328,964  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  
$ 278,499,721      $ 151,816,075     $ 106,919,847      $ 184,105,956     $ 423,980,555  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  
         
$ 200,371,179      $ 163,633,895     $ 70,902,767      $ 157,757,398     $ 276,176,149  
  4,967,449        2,549,717       379,013        2,303,224       (153,367 ) 
  20,583,204        (16,842,499 )      27,572,315        (4,511,108 )      43,953,512  
  52,577,889        2,474,962       8,065,752        28,556,442       104,004,261  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  
$ 278,499,721      $ 151,816,075     $ 106,919,847      $ 184,105,956     $ 423,980,555  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  
         
$ 214,320,685      $ 146,149,569     $ 97,690,745      $ 153,675,824     $ 317,142,939  
$ 11,374,171      $ 3,166,695     $ 1,202,159      $ 5,163,935     $ 15,573,326  
$ -      $ -     $ -      $ 1,188     $ -  
$ -      $ 138,095     $ -      $ -     $ 11,665,878  
$ 1,103      $ 10,790     $ -      $ 18,250     $ 1,652  
$ -      $ -     $ -      $ 3,199,761     $ -  

 

135

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Statements of Assets and Liabilities

December 31, 2016

 

       MML
Global Fund		        MML
Growth &
Income Fund		  
Initial Class:          

Net assets

      $ -         $ 102,857,720   
    

 

 

       

 

 

  

Shares outstanding (a)

        -           7,250,966   
    

 

 

       

 

 

  

Net asset value, offering price and redemption price per share

      $ -         $ 14.19   
    

 

 

       

 

 

  
Class I shares:          

Net assets

      $ 218,697,669         $ -   
    

 

 

       

 

 

  

Shares outstanding (a)

        18,953,968           -   
    

 

 

       

 

 

  

Net asset value, offering price and redemption price per share

      $ 11.54         $ -   
    

 

 

       

 

 

  
Class II shares:          

Net assets

      $ 15,757,353         $ -   
    

 

 

       

 

 

  

Shares outstanding (a)

        1,341,695           -   
    

 

 

       

 

 

  

Net asset value, offering price and redemption price per share

      $ 11.74         $ -   
    

 

 

       

 

 

  
Service Class shares:          

Net assets

      $ -         $ 23,196,613   
    

 

 

       

 

 

  

Shares outstanding (a)

        -           1,645,361   
    

 

 

       

 

 

  

Net asset value, offering price and redemption price per share

      $ -         $ 14.10   
    

 

 

       

 

 

  
Service Class I shares:          

Net assets

      $ 12,128,549         $ -   
    

 

 

       

 

 

  

Shares outstanding (a)

        1,060,953           -   
    

 

 

       

 

 

  

Net asset value, offering price and redemption price per share

      $ 11.43         $ -   
    

 

 

       

 

 

  

 

(a) Authorized unlimited number of shares with no par value.

 

The accompanying notes are an integral part of the financial statements.

 

136

Table of Contents

 

MML
Income &
Growth Fund		      MML
International
Equity Fund		      MML
Large Cap
Growth Fund		      MML
Managed
Volatility Fund		      MML
Mid Cap
Growth Fund		  
           
$ 257,874,113       $ -       $ 103,315,348       $ 151,537,093       $ 352,753,586   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  21,741,098         -         9,715,609         12,911,105         24,574,101   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 11.86       $ -       $ 10.63       $ 11.74       $ 14.35   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
           
$ -       $ -       $ -       $ -       $ -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  -         -         -         -         -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ -       $ -       $ -       $ -       $ -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
           
$ -       $ 150,752,914       $ -       $ -       $ -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  -         16,159,131         -         -         -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ -       $ 9.33       $ -       $ -       $ -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
           
$ 20,625,608       $ -       $ 3,604,499       $ 32,568,863       $ 71,226,969   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  1,756,148         -         346,311         2,797,703         5,105,032   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 11.74       $ -       $ 10.41       $ 11.64       $ 13.95   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
           
$ -       $ 1,063,161       $ -       $ -       $ -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  -         114,412         -         -         -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ -       $ 9.29       $ -       $ -       $ -   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

137

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Statements of Assets and Liabilities

December 31, 2016

 

       MML
Mid Cap
Value Fund		        MML
Small Cap
Growth
Equity Fund		  
Assets:          

Investments, at value (Note 2) (a)

      $ 469,576,876        $ 218,182,817  

Repurchase agreements, at value (b)

        8,006,866          3,038,156  

Other short-term investments, at value (Note 2) (c)

        32,346          8,717  
    

 

 

       

 

 

  

Total investments (d)

        477,616,088          221,229,690  
    

 

 

       

 

 

  

Foreign currency, at value (e)

        13          11  

Receivables from:

          

Investments sold

        832,118          251,910  

Investments sold on a when-issued basis (Note 2)

        -          -  

Open forward foreign currency contracts (Note 2)

        20,842          -  

Investment adviser (Note 3)

        -          -  

Fund shares sold

        120,591          78,668  

Variation margin on open derivative instruments (Note 2)

        -          -  

Interest and dividends

        1,051,987          233,780  

Foreign taxes withheld

        1,461          -  
    

 

 

       

 

 

  

Total assets

        479,643,100          221,794,059  
    

 

 

       

 

 

  
Liabilities:          

Payables for:

          

Investments purchased

        1,772,083          349,484  

Open forward foreign currency contracts (Note 2)

        95,156          -  

Investments purchased on a when-issued basis (Note 2)

        -          -  

Fund shares repurchased

        73,546          95,231  

Securities on loan (Note 2)

        -          16,856,377  

Trustees’ fees and expenses (Note 3)

        74,300          48,640  

Affiliates (Note 3):

          

Investment advisory fees

        343,673          181,694  

Administration fees

        -          -  

Service fees

        26,357          7,953  

Accrued expense and other liabilities

        64,004          40,947  
    

 

 

       

 

 

  

Total liabilities

        2,449,119          17,580,326  
    

 

 

       

 

 

  

Net assets

      $ 477,193,981        $ 204,213,733  
    

 

 

       

 

 

  
Net assets consist of:          

Paid-in capital

      $ 378,629,857        $ 178,122,653  

Undistributed (accumulated) net investment income (loss)

        7,414,131          27,553  

Accumulated net realized gain (loss) on investments and foreign currency transactions

        23,591,588          6,714,116  

Net unrealized appreciation (depreciation) on investments and foreign currency translations

        67,558,405          19,349,411  
    

 

 

       

 

 

  

Net assets

      $ 477,193,981        $ 204,213,733  
    

 

 

       

 

 

  
         

(a)        Cost of investments:

      $ 401,944,682        $ 198,833,120  

(b)        Cost of repurchase agreements:

      $ 8,006,866        $ 3,038,156  

(c)        Cost of other short-term investments:

      $ 32,346        $ 8,717  

(d)        Securities on loan with market value of:

      $ -        $ 16,431,762  

(e)        Cost of foreign currency:

      $ 13        $ 11  

 

 

The accompanying notes are an integral part of the financial statements.

 

138

Table of Contents

 

MML
Small
Company
Value Fund		      MML
Small/Mid
Cap Value
Fund		      MML
Total Return
Bond Fund		  
     
$ 105,374,429      $ 228,037,669      $ 415,243,741  
  2,098,298        3,703,328        27,469,182  
  -        -        15,883,407  

 

 

     

 

 

     

 

 

  
  107,472,727        231,740,997        458,596,330  

 

 

     

 

 

     

 

 

  
  -        -        1  
     
  -        -        2,414,845  
  -        -        5,418,950  
  -        -        364,683  
  1        -        251  
  65,164        23,346        65,492  
  -        -        37,662  
  196,067        218,744        1,840,275  
  -        -        -  

 

 

     

 

 

     

 

 

  
  107,733,959        231,983,087        468,738,489  

 

 

     

 

 

     

 

 

  
     
     
  10,536        286,378        27,629,202  
  -        -        -  
  -        -        28,326,406  
  13,036        50,715        114,629  
  3,384,259        -        -  
  13,663        35,744        42,221  
     
  71,394        149,846        136,390  
  13,386        -        51,146  
  8,688        11,491        12,626  
  24,737        36,400        71,396  

 

 

     

 

 

     

 

 

  
  3,539,699        570,574        56,384,016  

 

 

     

 

 

     

 

 

  
$ 104,194,260      $ 231,412,513      $ 412,354,473  

 

 

     

 

 

     

 

 

  
     
$ 62,606,821      $ 176,247,523      $ 410,171,273  
  633,459        1,008,202        8,272,525  
  11,643,569        12,937,012        (2,515,639 ) 
  29,310,411        41,219,776        (3,573,686 ) 

 

 

     

 

 

     

 

 

  
$ 104,194,260      $ 231,412,513      $ 412,354,473  

 

 

     

 

 

     

 

 

  
     
$ 76,064,018      $ 186,817,893      $ 417,377,309  
$ 2,098,298      $ 3,703,328      $ 27,469,182  
$ -      $ -      $ 17,627,141  
$ 3,300,322      $ -      $ -  
$ -      $ -      $ 1  

 

139

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MML Series Investment Fund – Financial Statements (Continued)

 

Statements of Assets and Liabilities

December 31, 2016

 

       MML
Mid Cap
Value Fund		        MML
Small Cap
Growth
Equity Fund		  
Initial Class shares:          

Net assets

      $ 433,045,619         $ 191,245,199   
    

 

 

       

 

 

  

Shares outstanding (a)

        36,721,770           15,068,421   
    

 

 

       

 

 

  

Net asset value, offering price and redemption price per share

      $ 11.79         $ 12.69   
    

 

 

       

 

 

  
Class II shares:          

Net assets

      $ -         $ -   
    

 

 

       

 

 

  

Shares outstanding (a)

        -           -   
    

 

 

       

 

 

  

Net asset value, offering price and redemption price per share

      $ -         $ -   
    

 

 

       

 

 

  
Service Class shares:          

Net assets

      $ 44,148,362         $ 12,968,534   
    

 

 

       

 

 

  

Shares outstanding (a)

        3,796,255           1,067,963   
    

 

 

       

 

 

  

Net asset value, offering price and redemption price per share

      $ 11.63         $ 12.14   
    

 

 

       

 

 

  
Service Class I shares::          

Net assets

      $ -         $ -   
    

 

 

       

 

 

  

Shares outstanding (a)

        -           -   
    

 

 

       

 

 

  

Net asset value, offering price and redemption price per share

      $ -         $ -   
    

 

 

       

 

 

  

 

(a) Authorized unlimited number of shares with no par value.

 

The accompanying notes are an integral part of the financial statements.

 

140

Table of Contents

 

MML
Small
Company
Value Fund		      MML
Small/Mid
Cap Value
Fund		      MML
Total Return
Bond Fund		  
     
$ -       $ 211,849,187       $ -   

 

 

     

 

 

     

 

 

  
  -         16,008,711         -   

 

 

     

 

 

     

 

 

  
$ -       $ 13.23       $ -   

 

 

     

 

 

     

 

 

  
     
$ 88,729,158       $ -       $ 393,275,917   

 

 

     

 

 

     

 

 

  
  5,150,182         -         38,310,295   

 

 

     

 

 

     

 

 

  
$ 17.23       $ -       $ 10.27   

 

 

     

 

 

     

 

 

  
     
$ -       $ 19,563,326       $ -   

 

 

     

 

 

     

 

 

  
  -         1,491,190         -   

 

 

     

 

 

     

 

 

  
$ -       $ 13.12       $ -   

 

 

     

 

 

     

 

 

  
     
$ 15,465,102       $ -       $ 19,078,556   

 

 

     

 

 

     

 

 

  
  918,854         -         1,874,751   

 

 

     

 

 

     

 

 

  
$ 16.83       $ -       $ 10.18   

 

 

     

 

 

     

 

 

  

 

141

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Statements of Operations

For the Year Ended December 31, 2016

 

       MML
Blue Chip
Growth Fund		        MML
Equity
Income Fund		  
Investment income (Note 2):          

Dividends (a)

      $ 3,229,040         $ 14,297,518   

Interest

        196           60,954   

Securities lending net income

        -           -   
    

 

 

       

 

 

  

Total investment income

        3,229,236           14,358,472   
    

 

 

       

 

 

  
Expenses (Note 3):          

Investment advisory fees

        2,971,881           3,467,863   

Custody fees

        51,486           59,977   

Audit fees

        35,422           34,846   

Legal fees

        2,930           3,219   

Proxy fees

        985           985   

Shareholder reporting fees

        39,547           45,951   

Trustees’ fees

        23,445           27,196   
    

 

 

       

 

 

  
       3,125,696           3,640,037   

Administration fees:

          

Class I

        -           -   

Class II

        -           -   

Service Class I

        -           -   

Service fees:

          

Service Class

        105,861           165,191   

Service Class I

        -           -   
    

 

 

       

 

 

  

Total expenses

        3,231,557           3,805,228   

Expenses waived :

          

Initial Class advisory fees waived

        -           (70,506 ) 

Service Class advisory fees waived

        -           (12,104 ) 
    

 

 

       

 

 

  

Net expenses

        3,231,557           3,722,618   
    

 

 

       

 

 

  

Net investment income (loss)

        (2,321 )         10,635,854   
    

 

 

       

 

 

  
Realized and unrealized gain (loss):          

Net realized gain (loss) on:

          

Investment transactions

        31,710,355           35,721,181   

Futures contracts

        -           -   

Foreign currency transactions

        (122 )         (53,822 ) 
    

 

 

       

 

 

  

Net realized gain (loss)

        31,710,233           35,667,359   
    

 

 

       

 

 

  

Net change in unrealized appreciation (depreciation) on:

          

Investment transactions

        (29,103,607 )         32,947,554   

Futures contracts

        -           -   

Translation of assets and liabilities in foreign currencies

        11           3,231   
    

 

 

       

 

 

  

Net change in unrealized appreciation (depreciation)

        (29,103,596 )         32,950,785   
    

 

 

       

 

 

  

Net realized gain (loss) and change in unrealized appreciation (depreciation)

        2,606,637           68,618,144   
    

 

 

       

 

 

  

Net increase (decrease) in net assets resulting from operations

      $ 2,604,316         $ 79,253,998   
    

 

 

       

 

 

  
         

(a)        Net of foreign withholding tax of:

      $ 3,758         $ 169,821   

 

The accompanying notes are an integral part of the financial statements.

 

142

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MML
Equity
Index Fund		     MML
Focused
Equity Fund		      MML
Foreign
Fund		     MML
Fundamental
Growth Fund		     MML
Fundamental
Value Fund		  
        
$ 10,012,610      $ 2,966,223       $ 10,848,290      $ 2,877,684      $ 6,102,269   
  2,215        1,060         832        173        438   
  -        -         242,522        -        -   

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
  10,014,825        2,967,283         11,091,644        2,877,857        6,102,707   

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
        
  456,484        1,031,435         3,092,586        1,099,170        1,404,854   
  45,036        12,439         172,994        42,491        24,158   
  35,466        34,579         41,438        34,602        34,650   
  3,287        1,055         2,461        1,261        1,739   
  985        985         985        985        985   
  42,486        15,567         34,380        18,395        22,602   
  26,715        8,790         20,739        10,500        13,752   

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
  610,459        1,104,850         3,365,583        1,207,404        1,502,740   
        
  210,986        -         -        -        -   
  248,383        211,433         -        260,863        339,118   
  117,628        9,589         -        5,065        12,096   
        
  -        -         27,391        -        -   
  98,023        15,982         -        8,442        20,160   

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
  1,285,479        1,341,854         3,392,974        1,481,774        1,874,114   
        
  -        -         -        -        -   
  -        -         -        -        -   

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
  1,285,479        1,341,854         3,392,974        1,481,774        1,874,114   

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
  8,729,346        1,625,429         7,698,670        1,396,083        4,228,593   

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
        
        
  18,897,306        12,576,129         (10,525,852 )      14,185,724        15,833,494   
  1,109,313        -         -        -        -   
  -        -         (218,339 )      301        (894 ) 

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
  20,006,619        12,576,129         (10,744,191 )      14,186,025        15,832,600   

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
        
  21,528,371        10,422,355         7,896,891        (9,193,322 )      10,959,495   
  (127,367 )      -         -        -        -   
  -        -         3,121        -        (1,151 ) 

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
  21,401,004        10,422,355         7,900,012        (9,193,322 )      10,958,344   

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
  41,407,623        22,998,484         (2,844,179 )      4,992,703        26,790,944   

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
$ 50,136,969      $ 24,623,913       $ 4,854,491      $ 6,388,786      $ 31,019,537   

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
        
$ -      $ -       $ 1,065,315      $ 1,279      $ 39,440   

 

143

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Statements of Operations

For the Year Ended December 31, 2016

 

       MML
Global Fund		      MML
Growth &
Income Fund		  
Investment income (Note 2):        

Dividends (a)

      $ 4,911,176       $ 2,039,999   

Interest

        210         130   

Securities lending net income

        38,653         -   
    

 

 

     

 

 

  

Total investment income

        4,950,039         2,040,129   
    

 

 

     

 

 

  
Expenses (Note 3):        

Investment advisory fees

        1,492,135         614,661   

Custody fees

        80,588         14,420   

Audit fees

        41,352         34,553   

Legal fees

        1,832         867   

Proxy fees

        985         985   

Shareholder reporting fees

        24,930         12,924   

Trustees’ fees

        14,604         7,261   
    

 

 

     

 

 

  
       1,656,426         685,671   

Administration fees:

        

Class I

        332,320         -   

Class II

        23,538         -   

Service Class I

        17,176         -   

Service fees:

        

Service Class

        -         50,415   

Service Class I

        28,627         -   
    

 

 

     

 

 

  

Total expenses

        2,058,087         736,086   

Expenses waived :

        

Class II fees reimbursed by adviser

        -         -   

Service Class I fees reimbursed by adviser

        -         -   
    

 

 

     

 

 

  

Net expenses

        2,058,087         736,086   
    

 

 

     

 

 

  

Net investment income (loss)

        2,891,952         1,304,043   
    

 

 

     

 

 

  
Realized and unrealized gain (loss):        

Net realized gain (loss) on:

        

Investment transactions

        18,271,943         4,900,855   

Written options

        -         -   

Foreign currency transactions

        (57,147 )       (1,972 ) 
    

 

 

     

 

 

  

Net realized gain (loss)

        18,214,796         4,898,883   
    

 

 

     

 

 

  

Net change in unrealized appreciation (depreciation) on:

        

Investment transactions

        (2,052,774 )*       4,121,853   

Written options

        -         -   

Translation of assets and liabilities in foreign currencies

        (5,806 )       -   
    

 

 

     

 

 

  

Net change in unrealized appreciation (depreciation)

        (2,058,580 )       4,121,853   
    

 

 

     

 

 

  

Net realized gain (loss) and change in unrealized appreciation (depreciation)

        16,156,216         9,020,736   
    

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from operations

      $ 19,048,168       $ 10,324,779   
    

 

 

     

 

 

  
       

(a)        Net of foreign withholding tax of:

      $ 256,144       $ 21,898   
* Net decrease in accrued foreign capital gains tax of $(369).

 

The accompanying notes are an integral part of the financial statements.

 

144

Table of Contents

 

MML
Income &
Growth Fund		     MML
International
Equity Fund		     MML
Large Cap
Growth Fund		     MML
Managed
Volatility Fund		     MML
Mid Cap
Growth Fund		  
       
$ 6,840,045      $ 4,263,264      $ 1,674,110      $ 4,094,278      $ 3,100,483   
  884        491        502        490        14,075   
  -        38,679        -        -        234,774   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  6,840,929        4,302,434        1,674,612        4,094,768        3,349,332   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
       
  1,671,849        1,273,188        1,168,016        1,396,819        3,268,116   
  35,952        126,446        15,751        223,627        53,806   
  35,294        36,784        34,613        34,609        35,444   
  1,850        1,195        1,266        1,115        3,096   
  985        985        985        985        985   
  24,477        19,078        20,346        20,997        41,538   
  15,156        9,537        10,914        10,848        25,080   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  1,785,563        1,467,213        1,251,891        1,689,000        3,428,065   
       
  -        -        -        -        -   
  -        236,990        -        -        -   
  -        1,733        -        -        -   
       
  44,562        -        8,347        80,864        167,811   
  -        2,888        -        -        -   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  1,830,125        1,708,824        1,260,238        1,769,864        3,595,876   
       
  -        (113,586 )      -        -        -   
  -        (858 )      -        -        -   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  1,830,125        1,594,380        1,260,238        1,769,864        3,595,876   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  5,010,804        2,708,054        414,374        2,324,904        (246,544 ) 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
       
       
  20,796,270        (15,914,101 )      27,762,845        1,870,996        44,833,435   
  -        -        -        (4,271,668 )      -   
  (957 )      112,732        -        (77 )      (101 ) 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  20,795,313        (15,801,369 )      27,762,845        (2,400,749 )      44,833,334   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
       
  15,591,656        25,743,300        (29,371,491 )      9,152,344        (19,044,489 ) 
  -        -        -        (2,611,425 )      -   
  (102 )      81,624        -        (433 )      13   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  15,591,554        25,824,924        (29,371,491 )      6,540,486        (19,044,476 ) 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  36,386,867        10,023,555        (1,608,646 )      4,139,737        25,788,858   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
$ 41,397,671      $ 12,731,609      $ (1,194,272 )    $ 6,464,641      $ 25,542,314   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
       
$ 65,087      $ 441,291      $ 1,124      $ -      $ 12,177   

 

145

Table of Contents

MML Series Investment Fund — Financial Statements (Continued)

 

Statements of Operations

For the Year Ended December 31, 2016

 

       MML
Mid Cap
Value Fund		        MML
Small Cap
Growth
Equity Fund		  
Investment income (Note 2):          

Dividends (a)

      $ 11,436,857         $ 2,058,980   

Interest

       736           357   

Securities lending net income

        -           128,852   
    

 

 

       

 

 

  

Total investment income

        11,437,593           2,188,189   
    

 

 

       

 

 

  
Expenses (Note 3):          

Investment advisory fees

        3,950,567           2,047,842   

Custody fees

        67,925           47,967   

Audit fees

        35,479           37,110   

Legal fees

        3,389           1,314   

Proxy fees

        985           985   

Shareholder reporting fees

        45,414           20,824   

Trustees’ fees

        27,617           11,670   
    

 

 

       

 

 

  
       4,131,376           2,167,712   

Administration fees:

          

Class II

        -           -   

Service Class I

        -           -   

Service fees:

          

Service Class

        93,003           29,604   

Service Class I

        -           -   
    

 

 

       

 

 

  

Total expenses

        4,224,379           2,197,316   

Expenses waived :

          

Class II fees reimbursed by adviser

        -           -   

Service Class I fees reimbursed by adviser

        -           -   

Class II advisory fees waived

        -           -   

Service Class I advisory fees waived

        -           -   
    

 

 

       

 

 

  

Net expenses

        4,224,379           2,197,316   
    

 

 

       

 

 

  

Net investment income (loss)

        7,213,214           (9,127 ) 
    

 

 

       

 

 

  
Realized and unrealized gain (loss):          

Net realized gain (loss) on:

          

Investment transactions

        27,430,925           8,366,937   

Futures contracts

        -           -   

Foreign currency transactions

        228,666           (341 ) 
    

 

 

       

 

 

  

Net realized gain (loss)

        27,659,591           8,366,596   
    

 

 

       

 

 

  

Net change in unrealized appreciation (depreciation) on:

          

Investment transactions

        64,373,812           15,347,270   

Futures contracts

        -           -   

Translation of assets and liabilities in foreign currencies

        (42,981 )         209   
    

 

 

       

 

 

  

Net change in unrealized appreciation (depreciation)

        64,330,831           15,347,479   
    

 

 

       

 

 

  

Net realized gain (loss) and change in unrealized appreciation (depreciation)

        91,990,422           23,714,075   
    

 

 

       

 

 

  

Net increase (decrease) in net assets resulting from operations

      $ 99,203,636         $ 23,704,948   
    

 

 

       

 

 

  
         

(a)        Net of foreign withholding tax of:

      $ 36,837         $ 5,759   

 

The accompanying notes are an integral part of the financial statements.

 

146

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MML
Small
Company
Value Fund		     MML
Small/Mid
Cap Value
Fund		      MML
Total Return
Bond Fund		  
    
$ 1,653,254      $ 2,832,589       $ -   
  185        430         8,362,192   
  8,646        -         -   

 

 

    

 

 

     

 

 

  
  1,662,085        2,833,019         8,362,192   

 

 

    

 

 

     

 

 

  
    
  815,709        1,635,062         1,544,316   
  15,893        24,929         83,181   
  35,164        34,637         52,134   
  739        1,517         2,463   
  985        985         985   
  10,553        21,790         41,280   
  5,993        12,842         21,907   

 

 

    

 

 

     

 

 

  
  885,036        1,731,762         1,746,266   
    
  134,927        -         522,102   
  18,019        -         29,638   
    
  -        41,526         -   
  30,031        -         49,397   

 

 

    

 

 

     

 

 

  
  1,068,013        1,773,288         2,347,403   
    
  -        -         (17,064 ) 
  -        -         (957 ) 
  (44,969 )      -         (69,039 ) 
  (6,013 )      -         (3,970 ) 

 

 

    

 

 

     

 

 

  
  1,017,031        1,773,288         2,256,373   

 

 

    

 

 

     

 

 

  
  645,054        1,059,731         6,105,819   

 

 

    

 

 

     

 

 

  
    
    
  11,762,787        13,034,233         (281,802 ) 
  -        -         (212,505 ) 
  -        -         1,430,206   

 

 

    

 

 

     

 

 

  
  11,762,787        13,034,233         935,899   

 

 

    

 

 

     

 

 

  
    
  16,968,232        36,465,058         200,184   
  -        -         (34,055 ) 
  -        -         364,683   

 

 

    

 

 

     

 

 

  
  16,968,232        36,465,058         530,812   

 

 

    

 

 

     

 

 

  
  28,731,019        49,499,291         1,466,711   

 

 

    

 

 

     

 

 

  
$ 29,376,073      $ 50,559,022       $ 7,572,530   

 

 

    

 

 

     

 

 

  
    
$ 1,812      $ -       $ -   

 

147

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Statements of Changes in Net Assets

 

       MML
Blue Chip Growth Fund		  
       Year
Ended
December 31, 2016		        Year
Ended
December 31, 2015		  
Increase (Decrease) in Net Assets:          
Operations:          

Net investment income (loss)

      $ (2,321 )       $ (349,068 ) 

Net realized gain (loss) on investment transactions

        31,710,233          50,455,541  

Net change in unrealized appreciation (depreciation) on investments

        (29,103,596 )         (4,300,969 ) 
    

 

 

       

 

 

  

Net increase (decrease) in net assets resulting from operations

        2,604,316          45,805,504  
    

 

 

       

 

 

  
Distributions to shareholders (Note 2):          

From net investment income:

          

Initial Class

        -          -  

Class I

        -          -  

Class II

        -          -  

Class III

        -          -  

Service Class

        -          -  

Service Class I

        -          -  
    

 

 

       

 

 

  

Total distributions from net investment income

        -          -  
    

 

 

       

 

 

  

From net realized gains:

          

Initial Class

        (44,016,658 )         (62,289,222 ) 

Class I

        -          -  

Class II

        -          -  

Class III

        -          -  

Service Class

        (5,513,029 )         (6,171,321 ) 

Service Class I

        -          -  
    

 

 

       

 

 

  

Total distributions from net realized gains

        (49,529,687 )         (68,460,543 ) 
    

 

 

       

 

 

  
Net fund share transactions (Note 5):          

Initial Class

        (14,216,357 )         18,440,481  

Class I

        -          -  

Class II

        -          -  

Class III

        -          -  

Service Class

        10,100,450          13,312,534  

Service Class I

        -          -  
    

 

 

       

 

 

  

Increase (decrease) in net assets from fund share transactions

        (4,115,907 )         31,753,015  
    

 

 

       

 

 

  

Total increase (decrease) in net assets

        (51,041,278 )         9,097,976  
Net assets          

Beginning of year

        431,140,109          422,042,133  
    

 

 

       

 

 

  

End of year

      $ 380,098,831        $ 431,140,109  
    

 

 

       

 

 

  

Undistributed (accumulated) net investment income (loss) included in net assets at end of year

      $ (33,171 )       $ (69,942 ) 
    

 

 

       

 

 

  

 

The accompanying notes are an integral part of the financial statements.

 

148

Table of Contents

 

MML
Equity Income Fund		     MML
Equity Index Fund		  
Year
Ended
December 31, 2016		     Year
Ended
December 31, 2015		     Year
Ended
December 31, 2016		     Year
Ended
December 31, 2015		  
     
     
$ 10,635,854     $ 9,773,702     $ 8,729,346     $ 8,061,688  
  35,667,359       48,043,703       20,006,619       11,156,840  
  32,950,785       (93,042,103 )      21,401,004       (14,650,759 ) 

 

 

    

 

 

    

 

 

    

 

 

  
  79,253,998       (35,224,698 )      50,136,969       4,567,769  

 

 

    

 

 

    

 

 

    

 

 

  
     
     
  (8,080,286 )      (8,271,226 )      -       -  
  -       -       (1,138,655 )      (1,153,387 ) 
  -       -       (3,098,350 )      (2,440,730 ) 
  -       -       (3,556,322 )      (3,144,175 ) 
  (1,211,150 )      (1,072,744 )      -       -  
  -       -       (617,842 )      (555,456 ) 

 

 

    

 

 

    

 

 

    

 

 

  
  (9,291,436 )      (9,343,970 )      (8,411,169 )      (7,293,748 ) 

 

 

    

 

 

    

 

 

    

 

 

  
     
  (40,910,962 )      (43,647,364 )      -       -  
  -       -       (1,622,191 )      (1,723,595 ) 
  -       -       (3,906,075 )      (3,212,126 ) 
  -       -       (4,183,965 )      (3,815,424 ) 
  (6,930,496 )      (6,436,103 )      -       -  
  -       -       (962,234 )      (843,155 ) 

 

 

    

 

 

    

 

 

    

 

 

  
  (47,841,458 )      (50,083,467 )      (10,674,465 )      (9,594,300 ) 

 

 

    

 

 

    

 

 

    

 

 

  
     
  (14,762,650 )      18,918,608       -       -  
  -       -       (13,086,785 )      (7,783,632 ) 
  -       -       (384,062 )      14,726,714  
  -       -       94,690,407       4,278,949  
  11,031,372       11,554,876       -       -  
  -       -       874,480       7,738,315  

 

 

    

 

 

    

 

 

    

 

 

  
  (3,731,278 )      30,473,484       82,094,040       18,960,346  

 

 

    

 

 

    

 

 

    

 

 

  
  18,389,826       (64,178,651 )      113,145,375       6,640,067  
     
  472,560,755       536,739,406       450,829,180       444,189,113  

 

 

    

 

 

    

 

 

    

 

 

  
$ 490,950,581     $ 472,560,755     $ 563,974,555     $ 450,829,180  

 

 

    

 

 

    

 

 

    

 

 

  

$

10,818,884

 

   $ 9,649,862     $ 8,699,279     $ 7,900,197  

 

 

    

 

 

    

 

 

    

 

 

  

 

149

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Statements of Changes in Net Assets

 

       MML
Focused Equity Fund		  
       Year
Ended
December 31, 2016		        Year
Ended
December 31, 2015		  
Increase (Decrease) in Net Assets:          
Operations:          

Net investment income (loss)

      $ 1,625,429        $ 2,302,164  

Net realized gain (loss) on investment transactions

        12,576,129          10,037,468  

Net change in unrealized appreciation (depreciation) on investments

        10,422,355          (27,280,097 ) 
    

 

 

       

 

 

  

Net increase (decrease) in net assets resulting from operations

        24,623,913          (14,940,465 ) 
    

 

 

       

 

 

  
Distributions to shareholders (Note 2):          

From net investment income:

          

Initial Class

        -          -  

Class II

        (2,228,977 )         (2,897,589 ) 

Service Class

        -          -  

Service Class I

        (75,702 )         (110,596 ) 
    

 

 

       

 

 

  

Total distributions from net investment income

        (2,304,679 )         (3,008,185 ) 
    

 

 

       

 

 

  

From net realized gains:

          

Class II

        (9,579,688 )         (20,741,790 ) 

Service Class I

        (406,428 )         (899,601 ) 
    

 

 

       

 

 

  

Total distributions from net realized gains

        (9,986,116 )         (21,641,391 ) 
    

 

 

       

 

 

  
Net fund share transactions (Note 5):          

Initial Class

        -          -  

Class II

        (30,259,067 )         25,146,462  

Service Class

        -          -  

Service Class I

        (715,507 )         1,408,371  
    

 

 

       

 

 

  

Increase (decrease) in net assets from fund share transactions

        (30,974,574 )         26,554,833  
    

 

 

       

 

 

  

Total increase (decrease) in net assets

        (18,641,456 )         (13,035,208 ) 
Net assets          

Beginning of year

        154,459,588          167,494,796  
    

 

 

       

 

 

  

End of year

      $ 135,818,132        $ 154,459,588  
    

 

 

       

 

 

  

Undistributed (accumulated) net investment income (loss) included in net assets at end of year

      $ 1,607,936        $ 2,287,193  
    

 

 

       

 

 

  

 

The accompanying notes are an integral part of the financial statements.

 

150

Table of Contents

 

MML
Foreign Fund		     MML
Fundamental Growth Fund		  
Year
Ended
December 31, 2016		     Year
Ended
December 31, 2015		     Year
Ended
December 31, 2016		     Year
Ended
December 31, 2015		  
     
     
$ 7,698,670     $ 7,136,966     $ 1,396,083     $ 1,233,079  
  (10,744,191 )      6,447,456       14,186,025       20,689,392  
  7,900,012       (30,321,475 )      (9,193,322 )      (9,853,074 ) 

 

 

    

 

 

    

 

 

    

 

 

  
  4,854,491       (16,737,053 )      6,388,786       12,069,397  

 

 

    

 

 

    

 

 

    

 

 

  
     
     
  (6,733,929 )      (10,665,933 )      -       -  
  -       -       (1,164,469 )      (1,522,932 ) 
  (193,084 )      (322,750 )      -       -  
  -       -       (18,624 )      (20,162 ) 

 

 

    

 

 

    

 

 

    

 

 

  
  (6,927,013 )      (10,988,683 )      (1,183,093 )      (1,543,094 ) 

 

 

    

 

 

    

 

 

    

 

 

  
     
  -       -       (20,436,093 )      (35,452,387 ) 
  -       -       (412,071 )      (541,999 ) 

 

 

    

 

 

    

 

 

    

 

 

  
  -       -       (20,848,164 )      (35,994,386 ) 

 

 

    

 

 

    

 

 

    

 

 

  
     
  3,739,806       45,853,471       -       -  
  -       -       (2,566,740 )      1,052,674  
  (1,068,302 )      1,207,009       -       -  
  -       -       1,606,362       1,164,609  

 

 

    

 

 

    

 

 

    

 

 

  
  2,671,504       47,060,480       (960,378 )      2,217,283  

 

 

    

 

 

    

 

 

    

 

 

  
  598,982       19,334,744       (16,602,849 )      (23,250,800 ) 
     
  358,468,551       339,133,807       186,049,126       209,299,926  

 

 

    

 

 

    

 

 

    

 

 

  
$ 359,067,533     $ 358,468,551     $ 169,446,277     $ 186,049,126  

 

 

    

 

 

    

 

 

    

 

 

  

$

7,399,681

 

   $ 6,846,380     $ 1,372,286     $ 1,213,633  

 

 

    

 

 

    

 

 

    

 

 

  

 

151

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Statements of Changes in Net Assets

 

       MML
Fundamental Value Fund		  
       Year
Ended
December 31, 2016		        Year
Ended
December 31, 2015		  
Increase (Decrease) in Net Assets:          
Operations:          

Net investment income (loss)

      $ 4,228,593        $ 3,404,175  

Net realized gain (loss) on investment transactions

        15,832,600          17,023,290  

Net change in unrealized appreciation (depreciation) on investments

        10,958,344          (27,342,230 ) 
    

 

 

       

 

 

  

Net increase (decrease) in net assets resulting from operations

        31,019,537          (6,914,765 ) 
    

 

 

       

 

 

  
Distributions to shareholders (Note 2):          

From net investment income:

          

Initial Class

        -          -  

Class I

        -          -  

Class II

        (3,177,117 )         (3,059,837 ) 

Service Class

        -          -  

Service Class I

        (97,403 )         (74,012 ) 
    

 

 

       

 

 

  

Total distributions from net investment income

        (3,274,520 )         (3,133,849 ) 
    

 

 

       

 

 

  

From net realized gains:

          

Class I

        -          -  

Class II

        (16,431,141 )         (17,374,817 ) 

Service Class I

        (574,567 )         (465,845 ) 
    

 

 

       

 

 

  

Total distributions from net realized gains

        (17,005,708 )         (17,840,662 ) 
    

 

 

       

 

 

  
Net fund share transactions (Note 5):          

Initial Class

        -          -  

Class I

        -          -  

Class II

        (3,697,842 )         24,581,537  

Service Class

        -          -  

Service Class I

        1,213,663          2,883,449  
    

 

 

       

 

 

  

Increase (decrease) in net assets from fund share transactions

        (2,484,179 )         27,464,986  
    

 

 

       

 

 

  

Total increase (decrease) in net assets

        8,255,130          (424,290 ) 
Net assets          

Beginning of year

        224,865,492          225,289,782  
    

 

 

       

 

 

  

End of year

      $ 233,120,622        $ 224,865,492  
    

 

 

       

 

 

  

Undistributed (accumulated) net investment income (loss) included in net assets at end of year

      $ 4,200,172        $ 3,401,647  
    

 

 

       

 

 

  

 

The accompanying notes are an integral part of the financial statements.

 

152

Table of Contents

 

MML
Global Fund		     MML
Growth & Income Fund		  
Year
Ended
December 31, 2016		     Year
Ended
December 31, 2015		     Year
Ended
December 31, 2016		     Year
Ended
December 31, 2015		  
     
     
$ 2,891,952     $ 2,943,882     $ 1,304,043     $ 1,309,220  
  18,214,796       19,591,857       4,898,883       11,753,803  
  (2,058,580 )      (25,705,766 )      4,121,853       (12,364,158 ) 

 

 

    

 

 

    

 

 

    

 

 

  
  19,048,168       (3,170,027 )      10,324,779       698,865  

 

 

    

 

 

    

 

 

    

 

 

  
     
     
  -       -       (1,079,085 )      (1,325,627 ) 
  (2,547,594 )      (2,573,159 )      -       -  
  (177,958 )      (194,417 )      -       -  
  -       -       (171,221 )      (190,746 ) 
  (116,936 )      (95,568 )      -       -  

 

 

    

 

 

    

 

 

    

 

 

  
  (2,842,488 )      (2,863,144 )      (1,250,306 )      (1,516,373 ) 

 

 

    

 

 

    

 

 

    

 

 

  
     
  (17,521,108 )      (9,861,148 )      -       -  
  (1,198,304 )      (706,225 )      -       -  
  (941,843 )      (431,717 )      -       -  

 

 

    

 

 

    

 

 

    

 

 

  
  (19,661,255 )      (10,999,090 )      -       -  

 

 

    

 

 

    

 

 

    

 

 

  
     
  -       -       (11,230,669 )      (14,434,363 ) 
  (3,174,455 )      29,653,736       -       -  
  113,343       (516,071 )      -       -  
  -       -       2,835,766       31,132  
  1,770,763       2,128,221       -       -  

 

 

    

 

 

    

 

 

    

 

 

  
  (1,290,349 )      31,265,886       (8,394,903 )      (14,403,231 ) 

 

 

    

 

 

    

 

 

    

 

 

  
  (4,745,924 )      14,233,625       679,570       (15,220,739 ) 
     
  251,329,495       237,095,870       125,374,763       140,595,502  

 

 

    

 

 

    

 

 

    

 

 

  
$ 246,583,571     $ 251,329,495     $ 126,054,333     $ 125,374,763  

 

 

    

 

 

    

 

 

    

 

 

  

$

2,804,692

 

   $ 2,874,790     $ 1,261,399     $ 1,261,906  

 

 

    

 

 

    

 

 

    

 

 

  

 

153

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Statements of Changes in Net Assets

 

       MML
Income & Growth Fund		  
       Year
Ended
December 31, 2016		        Year
Ended
December 31, 2015		  
Increase (Decrease) in Net Assets:          
Operations:          

Net investment income (loss)

      $ 5,010,804        $ 4,567,746  

Net realized gain (loss) on investment transactions

        20,795,313          22,630,785  

Net change in unrealized appreciation (depreciation) on investments

        15,591,554          (27,368,276 ) 
    

 

 

       

 

 

  

Net increase (decrease) in net assets resulting from operations

        41,397,671          (169,745 ) 
    

 

 

       

 

 

  
Distributions to shareholders (Note 2):          

From net investment income:

          

Initial Class

        (4,279,358 )         (4,320,659 ) 

Class II

        -          -  

Service Class

        (277,905 )         (279,311 ) 

Service Class I

        -          -  
    

 

 

       

 

 

  

Total distributions from net investment income

        (4,557,263 )         (4,599,970 ) 
    

 

 

       

 

 

  

From net realized gains:

          

Initial Class

        (21,028,191 )         (14,106,335 ) 

Class II

        -          -  

Service Class

        (1,563,913 )         (1,036,220 ) 

Service Class I

        -          -  
    

 

 

       

 

 

  

Total distributions from net realized gains

        (22,592,104 )         (15,142,555 ) 
    

 

 

       

 

 

  
Net fund share transactions (Note 5):          

Initial Class

        22,805,308          8,119,045  

Class II

        -          -  

Service Class

        2,776,981          2,143,957  

Service Class I

        -          -  
    

 

 

       

 

 

  

Increase (decrease) in net assets from fund share transactions

        25,582,289          10,263,002  
    

 

 

       

 

 

  

Total increase (decrease) in net assets

        39,830,593          (9,649,268 ) 
Net assets          

Beginning of year

        238,669,128          248,318,396  
    

 

 

       

 

 

  

End of year

      $ 278,499,721        $ 238,669,128  
    

 

 

       

 

 

  

Undistributed (accumulated) net investment income (loss) included in net assets at end of year

      $ 4,967,449        $ 4,517,405  
    

 

 

       

 

 

  

 

The accompanying notes are an integral part of the financial statements.

 

154

Table of Contents

 

MML
International Equity Fund		     MML
Large Cap Growth Fund		  
Year
Ended
December 31, 2016
     Year
Ended
December 31, 2015
     Year
Ended
December 31, 2016
     Year
Ended
December 31, 2015
  
     
     
$ 2,708,054     $ 2,655,779     $ 414,374     $ 230,467  
  (15,801,369 )      722,053       27,762,845       16,258,396  
  25,824,924       (14,160,470 )      (29,371,491 )      (4,137,656 ) 

 

 

    

 

 

    

 

 

    

 

 

  
  12,731,609       (10,782,638 )      (1,194,272 )      12,351,207  

 

 

    

 

 

    

 

 

    

 

 

  
     
     
  -       -       (231,013 )      -  
  (3,276,084 )      (332,992 )      -       -  
  -       -       -       -  
  (19,857 )      (2,305 )      -       -  

 

 

    

 

 

    

 

 

    

 

 

  
  (3,295,941 )      (335,297 )      (231,013 )      -  

 

 

    

 

 

    

 

 

    

 

 

  
     
  -       -       (16,047,562 )      (43,425,029 ) 
  (366,284 )      -       -       -  
  -       -       (316,827 )      (653,118 ) 
  (2,464 )      -       -       -  

 

 

    

 

 

    

 

 

    

 

 

  
  (368,748 )      -       (16,364,389 )      (44,078,147 ) 

 

 

    

 

 

    

 

 

    

 

 

  
     
  -       -       (93,549,683 )      3,267,615  
  (22,358,626 )      51,164,597       -       -  
  -       -       459,219       1,304,526  
  (488,347 )      1,335,762       -       -  

 

 

    

 

 

    

 

 

    

 

 

  
  (22,846,973 )      52,500,359       (93,090,464 )      4,572,141  

 

 

    

 

 

    

 

 

    

 

 

  
  (13,780,053 )      41,382,424       (110,880,138 )      (27,154,799 ) 
     
  165,596,128       124,213,704       217,799,985       244,954,784  

 

 

    

 

 

    

 

 

    

 

 

  
$ 151,816,075     $ 165,596,128     $ 106,919,847     $ 217,799,985  

 

 

    

 

 

    

 

 

    

 

 

  

$

2,549,717

 

   $ 3,017,091     $ 379,013     $ 195,662  

 

 

    

 

 

    

 

 

    

 

 

  

 

155

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Statements of Changes in Net Assets

       MML
Managed Volatility Fund		  
       Year
Ended
December 31, 2016
        Year
Ended
December 31, 2015
  
Increase (Decrease) in Net Assets:  
Operations:  

Net investment income (loss)

      $ 2,324,904        $ 2,847,343  

Net realized gain (loss) on investment transactions

        (2,400,749 )         50,126,502  

Net change in unrealized appreciation (depreciation) on investments

        6,540,486          (44,754,278 ) 
    

 

 

       

 

 

  

Net increase (decrease) in net assets resulting from operations

        6,464,641          8,219,567  
    

 

 

       

 

 

  
Distributions to shareholders (Note 2):  

From net investment income:

 

Initial Class

        (2,685,854 )         (3,096,226 ) 

Service Class

        (494,437 )         (511,045 ) 
    

 

 

       

 

 

  

Total distributions from net investment income

        (3,180,291 )         (3,607,271 ) 
    

 

 

       

 

 

  

From net realized gains:

 

Initial Class

        (28,897,380 )         -  

Service Class

        (6,196,954 )         -  
    

 

 

       

 

 

  

Total distributions from net realized gains

        (35,094,334 )         -  
    

 

 

       

 

 

  
Net fund share transactions (Note 5):  

Initial Class

        15,411,463          (178,845,533 ) 

Service Class

        4,991,636          1,003,527  
    

 

 

       

 

 

  

Increase (decrease) in net assets from fund share transactions

        20,403,099          (177,842,006 ) 
    

 

 

       

 

 

  

Total increase (decrease) in net assets

        (11,406,885 )         (173,229,710 ) 
Net assets  

Beginning of year

        195,512,841          368,742,551  
    

 

 

       

 

 

  

End of year

      $ 184,105,956        $ 195,512,841  
    

 

 

       

 

 

  

Undistributed (accumulated) net investment income (loss) included in net assets at end of year

      $ 2,303,224        $ 2,763,852  
    

 

 

       

 

 

  

 

The accompanying notes are an integral part of the financial statements.

 

156

Table of Contents
MML
Mid Cap Growth Fund		     MML
Mid Cap Value Fund		  
Year
Ended
December 31, 2016
     Year
Ended
December 31, 2015
     Year
Ended
December 31, 2016
     Year
Ended
December 31,  2015
  
     
     
$ (246,544 )    $ (452,102 )    $ 7,213,214     $ 6,027,300  
  44,833,334       57,283,864       27,659,591       48,020,608  
  (19,044,476 )      (27,939,811 )      64,330,831       (60,895,172 ) 

 

 

    

 

 

    

 

 

    

 

 

  
  25,542,314       28,891,951       99,203,636       (6,847,264 ) 

 

 

    

 

 

    

 

 

    

 

 

  
     
     
  -       -       (6,934,131 )      (8,610,298 ) 
  -       -       (550,572 )      (553,849 ) 

 

 

    

 

 

    

 

 

    

 

 

  
  -       -       (7,484,703 )      (9,164,147 ) 

 

 

    

 

 

    

 

 

    

 

 

  
     
  (47,049,556 )      (42,547,818 )      (41,783,431 )      (63,870,147 ) 
  (9,296,846 )      (7,241,068 )      (3,795,883 )      (4,598,846 ) 

 

 

    

 

 

    

 

 

    

 

 

  
  (56,346,402 )      (49,788,886 )      (45,579,314 )      (68,468,993 ) 

 

 

    

 

 

    

 

 

    

 

 

  
     
  2,845,685       15,687,945       (37,553,607 )      41,173,782  
  9,674,951       13,988,017       7,738,309       8,626,487  

 

 

    

 

 

    

 

 

    

 

 

  
  12,520,636       29,675,962       (29,815,298 )      49,800,269  

 

 

    

 

 

    

 

 

    

 

 

  
  (18,283,452 )      8,779,027       16,324,321       (34,680,135 ) 
     
  442,264,007       433,484,980       460,869,660       495,549,795  

 

 

    

 

 

    

 

 

    

 

 

  
$ 423,980,555     $ 442,264,007     $ 477,193,981     $ 460,869,660  

 

 

    

 

 

    

 

 

    

 

 

  

$

(153,367

) 

   $ (682,055 )    $ 7,414,131     $ 8,320,913  

 

 

    

 

 

    

 

 

    

 

 

  

 

157

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Statements of Changes in Net Assets

 

       MML
Small Cap Growth Equity Fund		  
       Year
Ended
December 31, 2016		        Year
Ended
December 31, 2015		  
Increase (Decrease) in Net Assets:  
Operations:  

Net investment income (loss)

      $ (9,127 )       $ (535,879 ) 

Net realized gain (loss) on investment transactions

        8,366,596          33,642,911  

Net change in unrealized appreciation (depreciation) on investments

        15,347,479          (41,187,848 ) 
    

 

 

       

 

 

  

Net increase (decrease) in net assets resulting from operations

        23,704,948          (8,080,816 ) 
    

 

 

       

 

 

  
Distributions to shareholders (Note 2):  

From net investment income:

 

Initial Class

        -          -  

Class II

        -          -  

Service Class

        -          -  

Service Class I

        -          -  
    

 

 

       

 

 

  

Total distributions from net investment income

        -          -  
    

 

 

       

 

 

  

From net realized gains:

 

Initial Class

        (32,147,623 )         (40,634,083 ) 

Class II

        -          -  

Service Class

        (2,198,947 )         (2,122,311 ) 

Service Class I

        -          -  
    

 

 

       

 

 

  

Total distributions from net realized gains

        (34,346,570 )         (42,756,394 ) 
    

 

 

       

 

 

  
Net fund share transactions (Note 5):  

Initial Class

        6,283,248          (10,108,774 ) 

Class II

        -          -  

Service Class

        2,308,313          4,136,629  

Service Class I

        -          -  
    

 

 

       

 

 

  

Increase (decrease) in net assets from fund share transactions

        8,591,561          (5,972,145 ) 
    

 

 

       

 

 

  

Total increase (decrease) in net assets

        (2,050,061 )         (56,809,355 ) 
Net assets  

Beginning of year

        206,263,794          263,073,149  
    

 

 

       

 

 

  

End of year

      $ 204,213,733        $ 206,263,794  
    

 

 

       

 

 

  

Undistributed (accumulated) net investment income (loss) included in net assets at end of year

      $ 27,553        $ (71,739 ) 
    

 

 

       

 

 

  

 

The accompanying notes are an integral part of the financial statements.

 

158

Table of Contents

 

MML
Small Company Value Fund		     MML
Small/Mid Cap Value Fund		  
Year
Ended
December 31, 2016		     Year
Ended
December 31, 2015		     Year
Ended
December 31, 2016		     Year
Ended
December 31, 2015		  
     
     
$ 645,054     $ 618,302     $ 1,059,731     $ 1,141,187  
  11,762,787       13,291,659       13,034,233       14,216,113  
  16,968,232       (19,544,016 )      36,465,058       (27,388,266 ) 

 

 

    

 

 

    

 

 

    

 

 

  
  29,376,073       (5,634,055 )      50,559,022       (12,030,966 ) 

 

 

    

 

 

    

 

 

    

 

 

  
     
     
  -       -       (1,124,385 )      (1,528,716 ) 
  (555,663 )      (292,251 )      -       -  
  -       -       (53,616 )      (82,016 ) 
  (49,139 )      (15,522 )      -       -  

 

 

    

 

 

    

 

 

    

 

 

  
  (604,802 )      (307,773 )      (1,178,001 )      (1,610,732 ) 

 

 

    

 

 

    

 

 

    

 

 

  
     
  -       -       (13,026,952 )      (34,922,416 ) 
  (11,625,602 )      (8,989,337 )      -       -  
  -       -       (1,081,940 )      (2,694,866 ) 
  (1,548,667 )      (1,113,650 )      -       -  

 

 

    

 

 

    

 

 

    

 

 

  
  (13,174,269 )      (10,102,987 )      (14,108,892 )      (37,617,282 ) 

 

 

    

 

 

    

 

 

    

 

 

  
     
  -       -       (18,016,276 )      8,419,482  
  (12,961,576 )      6,549,088       -       -  
  -       -       940,646       4,172,406  
  2,661,360       1,879,270       -       -  

 

 

    

 

 

    

 

 

    

 

 

  
  (10,300,216 )      8,428,358       (17,075,630 )      12,591,888  

 

 

    

 

 

    

 

 

    

 

 

  
  5,296,786       (7,616,457 )      18,196,499       (38,667,092 ) 
     
  98,897,474       106,513,931       213,216,014       251,883,106  

 

 

    

 

 

    

 

 

    

 

 

  
$ 104,194,260     $ 98,897,474     $ 231,412,513     $ 213,216,014  

 

 

    

 

 

    

 

 

    

 

 

  
    
$
633,459
 		   $ 604,429     $ 1,008,202     $ 1,171,178  

 

 

    

 

 

    

 

 

    

 

 

  

 

159

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Statements of Changes in Net Assets

 

       MML
Total Return Bond Fund		  
       Year
Ended
December 31, 2016		     Year
Ended
December 31, 2015		  
Increase (Decrease) in Net Assets:  
Operations:  

Net investment income (loss)

      $ 6,105,819     $ 4,953,970  

Net realized gain (loss) on investment transactions

        935,899       2,325,817  

Net change in unrealized appreciation (depreciation) on investments

        530,812       (6,568,770 ) 
    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

        7,572,530       711,017  
    

 

 

    

 

 

  
Distributions to shareholders (Note 2):  

From net investment income:

 

Class II

        (5,873,606 )      (11,042,639 ) 

Service Class I

        (333,516 )      (502,420 ) 
    

 

 

    

 

 

  

Total distributions from net investment income

        (6,207,122 )      (11,545,059 ) 
    

 

 

    

 

 

  

From net realized gains:

 

Class II

        -       (3,600,708 ) 

Service Class I

        -       (173,513 ) 
    

 

 

    

 

 

  

Total distributions from net realized gains

        -       (3,774,221 ) 
    

 

 

    

 

 

  
Net fund share transactions (Note 5):  

Class II

        63,034,175       (60,886,838 ) 

Service Class I

        1,865,939       3,416,275  
    

 

 

    

 

 

  

Increase (decrease) in net assets from fund share transactions

        64,900,114       (57,470,563 ) 
    

 

 

    

 

 

  

Total increase (decrease) in net assets

        66,265,522       (72,078,826 ) 
Net assets  

Beginning of year

        346,088,951       418,167,777  
    

 

 

    

 

 

  

End of year

      $ 412,354,473     $ 346,088,951  
    

 

 

    

 

 

  

Undistributed (accumulated) net investment income (loss) included in net assets at end of year

      $ 8,272,525     $ 6,160,640  
    

 

 

    

 

 

  

 

The accompanying notes are an integral part of the financial statements.

 

160

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Blue Chip Growth Fund

 

          Income (loss) from investment
operations		     Less distributions to shareholders                 Ratios / Supplemental Data  
    Net
asset
value,
beginning
of the
period		     Net
investment
income
(loss)c		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assets		     Net
investment
income
(loss) to
average
daily net
assets		  

Initial Class

  

                      
12/31/16   $ 15.79      $ 0.00 d    $ 0.13      $ 0.13      $ -      $ (1.94 )    $ (1.94 )    $ 13.98        0.91%      $ 332,688        0.79%        0.03%   
12/31/15     17.09        (0.01 )      1.70        1.69        -        (2.99 )      (2.99 )      15.79        11.10%        388,654        0.79%        (0.06% ) 
12/31/14     17.35        (0.01 )      1.55        1.54        -        (1.80 )      (1.80 )      17.09        9.13%        390,322        0.79%        (0.09% ) 
12/31/13     13.50        (0.00 )d      5.28        5.28        (0.04 )      (1.39 )      (1.43 )      17.35        41.33%        429,689        0.79%        (0.01% ) 
12/31/12     11.42        0.03        2.06        2.09        (0.01 )      -        (0.01 )      13.50        18.31%        321,245        0.80%        0.26%   

Service Class

  

                      
12/31/16   $ 15.47      $ (0.03 )    $ 0.12      $ 0.09      $ -      $ (1.94 )    $ (1.94 )    $ 13.62        0.65%      $ 47,411        1.04%        (0.22% ) 
12/31/15     16.85        (0.05 )      1.66        1.61        -        (2.99 )      (2.99 )      15.47        10.76%        42,486        1.04%        (0.31% ) 
12/31/14     17.17        (0.06 )      1.54        1.48        -        (1.80 )      (1.80 )      16.85        8.87%        31,721        1.04%        (0.34% ) 
12/31/13     13.38        (0.04 )      5.23        5.19        (0.01 )      (1.39 )      (1.40 )      17.17        41.00%        23,273        1.04%        (0.26% ) 
12/31/12     11.34        0.01        2.03        2.04        -        -        -        13.38        17.99%        14,895        1.05%        0.06%   

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover rate

        29 %       31 %       30 %       35 %       25 % 

 

c Per share amount calculated on the average shares method.
d Amount is less than $0.005 per share.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.

 

The accompanying notes are an integral part of the financial statements.

 

161

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Equity Income Fund

 

          Income (loss) from investment
operations		     Less distributions to shareholders                 Ratios / Supplemental Data  
    Net
asset
value,
beginning
of the
period		     Net
investment
income
(loss)c,j		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assets
before
expense
waiver		     Ratio of
expenses
to average
daily net
assets
after
expense
waiversj		     Net
investment
income
(loss) to
average
daily net
assets		  

Initial Class

 

                      
12/31/16   $ 11.29     $ 0.27     $ 1.73     $ 2.00     $ (0.25 )    $ (1.26 )    $ (1.51 )    $ 11.78       18.68%     $ 413,304       0.79%       0.77 %      2.33%  
12/31/15     13.93       0.25       (1.28 )      (1.03 )      (0.26 )      (1.35 )      (1.61 )      11.29       (6.88% )      409,298       0.78%       N/A       1.96%  
12/31/14     13.47       0.25       0.76       1.01       (0.24 )      (0.31 )      (0.55 )      13.93       7.54%       472,989       0.78%       N/A       1.84%  
12/31/13     10.57       0.20       2.93       3.13       (0.23 )      -       (0.23 )      13.47       29.93%       556,649       0.78%       N/A       1.64%  
12/31/12     9.20       0.21       1.37       1.58       (0.21 )      -       (0.21 )      10.57       17.32%       478,096       0.79%       N/A       2.12%  

Service Class

 

                      
12/31/16   $ 11.20     $ 0.24     $ 1.72     $ 1.96     $ (0.22 )    $ (1.26 )    $ (1.48 )    $ 11.68       18.46%     $ 77,647       1.04%       1.02 %      2.10%  
12/31/15     13.83       0.22       (1.27 )      (1.05 )      (0.23 )      (1.35 )      (1.58 )      11.20       (7.10% )      63,263       1.03%       N/A       1.72%  
12/31/14     13.39       0.22       0.74       0.96       (0.21 )      (0.31 )      (0.52 )      13.83       7.23%       63,751       1.03%       N/A       1.58%  
12/31/13     10.52       0.17       2.91       3.08       (0.21 )      -       (0.21 )      13.39       29.55%       54,576       1.03%       N/A       1.39%  
12/31/12     9.16       0.19       1.36       1.55       (0.19 )      -       (0.19 )      10.52       17.06%       39,397       1.04%       N/A       1.88%  

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover rate

        22 %       39 %       9 %       15 %       15 % 

 

c Per share amount calculated on the average shares method.
j Computed after giving effect to an agreement by MML Advisers to waive certain fees and expenses of the Fund.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.

 

The accompanying notes are an integral part of the financial statements.

 

162

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Equity Index Fund

 

          Income (loss) from investment
operations		     Less distributions to shareholders                 Ratios / Supplemental Data  
    Net
asset
value,
beginning
of the
period		     Net
investment
income
(loss)c,j		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000's)		     Ratio of
expenses
to average
daily net
assets
before
expense
waivers		     Ratio of
expenses
to average
daily net
assets
after
expense
waiversj		     Net
investment
income
(loss) to
average
daily net
assets		  

Class I

  

                        
12/31/16   $ 24.76      $ 0.44      $ 2.37      $ 2.81      $ (0.43 )    $ (0.61 )    $ (1.04 )    $ 26.53        11.48%      $ 66,343        0.43%        N/A        1.76%   
12/31/15     25.52        0.42        (0.23 )      0.19        (0.38 )      (0.57 )      (0.95 )      24.76        0.95%        74,631        0.43%        N/A        1.67%   
12/31/14     23.14        0.38        2.65        3.03        (0.33 )      (0.32 )      (0.65 )      25.52        13.17%        84,445        0.44%        N/A        1.58%   
12/31/13     17.89        0.34        5.30        5.64        (0.33 )      (0.06 )      (0.39 )      23.14        31.84%        92,853        0.44%        0.44 %l      1.65%   
12/31/12     15.73        0.32        2.11        2.43        (0.27 )      -        (0.27 )      17.89        15.47%        79,070        0.45%        0.45 %l      1.84%   

Class II

  

                        
12/31/16   $ 24.80      $ 0.48      $ 2.36      $ 2.84      $ (0.48 )    $ (0.61 )    $ (1.09 )    $ 26.55        11.62%      $ 175,525        0.28%        N/A        1.91%   
12/31/15     25.56        0.47        (0.23 )      0.24        (0.43 )      (0.57 )      (1.00 )      24.80        1.17%        164,515        0.30%        0.28 %      1.83%   
12/31/14     23.19        0.42        2.65        3.07        (0.38 )      (0.32 )      (0.70 )      25.56        13.35%        154,210        0.33%        0.28 %      1.74%   
12/31/13     17.93        0.37        5.31        5.68        (0.36 )      (0.06 )      (0.42 )      23.19        32.02%        141,468        0.33%        0.28 %      1.81%   
12/31/12     15.76        0.35        2.12        2.47        (0.30 )      -        (0.30 )      17.93        15.69%        109,646        0.34%        0.29 %      2.00%   

Class III

  

                        
12/31/16   $ 24.78      $ 0.52      $ 2.34      $ 2.86      $ (0.52 )    $ (0.61 )    $ (1.13 )    $ 26.51        11.69%      $ 279,941        0.13%        N/A        2.05%   
12/31/15     25.54        0.50        (0.22 )      0.28        (0.47 )      (0.57 )      (1.04 )      24.78        1.32%        172,992        0.15%        0.13 %      1.97%   
12/31/14     23.16        0.46        2.65        3.11        (0.41 )      (0.32 )      (0.73 )      25.54        13.54%        173,459        0.19%        0.14 %      1.88%   
12/31/13     17.91        0.40        5.29        5.69        (0.38 )      (0.06 )      (0.44 )      23.16        32.17%        155,356        0.19%        0.14 %      1.95%   
12/31/12     15.74        0.37        2.12        2.49        (0.32 )      -        (0.32 )      17.91        15.87%        119,034        0.20%        0.15 %      2.14%   

Service Class I

  

                        
12/31/16   $ 24.16      $ 0.37      $ 2.31      $ 2.68      $ (0.39 )    $ (0.61 )    $ (1.00 )    $ 25.84        11.24%      $ 42,165        0.68%        N/A        1.51%   
12/31/15     24.98        0.35        (0.23 )      0.12        (0.37 )      (0.57 )      (0.94 )      24.16        0.70%        38,691        0.68%        N/A        1.43%   
12/31/14     22.72        0.32        2.59        2.91        (0.33 )      (0.32 )      (0.65 )      24.98        12.92%        32,075        0.69%        N/A        1.34%   
12/31/13     17.62        0.29        5.20        5.49        (0.33 )      (0.06 )      (0.39 )      22.72        31.49%        21,443        0.69%        0.69 %l      1.40%   
12/31/12     15.53        0.28        2.08        2.36        (0.27 )      -        (0.27 )      17.62        15.21%        10,229        0.70%        0.70 %l      1.63%   

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover rate

        8 %       4 %       3 %       4 %       3 % 

 

c Per share amount calculated on the average shares method.
j Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund.
l Expenses incurred during the period fell under the expense cap.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.

 

The accompanying notes are an integral part of the financial statements.

 

163

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Focused Equity Fund

 

          Income (loss) from investment
operations		     Less distributions to shareholders                 Ratios / Supplemental Data  
    Net
asset
value,
beginning
of the
period		     Net
investment
income
(loss)c,j		     Net
realized
and
unrealized
gain
(loss) on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gain		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assets
before
expense
waivers		     Ratio of
expenses
to average
daily net
assets
after
expense
waiversj		     Net
investment
income
(loss) to
average
daily net
assets		  

Class II

  

                        
12/31/16   $ 12.15      $ 0.13      $ 1.96      $ 2.09      $ (0.20 )    $ (0.84 )    $ (1.04 )    $ 13.20        17.96%      $ 128,990        0.90%        N/A        1.11%   
12/31/15     15.97        0.21        (1.71 )      (1.50 )      (0.28 )      (2.04 )      (2.32 )      12.15        (8.93% )      147,436        0.90%        N/A        1.43%   
12/31/14     15.64        0.29        1.59        1.88        (0.06 )      (1.49 )      (1.55 )      15.97        12.24%        160,206        0.90%        N/A        1.86%   
12/31/13     11.49        0.05        4.29        4.34        -        (0.19 )      (0.19 )      15.64        38.05%        166,655        0.90%        0.90 %l      0.40%   
12/31/12     10.03        0.09        1.98        2.07        (0.09 )      (0.52 )      (0.61 )      11.49        20.61%        136,305        0.90%        0.90 %k      0.76%   

Service Class I

  

                        
12/31/16   $ 12.06      $ 0.10      $ 1.95      $ 2.05      $ (0.16 )    $ (0.84 )    $ (1.00 )    $ 13.11        17.74%      $ 6,829        1.15%        N/A        0.87%   
12/31/15     15.87        0.17        (1.69 )      (1.52 )      (0.25 )      (2.04 )      (2.29 )      12.06        (9.16% )      7,023        1.15%        N/A        1.20%   
12/31/14     15.58        0.22        1.61        1.83        (0.05 )      (1.49 )      (1.54 )      15.87        11.97%        7,289        1.15%        N/A        1.39%   
12/31/13     11.48        0.02        4.27        4.29        -        (0.19 )      (0.19 )      15.58        37.64%        4,960        1.15%        1.15 %k      0.18%   
12/31/12h     11.54        0.07        0.47        0.54        (0.08 )      (0.52 )      (0.60 )      11.48        4.68% b      818        1.15% a      1.15 %a,l      0.91% a 

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover rate

        37 %       52 %       35 %       28 %       34 % 

 

a Annualized.
b Percentage represents the results for the period and is not annualized.
c Per share amount calculated on the average shares method.
h For the period May 1, 2012 (commencement of operations) through December 31, 2012.
j Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund.
k Amount waived had no impact on the ratio of expenses to average daily net assets.
l Expenses incurred during the period fell under the expense cap.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.

 

The accompanying notes are an integral part of the financial statements.

 

164

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Foreign Fund

 

          Income (loss) from investment
operations		     Less distributions to
shareholders		                 Ratios / Supplemental Data  
    Net
asset
value,
beginning
of the
period		     Net
investment
income
(loss)c		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assets		     Net
investment
income
(loss) to
average
daily net
assets		  

Initial Class

  

                
12/31/16   $ 9.49      $ 0.20      $ (0.07 )    $ 0.13      $ (0.18 )    $ (0.18 )    $ 9.44        1.44%      $ 348,836        0.97%        2.22%   
12/31/15     10.22        0.20        (0.63 )      (0.43 )      (0.30 )      (0.30 )      9.49        (4.26% )      347,072        0.97%        1.89%   
12/31/14     11.22        0.34        (1.09 )      (0.75 )      (0.25 )      (0.25 )      10.22        (6.97% )      328,045        0.97%        3.09%   
12/31/13     9.47        0.20        1.75        1.95        (0.20 )      (0.20 )      11.22        20.80%        412,363        0.97%        2.00%   
12/31/12     8.13        0.21        1.32        1.53        (0.19 )      (0.19 )      9.47        19.06%        355,174        0.97%        2.38%   

Service Class

  

                
12/31/16   $ 9.43      $ 0.18      $ (0.07 )    $ 0.11      $ (0.16 )    $ (0.16 )    $ 9.38        1.18%      $ 10,231        1.22%        2.02%   
12/31/15     10.16        0.17        (0.62 )      (0.45 )      (0.28 )      (0.28 )      9.43        (4.51% )      11,396        1.22%        1.59%   
12/31/14     11.16        0.30        (1.07 )      (0.77 )      (0.23 )      (0.23 )      10.16        (7.07% )      11,089        1.22%        2.72%   
12/31/13     9.43        0.17        1.74        1.91        (0.18 )      (0.18 )      11.16        20.42%        8,350        1.22%        1.71%   
12/31/12     8.10        0.18        1.32        1.50        (0.17 )      (0.17 )      9.43        18.74%        6,756        1.22%        2.13%   

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover rate

        19 %       12 %       13 %t       20 %       15 % 

 

c Per share amount calculated on the average shares method.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.
t The portfolio turnover rate was not impacted as a result of the cash merger.

 

The accompanying notes are an integral part of the financial statements.

 

165

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Fundamental Growth Fund

 

          Income (loss) from investment
operations		     Less distributions to shareholders                 Ratios / Supplemental Data  
    Net
asset
value,
beginning
of the
period		     Net
investment
income
(loss)c,j		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assets
before
expense
waivers		     Ratio of
expenses
to average
daily net
assets
after
expense
waiversj		     Net
investment
income
(loss) to
average
daily net
assets		  

Class II

                          
12/31/16   $ 12.53      $ 0.09      $ 0.36      $ 0.45      $ (0.08 )    $ (1.48 )    $ (1.56 )    $ 11.42        3.73%      $ 165,183        0.83%        0.83% l      0.79%   
12/31/15     14.89        0.09        0.64        0.73        (0.13 )      (2.96 )      (3.09 )      12.53        6.22%        183,094        0.84%        0.84% l      0.63%   
12/31/14     14.46        0.12        1.44        1.56        (0.11 )      (1.02 )      (1.13 )      14.89        11.06%        207,086        0.86%        0.85%        0.81%   
12/31/13     10.94        0.09        3.44        3.53        -        (0.01 )      (0.01 )      14.46        32.29%        236,837        0.86%        0.85%        0.72%   
12/31/12     9.95        0.09        1.23        1.32        (0.09 )      (0.24 )      (0.33 )      10.94        13.14%        179,834        0.87%        0.85%        0.79%   

Service Class I

  

                        
12/31/16   $ 12.41      $ 0.06      $ 0.37      $ 0.43      $ (0.07 )    $ (1.48 )    $ (1.55 )    $ 11.29        3.54%      $ 4,263        1.08%        1.08% l      0.54%   
12/31/15     14.80        0.05        0.63        0.68        (0.11 )      (2.96 )      (3.07 )      12.41        5.91%        2,955        1.09%        1.09% l      0.36%   
12/31/14     14.40        0.09        1.43        1.52        (0.10 )      (1.02 )      (1.12 )      14.80        10.81%        2,214        1.11%        1.10%        0.59%   
12/31/13     10.92        0.06        3.43        3.49        -        (0.01 )      (0.01 )      14.40        31.98%        1,353        1.11%        1.10%        0.45%   
12/31/12h     11.50        0.07        (0.33 )      (0.26 )      (0.08 )      (0.24 )      (0.32 )      10.92        (2.32% )b      518        1.12% a      1.10% a      0.94% a 

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover rate

        49 %       44 %       51 %       61 %       66 % 

 

a Annualized.
b Percentage represents the results for the period and is not annualized.
c Per share amount calculated on the average shares method.
h For the period May 1, 2012 (commencement of operations) through December 31, 2012.
j Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund.
l Expenses incurred during the period fell under the expense cap.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.

 

The accompanying notes are an integral part of the financial statements.

 

166

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Fundamental Value Fund

 

          Income (loss) from investment
operations		     Less distributions to shareholders                 Ratios / Supplemental Data  
    Net
asset
value,
beginning
of the
period		     Net
investment
income
(loss)c,j		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assets
before
expense
waivers		     Ratio of
expenses
to average
daily net
assets
after
expense
waiversj		     Net
investment
income
(loss) to
average
daily net
assets		  

Class II

  

                      
12/31/16   $ 14.20      $ 0.26      $ 1.56      $ 1.82      $ (0.21 )    $ (1.07 )    $ (1.28 )    $ 14.74        13.25%      $ 223,801        0.79%        N/A        1.81%   
12/31/15     16.20        0.23        (0.76 )      (0.53 )      (0.22 )      (1.25 )      (1.47 )      14.20        (2.88% )      217,109        0.79%        N/A        1.51%   
12/31/14     15.46        0.23        1.47        1.70        (0.25 )      (0.71 )      (0.96 )      16.20        11.19%        219,679        0.79%        N/A        1.47%   
12/31/13     12.45        0.23        3.54        3.77        (0.25 )      (0.51 )      (0.76 )      15.46        30.91%        233,724        0.79%        0.79% l      1.61%   
12/31/12     10.88        0.24        1.53        1.77        (0.17 )      (0.03 )      (0.20 )      12.45        16.31%        185,473        0.80%        0.80% l      1.98%   

Service Class I

  

                        
12/31/16   $ 14.05      $ 0.22      $ 1.55      $ 1.77      $ (0.18 )    $ (1.07 )    $ (1.25 )    $ 14.57        13.05%      $ 9,319        1.04%        N/A        1.55%   
12/31/15     16.07        0.19        (0.76 )      (0.57 )      (0.20 )      (1.25 )      (1.45 )      14.05        (3.18% )      7,757        1.04%        N/A        1.26%   
12/31/14     15.37        0.19        1.47        1.66        (0.25 )      (0.71 )      (0.96 )      16.07        10.98%        5,611        1.04%        N/A        1.21%   
12/31/13     12.42        0.19        3.52        3.71        (0.25 )      (0.51 )      (0.76 )      15.37        30.55%        2,650        1.04%        1.04% l      1.28%   
12/31/12h     12.16        0.14        0.33        0.47        (0.18 )      (0.03 )      (0.21 )      12.42        3.90% b      381        1.05% a      1.05% a,l      1.78% a 

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover rate

        20 %       19 %       14 %       22 %       24 % 

 

a Annualized.
b Percentage represents the results for the period and is not annualized.
c Per share amount calculated on the average shares method.
h For the period May 1, 2012 (commencement of operations) through December 31, 2012.
j Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund.
l Expenses incurred during the period fell under the expense cap.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.

 

The accompanying notes are an integral part of the financial statements.

 

167

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Global Fund

 

          Income (loss) from investment
operations		     Less distributions to shareholders                 Ratios / Supplemental Data  
    Net
asset
value,
beginning
of the
period		     Net
investment
income
(loss)c,j		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assets
before
expense
waivers		     Ratio of
expenses
to average
daily net
assets
after
expense
waiversj		     Net
investment
income
(loss) to
average
daily net
assets		  

Class I

  

                      
12/31/16   $ 11.74      $ 0.14      $ 0.76      $ 0.90      $ (0.14 )    $ (0.96 )    $ (1.10 )    $ 11.54        7.55%      $ 218,698        0.82%        N/A        1.18%   
12/31/15     12.61        0.14        (0.33 )      (0.19 )      (0.14 )      (0.54 )      (0.68 )      11.74        (1.36% )      224,808        0.86%        0.85%        1.13%   
12/31/14     12.44        0.16        0.33        0.49        (0.11 )      (0.21 )      (0.32 )      12.61        3.95%        210,395        0.95%        0.90%        1.29%   
12/31/13     9.82        0.12        2.63        2.75        (0.13 )      -        (0.13 )      12.44        28.13%        149,796        0.96%        0.90%        1.10%   
12/31/12     8.02        0.12        1.77        1.89        (0.09 )      -        (0.09 )      9.82        23.69%        131,665        0.98%        0.90%        1.33%   

Class II

  

                      
12/31/16   $ 11.93      $ 0.14      $ 0.77      $ 0.91      $ (0.14 )    $ (0.96 )    $ (1.10 )    $ 11.74        7.54%      $ 15,757        0.82%        N/A        1.17%   
12/31/15     12.81        0.15        (0.34 )      (0.19 )      (0.15 )      (0.54 )      (0.69 )      11.93        (1.35% )      15,876        0.83%        0.81%        1.13%   
12/31/14     12.63        0.17        0.33        0.50        (0.11 )      (0.21 )      (0.32 )      12.81        4.00%        17,481        0.85%        0.80%        1.35%   
12/31/13     9.96        0.14        2.66        2.80        (0.13 )      -        (0.13 )      12.63        28.34%        18,681        0.86%        0.80%        1.21%   
12/31/12     8.13        0.13        1.80        1.93        (0.10 )      -        (0.10 )      9.96        23.79%        16,324        0.88%        0.80%        1.45%   

Service Class I

  

                      
12/31/16   $ 11.65      $ 0.10      $ 0.76      $ 0.86      $ (0.12 )    $ (0.96 )    $ (1.08 )    $ 11.43        7.25%      $ 12,129        1.07%        N/A        0.89%   
12/31/15     12.52        0.10        (0.31 )      (0.21 )      (0.12 )      (0.54 )      (0.66 )      11.65        (1.55% )      10,646        1.11%        1.10%        0.84%   
12/31/14     12.38        0.12        0.32        0.44        (0.09 )      (0.21 )      (0.30 )      12.52        3.57%        9,220        1.20%        1.15%        1.00%   
12/31/13     9.78        0.09        2.63        2.72        (0.12 )      -        (0.12 )      12.38        27.94%        6,657        1.21%        1.15%        0.82%   
12/31/12     8.00        0.09        1.77        1.86        (0.08 )      -        (0.08 )      9.78        23.35%        3,707        1.23%        1.15%        1.03%   

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover rate

        15 %       17 %       12 %       11 %       11 % 

 

c Per share amount calculated on the average shares method.
j Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.

 

The accompanying notes are an integral part of the financial statements.

 

168

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Growth & Income Fund

 

          Income (loss) from investment
operations		     Less distributions to
shareholders		                 Ratios / Supplemental Data  
    Net
asset
value,
beginning
of the
period		     Net
investment
income
(loss)c		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assets		     Net
investment
income
(loss) to
average
daily net
assets		  

Initial Class

  

                  
12/31/16   $ 13.18      $ 0.15      $ 1.00      $ 1.15      $ (0.14 )    $ (0.14 )    $ 14.19        8.77%      $ 102,858        0.56%        1.10%   
12/31/15     13.28        0.14        (0.08 )      0.06        (0.16 )      (0.16 )      13.18        0.49%        106,578        0.56%        1.01%   
12/31/14     12.08        0.14        1.20        1.34        (0.14 )      (0.14 )      13.28        11.19%        121,667        0.56%        1.16%   
12/31/13     9.24        0.13        2.85        2.98        (0.14 )      (0.14 )      12.08        32.53%        129,107        0.57%        1.22%   
12/31/12     7.83        0.13        1.39        1.52        (0.11 )      (0.11 )      9.24        19.49%        116,115        0.58%        1.46%   

Service Class

  

                  
12/31/16   $ 13.10      $ 0.11      $ 1.00      $ 1.11      $ (0.11 )    $ (0.11 )    $ 14.10        8.50%      $ 23,197        0.81%        0.85%   
12/31/15     13.21        0.10        (0.08 )      0.02        (0.13 )      (0.13 )      13.10        0.18%        18,797        0.81%        0.76%   
12/31/14     12.02        0.11        1.20        1.31        (0.12 )      (0.12 )      13.21        10.94%        18,929        0.81%        0.91%   
12/31/13     9.20        0.10        2.84        2.94        (0.12 )      (0.12 )      12.02        32.20%        17,142        0.82%        0.97%   
12/31/12     7.79        0.11        1.39        1.50        (0.09 )      (0.09 )      9.20        19.32%        12,385        0.83%        1.21%   

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover rate

        17 %       17 %       20 %       19 %       26 % 

 

c Per share amount calculated on the average shares method.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.

 

The accompanying notes are an integral part of the financial statements.

 

169

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Income & Growth Fund

 

          Income (loss) from investment
operations		     Less distributions to shareholders                 Ratios / Supplemental Data  
    Net
asset
value,
beginning
of the
period		     Net
investment
income
(loss)c		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assets		     Net
investment
income
(loss) to
average
daily net
assets		  

Initial Class

                        
12/31/16   $ 11.35      $ 0.22      $ 1.55      $ 1.77      $ (0.21 )    $ (1.05 )    $ (1.26 )    $ 11.86        16.40%      $ 257,874        0.69%        1.97%   
12/31/15     12.44        0.23        (0.31 )      (0.08 )      (0.24 )      (0.77 )      (1.01 )      11.35        (0.09% )      221,763        0.69%        1.90%   
12/31/14     11.60        0.23        0.83        1.06        (0.22 )      -        (0.22 )      12.44        9.22%        232,187        0.70%        1.91%   
12/31/13     9.48        0.22        2.09        2.31        (0.19 )      -        (0.19 )      11.60        24.62%        228,095        0.70%        2.07%   
12/31/12     8.56        0.23        0.79        1.02        (0.10 )      -        (0.10 )      9.48        11.96%        171,207        0.72%        2.51%   

Service Class

                        
12/31/16   $ 11.25      $ 0.19      $ 1.54      $ 1.73      $ (0.19 )    $ (1.05 )    $ (1.24 )    $ 11.74        16.10%      $ 20,626        0.94%        1.71%   
12/31/15     12.34        0.20        (0.31 )      (0.11 )      (0.21 )      (0.77 )      (0.98 )      11.25        (0.35% )      16,906        0.94%        1.65%   
12/31/14     11.51        0.20        0.83        1.03        (0.20 )      -        (0.20 )      12.34        8.96%        16,131        0.95%        1.66%   
12/31/13     9.42        0.20        2.06        2.26        (0.17 )      -        (0.17 )      11.51        24.22%        14,775        0.95%        1.82%   
12/31/12     8.51        0.20        0.80        1.00        (0.09 )      -        (0.09 )      9.42        11.73%        11,282        0.97%        2.23%   

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover rate

        30 %       27 %       19 %       15 %       3 % 

 

c Per share amount calculated on the average shares method.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.

 

The accompanying notes are an integral part of the financial statements.

 

170

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML International Equity Fund

 

          Income (loss) from investment
operations		     Less distributions to shareholders                 Ratios / Supplemental Data  
    Net
asset
value,
beginning
of the
period		     Net
investment
income
(loss)c,j		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assets
before
expense
waivers		     Ratio of
expenses
to average
daily net
assets
after
expense
waiversj		     Net
investment
income
(loss) to
average
daily net
assets		  

Class II

                          
12/31/16   $ 8.81      $ 0.15      $ 0.56      $ 0.71      $ (0.17 )    $ (0.02 )    $ (0.19 )    $ 9.33        8.27%      $ 150,753        1.07%        1.00%        1.70%   
12/31/15     9.27        0.15        (0.59 )      (0.44 )      (0.02 )      -        (0.02 )      8.81        (4.77% )      164,083        1.09%        1.00%        1.59%   
12/31/14g     10.00        0.18        (0.65 )      (0.47 )      (0.20 )      (0.06 )      (0.26 )      9.27        (4.67% )b      123,915        1.15% a      1.00% a      1.79% a 

Service Class I

  

                      
12/31/16   $ 8.78      $ 0.13      $ 0.56      $ 0.69      $ (0.16 )    $ (0.02 )    $ (0.18 )    $ 9.29        7.97%      $ 1,063        1.32%        1.25%        1.50%   
12/31/15     9.27        0.10        (0.57 )      (0.47 )      (0.02 )      -        (0.02 )      8.78        (5.10% )      1,513        1.35%        1.25%        1.11%   
12/31/14h     10.29        0.07        (0.83 )      (0.76 )      (0.20 )      (0.06 )      (0.26 )      9.27        (7.44% )b      298        1.36% a      1.25% a      1.08% a 

 

       Year ended December 31  
       2016      2015      2014  

Portfolio turnover rate

        50 %       46 %       39 %b,g 

 

a Annualized.
b Percentage represents the results for the period and is not annualized.
c Per share amount calculated on the average shares method.
g For the period January 7, 2014 (commencement of operations) through December 31, 2014.
h For the period May 1, 2014 (commencement of operations) through December 31, 2014.
j Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.

 

The accompanying notes are an integral part of the financial statements.

 

171

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Large Cap Growth Fund

 

          Income (loss) from investment
operations		     Less distributions to shareholders                 Ratios / Supplemental Data  
    Net
asset
value,
beginning
of the
period		     Net
investment
income
(loss)c		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assets		     Net
investment
income
(loss) to
average
daily net
assets		  

Initial Class

  

                    
12/31/16   $ 11.70      $ 0.03      $ (0.06 )    $ (0.03 )    $ (0.01 )    $ (1.03 )    $ (1.04 )    $ 10.63        (0.38% )    $ 103,315        0.70%        0.24%   
12/31/15     14.06        0.01        0.58        0.59        -        (2.95 )      (2.95 )      11.70        5.12%        214,299        0.69%        0.10%   
12/31/14     14.63        (0.01 )      1.36        1.35        -        (1.92 )      (1.92 )      14.06        9.51%        242,229        0.69%        (0.07% ) 
12/31/13     11.62        0.00 d      3.76        3.76        (0.05 )      (0.70 )      (0.75 )      14.63        33.54%        268,330        0.70%        0.00% e 
12/31/12     10.04        0.05        1.54        1.59        (0.01 )      -        (0.01 )      11.62        15.81%        205,833        0.70%        0.49%   

Service Class

  

                    
12/31/16   $ 11.48      $ (0.00 )d    $ (0.04 )    $ (0.04 )    $ -      $ (1.03 )    $ (1.03 )    $ 10.41        (0.52% )    $ 3,604        0.95%        (0.02% ) 
12/31/15     13.89        (0.02 )      0.56        0.54        -        (2.95 )      (2.95 )      11.48        4.80%        3,501        0.94%        (0.15% ) 
12/31/14     14.51        (0.04 )      1.34        1.30        -        (1.92 )      (1.92 )      13.89        9.23%        2,726        0.94%        (0.29% ) 
12/31/13     11.53        (0.03 )      3.73        3.70        (0.02 )      (0.70 )      (0.72 )      14.51        33.24%        1,849        0.95%        (0.25% ) 
12/31/12     9.99        0.03        1.51        1.54        -        -        -        11.53        15.42%        1,439        0.95%        0.25%   

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover rate

        134 %       73 %       77 %       89 %       91 % 

 

c Per share amount calculated on the average shares method.
d Amount is less than $0.005 per share.
e Amount is less than 0.005%.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.

 

The accompanying notes are an integral part of the financial statements.

 

172

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Managed Volatility Fund

 

          Income (loss) from investment
operations		     Less distributions to shareholders                 Ratios / Supplemental Data  
    Net
asset
value,
beginning
of the
period		     Net
investment
income
(loss)c		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assets		     Net
investment
income
(loss) to
average
daily net
assets		  

Initial Class

  

                      
12/31/16   $ 14.27      $ 0.17      $ 0.31      $ 0.48      $ (0.26 )    $ (2.75 )    $ (3.01 )    $ 11.74        3.69%      $ 151,537        0.91%        1.29%   
12/31/15     14.11        0.17        0.25        0.42        (0.26 )      -        (0.26 )      14.27        3.01%        162,332        0.89%        1.18%   
12/31/14     14.33        0.16        0.46        0.62        (0.10 )      (0.74 )      (0.84 )      14.11        4.41%        336,931        0.90%        1.14%   
12/31/13     12.34        0.16        2.02        2.18        (0.19 )      -        (0.19 )      14.33        17.78%        203,330        0.88%        1.19%   
12/31/12     10.98        0.17        1.27        1.44        (0.08 )      -        (0.08 )      12.34        13.19%        193,271        0.83%        1.43%   

Service Class

  

                      
12/31/16   $ 14.18      $ 0.14      $ 0.29      $ 0.43      $ (0.22 )    $ (2.75 )    $ (2.97 )    $ 11.64        3.42%      $ 32,569        1.16%        1.04%   
12/31/15     14.02        0.14        0.24        0.38        (0.22 )      -        (0.22 )      14.18        2.79%        33,180        1.14%        0.95%   
12/31/14     14.25        0.13        0.45        0.58        (0.07 )      (0.74 )      (0.81 )      14.02        4.14%        31,812        1.15%        0.88%   
12/31/13     12.27        0.13        2.02        2.15        (0.17 )      -        (0.17 )      14.25        17.56%        28,423        1.13%        0.95%   
12/31/12     10.93        0.14        1.26        1.40        (0.06 )      -        (0.06 )      12.27        12.83%        22,660        1.08%        1.21%   

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover rate

        4 %       3 %       14 %       94 %       11 % 

 

c Per share amount calculated on the average shares method.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.

 

The accompanying notes are an integral part of the financial statements.

 

173

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Mid Cap Growth Fund

 

     
 Income (loss) from investment
operations		  
 		    
 Less distributions to
shareholders		  
 		         Ratios / Supplemental Data  
    Net
asset
value,
beginning
of the
period		     Net
investment
income
(loss)c		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assets		     Net
investment
income
(loss)
to average
daily net
assets		  

Initial Class

 

                    
12/31/16   $ 15.50     $ (0.00 )d    $ 0.97     $ 0.97     $ -     $ (2.12 )    $ (2.12 )    $ 14.35       6.29%     $ 352,754       0.81%       (0.02% ) 
12/31/15     16.41       (0.01 )      1.05       1.04       -       (1.95 )      (1.95 )      15.50       6.78%       375,328       0.81%       (0.07% ) 
12/31/14     16.59       (0.03 )      2.11       2.08       -       (2.26 )      (2.26 )      16.41       13.27%       377,028       0.81%       (0.17% ) 
12/31/13     12.96       (0.03 )      4.65       4.62       (0.04 )      (0.95 )      (0.99 )      16.59       36.69%       371,803       0.81%       (0.21% ) 
12/31/12     12.08       0.01       1.63       1.64       -       (0.76 )      (0.76 )      12.96       13.78%       330,731       0.82%       0.04%  

Service Class

 

                    
12/31/16   $ 15.16     $ (0.04 )    $ 0.95     $ 0.91     $ -     $ (2.12 )    $ (2.12 )    $ 13.95       6.02%     $ 71,227       1.06%       (0.27% ) 
12/31/15     16.12       (0.05 )      1.04       0.99       -       (1.95 )      (1.95 )      15.16       6.59%       66,936       1.06%       (0.31% ) 
12/31/14     16.38       (0.07 )      2.07       2.00       -       (2.26 )      (2.26 )      16.12       12.93%       56,457       1.06%       (0.42% ) 
12/31/13     12.81       (0.07 )      4.61       4.54       (0.02 )      (0.95 )      (0.97 )      16.38       36.40%       43,873       1.06%       (0.45% ) 
12/31/12     11.98       (0.02 )      1.61       1.59       -       (0.76 )      (0.76 )      12.81       13.47%       29,154       1.07%       (0.19% ) 

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover rate

        29 %       35 %       25 %       26 %       31 % 

 

c Per share amount calculated on the average shares method.
d Amount is less than $0.005 per share.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.

 

The accompanying notes are an integral part of the financial statements.

 

174

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Mid Cap Value Fund

 

     
 		 Income (loss) from investment
operations		   
  		    
 		 Less distributions to
shareholders		   
  		         Ratios / Supplemental Data   
    Net
asset
value,
beginning
of the
period		     Net
investment
income
(loss)c		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assets		     Net
investment
income
(loss) to
average
daily net
assets		  

Initial Class

  

                    
12/31/16   $ 10.74      $ 0.17      $ 2.22      $ 2.39      $ (0.19 )    $ (1.15 )    $ (1.34 )    $ 11.79        23.23%      $ 433,046        0.88%        1.55%   
12/31/15     13.12        0.16        (0.43 )      (0.27 )      (0.25 )      (1.86 )      (2.11 )      10.74        (1.45% )      427,920        0.88%        1.26%   
12/31/14     13.65        0.19        1.97        2.16        (0.24 )      (2.45 )      (2.69 )      13.12        16.66%        465,533        0.88%        1.39%   
12/31/13     11.11        0.20        3.09        3.29        (0.24 )      (0.51 )      (0.75 )      13.65        30.43%        467,386        0.88%        1.57%   
12/31/12     10.17        0.23        1.42        1.65        (0.18 )      (0.53 )      (0.71 )      11.11        16.70%        437,725        0.89%        2.12%   

Service Class

  

                    
12/31/16   $ 10.62      $ 0.15      $ 2.18      $ 2.33      $ (0.17 )    $ (1.15 )    $ (1.32 )    $ 11.63        22.86%      $ 44,148        1.13%        1.35%   
12/31/15     12.99        0.12        (0.41 )      (0.29 )      (0.22 )      (1.86 )      (2.08 )      10.62        (1.60% )      32,950        1.13%        1.03%   
12/31/14     13.55        0.16        1.94        2.10        (0.21 )      (2.45 )      (2.66 )      12.99        16.33%        30,017        1.13%        1.16%   
12/31/13     11.04        0.17        3.07        3.24        (0.22 )      (0.51 )      (0.73 )      13.55        30.11%        23,348        1.13%        1.33%   
12/31/12     10.12        0.20        1.41        1.61        (0.16 )      (0.53 )      (0.69 )      11.04        16.37%        16,241        1.14%        1.89%   

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover rate

        52 %       68 %       66 %       71 %       81 % 

 

c Per share amount calculated on the average shares method.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.

 

The accompanying notes are an integral part of the financial statements.

 

175

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Small Cap Growth Equity Fund

 

     
 		 Income (loss) from investment
operations		   
  		    
 		 Less distributions
to shareholders		   
  		         Ratios / Supplemental Data   
    Net
asset
value,
beginning
of the
period		     Net
investment
income
(loss)c,j		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000's)		     Ratio of
expenses
to average
daily net
assets
before
expense
waivers		     Ratio of
expenses
to average
daily net
assets
after
expense
waiversj		     Net
investment
income
(loss) to
average
daily net
assets		  

Initial Class

  

                      
12/31/16   $ 13.51      $ 0.00 d    $ 1.59      $ 1.59      $ (2.41 )    $ (2.41 )    $ 12.69        12.74 %    $ 191,245        1.10 %      N/A        0.01 % 
12/31/15     17.85        (0.04 )      (0.74 )      (0.78 )      (3.56 )      (3.56 )      13.51        (5.11 %)      194,889        1.09 %      N/A        (0.22 %) 
12/31/14     22.81        (0.09 )      1.21        1.12        (6.08 )      (6.08 )      17.85        5.92 %      253,096        1.08 %      N/A        (0.43 %) 
12/31/13     16.30        (0.08 )      7.79        7.71        (1.20 )      (1.20 )      22.81        48.54 %      273,041        1.10 %      1.08 %      (0.43 %) 
12/31/12     16.05        (0.06 )      2.17        2.11        (1.86 )      (1.86 )      16.30        13.41 %      256,961        1.13 %      1.12 %      (0.38 %) 

Service Class

  

                      
12/31/16   $ 13.05      $ (0.03 )    $ 1.53      $ 1.50      $ (2.41 )    $ (2.41 )    $ 12.14        12.46 %    $ 12,969        1.35 %      N/A        (0.23 %) 
12/31/15     17.40        (0.07 )      (0.72 )      (0.79 )      (3.56 )      (3.56 )      13.05        (5.33 %)      11,375        1.34 %      N/A        (0.46 %) 
12/31/14     22.44        (0.13 )      1.17        1.04        (6.08 )      (6.08 )      17.40        5.62 %      9,977        1.33 %      N/A        (0.67 %) 
12/31/13     16.09        (0.13 )      7.68        7.55        (1.20 )      (1.20 )      22.44        48.17 %      7,871        1.35 %      1.34 %      (0.69 %) 
12/31/12     15.91        (0.10 )      2.14        2.04        (1.86 )      (1.86 )      16.09        13.07 %      5,837        1.38 %      1.37 %      (0.63 %) 

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover rate

        105 %       78 %       78 %       86 %       90 % 

 

c Per share amount calculated on the average shares method.
d Amount is less than $0.005 per share.
j Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.

 

The accompanying notes are an integral part of the financial statements.

 

176

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Small Company Value Fund

 

          Income (loss) from investment
operations		     Less distributions to shareholders                 Ratios / Supplemental Data  
    Net
asset
value,
beginning
of the
period		     Net
investment
income
(loss)c,j		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assets
before
expense
waivers		     Ratio of
expenses
to average
daily net
assets
after
expense
waiversj		     Net
investment
income
(loss) to
average
daily net
assets		  

Class II

  

                    
12/31/16   $ 14.88      $ 0.10      $ 4.44      $ 4.54      $ (0.10 )    $ (2.09 )    $ (2.19 )    $ 17.23        32.46%      $ 88,729        1.02%        0.97%        0.66%   
12/31/15     17.59        0.10        (1.06 )      (0.96 )      (0.06 )      (1.69 )      (1.75 )      14.88        (5.36% )      88,068        1.09%        1.05%        0.62%   
12/31/14     23.88        0.05        (0.01 )      0.04        -        (6.33 )      (6.33 )      17.59        0.47%        95,788        1.17%        1.15%        0.26%   
12/31/13     18.86        (0.01 )      5.87        5.86        (0.26 )      (0.58 )      (0.84 )      23.88        31.71%        97,840        1.16%        1.15%        (0.04% ) 
12/31/12     16.83        0.19        2.34        2.53        (0.00 )d      (0.50 )      (0.50 )      18.86        15.20%        114,274        1.17%        1.15%        1.05%   

Service Class I

  

                    
12/31/16   $ 14.58      $ 0.07      $ 4.34      $ 4.41      $ (0.07 )    $ (2.09 )    $ (2.16 )    $ 16.83        32.16%      $ 15,465        1.27%        1.22%        0.44%   
12/31/15     17.29        0.06        (1.06 )      (1.00 )      (0.02 )      (1.69 )      (1.71 )      14.58        (5.65% )      10,829        1.33%        1.30%        0.37%   
12/31/14     23.63        0.00 d      (0.01 )      (0.01 )      -        (6.33 )      (6.33 )      17.29        0.24%        10,726        1.42%        1.40%        0.02%   
12/31/13     18.70        (0.05 )      5.79        5.74        (0.23 )      (0.58 )      (0.81 )      23.63        31.34%        9,944        1.41%        1.40%        (0.23% ) 
12/31/12     16.73        0.15        2.32        2.47        -        (0.50 )      (0.50 )      18.70        14.99%        6,354        1.42%        1.40%        0.86%   

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover rate

        23 %       44 %       22 %       12 %       14 % 

 

c Per share amount calculated on the average shares method.
d Amount is less than $0.005 per share.
j Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.

 

The accompanying notes are an integral part of the financial statements.

 

177

Table of Contents

MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Small/Mid Cap Value Fund

 

     
 		 Income (loss) from investment
operations		  
  		    
 		 Less distributions to
shareholders		   
  		         Ratios / Supplemental Data   
    Net
asset
value,
beginning
of the
period		     Net
investment
income
(loss)c		     Net
realized
and
unrealized
gain (loss)
on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assets		     Net
investment
income
(loss) to
average
daily net
assets		  

Initial Class

  

                      
12/31/16   $ 11.34      $ 0.06      $ 2.70      $ 2.76      $ (0.07 )    $ (0.80 )    $ (0.87 )    $ 13.23        25.10%      $ 211,849        0.79%        0.51%   
12/31/15     14.69        0.07        (0.89 )      (0.82 )      (0.11 )      (2.42 )      (2.53 )      11.34        (5.53% )      197,297        0.79%        0.50%   
12/31/14     13.80        0.11        1.19        1.30        (0.09 )      (0.32 )      (0.41 )      14.69        9.45%        236,399        0.79%        0.80%   
12/31/13     10.06        0.09        3.74        3.83        (0.09 )      -        (0.09 )      13.80        38.18%        257,210        0.80%        0.74%   
12/31/12     8.51        0.08        1.54        1.62        (0.07 )      -        (0.07 )      10.06        19.06%        168,248        0.81%        0.82%   

Service Class

  

                      
12/31/16   $ 11.25      $ 0.03      $ 2.68      $ 2.71      $ (0.04 )    $ (0.80 )    $ (0.84 )    $ 13.12        24.83%      $ 19,563        1.04%        0.26%   
12/31/15     14.59        0.04        (0.89 )      (0.85 )      (0.07 )      (2.42 )      (2.49 )      11.25        (5.74% )      15,919        1.04%        0.27%   
12/31/14     13.72        0.08        1.18        1.26        (0.07 )      (0.32 )      (0.39 )      14.59        9.16%        15,484        1.04%        0.56%   
12/31/13     10.01        0.06        3.72        3.78        (0.07 )      -        (0.07 )      13.72        37.82%        12,729        1.05%        0.47%   
12/31/12     8.47        0.06        1.53        1.59        (0.05 )      -        (0.05 )      10.01        18.78%        8,717        1.06%        0.60%   

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover rate

        58 %       42 %       46 %       67 %       49 % 

 

c Per share amount calculated on the average shares method.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.

 

The accompanying notes are an integral part of the financial statements.

 

178

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MML Series Investment Fund – Financial Statements (Continued)

 

Financial Highlights (For a share outstanding throughout each period)

MML Total Return Bond Fund

 

     
 
 		 Income (loss) from
investment
operations		   
 
  		    
 		 Less distributions
to shareholders		   
  		         Ratios / Supplemental Data   
    Net
asset
value,
beginning
of the
period		     Net
investment
income
(loss)c,j		     Net
realized
and
unrealized
gain
(loss) on
investments		     Total
income
(loss) from
investment
operations		     From net
investment
income		     From net
realized
gains		     Total
distributions		     Net
asset
value,
end of
the
period		     Total
returnm		     Net
assets,
end of
the
period
(000’s)		     Ratio of
expenses
to average
daily net
assets
before
expense
waiversn		     Ratio of
expenses
to average
daily net
assets
after
expense
waiversj,n		     Interest
expense
to
average
daily
net
assetsp 		    Net
investment
income
(loss) to
average
daily
net assetsn		  

Class II

  

                        
12/31/16   $ 10.19      $ 0.17      $ 0.09      $ 0.26      $ (0.18 )    $ -      $ (0.18 )    $ 10.27        2.52%      $ 393,276        0.62%        0.60%        N/A        1.67%   
12/31/15     10.64        0.14        (0.11 )      0.03        (0.36 )      (0.12 )      (0.48 )      10.19        0.24%        328,928        0.66%        0.60%        N/A        1.32%   
12/31/14     10.34        0.13        0.36        0.49        (0.19 )      -        (0.19 )      10.64        4.75%        403,732        0.70%        0.65%        0.00% e      1.27%   
12/31/13     10.82        0.13        (0.31 )      (0.18 )      (0.21 )      (0.09 )      (0.30 )      10.34        (1.63% )      401,127        0.69%        0.65%        0.00% e      1.23%   
12/31/12     10.13        0.20        0.70        0.90        (0.21 )      -        (0.21 )      10.82        8.93%        306,746        0.72%        0.65%        0.00% e      1.84%   

Service Class I

  

                          
12/31/16   $ 10.11      $ 0.15      $ 0.09      $ 0.24      $ (0.17 )    $ -      $ (0.17 )    $ 10.18        2.30%      $ 19,079        0.87%        0.85%        N/A        1.43%   
12/31/15     10.57        0.11        (0.11 )      (0.00 )d      (0.34 )      (0.12 )      (0.46 )      10.11        (0.05% )      17,161        0.90%        0.85%        N/A        1.09%   
12/31/14     10.29        0.10        0.35        0.45        (0.17 )      -        (0.17 )      10.57        4.43%        14,435        0.95%        0.90%        0.00% e      1.00%   
12/31/13     10.79        0.10        (0.30 )      (0.20 )      (0.21 )      (0.09 )      (0.30 )      10.29        (1.85% )      11,404        0.94%        0.90%        0.00% e      1.00%   
12/31/12h     10.49        0.10        0.41        0.51        (0.21 )      -        (0.21 )      10.79        4.94% b      5,730        0.97% a      0.90% a      0.00% a,e      1.45% a 

 

       Year ended December 31  
       2016      2015      2014      2013      2012  

Portfolio turnover rate

        278 %       322 %       447 %u       550 %u       583 %u 

 

a Annualized.
b Percentage represents the results for the period and is not annualized.
c Per share amount calculated on the average shares method.
d Amount is less than $0.005 per share.
e Amount is less than 0.005%.
h For the period May 1, 2012 (commencement of operations) through December 31, 2012.
j Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund.
m Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown.
n Includes interest expense.
p Interest expense incurred as a result of entering into reverse repurchase agreements is included in the Fund’s net expenses in the Statements of Operations. Income earned on investing proceeds from reverse repurchase agreements is included in interest income in the Statements of Operations.
u Excludes Treasury roll transactions. Including these transactions, the portfolio turnover would have been 479%, 574% and 618%, respectively, for the years ended December 31, 2014, December 31, 2013 and December 31, 2012.

 

The accompanying notes are an integral part of the financial statements.

 

179

Table of Contents

Notes to Financial Statements

 

1.   The Funds

MML Series Investment Fund (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a no-load, open-end, management investment company. The Trust is organized under the laws of the Commonwealth of Massachusetts as a Massachusetts business trust pursuant to an Agreement and Declaration of Trust dated December 19, 1984, as restated May 14, 1993, and further amended and restated as of December 15, 2011, as it may be further amended from time to time. The following are 19 series of the Trust (each individually referred to as a “Fund” or collectively as the “Funds”):

MML Blue Chip Growth Fund (“Blue Chip Growth Fund”)

MML Equity Income Fund (“Equity Income Fund”)

MML Equity Index Fund (“Equity Index Fund”)

MML Focused Equity Fund (“Focused Equity Fund”)

MML Foreign Fund (“Foreign Fund”)

MML Fundamental Growth Fund (“Fundamental Growth Fund”)

MML Fundamental Value Fund (“Fundamental Value Fund”)

MML Global Fund (“Global Fund”)

MML Growth & Income Fund (“Growth & Income Fund”)

MML Income & Growth Fund (“Income & Growth Fund”)

MML International Equity Fund (“International Equity Fund”)

MML Large Cap Growth Fund (“Large Cap Growth Fund”)

MML Managed Volatility Fund (“Managed Volatility Fund”)

MML Mid Cap Growth Fund (“Mid Cap Growth Fund”)

MML Mid Cap Value Fund (“Mid Cap Value Fund”)

MML Small Cap Growth Equity Fund (“Small Cap Growth Equity Fund”)

MML Small Company Value Fund (“Small Company Value Fund”)

MML Small/Mid Cap Value Fund (“Small/Mid Cap Value Fund”)

MML Total Return Bond Fund (“Total Return Bond Fund”)

The Trust makes shares of the Funds available for the investment of assets of various separate investment accounts established by Massachusetts Mutual Life Insurance Company (“MassMutual”) and by life insurance companies which are subsidiaries of MassMutual. Shares of the Trust are not offered to the general public. MassMutual, MML Bay State Life Insurance Company, C.M. Life Insurance Company, and the MML Allocation Funds, which are “funds of funds” series of the Trust, are the record owners of all of the outstanding shares of the Funds.

Each share class of a Fund represents an interest in the same portfolio of assets. The principal difference among the classes is the level of service and administration fees, and shareholder and distribution service expenses borne by the classes. Because each class will have different fees and expenses, performance and share prices will vary between the classes. The classes of shares are offered to different types of investors, as outlined in the Funds’ Prospectus.

 

2.   Significant Accounting Policies

The following is a summary of significant accounting policies followed consistently by each Fund in the preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America (“generally accepted accounting principles”). The preparation of the financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

Investment Valuation

The net asset value of each Fund’s shares is determined once daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), on each day the NYSE is open for trading (a “business day”). The NYSE normally closes at 4:00 p.m. Eastern Time, but may close earlier on some days.

 

 

180

Table of Contents

Notes to Financial Statements (Continued)

 

Equity securities and derivative contracts that are actively traded on a national securities exchange or contract market are valued on the basis of information furnished by a pricing service, which provides the last reported sale price, or, in the case of futures contracts, the settlement price, for securities or derivatives listed on the exchange or contract market or the official closing price on the NASDAQ National Market System (“NASDAQ System”), or in the case of over-the-counter (“OTC”) securities for which an official closing price is unavailable or not reported on the NASDAQ System, the last reported bid price. Portfolio securities traded on more than one national securities exchange are valued at the last price at the close of the exchange representing the principal market for such securities. Debt securities are valued on the basis of valuations furnished by a pricing service, which generally determines valuations taking into account factors such as institutional-size trading in similar securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data. Shares of other open-end mutual funds are valued at their closing net asset values as reported on each business day.

Investments for which market quotations are readily available are marked to market daily based on those quotations. Market quotations may be provided by third-party vendors or market makers, and may be determined on the basis of a variety of factors, such as broker quotations, financial modeling, and other market data, such as market indexes and yield curves, counterparty information, and foreign exchange rates. U.S. Government and agency securities may be valued on the basis of market quotations or using a model that may incorporate market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, quoted market prices, and reference data. The fair values of OTC derivative contracts, including forward, swap, and option contracts related to interest rates, foreign currencies, credit standing of reference entities, equity prices, or commodity prices, may be based on market quotations or may be modeled using a series of techniques, including simulation models, depending on the contract and the terms of the transaction. The fair values of asset-backed securities and mortgage-backed securities are estimated based on models that consider the estimated cash flows of each debt tranche of the issuer, established benchmark yield, and estimated tranche-specific spread to the benchmark yield based on the unique attributes of the tranche, including, but not limited to, prepayment speed assumptions and attributes of the collateral. Restricted securities are generally valued at a discount to similar publicly traded securities.

Investments for which market quotations are not available or for which a pricing service or vendor does not provide a value, or for which such market quotations or values are considered by the investment adviser or subadviser to be unreliable (including, for example, certain foreign securities, thinly-traded securities, certain restricted securities, certain initial public offerings, or securities whose values may have been affected by a significant event) are stated at fair valuations determined in good faith by the Funds’ Valuation Committee1 in accordance with procedures approved annually by the Board of Trustees (“Trustees”), and under the general oversight of the Trustees. The Funds’ Valuation Committee employs various methods to determine fair valuations including a regular review of significant inputs and assumptions and review of any related market activity. The Funds’ Valuation Committee reports to the Trustees at their regularly scheduled meetings. It is possible that fair value prices will be used by the Funds to a significant extent. The value determined for an investment using the Funds’ fair value procedures may differ from recent market prices for the investment and may be significantly different from the value realized upon the sale of such investment.

The Funds may invest in securities that are traded principally in foreign markets and that trade on weekends and other days when the Funds do not price their shares. As a result, the values of the Funds’ portfolio securities may change on days when the prices of the Funds’ shares are not calculated. The prices of the Funds’ shares will reflect any such changes when the prices of the Funds’ shares are next calculated, which is the next business day. The Funds may use fair value pricing more frequently for securities primarily traded in foreign markets because, among other things, most foreign markets close well before the Funds value their securities. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim. The Funds’ investments may be priced based on fair values provided by a third-party vendor, based on certain factors and methodologies applied by such vendor, in the event that there is movement in the U.S. market, between the close of the foreign market and the time the Funds calculate their net asset values. All assets and liabilities expressed in foreign currencies are converted into U.S. dollars at the mean between the buying and selling rates of such currencies against the U.S. dollar at the end of each business day.

 

1  The Valuation Committee consists of the President, Treasurer, Assistant Treasurers, Vice Presidents (except for the CCO), Assistant Vice Presidents, Secretary, and Assistant Secretaries of the Trust, as well as such alternate members as the Trustees may from time to time designate. The Valuation Committee reviews and determines the fair valuation of portfolio securities and the Funds’ pricing procedures in general.

 

181

Table of Contents

Notes to Financial Statements (Continued)

 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-tier hierarchy is utilized to maximize the use of observable market data inputs and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below. The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to each security.

Level 1 – quoted prices (unadjusted) in active markets for identical investments that the Funds can access at the measurement date

The types of assets and liabilities categorized in Level 1 generally include actively traded domestic and certain foreign equity securities, derivatives actively traded on a national securities exchange (such as some warrants, rights, futures, and options), and shares of open-end mutual funds.

Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The types of assets and liabilities categorized in Level 2 generally include debt securities such as U.S. Government and agency securities, mortgage-backed securities, asset-backed securities, municipal obligations, sovereign debt obligations, bank loans, corporate bonds, and those securities valued at amortized cost; OTC derivatives such as swaps, options, swaptions, and forward foreign currency exchange contracts; certain restricted securities; and non-exchange traded equity securities and certain foreign equity securities traded on particular foreign exchanges that close before the Funds determine their net asset values.

Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments)

The types of assets and liabilities categorized in Level 3 generally include securities for which prices, spreads, or any of the other aforementioned significant inputs are unobservable. Generally, securities whose trading has been suspended or that have been de-listed from their current primary trading exchange; securities in default or bankruptcy proceedings for which there is no current market quotation; securities and certain derivatives valued by broker quotes which may include brokers’ assumptions; and any illiquid Rule 144A securities or restricted securities issued by non-public entities are categorized in Level 3.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

Changes in valuation techniques may result in transfers in or out of an investment’s assigned Level within the hierarchy. In addition, in periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition, as well as changes related to liquidity of investments, could cause a security to be reclassified between Level 1, Level 2, or Level 3.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes the level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the overall fair value measurement.

The Focused Equity Fund, Small Company Value Fund, and Small/Mid Cap Value Fund characterized all long-term investments at Level 1, and all short-term investments at Level 2, as of December 31, 2016. For each Fund noted in the preceding sentence, the level classification by major category of investments is the same as the category presentation in the Portfolio of Investments.

 

182

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Notes to Financial Statements (Continued)

 

The following is the aggregate value by input level, as of December 31, 2016, for the remaining Funds’ investments:

 

 

 

     Level 1     Level 2     Level 3      Total  

Blue Chip Growth Fund

          

Asset Investments

          

Common Stock

    $ 372,168,127     $ 5,875,810 *    $         -      $ 378,043,937  

Mutual Funds

      1,005       -       -        1,005  

Short-Term Investments

      -       3,657,524       -        3,657,524  
  

 

 

    

 

 

    

 

 

     

 

 

  
Total Investments    $ 372,169,132     $ 9,533,334     $         -      $ 381,702,466  
  

 

 

    

 

 

    

 

 

     

 

 

  

Equity Income Fund

          

Asset Investments

          

Common Stock

    $ 455,502,180     $ 18,814,225 *    $         -      $ 474,316,405  

Preferred Stock

      3,993,367       1,281,850       -        5,275,217  

Corporate Debt

      -       868,227       -        868,227  

Mutual Funds

      1,006       -       -        1,006  

Short-Term Investments

      -       9,958,555       -        9,958,555  
  

 

 

    

 

 

    

 

 

     

 

 

  
Total Investments    $ 459,496,553     $ 30,922,857     $ -      $ 490,419,410  
  

 

 

    

 

 

    

 

 

     

 

 

  

Equity Index Fund

          

Asset Investments

          

Common Stock

    $ 544,030,340     $         -     $         -      $ 544,030,340  

Short-Term Investments

      -       19,626,305       -        19,626,305  
  

 

 

    

 

 

    

 

 

     

 

 

  
Total Investments    $ 544,030,340     $ 19,626,305     $         -      $ 563,656,645  
  

 

 

    

 

 

    

 

 

     

 

 

  

Liability Derivatives

          

Futures Contracts

    $ (124,118 )    $         -     $         -      $ (124,118 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  

Foreign Fund

          

Asset Investments

          

Common Stock*

          

Bermuda

    $         -     $ 1,269,101     $         -      $ 1,269,101  

Brazil

      1,629,301       -       -        1,629,301  

Canada

      1,848,924       -       -        1,848,924  

Cayman Islands

      3,299,709       5,486,863       -        8,786,572  

China

      -       12,517,544       -        12,517,544  

France

      -       36,267,934       -        36,267,934  

Germany

      3,525,307       43,325,382       -        46,850,689  

Hong Kong

      -       6,726,115       -        6,726,115  

Ireland

      -       5,557,675       -        5,557,675  

Israel

      6,227,714       -       -        6,227,714  

Italy

      -       6,972,061       -        6,972,061  

Japan

      1,748,507       40,397,649       -        42,146,156  

Luxembourg

      -       2,133,713       -        2,133,713  

Netherlands

      -       17,579,457       -        17,579,457  

Norway

      -       6,475,815       -        6,475,815  

Portugal

      -       3,602,107       -        3,602,107  

Republic of Korea

      2,855,526       18,420,133       -        21,275,659  

Singapore

      -       11,963,255       -        11,963,255  

Spain

      3,975,679       -       -        3,975,679  

Sweden

      -       2,052,481       -        2,052,481  

Switzerland

      -       21,187,486       -        21,187,486  

Taiwan

      -       3,591,164       -        3,591,164  

 

183

Table of Contents

Notes to Financial Statements (Continued)

 

     Level 1      Level 2     Level 3      Total  

Foreign Fund (Continued)

           

Asset Investments (Continued)

           

Common Stock* (Continued)

           

Thailand

    $ -       $ 3,559,625      $ -       $ 3,559,625   

United Kingdom

      7,061,696         68,200,562        -         75,262,258   

Mutual Funds

      2,095,368         -        -         2,095,368   

Short-Term Investments

      -         9,225,651        -         9,225,651   
  

 

 

     

 

 

    

 

 

     

 

 

  
Total Investments    $ 34,267,731       $ 326,511,773      $         -       $ 360,779,504   
  

 

 

     

 

 

    

 

 

     

 

 

  

Fundamental Growth Fund

           

Asset Investments

           

Common Stock

    $ 168,532,745       $ 825,387 *    $         -       $ 169,358,132   

Short-Term Investments

      -         129,588        -         129,588   
  

 

 

     

 

 

    

 

 

     

 

 

  
Total Investments    $ 168,532,745       $ 954,975      $         -       $ 169,487,720   
  

 

 

     

 

 

    

 

 

     

 

 

  

Fundamental Value Fund

           

Asset Investments

           

Common Stock

    $ 227,068,563       $ 5,434,261 *    $         -       $ 232,502,824   

Short-Term Investments

      -         1,169,642        -         1,169,642   
  

 

 

     

 

 

    

 

 

     

 

 

  
Total Investments    $ 227,068,563       $ 6,603,903      $         -       $ 233,672,466   
  

 

 

     

 

 

    

 

 

     

 

 

  

Global Fund

           

Asset Investments

           

Common Stock*

           

Austria

    $         -       $ 1,037,021      $         -       $ 1,037,021   

Brazil

      -         1,284,753        -         1,284,753   

Canada

      4,269,790         -        -         4,269,790   

Cayman Islands

      -         524,695        -         524,695   

Czech Republic

      -         316,486        -         316,486   

Denmark

      -         1,996,744        -         1,996,744   

France

      -         19,184,670        -         19,184,670   

Germany

      -         15,915,622        -         15,915,622   

Ireland

      10,589,123         -        -         10,589,123   

Israel

      2,304,660         -        -         2,304,660   

Japan

      -         2,947,190        -         2,947,190   

Mexico

      779,938         -        -         779,938   

Netherlands

      2,298,467         4,856,604        -         7,155,071   

Republic of Korea

      -         1,895,707        -         1,895,707   

Spain

      -         1,410,302        -         1,410,302   

Sweden

      -         4,491,288        -         4,491,288   

Switzerland

      -         21,493,028        -         21,493,028   

Thailand

      -         534,017        -         534,017   

United Kingdom

      1,383,032         22,603,843        -         23,986,875   

United States

      122,983,083         -        -         122,983,083   

Mutual Funds

      3,209,958         -        -         3,209,958   

Short-Term Investments

      -         1,236,054        -         1,236,054   
  

 

 

     

 

 

    

 

 

     

 

 

  
Total Investments    $ 147,818,051       $ 101,728,024      $         -       $ 249,546,075   
  

 

 

     

 

 

    

 

 

     

 

 

  

 

184

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Notes to Financial Statements (Continued)

 

     Level 1      Level 2     Level 3     Total  

Growth & Income Fund

          

Asset Investments

          

Common Stock

    $ 119,243,781       $ 5,854,629 *    $         -      $ 125,098,410   

Short-Term Investments

      -         913,481        -        913,481   
  

 

 

     

 

 

    

 

 

    

 

 

  
Total Investments    $ 119,243,781       $ 6,768,110      $         -      $ 126,011,891   
  

 

 

     

 

 

    

 

 

    

 

 

  

Income & Growth Fund

          

Asset Investments

          

Common Stock

    $ 252,728,368       $ 14,170,380 *    $         -      $ 266,898,748   

Short-Term Investments

      -         11,374,171        -        11,374,171   
  

 

 

     

 

 

    

 

 

    

 

 

  
Total Investments    $ 252,728,368       $ 25,544,551      $         -      $ 278,272,919   
  

 

 

     

 

 

    

 

 

    

 

 

  

International Equity Fund

          

Asset Investments

          

Common Stock*

          

Australia

    $         -       $ 5,899,094      $         -      $ 5,899,094   

Cayman Islands

      5,182,893         -        -        5,182,893   

France

      -         22,450,181        -        22,450,181   

Germany

      -         15,208,230        -        15,208,230   

India

      949,120         -        -        949,120   

Indonesia

      -         2,795,216        -        2,795,216   

Ireland

      2,871,012         1,606,564        -        4,477,576   

Israel

      118,244         -        -        118,244   

Italy

      -         7,495,487        -        7,495,487   

Japan

      -         13,824,452        -        13,824,452   

Mexico

      2,713,611         -        -        2,713,611   

Netherlands

      -         11,674,908        -        11,674,908   

Republic of Korea

      -         1,787,845        -        1,787,845   

Sweden

      -         6,538,269        -        6,538,269   

Switzerland

      -         18,336,579        -        18,336,579   

Taiwan

      -         408,803        -        408,803   

United Kingdom

      -         28,371,813        -        28,371,813   

Mutual Funds

      145,010         -        -        145,010   

Short-Term Investments

      -         3,166,695        -        3,166,695   
  

 

 

     

 

 

    

 

 

    

 

 

  
Total Investments    $ 11,979,890       $ 139,564,136      $         -      $ 151,544,026   
  

 

 

     

 

 

    

 

 

    

 

 

  

Asset Derivatives

          

Forward Contracts

    $         -       $ 294,394      $         -      $ 294,394   
  

 

 

     

 

 

    

 

 

    

 

 

  

Liability Derivatives

          

Forward Contracts

    $         -       $ (370 )    $         -      $ (370 ) 
  

 

 

     

 

 

    

 

 

    

 

 

  

Large Cap Growth Fund

          

Asset Investments

          

Common Stock

    $ 102,372,477       $ 3,384,020      $         -      $ 105,756,497   

Short-Term Investments

      -         1,202,159        -        1,202,159   
  

 

 

     

 

 

    

 

 

    

 

 

  
Total Investments    $ 102,372,477       $ 4,586,179      $         -      $ 106,958,656   
  

 

 

     

 

 

    

 

 

    

 

 

  

Managed Volatility Fund

          

Asset Investments

          

Common Stock

    $ 181,760,804       $         -      $         -      $ 181,760,804   

Corporate Debt

      -         -        - †,**      -   

Purchased Options

      696,970         -        -        696,970   

Short-Term Investments

      -         5,165,123        -        5,165,123   
  

 

 

     

 

 

    

 

 

    

 

 

  
Total Investments    $ 182,457,774       $ 5,165,123      $         -      $ 187,622,897   
  

 

 

     

 

 

    

 

 

    

 

 

  

 

185

Table of Contents

Notes to Financial Statements (Continued)

 

     Level 1     Level 2      Level 3     Total  

Managed Volatility Fund (Continued)

          

Liability Derivatives

          

Written Options

    $ (3,424,740 )    $         -       $         -      $ (3,424,740 ) 
  

 

 

    

 

 

     

 

 

    

 

 

  

Mid Cap Growth Fund

          

Asset Investments

          

Common Stock

    $ 405,952,535      $         -       $ 827,917 **    $ 406,780,452   

Preferred Stock

      -        -         1,921,312 **      1,921,312   

Mutual Funds

      12,445,422        -         -        12,445,422   

Short-Term Investments

      -        15,573,326         -        15,573,326   
  

 

 

    

 

 

     

 

 

    

 

 

  
Total Investments    $ 418,397,957      $ 15,573,326       $ 2,749,229      $ 436,720,512   
  

 

 

    

 

 

     

 

 

    

 

 

  

Mid Cap Value Fund

          

Asset Investments

          

Common Stock

    $ 450,915,712      $ 5,536,114 *     $         -      $ 456,451,826   

Mutual Funds

      13,125,050        -         -        13,125,050   

Short-Term Investments

      -        8,039,212         -        8,039,212   
  

 

 

    

 

 

     

 

 

    

 

 

  
Total Investments    $ 464,040,762      $ 13,575,326       $         -      $ 477,616,088   
  

 

 

    

 

 

     

 

 

    

 

 

  

Asset Derivatives

          

Forward Contracts

    $         -      $ 20,842       $         -      $ 20,842   
  

 

 

    

 

 

     

 

 

    

 

 

  

Liability Derivatives

          

Forward Contracts

    $         -      $ (95,156 )     $         -      $ (95,156 ) 
  

 

 

    

 

 

     

 

 

    

 

 

  

Small Cap Growth Equity Fund

          

Asset Investments

          

Common Stock

    $ 196,937,969      $ 1,515,900 *     $ 431,128      $ 198,884,997   

Preferred Stock

      -        -         1,879,253        1,879,253   

Mutual Funds

      17,418,567        -         -        17,418,567   

Short-Term Investments

      -        3,046,873         -        3,046,873   
  

 

 

    

 

 

     

 

 

    

 

 

  
Total Investments    $ 214,356,536      $ 4,562,773       $ 2,310,381      $ 221,229,690   
  

 

 

    

 

 

     

 

 

    

 

 

  

Total Return Bond Fund

          

Asset Investments

          

Bank Loans

    $         -      $ 845,401       $         -      $ 845,401   

Corporate Debt

      -        95,480,276         -        95,480,276   

Municipal Obligations

      -        4,445,102         -        4,445,102   

Non-U.S. Government Agency Obligations

      -        58,299,482         -        58,299,482   

U.S. Government Agency Obligations and Instrumentalities

      -        112,228,885         -        112,228,885   

U.S. Treasury Obligations

      -        143,944,595         -        143,944,595   

Short-Term Investments

      -        43,352,589         -        43,352,589   
  

 

 

    

 

 

     

 

 

    

 

 

  
Total Investments    $         -      $ 458,596,330       $         -      $ 458,596,330   
  

 

 

    

 

 

     

 

 

    

 

 

  

Asset Derivatives

          

Forward Contracts

    $         -      $ 364,683       $         -      $ 364,683   
  

 

 

    

 

 

     

 

 

    

 

 

  

Liability Derivatives

          

Futures Contracts

    $ (61,067 )    $         -       $         -      $ (61,067 ) 
  

 

 

    

 

 

     

 

 

    

 

 

  

 

* Includes foreign equity securities whose values were adjusted to reflect market trading of comparable securities or other correlated instruments after the close of trading in their applicable foreign markets.
** None of the unobservable inputs for Level 3 assets, individually or collectively, had a material impact on the Fund(s). Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the year ended December 31, 2016 is not presented.
† Represents a security at $0 value as of December 31, 2016.

 

186

Table of Contents

Notes to Financial Statements (Continued)

 

The following tables show Fund(s) with certain assets and liabilities, which approximate fair value and would be categorized at Level 2 as of December 31, 2016.

 

Statements of Assets and Liabilities location:

  

Total
Return
Bond
Fund

   

Receivables from:

   X

Investments sold on a when-issued basis

    
   

Payables for:

   X

Investments purchased on a when-issued basis

    

 

Statements of Assets and Liabilities location:

  

Foreign
Fund

  

Global
Fund

  

International
Equity Fund

  

Mid Cap
Growth
Fund

  

Small Cap Growth
Equity Fund

  

Small Company
Value Fund

Securities on loan

   X   X   X   X   X   X

The Fund(s) had no transfers between Level 1 and Level 2 of the fair value hierarchy during the year ended December 31, 2016. The Fund(s) recognize transfers between the Levels as of the beginning of the year.

Following is a reconciliation of investments for which significant unobservable inputs (Level 3) were used in determining value:

Asset Valuation Inputs

 

 

    Investments in Securities  
    Balance
as of
12/31/15		     Accrued
Discounts
(Premiums)		     Realized
Gain
(Loss)		     Change in
Unrealized
Appreciation
(Depreciation)		     Purchases     (Sales)     Transfers
into
Level 3*		     Transfers
(out) of
Level 3*		     Balance
as of
12/31/16		     Net Change
in Unrealized
Appreciation
(Depreciation)
from
Investments
Still Held
as of
12/31/16		  

Small Cap Growth Equity Fund

 

Common Stock

   $ 311,026     $ -     $ -     $ 60,329     $ 59,773     $ -     $ -     $ -     $ 431,128     $ 60,329  

Preferred Stock

     2,419,091       -       (2,439 )      (267,418 )      -       (39,015 )      -       (230,966 )**      1,879,253       (267,434 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  $ 2,730,117     $ -     $ (2,439 )    $ (207,089 )    $ 59,773     $ (39,015 )    $ -     $ (230,966 )    $ 2,310,381     $ (207,105 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

* The Fund(s) recognize transfers between the Levels as of the beginning of the year.
** Transfers occurred as inputs were more observable.

 

187

Table of Contents

Notes to Financial Statements (Continued)

 

The Small Cap Growth Equity Fund fair values certain of its Level 3 investments using acquisition cost, although the transaction may not have occurred during the current reporting period. These investments are generally privately held investments, but may include defaulted securities and new debt issuances. There may not be a secondary market, and/or there are a limited number of investors. The determination to fair value such investments at cost is based upon factors consistent with the principles of fair value measurement that are reasonably available to the Valuation Committee. Valuations are reviewed utilizing available market information to determine if the carrying value should be adjusted. Such market data may include, but is not limited to, observations of the trading multiples of public companies considered comparable to the private companies being valued, financial or operational information released by the company, and/or news or corporate events that affect the investment, also referred to as enterprise value (EV) to earnings before interest, taxes, depreciation and amortization (EBITDA) ratios. Valuations may be adjusted to account for company-specific issues, the lack of liquidity inherent in a nonpublic investment, and the fact that comparable public companies are not identical to the investments being fair valued by the Small Cap Growth Equity Fund. All market variables are assessed on a regular frequency and calibrated as necessary.

 

     Fair Value
Amount		     

Valuation
Technique

   

Unobservable Input Description

    Value/
Weighted
Average
Range		  
Small Cap Growth Equity            
Common stock — $431,128            

Dropbox, Inc.

    $ 100,816      Market Approach    EV/Multiple      5.40x  
         Discount for Lack of Marketability      10%  

Telogis

      255,573      Market Approach    Future Cash Distribution    $ 3.18  

Cenntenial Resource Development

      74,739      Market Approach    Discount for Lack of Marketability      10%  

Docusign, Series E Escrow Shares

      -      Worthless    Worthless      -  
Preferred stock — $1,879,253            

Cloudera, Inc. Series F

      207,932      Market Approach    EV/Multiple      6.10x  
         Discount for Lack of Marketability      10%  

Docusign, Series E

      114,390      Market Approach    EV/Multiple      7.20x  

Docusign, Series D

      5,281         Discount for Lack of Marketability      10%  

Docusign, Series B

      7,364           

Docusign, Series B1

      2,196           

Draftkings, Series D

      59,472      Market Approach   

Probability Expected Weighted Return Model — 2019 EV/Multiple

      12.2x  

Draftkings, Series D1

      146,307        

Merger Probability

      50%  
        

Probability Expected Weighted Return Model — 2020 EV/Multiple

      10.9x  
         No Merger Probability      50%  
         Discount for Lack of Marketability      10%  

MarkLogic Corp. Series F

      236,779      Market Approach    EV/Multiple      3.00x  
         Discount for Lack of Marketability      10%  

Telogis

      481,843      Market Approach    Future Cash Distribution    $ 4.40  

The Honest Co. Series D

      139,012      Market Approach    EV/Multiple      3.74x  
         Discount for Lack of Marketability      10%  

Veracode, Inc. Series 8

      219,211      Market Approach    EV/Multiple      4.40x  
         Discount for Lack of Marketability      10%  

Zuora, Inc. Series F

      259,466      Market Approach    EV/Multiple      6.20x  
         Discount for Lack of Marketability      10%  
  

 

 

           

Total

    $ 2,310,381           
  

 

 

           

 

188

Table of Contents

Notes to Financial Statements (Continued)

 

Derivative Instruments

Derivatives are financial instruments whose values are based on the values of one or more indicators, such as a security, asset, currency, interest rate, or index. Derivative transactions can create investment leverage and may be highly volatile. Gains or losses from derivatives can be substantially greater than their original cost and can sometimes be unlimited. A Fund may not be able to close out a derivative transaction at a favorable time or price. For those Funds that held derivatives during the year ended December 31, 2016, the following table shows how the Fund used these types of derivatives during the period (marked with an “A”), as well as additional uses, if any, it may have for them in the future (marked with an “M”).

 

Type of Derivative and Objective for Use

  

Equity
Index
Fund

  

International
Equity
Fund

  

Managed

Volatility

Fund

  

Mid Cap

Value
Fund

  

Total

Return

Bond

Fund

Foreign Currency Transactions*

            

Hedging/Risk Management

       A       A   A
           

Futures Contracts**

            

Hedging/Risk Management

                   A

Duration/Credit Quality Management

                   A

Substitution for Direct Investment

   A               M
           

Options (Purchased)

            

Hedging/Risk Management

           A        
           

Options (Written)

            

Hedging/Risk Management

           A        

Income

           A        
* Includes any options purchased or written, futures contracts, and forward contracts, if applicable.
** Includes any options purchased or written on futures contracts, if applicable.

At December 31, 2016, and during the year then ended, the Fund(s) had the following derivatives and transactions in derivatives, grouped into the indicated risk categories:

 

 

 

     Equity
Risk		     Foreign
Exchange
Risk		      Interest
Rate
Risk		      Total  
Equity Index Fund  
Liability Derivatives  

Futures Contracts^^

    $ (124,118 )    $         -      $         -      $ (124,118 ) 
  

 

 

    

 

 

     

 

 

     

 

 

  
Realized Gain (Loss)#  

Futures Contracts

    $ 1,109,313     $ -      $         -      $ 1,109,313  
  

 

 

    

 

 

     

 

 

     

 

 

  
Change in Appreciation (Depreciation)##  

Futures Contracts

    $ (127,367 )    $ -      $ -      $ (127,367 ) 
  

 

 

    

 

 

     

 

 

     

 

 

  

 

189

Table of Contents

Notes to Financial Statements (Continued)

 

     Equity
Risk		     Foreign
Exchange
Risk		     Interest
Rate
Risk		      Total  
International Equity Fund  
Asset Derivatives  

Forward Contracts*

    $ -     $ 294,394     $ -      $ 294,394  
  

 

 

    

 

 

    

 

 

     

 

 

  
Liability Derivatives  

Forward Contracts^

    $ -     $ (370 )    $ -      $ (370 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  
Realized Gain (Loss)#  

Forward Contracts

    $ -     $ 106,675     $ -      $ 106,675  
  

 

 

    

 

 

    

 

 

     

 

 

  
Change in Appreciation (Depreciation)##  

Forward Contracts

    $ -     $ 90,321     $ -      $ 90,321  
  

 

 

    

 

 

    

 

 

     

 

 

  
Managed Volatility Fund  
Asset Derivatives  

Purchased Options*

    $ 696,970     $ -     $ -      $ 696,970  
  

 

 

    

 

 

    

 

 

     

 

 

  
Liability Derivatives  

Written Options^

    $ (3,424,740 )    $ -     $ -      $ (3,424,740 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  
Realized Gain (Loss)#  

Purchased Options

    $ (6,429,163 )    $ -     $ -      $ (6,429,163 ) 

Written Options

      (4,271,668 )      -       -        (4,271,668 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  

Total Realized Gain (Loss)

    $ (10,700,831 )    $ -     $ -      $ (10,700,831 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  
Change in Appreciation (Depreciation)##  

Purchased Options

    $ 299,218     $ -     $ -      $ 299,218  

Written Options

      (2,611,425 )      -       -        (2,611,425 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  

Total Change in Appreciation (Depreciation)

    $ (2,312,207 )    $ -     $ -      $ (2,312,207 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  
Mid Cap Value Fund  
Asset Derivatives  

Forward Contracts*

    $         -     $ 20,842     $ -      $ 20,842  
  

 

 

    

 

 

    

 

 

     

 

 

  
Liability Derivatives  

Forward Contracts^

    $ -     $ (95,156 )    $ -      $ (95,156 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  
Realized Gain (Loss)#  

Forward Contracts

    $ -     $ 233,382     $ -      $ 233,382  
  

 

 

    

 

 

    

 

 

     

 

 

  
Change in Appreciation (Depreciation)##  

Forward Contracts

    $ -     $ (44,271 )    $ -      $ (44,271 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  

 

190

Table of Contents

Notes to Financial Statements (Continued)

 

     Equity
Risk		      Foreign
Exchange
Risk		      Interest
Rate
Risk		     Total  
Total Return Bond Fund  
Asset Derivatives  

Forward Contracts*

    $         -      $ 364,683      $ -     $ 364,683  
  

 

 

     

 

 

     

 

 

    

 

 

  
Liability Derivatives  

Futures Contracts^^

    $ -      $ -      $ (61,067 )    $ (61,067 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  
Realized Gain (Loss)#  

Forward Contracts

    $ -      $ 1,351,855      $ -     $ 1,351,855  

Futures Contracts

      -        -        (212,505 )      (212,505 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Total Realized Gain (Loss)

    $ -      $ 1,351,855      $ (212,505 )    $ 1,139,350  
  

 

 

     

 

 

     

 

 

    

 

 

  
Change in Appreciation (Depreciation)##  

Forward Contracts

    $ -      $ 364,683      $ -     $ 364,683  

Futures Contracts

      -        -        (34,055 )      (34,055 ) 
  

 

 

     

 

 

     

 

 

    

 

 

  

Total Change in Appreciation (Depreciation)

    $ -      $ 364,683      $ (34,055 )    $ 330,628  
  

 

 

     

 

 

     

 

 

    

 

 

  

 

* Statements of Assets and Liabilities location: Investments, at value, Receivables from: open forward foreign currency contracts.
^ Statements of Assets and Liabilities location: Payables for: written options, or open forward foreign currency contracts outstanding, at value, as applicable.
^^ Cumulative appreciation (depreciation) on futures contracts is reported in “Futures Contracts” below. Only current day’s variation margin, if any, is reported within the Statements of Assets and Liabilities.
# Statements of Operations location: Amounts are included in net realized gain (loss) on: investment transactions, futures contracts, written options, or foreign currency transactions, as applicable.
## Statements of Operations location: Amounts are included in net change in unrealized appreciation (depreciation) on: investment transactions, futures contracts, written options, or translation of assets and liabilities in foreign currencies, as applicable.

For the year ended December 31, 2016, the number of contracts, notional amounts, or shares/units for each derivative type was as follows:

 

 

 

     Number of Contracts, Notional Amounts,
or Shares/Units†		  
     Futures
Contracts		      Forward
Contracts		      Purchased
Options		      Written
Options		  

Equity Index Fund

      65      $ -        -        -  

International Equity Fund

      -        5,894,634        -        -  

Managed Volatility Fund

      -        -        873        880  

Mid Cap Value Fund

      -        16,962,574        -        -  

Total Return Bond Fund

      200        12,800,897        -        -  

 

† Amount(s) disclosed represent average number of contracts for futures contracts, notional amounts for forward contracts, and shares/units outstanding for purchased options and written options, which is indicative of volume of this derivative type, for the months that the Fund held such derivatives during the year ended December 31, 2016.

 

191

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The following table presents derivative assets by counterparty net of amounts available for offset under a master netting agreement (“MNA”), or similar agreement, and net of the related collateral received by the Fund(s) as of December 31, 2016.

 

 

 

Counterparty

    Derivative Assets
Subject to an
MNA by
Counterparty†		      Financial
Instruments
Available for Offset		     Collateral
Received***		      Net Amount*  
International Equity Fund           

State Street Bank and Trust

    $ 294,394      $ (370 )    $         -      $ 294,024  
  

 

 

     

 

 

    

 

 

     

 

 

  

 

The following table presents 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 Fund(s) as of December 31, 2016.

 

 

 

Counterparty

    Derivative Liabilities
Subject to an
MNA by
Counterparty†		     Financial
Instruments
Available for Offset		      Collateral
Pledged***		      Net
Amount**		  
International Equity Fund           

State Street Bank and Trust

    $ (370 )    $ 370      $         -      $         -  
  

 

 

    

 

 

     

 

 

     

 

 

  

 

* Represents the net amount receivable from the counterparty in the event of default.
** Represents the net amount payable to the counterparty in the event of default.
*** The amount presented here may be less than the total amount of collateral received/pledged as the net amount of derivative assets and liabilities for a counterparty cannot be less than $0.
† The amount presented here may be less than the total amount shown in the Statements of Assets and Liabilities as some derivatives held by the counterparty are not covered within the master netting agreements.

Such agreements typically permit a single net payment in the event of default, including the bankruptcy or insolvency of the counterparty. Typically, the Fund(s) and counterparties are not permitted to sell, re-pledge, or use the collateral they receive.

Further details regarding the derivatives and other investments held by the Fund(s) during the year ended December 31, 2016, are discussed below.

Foreign Currency Exchange Transactions

A Fund may engage in foreign currency exchange transactions for hedging purposes in order to protect against uncertainty in the level of future foreign currency exchange rates, or for other, non-hedging purposes.

A Fund may enter into foreign currency exchange transactions, including foreign currency forward contracts. These contracts call for the Fund to deliver in the future an amount of one currency in return for an amount of another currency, at an exchange rate determined at the time the contract is entered into. Forward contracts are private contractual arrangements and a Fund is subject to the risk that its counterparty will not, or will not be able to, perform its obligations. This type of arrangement may require the Fund to post margin. A Fund may enter into foreign currency exchange transactions in order to hedge against changes in the values of the assets or liabilities denominated in one or more foreign currencies, or otherwise to increase or reduce a Fund’s exposure to various foreign currencies. The use of foreign currency exchange transactions may create investment leverage.

Whenever a Fund enters into a foreign currency exchange transaction, it is subject to the risk that the value of the transaction will move in a direction unfavorable to it. When the Fund uses the transactions for hedging purposes, it is likely that the Fund will have an asset or liability that will offset any loss (or gain) on the transactions, at least in part. If a Fund enters into foreign currency exchange transactions other than for hedging purposes (for example, seeking to profit from an anticipated change in the values of currencies by creating directional exposures in the portfolio with respect to one or more currencies), it will generally be subject to the same risks, but is less likely to have assets or liabilities that will offset any losses on the transactions. There can be no assurance that a Fund will be able to terminate any foreign currency exchange transaction prior to its maturity in order to limit its loss on the transaction.

 

192

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Notes to Financial Statements (Continued)

 

Forward foreign currency contracts are marked to market daily and the change in their value is recorded by the Funds as an unrealized gain or loss. Forward foreign currency contracts are valued at the settlement price established through dealers or other market sources on the day which they are traded. When a forward foreign currency contract is extinguished, through delivery or offset by entering into another forward foreign currency contract, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it was extinguished or offset. The notional or contractual amounts of these instruments do not necessarily represent the amounts potentially subject to risk. The measurement of the risk associated with these instruments is meaningful only when all related and offsetting transactions and counterparty risks are considered.

The Fund(s) listed in the following table had open forward foreign currency contracts at December 31, 2016. A Fund’s current exposure to a counterparty is the unrealized appreciation on the contract.

 

 

 

      

Counterparty

   

Settlement
Date

    In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
International Equity Fund  
Contract to Buy  
CHF     1,031,000     

State Street Bank and Trust*

    03/15/17    $ 1,006,957      $ 9,958  
          

 

 

     

 

 

  
Contracts to Deliver  
AUD     790,000     

State Street Bank and Trust*

    06/21/17      577,556        9,724  
CHF     5,361,000     

State Street Bank and Trust*

    03/15/17      5,562,415        274,656  
JPY     8,300,724     

State Street Bank and Trust*

    01/04/17      70,652        (370 ) 
JPY     1,449,452     

State Street Bank and Trust*

    01/05/17      12,457        56  
          

 

 

     

 

 

  
   $ 6,223,080      $ 284,066  
          

 

 

     

 

 

  
Mid Cap Value Fund  
Contract to Buy  
CAD     649,448     

Morgan Stanley & Co.

    03/31/17    $ 485,766      $ (1,552 ) 
          

 

 

     

 

 

  
Contracts to Deliver  
JPY     291,704,099     

Credit Suisse International

    03/31/17      2,477,040        (29,700 ) 
CAD     10,328,548     

Morgan Stanley & Co.

    03/31/17      7,721,586        20,842  
EUR     4,443,864     

UBS AG

    03/31/17      4,634,787        (63,904 ) 
          

 

 

     

 

 

  
   $ 14,833,413      $ (72,762 ) 
          

 

 

     

 

 

  
Total Return Bond Fund  
Contracts to Deliver  
JPY     1,200,000,000     

Citibank N.A.

    01/10/17    $ 10,513,220      $ 241,377  
JPY     630,000,000     

JP Morgan Chase Bank N.A.

    01/13/17      5,517,218        123,306  
          

 

 

     

 

 

  
   $ 16,030,438      $ 364,683  
          

 

 

     

 

 

  

 

AUD Australian Dollar
CAD Canadian Dollar
CHF Swiss Franc
* Contracts are subject to an MNA.
EUR Euro
 
JPY Japanese Yen

 

193

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Notes to Financial Statements (Continued)

 

Futures Contracts

A Fund may seek to manage a variety of different risks, such as interest rate risk, equity price risk, and currency risk, through the use of futures contracts. A Fund may use interest rate futures contracts to adjust the interest rate sensitivity (duration) of its portfolio or the credit exposure of the portfolio. Interest rate futures contracts obligate the long or short holder to take or make delivery of a specified quantity of a financial instrument, such as a specific fixed-income security, during a specified future period at a specified price. A Fund may use index futures to hedge against broad market risks to its portfolio or to gain broad market exposure when it holds uninvested cash or as an inexpensive substitute for cash investments directly in securities or other assets. Securities index futures contracts are contracts to buy or sell units of a securities index at a specified future date at a price agreed upon when the contract is made and are settled in cash. Positions in futures may be closed out only on an exchange or board of trade which provides a secondary market for such futures. Because futures contracts are exchange-traded, they typically have minimal exposure to counterparty risk.

Parties to a futures contract are not required to post the entire notional amount of the contract, but rather a small percentage of that amount (by way of margin), both at the time they enter into futures transactions, and then on a daily basis if their positions decline in value; as a result, futures contracts are highly leveraged. Such payments are known as variation margin and are recorded by the Funds as unrealized gains or losses. Because futures markets are highly leveraged, they can be extremely volatile, and there can be no assurance that the pricing of a futures contract will correlate precisely with the pricing of the asset or index underlying it or the asset or liability of the Fund that is the subject of the hedge. It may not always be possible for a Fund to enter into a closing transaction with respect to a futures contract it has entered into, at a favorable time or price. When a Fund enters into a futures transaction, it is subject to the risk that the value of the futures contract will move in a direction unfavorable to it. When a Fund uses futures contracts for hedging purposes, it is likely that the Fund will have an asset or liability that will offset any loss (or gain) on the transactions, at least in part.

When a futures contract is closed, the Fund 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. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.

The Fund(s) listed in the following table had open futures contracts at December 31, 2016:

 

 

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

Equity Index Fund

 

Futures Contracts — Long

 

S&P 500 E Mini Index

      03/17/17        180      $ 20,125,800      $ (124,118 ) 
           

 

 

  

Total Return Bond Fund

 

Futures Contracts — Long

 

U.S. Treasury Note 2 Year

      03/31/17        46      $ 9,967,625      $ (3,325 ) 

U.S. Treasury Note 5 Year

      03/31/17        212        24,944,781        (57,742 ) 
           

 

 

  
   $ (61,067 ) 
           

 

 

  

 

Options

A Fund may purchase and sell put and call options on securities or an index of securities to enhance investment performance or to protect against changes in market prices. A Fund that invests in debt securities may also purchase and sell put and call options to adjust the interest rate sensitivity of its portfolio or the credit exposure of the portfolio.

Call Options. A call option gives the holder the right to purchase, and obligates the writer to sell, a security at the strike price at any time before the expiration date.

 

 

194

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Notes to Financial Statements (Continued)

 

Put Options. A put option gives the holder the right to sell, and obligates the writer to buy, a security at the exercise price at any time before the expiration date.

Writing put and call options. A Fund may write call options on a security it owns, in a “directional” strategy hoping to realize a greater current return through the receipt of premiums. In return for the option premium, the Fund takes the risk that it will have to forego any increase in the value of the security over the strike price. When a Fund has written a call option on a security it does not own, its exposure on such an option is theoretically unlimited. A Fund may enter into closing purchase transactions in order to realize a profit or limit a loss on a previously written call option or, in the case of a call option on a security it owns, to free itself to sell the underlying security or to write another call on the security, or protect a security from being called in an unexpected market rise. Any profits from a closing purchase transaction in the case of a call option on a security a Fund owns may be offset by a decline in the value of the underlying security. Conversely, because increases in the market price of a call option will generally reflect increases in the market price of the underlying security, any loss resulting from a closing purchase transaction relating to a call option on a security a Fund owns is likely to be offset in whole or in part by unrealized appreciation of the underlying security owned by the Fund. A Fund may not be able to close out a call option that it has previously written. A Fund may write put options in order to enhance its current return by taking a long directional position as to a security or index of securities. By writing a put option, a Fund assumes the risk that it may be required to purchase the underlying security for an exercise price higher than its then current market value, resulting in a potential capital loss unless the security later appreciates in value. A Fund may terminate a put option that it has written before it expires by entering into a closing purchase transaction. Any loss from this transaction may be partially or entirely offset by the premium received on the terminated option. A Fund may not be able to close out a put option that it has previously written.

When a Fund writes a call or put option, an amount equal to the premium received is recorded as a liability. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against the amount paid on the underlying investment to determine the realized gain or loss.

Purchasing put and call options. A Fund may purchase put options to protect portfolio holdings against a decline in market value of a security or securities held by it. A Fund may also purchase a put option hoping to profit from an anticipated decline in the value of the underlying security. If the Fund holds the security underlying the option, the option premium and any transaction costs will reduce any profit the Fund might have realized had it sold the underlying security instead of buying the put option. A Fund may purchase call options to hedge against an increase in the price of securities that the Fund wants ultimately to buy. A Fund may also purchase a call option as a long directional investment hoping to profit from an anticipated increase in the value of the underlying security. In order for a call option to be profitable, the market price of the underlying security must rise sufficiently above the exercise price to cover the premium and transaction costs. These costs will reduce any profit the Fund might have realized had it bought the underlying security at the time it purchased the call option.

When a Fund purchases an option, it runs the risk that it will lose its entire investment in the option in a relatively short period of time, unless the Fund exercises the option or enters into a closing sale transaction before the option’s expiration. If the price of the underlying security does not rise (in the case of a call) or fall (in the case of a put) to an extent sufficient to cover the option premium and transaction costs, the Fund will lose part or all of its investment in the option. This contrasts with an investment by a Fund in the underlying security, since the Fund will not realize a loss if the security’s price does not change. Premiums paid for purchasing options that expire are treated as realized losses.

Exchange Traded Options. Exchange traded options purchased or sold by a Fund may be traded on a securities or options exchange or market. Such options typically have minimal exposure to counterparty risk. However, an exchange or market may at times find it necessary to impose restrictions on particular types of options transactions, such as opening transactions. If an underlying security ceases to meet qualifications imposed by the market or the Options Clearing Corporation, new series of options on that security will no longer be opened to replace expiring series, and opening transactions in existing series may be prohibited. Exchange traded options are valued at the last sale price, or if no sales are reported, the last bid price.

 

 

195

Table of Contents

Notes to Financial Statements (Continued)

 

The Fund(s) listed in the following table had open written option contracts at December 31, 2016

 

 

 

     Units    Expiration
Date		     

Description

    Premiums
Received		      Value  
Managed Volatility Fund     
   85      1/06/17      S&P 500 Index Call, Strike 2,200.00    $ 301,537      $ 344,760  
   79      1/13/17      S&P 500 Index Call, Strike 2,260.00      193,236        76,077  
   94      1/20/17      S&P 500 Index Call, Strike 2,175.00      413,365        667,400  
   86      1/20/17      S&P 500 Index Call, Strike 2,200.00      249,185        453,048  
   95      1/20/17      S&P 500 Index Call, Strike 2,250.00      313,263        174,990  
   91      2/17/17      S&P 500 Index Call, Strike 2,200.00      488,261        590,590  
   93      2/17/17      S&P 500 Index Call, Strike 2,225.00      334,568        419,430  
   95      3/17/17      S&P 500 Index Call, Strike 2,250.00      493,762        427,975  
   86      3/17/17      S&P 500 Index Call, Strike 2,275.00      412,584        270,470  
           

 

 

     

 

 

  
            $ 3,199,761      $ 3,424,740  
           

 

 

     

 

 

  

 

Transactions in written option contracts during the year ended December 31, 2016, were as follows:

 

 

 

     Number of
Contracts		     Premiums
Received		  
Managed Volatility Fund  

Options outstanding at December 31, 2015

      938     $ 4,774,926  

Options written

      9,611       34,699,267  

Options terminated in closing purchase transactions

      (9,619 )      (36,093,618 ) 

Options expired

      (126 )      (180,814 ) 
  

 

 

    

 

 

  

Options outstanding at December 31, 2016

      804     $ 3,199,761  
  

 

 

    

 

 

  

 

Inflation-Indexed Bonds

The Funds may invest in inflation-indexed bonds, which are fixed income securities whose principal value or coupon is periodically adjusted according to the rate of inflation, as measured by the Consumer Price Index for All Urban Consumers (“CPI-U”) (for U.S. Treasury inflation-indexed bonds) or, generally, by a comparable inflation index calculated by the foreign government issuing the inflation-indexed bonds.

If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds, even during a period of deflation. However, the current market value of the bonds is not guaranteed, and will fluctuate. The Funds may also invest in other inflation related bonds which may or may not provide a similar guarantee. If a guarantee of principal is not provided, the adjusted principal value of the bond repaid at maturity may be less than the original principal. Any adjustments to the principal amount of an inflation-indexed bond due to inflation will be reflected as increases or decreases to interest income. Such adjustments may have a significant impact on the Fund’s distributions.

The value of inflation-indexed bonds is generally based on changes in real interest rates, which in turn are tied to the relationship between nominal interest rates and the rate of inflation. Therefore, if nominal interest rates increased at a faster rate than inflation, real interest rates might rise, leading to a decrease in value of inflation-indexed bonds. While the values of these securities are expected to be protected from long-term inflationary trends, short-term increases in inflation may lead to a decline in value. There can be no assurance that the CPI-U or any foreign inflation index will accurately measure the real rate of inflation, or that the rate of inflation in a foreign country will correlate to the rate of inflation in the United States. Additionally, if interest rates rise due to reasons other than inflation, investors in these securities may not be protected to the extent that the increase is not reflected in the bond’s inflation measure.

 

 

196

Table of Contents

Notes to Financial Statements (Continued)

 

Bank Loans

Certain of the Funds may invest in bank loans including, for example, corporate loans, loan participations, direct debt, bank debt, and bridge debt. A Fund may invest in a loan by lending money to a borrower directly as part of a syndicate of lenders. In a syndicated loan, the agent that originated and structured the loan typically administers and enforces the loan on behalf of the syndicate. Failure by the agent to fulfill its obligations may delay or adversely affect receipt of payment by a Fund. A Fund may also invest in loans through novations, assignments, and participation interests. In a novation, a Fund typically assumes all of the rights of a lending institution in a loan, including the right to receive payments of principal and interest and other amounts directly from the borrower and to enforce its rights as a lender directly against the borrower. When a Fund takes an assignment of a loan, the Fund acquires some or all of the interest of another lender (or assignee) in the loan. In such cases, the Fund may be required generally to rely upon the assignor to demand payment and enforce rights under the loan. If a Fund acquires a participation in the loan, the Fund purchases an indirect interest in a loan held by a third party and the Fund typically will have a contractual relationship only with the third party loan investor, not with the borrower. As a result, a Fund may have the right to receive payments of principal, interest, and any fees to which it is entitled only from the loan investor selling the participation and only upon receipt by such loan investor of such payments from the borrower. In such cases, a Fund assumes the credit risk of both the borrower and the loan investor selling the participation, and the Fund may be unable to realize some or all of the value of its interest in the loan in the event of the insolvency of the third party.

Changes in the financial condition of the borrower or economic conditions or other circumstances may reduce the capacity of the borrower to make principal and interest payments on such instruments and may lead to defaults. The value of any collateral securing a bank loan may decline after the Fund invests, and there is a risk that the value of the collateral may not be sufficient to cover the amount owed to the Fund.

At December 31, 2016, the Funds had no unfunded loan commitments.

Repurchase Agreements

Each Fund may enter into repurchase agreements with certain banks and broker-dealers whereby a Fund acquires a security for cash and obtains a simultaneous commitment from the seller to repurchase the security at an agreed upon price and date. A Fund, through its custodian, takes possession of the securities collateralizing the repurchase agreement in a segregated account. Repurchase agreements must be fully collateralized at all times, but involve some risk to a Fund if the other party should default on its obligation and the Fund is delayed or prevented from recovering the collateral, or if the Fund is required to return collateral to a borrower at a time when it may realize a loss on the investment of that collateral.

When-Issued, Delayed-Delivery, Forward Commitment, and To-Be-Announced Transactions

A Fund may enter into when-issued, delayed-delivery, forward commitment, or to-be-announced (“TBA”) transactions (collectively, the “Forward Transactions”) in order to lock in the purchase price of the underlying security, or in order to adjust the interest rate exposure of the Fund’s existing portfolio. In Forward Transactions, a Fund commits to purchase or sell particular securities, with payment and delivery to take place at a future date. In the case of TBA purchase commitments, the unit price and the estimated principal amount are established when the Fund enters into a commitment, with the actual principal amount being within a specified range of the estimate. Although a Fund does not typically pay for the securities in these types of transactions until they are delivered, it immediately assumes the risks of ownership, including the risk of price fluctuation. As a result, each of these types of transactions may create investment leverage in a Fund’s portfolio and increase the volatility of the Fund. If a Fund’s counterparty fails to deliver a security purchased in a Forward Transaction, there may be a loss, and the Fund may have missed an opportunity to make an alternative investment.

These securities are valued on the basis of valuations furnished by a pricing service, selected pursuant to procedures approved by the Trustees, which determines valuations taking into account appropriate factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data. Securities for which no market quotation is available are valued at fair value in accordance with procedures approved by the Trustees. The Funds record on a daily basis the unrealized appreciation (depreciation) based upon changes in the values of these securities. When a

 

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Forward Transaction is closed, the Funds record a realized gain or loss equal to the difference between the value of the transaction at the time it was opened and the value of the transaction at the time it was closed.

Dollar Roll Transactions

A Fund may enter into dollar roll transactions, in which the Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to purchase substantially similar securities on a specified future date from the same party. A Fund may invest in dollar rolls in order to benefit from anticipated changes in pricing for the mortgage-backed securities during the term of the transaction, or for the purpose of creating investment leverage. In a dollar roll, the securities that are to be purchased will be of the same type as the securities sold, but will be supported by different pools of mortgages.

Dollar rolls involve the risk that the Fund’s counterparty will be unable to deliver the mortgage-backed securities underlying the dollar roll at the fixed time. If the counterparty files for bankruptcy or becomes insolvent, a Fund’s use of the transaction proceeds may be restricted pending a determination by the counterparty or its representative, whether to enforce the Fund’s obligation to repurchase the securities. A Fund can incur a loss on a dollar roll transaction (either because its counterparty fails to perform or because the value of the mortgages subject to the transaction declines) and on the investments made by the Fund with the proceeds of the dollar roll transaction.

A Fund accounts for a dollar roll transaction as a purchase and sale whereby the difference in the sales price and purchase price of the security sold is recorded as a realized gain (loss). If certain criteria are met, these dollar roll transactions may be considered financing transactions, whereby the difference in the sales price and the future purchase price is recorded as an adjustment to interest income. Dollar roll transactions generally have the effect of creating leverage in a Fund’s portfolio.

Securities Lending

Each Fund may lend its securities; however, lending cannot exceed 33% of the total assets of the Fund taken at current value. The Funds’ securities lending activities are governed by a Securities Lending Agency Agreement (“Lending Agreement”) between each Fund and the lending agent (“agent”). The Lending Agreement authorizes the agent to lend qualifying U.S. and foreign securities held by a Fund to approved borrowers (each, a “Borrower”).

Each Fund expects that in connection with any securities on loan, the loan will be secured continuously by collateral consisting of cash or securities adjusted daily to have market value at least equal to the current market value of the securities loaned. The market value of the loaned securities is determined at the close of business of a Fund and any additional collateral is delivered to the Fund the next business day. The Funds bear the risk of loss with respect to the investment of cash collateral. As with other extensions of credit, the Funds may bear the risk of delay in recovery of the loaned securities or even loss of rights in the collateral should the Borrower of the securities fail financially. Pursuant to the Lending Agreement, the agent has provided indemnification to the Funds in the event of default by a borrower with respect to a loan. The Funds receive compensation for lending their securities in the form of a securities loan fee paid by the Borrower, as well as a share of the income earned on investment of the cash collateral received for the loaned securities. At December 31, 2016, the Funds’ collateral was equal to or greater than 100% of the market value of securities on loan.

Security loans can be terminated at the discretion of either the lending agent or the Fund and the related securities must be returned within the earlier of the standard trade settlement period for such securities or within three business days. For all Funds, all securities on loan are classified as common stock in the Fund’s Portfolio of Investments at December 31, 2016.

The Funds employ the agent to implement their securities lending program and the agent receives a fee from the Funds for its services. In addition, the Funds may be required to pay a rebate to the Borrower. Accordingly, a Fund’s compensation for lending its securities is reduced by any such fees or rebate paid to the securities lending agent or Borrower, respectively. For the year ended December 31, 2016, the Fund(s) earned securities lending net income as follows:

 

 

 

     Securities
Lending Gross
Income		      Securities
Lending Fees
and Expenses		      Securities
Lending Net
Income		  

Foreign Fund

    $ 303,992      $ 61,470      $ 242,522  

Global Fund

      48,760        10,107        38,653  

 

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Notes to Financial Statements (Continued)

 

     Securities
Lending Gross
Income		      Securities
Lending Fees
and Expenses		      Securities
Lending Net
Income		  

International Equity Fund

    $ 48,618      $ 9,939      $ 38,679  

Mid Cap Growth Fund

      294,101        59,327        234,774  

Small Cap Growth Equity Fund

      161,580        32,728        128,852  

Small Company Value Fund

      10,911        2,265        8,646  

 

Accounting for Investment Transactions

Investment transactions are accounted for on the trade date. Realized gains and losses on sales of investments and unrealized appreciation and depreciation of investments are computed by the specific identification cost method. Proceeds received from litigation, if any, are included in realized gains on investment transactions for any investments that are no longer held in the portfolio and as a reduction in cost for investments that continue to be held in the portfolio. Interest income, adjusted for amortization of discounts and premiums on debt securities, is earned from the settlement date and is recorded on the accrual basis. Dividend income and realized capital gain distributions are recorded on the ex-dividend date. Withholding taxes on foreign interest, dividends, and capital gains have been provided for in accordance with the applicable country’s tax rules and rates. Foreign dividend income is recorded on the ex-dividend date or as soon as practicable after the Fund determines the existence of a dividend declaration after exercising reasonable due diligence. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Funds determine the classification of distributions received as return of capital distributions or capital gain distributions.

Foreign Currency Translation

The books and records of the Funds are maintained in U.S. dollars. The market values of foreign currencies, foreign securities, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the mean of the buying and selling rates of such currencies against the U.S. dollar at the end of each business day. Purchases and sales of foreign securities and income and expense items are translated at the rates of exchange prevailing on the respective dates of such transactions. The Funds do not isolate that portion of the results of operations arising from changes in the exchange rates from that portion arising from changes in the market prices of securities. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date on investment securities transactions, foreign currency transactions, and the difference between the amounts of dividends or interest recorded on the books of the Funds and the amount actually received.

Allocation of Operating Activity

In maintaining the records for the Funds, the income and expense accounts are allocated daily to each class of shares. Investment income and loss, and unrealized and realized gains or losses are prorated among the classes of shares based on the relative net assets of each. Expenses are allocated to each class of shares depending on the nature of the expenditures. Administration and service fees, if any, which are directly attributable to a class of shares, are charged to that class’s operations. Expenses of a Fund not directly attributable to the operations of any specific class of shares of the Fund are prorated among the classes to which the expense relates based on relative net assets.

Foreign Securities

Each of the Foreign Fund and the International Equity Fund invests substantially all of its assets and the Global Fund invests a significant amount of its assets in foreign securities. The other Funds may also invest in foreign securities. Foreign securities, including American Depositary Receipts, are subject to additional risks compared to securities of U.S. issuers, including international trade, currency, political, regulatory, and diplomatic risks. In addition, fluctuations in currency exchange rates may adversely affect the values of foreign securities and the price of a Fund’s shares. Emerging markets securities are subject to greater risks than securities issued in developed foreign markets, including less liquidity, greater price volatility, higher relative rates of inflation, greater political, economic, and social instability, greater custody and operational risks, and greater volatility in currency exchange rates.

 

199

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Federal Income Tax

It is each Fund’s intent to continue to comply with the provisions of subchapter M of the Internal Revenue Code of 1986, as amended, applicable to a regulated investment company. Under such provisions, the Funds would not be subject to federal income taxes on their ordinary income and net realized capital gains to the extent they are distributed or deemed to have been distributed to their shareholders. Therefore, the Funds have not made any provision for federal income tax.

Dividends and Distributions to Shareholders

Dividends from net investment income and distributions of any net realized capital gains of each Fund are declared and paid annually and at other times as may be required to satisfy tax or regulatory requirements.

Distributions to shareholders are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. As a result, net investment income and net realized capital gains on investment transactions for a reporting period may differ significantly from distributions during such period.

 

3.   Advisory Fees and Other Transactions

Investment Advisory Fees and Investment Subadvisers

MML Investment Advisers, LLC (“MML Advisers”), a wholly-owned subsidiary of MassMutual, serves as investment adviser to each Fund. Under the investment advisory agreements between MML Advisers and the Trust on behalf of each Fund, MML Advisers is responsible for providing investment management services for each Fund. In return for these services, MML Advisers receives advisory fees, based upon each Fund’s average daily net assets, at the annual rates shown in the following table.

MML Advisers has also entered into investment subadvisory agreements for each Fund with the unaffiliated investment subadviser(s) shown in the following table. MML Advisers pays a subadvisory fee to each of these subadvisers based upon the aggregate net assets under management which include (1) the average daily net assets of the specified Fund which it manages, and, if applicable, (2) the average daily net assets of all other Funds or accounts of MML Advisers or its affiliates for which the subadviser provides subadvisory services and which have substantially the same investment objective, policies, and investment strategies.

The Funds’ subadvisory fees are paid by MML Advisers out of the advisory fees.

 

 

 

Fund

   

Investment Advisory Fee

   

Investment Subadviser(s)

Blue Chip Growth Fund

    0.75% on the first $400 million; and    T. Rowe Price Associates, Inc.
   0.70% on any excess over $400 million   

Equity Income Fund

    0.75% on the first $500 million; and    T. Rowe Price Associates, Inc.
   0.70% on any excess over $500 million   

Equity Index Fund

    0.10% on the first $500 million; and    Northern Trust Investments, Inc.
   0.08% on any excess over $500 million   

Focused Equity Fund

    0.70% on the first $250 million; and    Harris Associates L.P.
   0.60% on any excess over $250 million   

Foreign Fund

    0.89% on the first $500 million; and    Templeton Investment Counsel, LLC
   0.85% on any excess over $500 million   

Fundamental Growth Fund

    0.62% on the first $250 million; and    Wellington Management Company LLP
   0.60% on any excess over $250 million   

Fundamental Value Fund

    0.60% on the first $500 million; and    Wellington Management Company LLP
   0.575% on any excess over $500 million   

Global Fund

    0.60% on the first $500 million; and    Massachusetts Financial Services Company
   0.55% on any excess over $500 million   

 

200

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Notes to Financial Statements (Continued)

 

 

Fund

   

Investment Advisory Fee

   

Investment Subadviser(s)

Growth & Income Fund

    0.50% on the first $500 million; and    Massachusetts Financial Services Company
   0.475% on any excess over $500 million   

Income & Growth Fund

    0.65% on the first $500 million; and    BlackRock Investment Management, LLC
   0.60% on any excess over $500 million   

International Equity Fund

    0.80% on the first $250 million; and    Harris Associates L.P.
   0.75% on any excess over $250 million   

Large Cap Growth Fund#

    0.65% on the first $500 million; and    Loomis, Sayles & Company, L.P.
   0.60% on any excess over $500 million   

Managed Volatility Fund

    0.75% on the first $500 million; and    Gateway Investment Advisers, LLC
   0.70% on any excess over $500 million   

Mid Cap Growth Fund

    0.77% on the first $500 million; and    T. Rowe Price Associates, Inc.
   0.75% on any excess over $500 million   

Mid Cap Value Fund

    0.84% on the first $500 million; and    American Century Investment Management, Inc.
   0.80% on any excess over $500 million   

Small Cap Growth Equity Fund*

    1.04% on the first $200 million; and   

Wellington Management Company LLP

   1.00% on any excess over $200 million   

Small Company Value Fund

    0.80% on the first $150 million; and    T. Rowe Price Associates, Inc.
   0.70% on any excess over $150 million   

Small/Mid Cap Value Fund

    0.75% on the first $500 million; and    AllianceBernstein L.P.
   0.70% on any excess over $500 million   

Total Return Bond Fund**

    0.40% on the first $500 million; and    Metropolitan West Asset Management, LLC
   0.38% on any excess over $500 million   

 

 

# Effective December 7, 2016, Loomis, Sayles & Company, L.P. replaced Rainier Investment Management, LLC as subadviser to the Fund.
* Waddell & Reed Investment Management Company acted as co-subadviser to the Fund through April 24, 2016.

 

** Prior to June 1, 2016, the investment advisory fees were as follows:

 

 

 

Fund

   

Investment Advisory Fee

     

Total Return Bond Fund

    0.45% on the first $500 million; and   
   0.43% on any excess over $500 million   

 

 

Administration Fees

For the Equity Index Fund, Focused Equity Fund, Fundamental Growth Fund, Fundamental Value Fund, Global Fund, International Equity Fund, Small Company Value Fund, and Total Return Bond Fund, under a separate Administrative and Shareholder Services Agreement between the Funds and MML Advisers, MML Advisers is obligated to provide all necessary administrative and shareholder services and bear some of the Fund specific administrative expenses. In return for these services, MML Advisers receives an administrative services fee based upon the average daily net assets of the applicable class of shares of the Funds, at the following annual rates:

 

 

 

       Class I        Class II        Class III        Service
Class I		  

Equity Index Fund

        0.30%          0.15%          None          0.30%  

Focused Equity Fund

        N/A          0.15%          N/A          0.15%  

Fundamental Growth Fund

        N/A          0.15%          N/A          0.15%  

Fundamental Value Fund

        N/A          0.15%          N/A          0.15%  

Global Fund

        0.15%          0.15%          N/A          0.15%  

 

201

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Notes to Financial Statements (Continued)

 

 

       Class I      Class II        Class III      Service
Class I		  

International Equity Fund

      N/A        0.15%        N/A        0.15%  

Small Company Value Fund

      N/A        0.15%        N/A        0.15%  

Total Return Bond Fund

      N/A        0.15%        N/A        0.15%  

 

Distribution and Service Fees

MML Distributors, LLC (the “Distributor”) acts as distributor to the Funds. Pursuant to a Distribution and Services Plan adopted by the Funds pursuant to Rule 12b-1 under the 1940 Act, Service Class shares and Service Class I shares of the Funds pay an annual fee of 0.25% of the average daily net asset value of Service Class shares and Service Class I shares. This fee, or a portion thereof, is paid to: (i) the Distributor for services provided and expenses incurred by it in connection with the distribution of Service Class shares or Service Class I shares, as applicable, of each Fund; and/or (ii) MassMutual for services provided and expenses incurred by it for purposes of maintaining or providing personal services to Service Class and Service Class I shareholders. The Distributor is a wholly-owned subsidiary of MassMutual.

Expense Caps and Waivers

MML Advisers agreed to cap the fees and expenses of the Funds noted below (other than extraordinary litigation and legal expenses, Acquired Fund Fees and Expenses#, interest expense, short sale dividend and loan expense, or other non-recurring or unusual expenses such as organizational expenses and shareholder meeting expenses) based upon the average daily net assets of the applicable class of shares of the Funds, as follows:

 

 

 

     Class II      Service
Class I		  

Fundamental Growth Fund*

      0.85%        1.10%  

International Equity Fund*

      1.00%        1.25%  

Total Return Bond Fund*

      0.60%        0.85%  

 

 

# Acquired Fund Fees and Expenses are expenses borne indirectly by a Fund through investments in other pooled investment vehicles.
* Expense caps in effect through April 30, 2017.

MML Advisers contractually agreed to waive 0.05% of the advisory fee of the Total Return Bond Fund through May 31, 2016.

MML Advisers has agreed to voluntarily waive 0.05% of the advisory fee of the Small Company Value Fund. MML Advisers may amend or discontinue this waiver at any time without advance notice.

Effective June 1, 2016, MML Advisers has agreed to voluntarily waive 0.03% of the advisory fee of the Equity Income Fund through April 30, 2017. MML Advisers may amend or discontinue this waiver at any time without advance notice.

Expense caps and waiver amounts are reflected as a reduction of expenses on the Statements of Operations.

 

202

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Rebated Brokerage Commissions

The Funds listed below have entered into agreements with certain brokers whereby the brokers will rebate to the Funds, in cash, a portion of brokerage commissions. Rebated brokerage commissions are amounts earned by the Funds and are included with realized gain or loss on investment transactions presented in the Statements of Operations. For the year ended December 31, 2016, brokerage commissions rebated under these agreements were as follows:

 

 

 

     Rebated
Commissions		  

Blue Chip Growth Fund

    $ 3,395  

Equity Income Fund

      4,520  

Foreign Fund

      810  

Fundamental Growth Fund

      37  

Fundamental Value Fund

      1,237  

Global Fund

      1,200  

Growth & Income Fund

      4,908  

Income & Growth Fund

      441  

Large Cap Growth Fund

      4,210  

Managed Volatility Fund

      2,169  

Mid Cap Growth Fund

      4,647  

Small Cap Growth Equity Fund

      13,130  

Small Company Value Fund

      1,904  

Small/Mid Cap Value Fund

      34,470  

 

Deferred Compensation

Trustees of the Funds who are not officers or employees of MassMutual may elect to defer receipt of their annual fees in accordance with terms of a Non-Qualified Deferred Compensation Plan. Amounts deferred shall accrue interest or earnings and shall be recorded on the Funds’ books as other liabilities. Deferred compensation is included within Trustees’ fees and expenses in the Statements of Assets and Liabilities.

Other

Certain officers and trustees of the Funds may also be employees of MassMutual. The compensation of a trustee who is not an employee of MassMutual is borne by the Funds.

 

4.   Purchases and Sales of Investments

Cost of purchases and proceeds from sales of investment securities (excluding short-term investments) for the year ended December 31, 2016, were as follows:

 

 

 

     Purchases      Sales  
     Long-Term U.S.
Government
Securities		      Other
Long-Term
Securities		      Long-Term U.S.
Government
Securities		      Other
Long-Term
Securities		  

Blue Chip Growth Fund

    $ -      $ 114,861,086      $ -      $ 170,174,457  

Equity Income Fund

      -        99,058,427        -        148,305,545  

Equity Index Fund

      -        96,825,859        -        38,227,805  

Focused Equity Fund

      -        51,059,676        -        79,860,282  

Foreign Fund

      -        73,418,363        -        64,740,946  

Fundamental Growth Fund

      -        86,098,225        -        105,532,141  

 

203

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     Purchases      Sales  
     Long-Term U.S.
Government
Securities		      Other
Long-Term
Securities		      Long-Term U.S.
Government
Securities		      Other
Long-Term
Securities		  

Fundamental Value Fund

    $ -      $ 46,256,524      $ -      $ 60,480,783  

Global Fund

      -        36,007,405        -        53,467,152  

Growth & Income Fund

      -        21,107,276        -        29,637,011  

Income & Growth Fund

      -        73,826,061        -        73,970,560  

International Equity Fund

      -        77,759,119        -        99,410,419  

Large Cap Growth Fund

      -        235,855,866        -        343,535,078  

Managed Volatility Fund

      -        8,172,698        -        34,534,311  

Mid Cap Growth Fund

      -        117,300,174        -        155,610,303  

Mid Cap Value Fund

      -        243,850,682        -        315,681,152  

Small Cap Growth Equity Fund

      -        204,349,515        -        224,453,638  

Small Company Value Fund

      -        22,701,890        -        45,830,544  

Small/Mid Cap Value Fund

      -        124,538,408        -        155,260,234  

Total Return Bond Fund

      1,008,171,947        57,589,211        945,939,973        61,870,703  

 

 

5.   Capital Share Transactions

Changes in shares outstanding for each Fund were as follows:

 

 

 

     Year Ended December 31, 2016     Year Ended December 31, 2015  
     Shares     Amount     Shares     Amount  

Blue Chip Growth Fund Initial Class

 

Sold

      1,829,690     $ 26,464,359       2,050,627     $ 35,000,186  

Issued as reinvestment of dividends

      3,178,098       44,016,658       4,217,280       62,289,222  

Redeemed

      (5,822,807 )      (84,697,374 )      (4,490,729 )      (78,848,927 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (815,019 )    $ (14,216,357 )      1,777,178     $ 18,440,481  
  

 

 

    

 

 

    

 

 

    

 

 

  

Blue Chip Growth Fund Service Class

 

Sold

      843,322     $ 11,915,061       700,855     $ 11,542,611  

Issued as reinvestment of dividends

      408,070       5,513,029       425,902       6,171,321  

Redeemed

      (516,842 )      (7,327,640 )      (264,136 )      (4,401,398 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      734,550     $ 10,100,450       862,621     $ 13,312,534  
  

 

 

    

 

 

    

 

 

    

 

 

  

Equity Income Fund Initial Class

 

Sold

      1,822,027     $ 20,681,583       3,349,391     $ 43,038,102  

Issued as reinvestment of dividends

      4,457,802       48,991,248       4,798,391       51,918,590  

Redeemed

      (7,467,353 )      (84,435,481 )      (5,851,519 )      (76,038,084 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (1,187,524 )    $ (14,762,650 )      2,296,263     $ 18,918,608  
  

 

 

    

 

 

    

 

 

    

 

 

  

Equity Income Fund Service Class

 

Sold

      823,658     $ 9,374,307       801,621     $ 9,912,506  

Issued as reinvestment of dividends

      746,940       8,141,646       699,148       7,508,847  

Redeemed

      (570,439 )      (6,484,581 )      (461,419 )      (5,866,477 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      1,000,159     $ 11,031,372       1,039,350     $ 11,554,876  
  

 

 

    

 

 

    

 

 

    

 

 

  

Equity Index Fund Class I

 

Sold

      195,781     $ 5,000,396       131,076     $ 3,326,839  

Issued as reinvestment of dividends

      107,635       2,760,846       123,159       2,876,982  

Redeemed

      (816,790 )      (20,848,027 )      (549,858 )      (13,987,453 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (513,374 )    $ (13,086,785 )      (295,623 )    $ (7,783,632 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

 

204

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Notes to Financial Statements (Continued)

 

     Year Ended December 31, 2016     Year Ended December 31, 2015  
     Shares     Amount     Shares     Amount  

Equity Index Fund Class II

 

Sold

      530,976     $ 13,600,841       1,052,550     $ 26,566,026  

Issued as reinvestment of dividends

      273,077       7,004,425       241,782       5,652,856  

Redeemed

      (828,193 )      (20,989,328 )      (691,685 )      (17,492,168 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (24,140 )    $ (384,062 )      602,647     $ 14,726,714  
  

 

 

    

 

 

    

 

 

    

 

 

  

Equity Index Fund Class III

 

Sold

      3,454,116     $ 91,463,486       866     $ 22,459  

Issued as reinvestment of dividends

      302,119       7,740,287       298,056       6,959,599  

Redeemed

      (178,330 )      (4,513,366 )      (106,824 )      (2,703,109 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      3,577,905     $ 94,690,407       192,098     $ 4,278,949  
  

 

 

    

 

 

    

 

 

    

 

 

  

Equity Index Fund Service Class I

 

Sold

      171,504     $ 4,242,101       367,151     $ 9,082,505  

Issued as reinvestment of dividends

      63,228       1,580,076       61,289       1,398,611  

Redeemed

      (203,834 )      (4,947,697 )      (111,382 )      (2,742,801 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      30,898     $ 874,480       317,058     $ 7,738,315  
  

 

 

    

 

 

    

 

 

    

 

 

  

Focused Equity Fund Class II

 

Sold

      842,595     $ 10,160,682       1,950,228     $ 29,160,625  

Issued as reinvestment of dividends

      974,312       11,808,665       2,006,738       23,639,379  

Redeemed

      (4,185,139 )      (52,228,414 )      (1,850,790 )      (27,653,542 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (2,368,232 )    $ (30,259,067 )      2,106,176     $ 25,146,462  
  

 

 

    

 

 

    

 

 

    

 

 

  

Focused Equity Fund Service Class I

 

Sold

      85,127     $ 1,035,236       152,134     $ 2,134,769  

Issued as reinvestment of dividends

      40,044       482,130       86,342       1,010,197  

Redeemed

      (186,584 )      (2,232,873 )      (115,281 )      (1,736,595 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (61,413 )    $ (715,507 )      123,195     $ 1,408,371  
  

 

 

    

 

 

    

 

 

    

 

 

  

Foreign Fund Initial Class

 

Sold

      4,766,959     $ 44,140,856       7,768,376     $ 81,258,787  

Issued as reinvestment of dividends

      721,750       6,733,929       1,099,581       10,665,933  

Redeemed

      (5,117,276 )      (47,134,979 )      (4,394,039 )      (46,071,249 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      371,433     $ 3,739,806       4,473,918     $ 45,853,471  
  

 

 

    

 

 

    

 

 

    

 

 

  

Foreign Fund Service Class

 

Sold

      113,772     $ 1,038,692       224,140     $ 2,317,484  

Issued as reinvestment of dividends

      20,806       193,084       33,446       322,750  

Redeemed

      (252,633 )      (2,300,078 )      (140,636 )      (1,433,225 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (118,055 )    $ (1,068,302 )      116,950     $ 1,207,009  
  

 

 

    

 

 

    

 

 

    

 

 

  

Fundamental Growth Fund Class II

 

Sold

      1,199,321     $ 14,211,982       1,328,385     $ 18,826,700  

Issued as reinvestment of dividends

      1,903,133       21,600,562       3,138,822       36,975,319  

Redeemed

      (3,258,560 )      (38,379,284 )      (3,753,642 )      (54,749,345 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (156,106 )    $ (2,566,740 )      713,565     $ 1,052,674  
  

 

 

    

 

 

    

 

 

    

 

 

  

Fundamental Growth Fund Service Class I

 

Sold

      134,103     $ 1,564,543       81,440     $ 1,149,694  

Issued as reinvestment of dividends

      38,353       430,695       48,130       562,161  

Redeemed

      (32,918 )      (388,876 )      (41,054 )      (547,246 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      139,538     $ 1,606,362       88,516     $ 1,164,609  
  

 

 

    

 

 

    

 

 

    

 

 

  

 

205

Table of Contents

Notes to Financial Statements (Continued)

 

     Year Ended December 31, 2016     Year Ended December 31, 2015  
     Shares     Amount     Shares     Amount  

Fundamental Value Fund Class II

 

Sold

      2,062,479     $ 27,882,168       1,885,056     $ 29,843,976  

Issued as reinvestment of dividends

      1,391,644       19,608,258       1,499,241       20,434,654  

Redeemed

      (3,561,951 )      (51,188,268 )      (1,653,877 )      (25,697,093 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (107,828 )    $ (3,697,842 )      1,730,420     $ 24,581,537  
  

 

 

    

 

 

    

 

 

    

 

 

  

Fundamental Value Fund Service Class I

 

Sold

      171,789     $ 2,410,217       267,094     $ 3,957,337  

Issued as reinvestment of dividends

      48,204       671,970       39,989       539,857  

Redeemed

      (132,120 )      (1,868,524 )      (104,355 )      (1,613,745 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      87,873     $ 1,213,663       202,728     $ 2,883,449  
  

 

 

    

 

 

    

 

 

    

 

 

  

Global Fund Class I

 

Sold

      2,598,743     $ 29,871,905       4,496,635     $ 57,265,309  

Issued as reinvestment of dividends

      1,719,683       20,068,702       1,081,244       12,434,307  

Redeemed

      (4,521,059 )      (53,115,062 )      (3,111,843 )      (40,045,880 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (202,633 )    $ (3,174,455 )      2,466,036     $ 29,653,736  
  

 

 

    

 

 

    

 

 

    

 

 

  

Global Fund Class II

 

Sold

      83,397     $ 996,780       47,470     $ 614,645  

Issued as reinvestment of dividends

      115,847       1,376,262       77,044       900,642  

Redeemed

      (188,416 )      (2,259,699 )      (158,619 )      (2,031,358 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      10,828     $ 113,343       (34,105 )    $ (516,071 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Global Fund Service Class I

 

Sold

      288,887     $ 3,365,358       240,960     $ 2,974,186  

Issued as reinvestment of dividends

      91,432       1,058,779       46,172       527,285  

Redeemed

      (233,534 )      (2,653,374 )      (109,180 )      (1,373,250 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      146,785     $ 1,770,763       177,952     $ 2,128,221  
  

 

 

    

 

 

    

 

 

    

 

 

  

Growth & Income Fund Initial Class

 

Sold

      83,218     $ 1,108,925       107,989     $ 1,438,084  

Issued as reinvestment of dividends

      77,520       1,079,085       104,134       1,325,627  

Redeemed

      (998,028 )      (13,418,679 )      (1,283,961 )      (17,198,074 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (837,290 )    $ (11,230,669 )      (1,071,838 )    $ (14,434,363 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Growth & Income Fund Service Class

 

Sold

      331,928     $ 4,463,523       179,282     $ 2,384,744  

Issued as reinvestment of dividends

      12,363       171,221       15,067       190,746  

Redeemed

      (133,828 )      (1,798,978 )      (192,689 )      (2,544,358 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      210,463     $ 2,835,766       1,660     $ 31,132  
  

 

 

    

 

 

    

 

 

    

 

 

  

Income & Growth Fund Initial Class

 

Sold

      3,182,082     $ 34,660,334       2,092,475     $ 25,180,057  

Issued as reinvestment of dividends

      2,288,205       25,307,549       1,736,757       18,426,994  

Redeemed

      (3,264,374 )      (37,162,575 )      (2,959,410 )      (35,488,006 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      2,205,913     $ 22,805,308       869,822     $ 8,119,045  
  

 

 

    

 

 

    

 

 

    

 

 

  

 

206

Table of Contents

Notes to Financial Statements (Continued)

 

     Year Ended December 31, 2016     Year Ended December 31, 2015  
     Shares     Amount     Shares     Amount  

Income & Growth Fund Service Class

 

Sold

      371,022     $ 4,206,923       238,369     $ 2,815,280  

Issued as reinvestment of dividends

      168,049       1,841,818       124,932       1,315,531  

Redeemed

      (285,123 )      (3,271,760 )      (168,232 )      (1,986,854 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      253,948     $ 2,776,981       195,069     $ 2,143,957  
  

 

 

    

 

 

    

 

 

    

 

 

  

International Equity Fund Class II

 

Sold

      1,971,894     $ 17,061,558       6,490,052     $ 62,903,390  

Issued as reinvestment of dividends

      419,628       3,642,368       37,164       332,992  

Redeemed

      (4,857,377 )      (43,062,552 )      (1,267,813 )      (12,071,785 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (2,465,855 )    $ (22,358,626 )      5,259,403     $ 51,164,597  
  

 

 

    

 

 

    

 

 

    

 

 

  

International Equity Fund Service Class I

 

Sold

      48,207     $ 424,819       149,566     $ 1,425,758  

Issued as reinvestment of dividends

      2,580       22,321       258       2,305  

Redeemed

      (108,685 )      (935,487 )      (9,716 )      (92,301 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (57,898 )    $ (488,347 )      140,108     $ 1,335,762  
  

 

 

    

 

 

    

 

 

    

 

 

  

Large Cap Growth Fund Initial Class

 

Sold

      1,278,788     $ 14,028,042       1,489,752     $ 20,105,961  

Issued as reinvestment of dividends

      1,498,948       16,278,575       3,877,235       43,425,029  

Redeemed

      (11,384,877 )      (123,856,300 )      (4,271,474 )      (60,263,375 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (8,607,141 )    $ (93,549,683 )      1,095,513     $ 3,267,615  
  

 

 

    

 

 

    

 

 

    

 

 

  

Large Cap Growth Fund Service Class

 

Sold

      81,402     $ 891,887       94,721     $ 1,212,549  

Issued as reinvestment of dividends

      29,777       316,827       59,374       653,118  

Redeemed

      (69,781 )      (749,495 )      (45,443 )      (561,141 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      41,398     $ 459,219       108,652     $ 1,304,526  
  

 

 

    

 

 

    

 

 

    

 

 

  

Managed Volatility Fund Initial Class

 

Sold

      611,322     $ 7,531,963       490,598     $ 7,007,282  

Issued as reinvestment of dividends

      2,741,867       31,583,234       223,684       3,096,226  

Redeemed

      (1,816,708 )      (23,703,734 )      (13,214,384 )      (188,949,041 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      1,536,481     $ 15,411,463       (12,500,102 )    $ (178,845,533 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Managed Volatility Fund Service Class

 

Sold

      205,968     $ 2,692,032       342,915     $ 4,861,141  

Issued as reinvestment of dividends

      585,189       6,691,391       37,132       511,045  

Redeemed

      (333,962 )      (4,391,787 )      (308,184 )      (4,368,659 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      457,195     $ 4,991,636       71,863     $ 1,003,527  
  

 

 

    

 

 

    

 

 

    

 

 

  

Mid Cap Growth Fund Initial Class

 

Sold

      1,110,396     $ 16,404,679       1,563,833     $ 26,333,144  

Issued as reinvestment of dividends

      3,283,291       47,049,556       2,842,206       42,547,818  

Redeemed

      (4,029,757 )      (60,608,550 )      (3,176,630 )      (53,193,017 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      363,930     $ 2,845,685       1,229,409     $ 15,687,945  
  

 

 

    

 

 

    

 

 

    

 

 

  

 

207

Table of Contents

Notes to Financial Statements (Continued)

 

     Year Ended December 31, 2016     Year Ended December 31, 2015  
     Shares     Amount     Shares     Amount  

Mid Cap Growth Fund Service Class

 

Sold

      556,668     $ 8,058,126       735,303     $ 11,926,952  

Issued as reinvestment of dividends

      666,919       9,296,846       494,271       7,241,068  

Redeemed

      (533,707 )      (7,680,021 )      (315,754 )      (5,180,003 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      689,880     $ 9,674,951       913,820     $ 13,988,017  
  

 

 

    

 

 

    

 

 

    

 

 

  

Mid Cap Value Fund Initial Class

 

Sold

      1,763,938     $ 19,370,422       2,446,808     $ 31,047,996  

Issued as reinvestment of dividends

      4,436,936       48,717,562       6,996,182       72,480,445  

Redeemed

      (9,309,783 )      (105,641,591 )      (5,101,145 )      (62,354,659 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (3,108,909 )    $ (37,553,607 )      4,341,845     $ 41,173,782  
  

 

 

    

 

 

    

 

 

    

 

 

  

Mid Cap Value Fund Service Class

 

Sold

      736,023     $ 8,348,539       468,251     $ 5,612,473  

Issued as reinvestment of dividends

      400,965       4,346,455       503,193       5,152,695  

Redeemed

      (444,687 )      (4,956,685 )      (178,011 )      (2,138,681 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      692,301     $ 7,738,309       793,433     $ 8,626,487  
  

 

 

    

 

 

    

 

 

    

 

 

  

Small Cap Growth Equity Fund Initial Class

 

Sold

      816,707     $ 10,463,524       1,154,116     $ 17,387,574  

Issued as reinvestment of dividends

      2,665,580       32,147,623       2,896,528       40,634,083  

Redeemed

      (2,841,442 )      (36,327,899 )      (3,805,914 )      (68,130,431 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      640,845     $ 6,283,248       244,730     $ (10,108,774 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Small Cap Growth Equity Fund Service Class

 

Sold

      125,182     $ 1,542,294       205,576     $ 3,075,237  

Issued as reinvestment of dividends

      190,406       2,198,947       156,435       2,122,311  

Redeemed

      (119,127 )      (1,432,928 )      (63,729 )      (1,060,919 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      196,461     $ 2,308,313       298,282     $ 4,136,629  
  

 

 

    

 

 

    

 

 

    

 

 

  

Small Company Value Fund Class II

 

Sold

      314,449     $ 4,852,846       423,909     $ 7,077,697  

Issued as reinvestment of dividends

      799,296       12,181,265       630,971       9,281,588  

Redeemed

      (1,883,020 )      (29,995,687 )      (580,385 )      (9,810,197 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (769,275 )    $ (12,961,576 )      474,495     $ 6,549,088  
  

 

 

    

 

 

    

 

 

    

 

 

  

Small Company Value Fund Service Class I

 

Sold

      193,177     $ 2,982,699       135,867     $ 2,235,487  

Issued as reinvestment of dividends

      107,235       1,597,806       78,252       1,129,172  

Redeemed

      (124,129 )      (1,919,145 )      (91,945 )      (1,485,389 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      176,283     $ 2,661,360       122,174     $ 1,879,270  
  

 

 

    

 

 

    

 

 

    

 

 

  

Small/Mid Cap Value Fund Initial Class

 

Sold

      1,016,666     $ 11,162,219       948,363     $ 12,302,868  

Issued as reinvestment of dividends

      1,182,234       14,151,337       3,225,764       36,451,132  

Redeemed

      (3,593,861 )      (43,329,832 )      (2,865,346 )      (40,334,518 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (1,394,961 )    $ (18,016,276 )      1,308,781     $ 8,419,482  
  

 

 

    

 

 

    

 

 

    

 

 

  

 

208

Table of Contents

Notes to Financial Statements (Continued)

 

     Year Ended December 31, 2016     Year Ended December 31, 2015  
     Shares     Amount     Shares     Amount  

Small/Mid Cap Value Fund Service Class

 

Sold

      174,099     $ 2,111,665       208,211     $ 2,741,062  

Issued as reinvestment of dividends

      95,585       1,135,556       247,494       2,776,882  

Redeemed

      (193,927 )      (2,306,575 )      (101,380 )      (1,345,538 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      75,757     $ 940,646       354,325     $ 4,172,406  
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Return Bond Fund Class II

 

Sold

      9,918,042     $ 103,634,335       3,363,333     $ 35,396,133  

Issued as reinvestment of dividends

      557,268       5,873,606       1,437,031       14,643,347  

Redeemed

      (4,445,964 )      (46,473,766 )      (10,454,425 )      (110,926,318 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      6,029,346     $ 63,034,175       (5,654,061 )    $ (60,886,838 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Return Bond Fund Service Class I

 

Sold

      723,394     $ 7,489,748       452,786     $ 4,709,307  

Issued as reinvestment of dividends

      31,915       333,516       66,792       675,933  

Redeemed

      (577,333 )      (5,957,325 )      (188,061 )      (1,968,965 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      177,976     $ 1,865,939       331,517     $ 3,416,275  
  

 

 

    

 

 

    

 

 

    

 

 

  

 

 

6.   Federal Income Tax Information

At December 31, 2016, the cost of securities and the unrealized appreciation (depreciation) in the value of investments owned by the Fund(s), as computed on a federal income tax basis, were as follows:

 

 

 

     Federal Income
Tax Cost		      Tax Basis
Unrealized
Appreciation		      Tax Basis
Unrealized
(Depreciation)		     Net Unrealized
Appreciation
(Depreciation)		  

Blue Chip Growth Fund

    $ 266,169,755      $ 122,852,237      $ (7,319,526 )    $ 115,532,711  

Equity Income Fund

      386,546,006        114,957,581        (11,084,177 )      103,873,404  

Equity Index Fund

      361,008,285        209,282,277        (6,633,917 )      202,648,360  

Focused Equity Fund

      109,752,688        29,365,970        (3,186,428 )      26,179,542  

Foreign Fund

      359,349,903        38,686,523        (37,256,922 )      1,429,601  

Fundamental Growth Fund

      147,042,968        24,165,006        (1,720,254 )      22,444,752  

Fundamental Value Fund

      182,058,361        59,524,172        (7,910,067 )      51,614,105  

Global Fund

      217,540,168        38,522,113        (6,516,206 )      32,005,907  

Growth & Income Fund

      90,795,389        37,105,896        (1,889,394 )      35,216,502  

Income & Growth Fund

      225,982,773        55,818,953        (3,528,807 )      52,290,146  

International Equity Fund

      153,580,122        6,425,712        (8,461,808 )      (2,036,096 ) 

Large Cap Growth Fund

      98,893,063        9,033,933        (968,340 )      8,065,593  

Managed Volatility Fund

      159,153,379        35,868,344        (7,398,826 )      28,469,518  

Mid Cap Growth Fund

      333,008,603        111,396,019        (7,684,110 )      103,711,909  

Mid Cap Value Fund

      414,834,109        68,472,644        (5,690,665 )      62,781,979  

Small Cap Growth Equity Fund

      203,131,845        26,282,633        (8,184,788 )      18,097,845  

Small Company Value Fund

      78,314,853        30,361,967        (1,204,093 )      29,157,874  

Small/Mid Cap Value Fund

      190,897,531        46,160,708        (5,317,242 )      40,843,466  

Total Return Bond Fund

      464,203,288        3,909,898        (9,516,856 )      (5,606,958 ) 

 

Net capital loss carryforwards may be applied against any net realized taxable gains in succeeding years, subject to the carryforward period limitations, where applicable. On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by the President. The Modernization Act changed the capital loss carryforward rules as they relate to regulated investment companies. Capital losses generated in tax years beginning after the date of enactment may

 

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now be carried forward indefinitely, and retain the character of the original loss. Under pre-enactment law, capital losses could be carried forward for up to eight tax years as short-term capital losses. The provisions affecting the utilization of capital loss carryforwards under the Modernization Act also require the utilization of post-enactment losses prior to the utilization of pre-enactment losses.

At December 31, 2016, the following Fund(s) had available, for federal income tax purposes, pre-enactment unused capital losses:

 

 

 

     Expiring
2017		      Expiring
2018		  

Foreign Fund

    $ 5,029,961      $ 4,482,917  

Growth & Income Fund

      14,247,716        -  

 

Net capital loss carryforwards for the Fund(s) shown in the table above are from pre-enactment years and are, therefore, subject to the eight-year carryforward period and possible expiration.

At December 31, 2016, the following Fund(s) had post-enactment accumulated capital loss carryforwards:

 

 

 

     Short Term
Capital Loss
Carryforward		      Long term
Capital Loss
Carryforward		  

Foreign Fund

    $ 419,005      $ 10,106,869  

Managed Volatility Fund

      4,898,382        -  

International Equity Fund

      1,598,914        11,040,436  

Total Return Bond Fund

      847,048        -  

 

Net capital loss carryforwards for the Fund(s) shown in the above table are from post-enactment years and are, therefore, not subject to the eight-year carryforward period and possible expiration.

Generally accepted accounting principles in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital.

The tax character of distributions (including capital gain dividends, if any, designated pursuant to Section 852 of the Code) paid during the year ended December 31, 2016, was as follows:

 

 

 

     Ordinary
Income		      Long Term
Capital Gain		      Return of
Capital		  

Blue Chip Growth Fund

    $ 694,802      $ 48,834,885      $         -  

Equity Income Fund

      9,291,436        47,841,458        -  

Equity Index Fund

      8,411,169        10,674,465        -  

Focused Equity Fund

      2,825,171        9,465,624        -  

Foreign Fund

      6,927,013        -        -  

Fundamental Growth Fund

      1,183,093        20,848,164        -  

Fundamental Value Fund

      4,256,760        16,023,468        -  

Global Fund

      3,088,772        19,414,971        -  

Growth & Income Fund

      1,250,306        -        -  

Income & Growth Fund

      5,016,926        22,132,441        -  

International Equity Fund

      3,664,689        -        -  

Large Cap Growth Fund

      231,013        16,364,389        -  

Managed Volatility Fund

      3,180,298        35,094,327        -  

Mid Cap Growth Fund

      1,790,170        54,556,232        -  

Mid Cap Value Fund

      18,837,469        34,226,548        -  

Small Cap Growth Equity Fund

      -        34,346,570        -  

Small Company Value Fund

      604,802        13,174,269        -  

Small/Mid Cap Value Fund

      1,871,211        13,415,682        -  

Total Return Bond Fund

      6,207,122        -        -  

 

 

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The tax character of distributions (including capital gain dividends, if any, designated pursuant to Section 852 of the Code) paid during the year ended December 31, 2015, was as follows:

 

 

 

     Ordinary
Income		      Long Term
Capital Gain		      Return of
Capital		  

Blue Chip Growth Fund

    $ 127,622      $ 68,332,921      $         -  

Equity Income Fund

      10,497,374        48,930,063        -  

Equity Index Fund

      7,613,210        9,274,838        -  

Focused Equity Fund

      3,008,185        21,641,391        -  

Foreign Fund

      10,988,683        -        -  

Fundamental Growth Fund

      4,952,300        32,585,180        -  

Fundamental Value Fund

      3,558,038        17,416,473        -  

Global Fund

      3,587,393        10,274,841        -  

Growth & Income Fund

      1,516,373        -        -  

Income & Growth Fund

      4,599,970        15,142,555        -  

International Equity Fund

      335,297        -        -  

Large Cap Growth Fund

      8,119,837        35,958,310        -  

Managed Volatility Fund

      3,607,271        -        -  

Mid Cap Growth Fund

      1,921,136        47,867,750        -  

Mid Cap Value Fund

      27,961,974        49,671,166        -  

Small Cap Growth Equity Fund

      4,560,467        38,195,927        -  

Small Company Value Fund

      307,773        10,102,987        -  

Small/Mid Cap Value Fund

      6,813,552        32,414,462        -  

Total Return Bond Fund

      11,545,091        3,774,189        -  

 

 

The following Fund(s) have elected to pass through the foreign tax credit for the year ended December 31, 2016:

 

 

 

     Amount  

Foreign Fund

    $ 632,455  

International Equity Fund

      317,487  

 

Capital accounts within the financial statements are periodically adjusted for permanent differences between book and tax accounting. These adjustments have no impact on net assets or the results of operations. Temporary book and tax accounting differences will reverse in subsequent periods. At December 31, 2016, temporary book and tax accounting differences were primarily attributable to investments in forward contracts, futures contracts, options contracts, premium amortization accruals, passive foreign investment companies, non-taxable dividends basis adjustments, the deferral of wash sale losses, and deferred Trustee compensation.

At December 31, 2016, the components of distributable earnings on a tax basis were as follows:

 

 

     Undistributed
Ordinary
Income		      Undistributed
Long Term
Capital Gain
(Capital Loss
Carryover)		     Other
Temporary
Differences		     Unrealized
Appreciation
(Depreciation)		  

Blue Chip Growth Fund

    $ 17,808      $ 31,249,799     $ (50,979 )    $ 115,532,743  

Equity Income Fund

      11,628,514        32,345,971       (78,673 )      103,873,724  

Equity Index Fund

      9,164,474        18,152,735       (99,387 )      202,648,360  

Focused Equity Fund

      3,204,744        11,024,918       (15,264 )      26,179,542  

Foreign Fund

      8,049,996        (20,038,752 )      (56,235 )      1,394,673  

Fundamental Growth Fund

      1,392,041        14,042,026       (19,751 )      22,444,752  

Fundamental Value Fund

      4,677,306        15,548,054       (24,073 )      51,610,103  

 

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     Undistributed
Ordinary
Income		      Undistributed
Long Term
Capital Gain
(Capital Loss
Carryover)		     Other
Temporary
Differences		     Unrealized
Appreciation
(Depreciation)		  

Global Fund

    $ 2,924,147      $ 18,100,319     $ (23,015 )    $ 31,984,018  

Growth & Income Fund

      1,301,691        (14,247,716 )      (28,088 )      35,216,502  

Income & Growth Fund

      5,928,691        19,941,135       (31,256 )      52,289,972  

International Equity Fund

      2,912,997        (12,639,350 )      (8,547 )      (2,082,920 ) 

Large Cap Growth Fund

      5,221,196        22,755,665       (25,374 )      8,065,593  

Managed Volatility Fund

      2,352,607        (4,898,382 )      650,323       28,244,010  

Mid Cap Growth Fund

      2,177,025        41,973,718       (58,260 )      103,711,923  

Mid Cap Value Fund

      12,221,631        23,631,517       (71,527 )      62,782,503  

Small Cap Growth Equity Fund

      75,028        7,965,966       (47,473 )      18,097,559  

Small Company Value Fund

      646,518        11,796,107       (13,060 )      29,157,874  

Small/Mid Cap Value Fund

      1,443,012        12,912,946       (34,434 )      40,843,466  

Total Return Bond Fund

      8,677,152        (847,048 )      (39,946 )      (5,606,958 ) 

 

During the year ended December 31, 2016, the following amounts were reclassified due to permanent differences between book and tax accounting:

 

 

     Paid-in
Capital		     Accumulated
Net Realized
Gain (Loss) on
Investments		     Undistributed
Net Investment
Income (Loss)		  

Blue Chip Growth Fund

    $ 232,757     $ (271,849 )    $ 39,092  

Equity Income Fund

      (67,020 )      242,416       (175,396 ) 

Equity Index Fund

      409,777       (890,682 )      480,905  

Focused Equity Fund

      7       -       (7 ) 

Foreign Fund

      17       218,339       (218,356 ) 

Fundamental Growth Fund

      194,325       (139,988 )      (54,337 ) 

Fundamental Value Fund

      10       155,538       (155,548 ) 

Global Fund

      9       119,553       (119,562 ) 

Growth & Income Fund

      6       54,238       (54,244 ) 

Income & Growth Fund

      13       3,484       (3,497 ) 

International Equity Fund

      3       (120,516 )      120,513  

Large Cap Growth Fund

      10       -       (10 ) 

Managed Volatility Fund

      199,007       (593,766 )      394,759  

Mid Cap Growth Fund

      19       (775,251 )      775,232  

Mid Cap Value Fund

      (77 )      635,370       (635,293 ) 

Small Cap Growth Equity Fund

      (62,104 )      (46,315 )      108,419  

Small Company Value Fund

      5       11,217       (11,222 ) 

Small/Mid Cap Value Fund

      10       44,696       (44,706 ) 

Total Return Bond Fund

      17       (2,213,205 )      2,213,188  

 

 

 

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The Funds did not have any unrecognized tax benefits at December 31, 2016, nor were there any increases or decreases in unrecognized tax benefits for the year then ended. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as an income tax expense in the Statements of Operations. During the year ended December 31, 2016, the Funds did not incur any such interest or penalties. The Funds are subject to examination by U.S. federal and state tax authorities for returns filed for the prior three fiscal years, or the returns filed to date for Funds in existence for less than three years. Foreign taxes are provided for based on the Funds’ understanding of the tax rules and rates that exist in the foreign markets in which they invest.

 

7.   Indemnifications

Under the Funds’ organizational documents, current and former Trustees and Officers are provided with specified rights to indemnification against liabilities arising in connection with the performance of their duties to the Funds, and shareholders are indemnified against personal liability for obligations of the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.

 

8.   Legal Proceedings

On December 7, 2010, the Trust was named as a defendant and putative member of the proposed defendant class of shareholders named in an adversary proceeding brought by The Official Committee of Unsecured Creditors of Tribune Company (the “Official Committee”) in the U.S. Bankruptcy Court for the District of Delaware, in connection with Tribune Company’s Chapter 11 bankruptcy proceeding (In re Tribune Company). The proceeding relates to a leveraged buyout (“LBO”) transaction by which Tribune Company converted to a privately-held company in 2007, and the putative defendant class is comprised of beneficial owners of shares of Tribune Company who received proceeds (the “Proceeds”) of the LBO. The Official Committee seeks to recover payments of those Proceeds.

The potential amounts sought to be recovered from the Equity Income Fund and Equity Index Fund, plus interest and the Official Committee’s court costs, are approximately $4,562,800 and $207,706, respectively.

In addition, on June 2, 2011, the Equity Income Fund was named as a defendant in two closely related, parallel adversary proceedings brought in connection with the Tribune Company’s LBO by Deutsche Bank Trust Company Americas, in its capacity as successor indenture trustee for a certain series of Senior Notes, Law Debenture Trust Company of New York, in its capacity as successor indenture trustee for a certain series of Senior Notes, and Wilmington Trust Company, in its capacity as successor indenture trustee for the PHONES Notes (together, the “Plaintiffs”), one in the United States District Court for the District of Massachusetts and one in the United States District Court for the District of Connecticut. The Plaintiffs also seek to recover payments of the Proceeds.

The Funds cannot predict the outcome of these proceedings. Accordingly, the Funds have not accrued any amounts related to these proceedings. If the proceedings were to be decided in a manner adverse to the Funds, or if the Funds were to enter into a settlement agreement with the Official Committee or the Plaintiffs, as applicable, the payment of such judgment or settlement could potentially have a material adverse effect on the Funds’ net asset values depending on the net assets of each applicable Fund at the time of such judgment or settlement.

 

9.   Subsequent Events

In preparation of these financial statements, management has evaluated the events and transactions subsequent to December 31, 2016, through the date when the financial statements were issued, and determined that there are no subsequent events or transactions that would require adjustments to or disclosures in the Funds’ financial statements other than those disclosed below.

Elaine A. Sarsynski resigned as a Trustee of the Trust effective as of February 1, 2017.

 

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Report of Independent Registered Public Accounting Firm

 

To the Board of Trustees of MML Series Investment Fund and Shareholders of MML Blue Chip Growth Fund, MML Equity Income Fund, MML Equity Index Fund, MML Focused Equity Fund, MML Foreign Fund, MML Fundamental Growth Fund, MML Fundamental Value Fund, MML Global Fund, MML Growth & Income Fund, MML Income & Growth Fund, MML International Equity Fund, MML Large Cap Growth Fund, MML Managed Volatility Fund, MML Mid Cap Growth Fund, MML Mid Cap Value Fund, MML Small Cap Growth Equity Fund, MML Small Company Value Fund, MML Small/Mid Cap Value Fund, and MML Total Return Bond Fund (collectively, the “Funds”):

We have audited the accompanying statements of assets and liabilities of the Funds, including the portfolios of investments, as of December 31, 2016, and the related statements 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 periods presented. These financial statements and financial highlights are the responsibility of the Funds’ 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 Funds are not required to have, nor were we engaged to perform, an audit of their 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 Funds’ 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, 2016, 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, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2016, 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 financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Boston, Massachusetts

February 17, 2017

 

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Trustees and Officers (Unaudited)

 

The following table lists the Trust’s Trustees and Officers; their address and age; their position with the Trust; the length of time holding that position with the Trust; their principal occupation(s) during the past five years; the number of portfolios in the fund complex they oversee; and other directorships they hold in companies subject to registration or reporting requirements of the Securities Exchange Act of 1934 (generally called “public companies”) or in registered investment companies. The Trust’s Statements of Additional Information include additional information about the Trust’s Trustees and are available, without charge, upon request by calling 1-888-309-3539 or by writing MML Series Investment Fund, c/o Massachusetts Mutual Life Insurance Company, 100 Bright Meadow Blvd., Enfield, Connecticut 06082-1981, Attention: MassMutual U.S. Product and Marketing.

Disinterested Trustees

 

 

 

Name, Address*, and Age

   

Position(s)
Held with Trust

   

Term of
Office** and
Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years

    Number of
Portfolios in
Fund Complex
Overseen by Trustee		   

Other Directorships

Held by Trustee

Allan W. Blair

Age: 68

    Trustee   

Since

2003

    Retired; President and Chief Executive Officer (1996-2014), Economic Development Council of Western Massachusetts (non-profit development company); President and Chief Executive Officer (1984-2014), Westover Metropolitan Development Corporation (quasi-public development company).    94    Trustee (since 2003), MassMutual Select Funds (open-end investment company); Trustee (since 2012), MML Series Investment Fund II (open-end investment company); Trustee (since 2012), MassMutual Premier Funds (open-end investment company).
Nabil N. El-Hage
Age: 58		    Trustee   

Since

2012

 

    Founder and sole member of PR Academy of Executive Education, LLC (since 2016); Chairman (2011-2016), Academy of Executive Education, LLC (predecessor to PR Academy of Executive Education, LLC).    94    Director (2011-2015), Argo Group International Holdings, Ltd. (underwriter of specialty insurance and reinsurance products); Trustee (since 2012), MassMutual Select Funds (open-end investment company); Trustee (since 2005), Chairman (2006-2012), MML Series Investment Fund II (open-end investment company); Trustee (since 2003), Chairman (2006-2012), MassMutual Premier Funds (open-end investment company).
Maria D. Furman
Age: 62		    Trustee   

Since

2012

    Retired.    94    Trustee (since 2011), GMO Series Trust (open-end investment company); Trustee (since 2012), MassMutual Select Funds (open-end investment company); Trustee (since 2005), MML Series Investment Fund II (open-end investment company); Trustee (since 2004), MassMutual Premier Funds (open-end investment company).

R. Alan Hunter, Jr.

Age: 70

   

Chairperson

 

Trustee

   

Since

2016

 

Since

2003

    Retired.    94    Director (since 2007), Actuant Corporation (diversified industrial company); Chairperson (since 2016), Trustee (since 2003), MassMutual Select Funds (open-end investment company); Chairperson (since 2016), Trustee (since 2012), MML Series Investment Fund II (open-end investment company); Chairperson (since 2016), Trustee (since 2012), MassMutual Premier Funds (open-end investment company).

 

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Trustees and Officers (Unaudited) (Continued)

 

 

 

Name, Address*, and Age

   

Position(s)
Held with
Trust

   

Term of
Office** and
Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years

    Number of
Portfolios in
Fund Complex
Overseen by Trustee		   

Other Directorships
Held by Trustee

C. Ann Merrifield
Age: 65		    Trustee    Since
2012		    Retired; President and Chief Executive Officer (2012-2014), PathoGenetix (genomics company).    94    Director (since 2015), Juniper Pharmaceuticals Inc. (specialty pharmaceutical company); Director (since 2014), Flexion Therapeutics (specialty pharmaceutical company); Director (since 2014), InVivo Therapeutics (research and clinical-stage biomaterials and biotechnology company); Trustee (since 2012), MassMutual Select Funds (open-end investment company); Trustee (since 2005), MML Series Investment Fund II (open-end investment company); Trustee (since 2004), MassMutual Premier Funds (open-end investment company).

Susan B. Sweeney

Age: 64

    Trustee   

Since

2009

    Retired; Senior Vice President and Chief Investment Officer (2010-2014), Selective Insurance Group (property and casualty company).    96^    Trustee (since 2012), Barings Corporate Investors (closed-end investment company); Trustee (since 2012), Barings Participation Investors (closed-end investment company); Trustee (since 2009), MassMutual Select Funds (open-end investment company); Trustee (since 2012), MML Series Investment Fund II (open-end investment company); Trustee (since 2012), MassMutual Premier Funds (open-end investment company).

 

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Interested Trustee

 

 

 

Name, Address*, and Age

   

Position(s)
Held with
Trust

   

Term of
Office** and
Length of
Time Served

   

Principal Occupation(s)
During Past 5 Years

    Number of
Portfolios in
Fund Complex
Overseen by Trustee		   

Other Directorships
Held by Trustee

Robert E. Joyal^^

Age: 71

   

Trustee

   

Since

2003

    Retired.    96^    Director (since 2013), Leucadia National Corporation (holding company); Director (since 2012), Ormat Technologies, Inc. (provider of alternative and renewable energy technology); Director (2006-2014), Jefferies Group LLC (investment bank); Trustee (since 2003), Barings Corporate Investors (closed-end investment company); Trustee (since 2003), Barings Participation Investors (closed-end investment company); Trustee (since 2003), MassMutual Select Funds (open-end investment company); Trustee (since 2012), MML Series Investment Fund II (open-end investment company); Trustee (since 2012), MassMutual Premier Funds (open-end investment company).

Principal Officers who are Not Trustees

 

 

 

Name, Address*, and Age

   

Position(s) Held
with Trust

    Term of
Office# and
Length of
Time Served		   

Principal Occupation(s) During Past 5 Years

    Number of
Portfolios in
Fund Complex
Overseen by Officer
Michael C. Eldredge
Age: 52		    Vice President    Since

2009

    Head of Asset Allocation Funds (since 2016), portfolio manager (2014-2016), Head of Investments (2014-2016), MML Advisers; Vice President (since 2008), MassMutual; Vice President (since 2009), MassMutual Select Funds (open-end investment company); Vice President (since 2009), MML Series Investment Fund II (open-end investment company); Vice President (since 2009), MassMutual Premier Funds (open-end investment company).    94

Andrew M. Goldberg

Age: 50

   

Vice President, Secretary, and Chief Legal Officer

 

Assistant Secretary

 

    Since

2008

 

(2001-
2008)

    Assistant Vice President and Counsel (since 2004), MassMutual; Secretary (since 2015), Assistant Secretary (2013-2015), MML Advisers; Vice President, Secretary, and Chief Legal Officer (since 2008), Assistant Secretary (2001-2008), MassMutual Select Funds (open-end investment company); Vice President, Secretary, (formerly known as “Clerk”), and Chief Legal Officer (since 2008), Assistant Clerk (2005-2008), MML Series Investment Fund II (open-end investment company); Vice President, Secretary, (formerly known as “Clerk”), and Chief Legal Officer (since 2008), Assistant Clerk (2004-2008), MassMutual Premier Funds (open-end investment company).    94

Brian K. Haendiges

Age: 56

   

President

Vice President

 

    Since

2016

(2014-
2016)

    Vice President (since 2014), MML Advisers; Senior Vice President (since 2014), Vice President (2010-2014), MassMutual; Vice President (since 2014), MassMutual Select Funds (open-end investment company); President (since 2016), Vice President (2014-2016), MML Series Investment Fund II (open-end investment company); Vice President (since 2014), MassMutual Premier Funds (open-end investment company).    94

Renee Hitchcock

Age: 46

   

Chief Financial Officer and Treasurer

 

Assistant Treasurer

    Since

2016

 

2007-
2016

    Assistant Vice President (since 2015), Director (2007-2015), MassMutual; Chief Financial Officer and Treasurer (since 2016), Assistant Treasurer (2007-2016), MassMutual Select Funds (open-end investment company); Chief Financial Officer and Treasurer (since 2016), Assistant Treasurer (2007-2016), MML Series Investment Fund II (open-end investment company); Chief Financial Officer and Treasurer (since 2016), Assistant Treasurer (2007-2016), MassMutual Premier Funds (open-end investment company).    94

 

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Trustees and Officers (Unaudited) (Continued)

 

 

 

Name, Address*, and Age

   

Position(s) Held
with Trust

    Term of
Office# and
Length of
Time Served		   

Principal Occupation(s) During Past 5 Years

    Number of
Portfolios in
Fund Complex
Overseen by Officer

Douglas Steele

Age: 41

   

Vice President

    Since

2016

    Head of Investment Due Diligence (since 2016), MML Advisers; Assistant Vice President (since 2013), Investment Director (2005-2013), MassMutual; Vice President (since 2016), MassMutual Select Funds (open-end investment company); Vice President (since 2016), MML Series Investment Fund II (open-end investment company); Vice President (since 2016), MassMutual Premier Funds (open-end investment company).    94

Philip S. Wellman

Age: 52

    Vice President and Chief Compliance Officer    Since
2007		    Vice President and Chief Compliance Officer (since 2013), MML Advisers; Vice President, Associate General Counsel, and Chief Compliance Officer (Mutual Funds) (since 2014), Vice President, Associate General Counsel, and Chief Compliance Officer (Mutual Funds and Investment Advisory) (2008-2014), MassMutual; Vice President and Chief Compliance Officer (since 2007), MassMutual Select Funds (open-end investment company); Vice President and Chief Compliance Officer (since 2007), MML Series Investment Fund II (open-end investment company); Vice President and Chief Compliance Officer (since 2007), MassMutual Premier Funds (open-end investment company).    94

Eric H. Wietsma

Age: 50

    Vice President    Since

2006

    Director and President (since 2013), MML Advisers; Senior Vice President (since 2010), MassMutual; President (since 2008), Vice President (2006-2008), MassMutual Select Funds (open-end investment company); Vice President (since 2006), MML Series Investment Fund II (open-end investment company); President (since 2008) Vice President (2006-2008), MassMutual Premier Funds (open-end investment company).    94

Tina Wilson

Age: 46

    Vice President    Since
2016		    Vice President and Head of Investments (since 2016), MML Advisers; Senior Vice President (since 2014), Vice President (2009-2014), MassMutual; Vice President (since 2016), MassMutual Select Funds (open-end investment company); Vice President (since 2016), MML Series Investment Fund II (open-end investment company); Vice President (since 2016), MassMutual Premier Funds (open-end investment company).    94

 

 

* The address of each Trustee and Principal Officer is the same as that for the Trust; 100 Bright Meadow Blvd., Enfield, CT 06082-1981.

 

** Each Trustee of the Trust serves until the next meeting of shareholders called for the purpose of electing Trustees and until the election and qualification of his or her successor or until he or she dies, resigns, or is removed. Notwithstanding the foregoing, unless the Trustees determine that it is desirable and in the best interest of the Trust that an exception to the retirement policy of the Trust be made, a Trustee shall retire and cease to serve as a Trustee upon the conclusion of the calendar year in which such Trustee attains the age of seventy-two years.

 

   The Chairperson is elected to hold such office for a term of three years or until their successor is elected and qualified to carry out the duties and responsibilities of their office, or until he or she retires, dies, resigns, is removed, or becomes disqualified. The Chairperson shall hold office at the pleasure of the Trustees.

 

^ Barings Participation Investors and Barings Corporate Investors are deemed to be a part of the Fund Complex, because they are managed by Barings LLC (formerly known as Babson Capital Management LLC), an affiliate of MML Advisers.

 

^^ Mr. Joyal is an “Interested Person,” as that term is defined in the 1940 Act, through his position as a director of Leucadia National Corporation, which controls Jefferies Group LLC, a broker-dealer that may execute portfolio transactions and/or engage in principal transactions with the Funds, other investment companies advised by MML Advisers or holding themselves out to investors as related companies for purposes of investment or investor services, or any other advisory accounts over which MML Advisers has brokerage placement discretion.

 

# The President, Treasurer, and Secretary and such other officers as the Trustees may in their discretion from time to time elect are elected to hold such office until their successor is elected and qualified to carry out the duties and responsibilities of their office, or until he or she dies, resigns, is removed, or becomes disqualified. Each officer shall hold office at the pleasure of the Trustees.

 

218

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Federal Tax Information (Unaudited)

 

For corporate shareholders, a portion of the ordinary dividends paid during the Fund(s)’ year ended December 31, 2016, qualified for the dividends received deduction, as follows:

 

 

     Dividends Received
Deductions		  

Blue Chip Growth Fund

      100.00 % 

Equity Income Fund

      100.00 % 

Equity Index Fund

      100.00 % 

Focused Equity Fund

      100.00 % 

Fundamental Growth Fund

      100.00 % 

Fundamental Value Fund

      100.00 % 

Global Fund

      67.40 % 

Growth & Income Fund

      100.00 % 

Income & Growth Fund

      100.00 % 

Large Cap Growth Fund

      100.00 % 

Managed Volatility Fund

      100.00 % 

Mid Cap Growth Fund

      100.00 % 

Mid Cap Value Fund

      47.02 % 

Small Company Value Fund

      100.00 % 

Small/Mid Cap Value Fund

      100.00 % 

Total Return Bond Fund

      0.36 % 

 

For the year ended December 31, 2016, the following Fund(s) earned the following foreign sources of income:

 

 

     Amount  

Foreign Fund

    $ 8,244,613  

International Equity Fund

    $ 3,917,910  

 

 

219

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Other Information (Unaudited)

 

Proxy Voting

A description of the policies and procedures that each Fund’s investment adviser and subadvisers use to vote proxies relating to the Fund’s portfolio securities is available, without charge, upon request, by calling 1-888-309-3539, and on the Securities and Exchange Commission’s (“SEC”) EDGAR database on its website at http://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available, without charge, upon request, on the MassMutual website at http://www.massmutual.com/funds and on the SEC’s EDGAR database on its website at http://www.sec.gov.

Quarterly Reporting

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s EDGAR database on its website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington D.C. Information on the operation of the SEC’s Public Reference Room may be obtained by calling 1-800-SEC-0330.

Trustees’ Approval of Investment Advisory Contracts

At their meeting in November 2016, the Trustees, including the Trustees who are not “interested persons” (as such term is defined in the 1940 Act) of the Trust, MML Advisers, or the subadvisers (the “Independent Trustees”), approved a new subadvisory agreement (“New Subadvisory Agreement”) with Loomis, Sayles & Company, L.P. (“Loomis Sayles”) for the Large Cap Growth Fund. In preparation for the meeting, the Trustees requested, and MML Advisers provided in advance, certain materials relevant to the consideration of the New Subadvisory Agreement. In all of their deliberations, the Trustees were advised by independent counsel.

In reviewing the New Subadvisory Agreement, the Independent Trustees discussed with MML Advisers and considered a wide range of information about, among other things: (i) Loomis Sayles and its respective personnel with responsibilities for providing services to the Large Cap Growth Fund; (ii) the terms of the New Subadvisory Agreement; (iii) the scope and quality of services that Loomis Sayles will provide under the New Subadvisory Agreement; (iv) the historical investment performance track record of Loomis Sayles; and (v) the fees payable to Looms Sayles by MML Advisers for the Large Cap Growth Fund and the effect of such fees on the profitability to MML Advisers.

Prior to the votes being taken to approve the New Subadvisory Agreement, the Independent Trustees met separately in executive session to discuss the appropriateness of such contract. The Independent Trustees weighed the foregoing matters in light of the advice given to them by their independent legal counsel as to the law applicable to the review of investment advisory contracts. In arriving at a decision, the Trustees, including the Independent Trustees, did not identify any single matter as all-important or controlling. The foregoing summary does not detail all of the matters considered.

Based on the foregoing, the Trustees concluded that: (i) overall, they were satisfied with the nature, extent, and quality of services expected to be provided under the New Subadvisory Agreement; (ii) MML Advisers’ projected level of profitability due to the New Subadvisory Agreement was not excessive and the subadvisory fee amount under the New Subadvisory Agreement is fair and reasonable; (iii) the investment processes, research capabilities, and philosophies of Loomis Sayles appear well suited to the Large Cap Growth Fund, given its investment objectives and policies; and (iv) the terms of the New Subadvisory Agreement are fair and reasonable with respect to the Large Cap Growth Fund and are in the best interests of the Large Cap Growth Fund’s shareholders. After carefully considering the information summarized above, the Trustees, including the Independent Trustees voting separately, unanimously voted to approve the New Subadvisory Agreement.

The New Subadvisory Agreement became effective on December 7, 2016.

At their meeting in November 2016, the Trustees, including the Independent Trustees, also approved renegotiated subadvisory agreements with T. Rowe Price Associates, Inc. (“T. Rowe Price”) for the Blue Chip Growth Fund, Equity Income Fund, Mid Cap Growth Fund, and Small Company Value Fund, each of which is based on the new form of subadvisory agreement previously

 

220

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Other Information (Unaudited) (Continued)

 

presented to the Trustees (“Renegotiated Subadvisory Agreements”). In preparation for the meeting, the Trustees requested, and MML Advisers provided in advance, certain materials relevant to the consideration of the Renegotiated Subadvisory Agreements. In all of their deliberations, the Trustees were advised by independent counsel.

In reviewing the Renegotiated Subadvisory Agreements, the Trustees discussed with MML Advisers and considered a wide range of information about, among other things: (i) T. Rowe Price and its personnel with responsibilities for providing services to the Blue Chip Growth Fund, Equity Income Fund, Mid Cap Growth Fund, and Small Company Value Fund; (ii) the terms of the Renegotiated Subadvisory Agreements; and (iii) the scope and quality of services that T. Rowe Price will provide under the Renegotiated Subadvisory Agreements.

Prior to the votes being taken to approve the Renegotiated Subadvisory Agreements, the Independent Trustees met separately in executive session to discuss the appropriateness of such contracts. The Independent Trustees weighed the foregoing matters in light of the advice given to them by their independent legal counsel as to the law applicable to the review of investment advisory contracts. In arriving at a decision, the Trustees, including the Independent Trustees, did not identify any single matter as all-important or controlling. The foregoing summary does not detail all of the matters considered.

Based on the foregoing, the Trustees concluded that: (i) overall, they were satisfied with the nature, extent, and quality of services expected to be provided under the Renegotiated Subadvisory Agreements, including the anticipated level of MML Advisers’ oversight of the Blue Chip Growth Fund, Equity Income Fund, Mid Cap Growth Fund, and Small Company Value Fund and the subadvisory process; and (ii) the terms of the Renegotiated Subadvisory Agreement are fair and reasonable with respect to the Blue Chip Growth Fund, Equity Income Fund, Mid Cap Growth Fund, and Small Company Value Fund and are in the best interest of the Funds’ shareholders. After carefully considering the information summarized above, the Trustees, including the Independent Trustees voting separately, unanimously voted to approve the Renegotiated Subadvisory Agreements.

 

221

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Other Information (Unaudited) (Continued)

 

Fund Expenses December 31, 2016

 

Expense Examples:

The following information is in regards to expenses for the six months ended December 31, 2016:

As a shareholder of the Funds, you incur ongoing costs, including advisory fees, distribution and/or service (12b-1) fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested for the six months ended December 31, 2016.

Actual Expenses:

The first four columns of the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, 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 under the heading entitled “Operating Expenses Incurred” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes:

The last two columns of the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’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 Fund 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 transactional costs. Therefore, the last two columns of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

 

 

     Beginning
Value		      Annualized
Expense
Ratio		     Ending
Value (Based
on Actual
Returns and
Expenses)		      Operating
Expenses
Incurred*		      Ending
Value (Based
on
Hypothetical
Returns and
Expenses)		      Operating
Expenses
Incurred*		  
Blue Chip Growth Fund                 

Initial Class

    $ 1,000        0.79 %    $ 1,071.50      $ 4.11      $ 1,021.20      $ 4.01  

Service Class

      1,000        1.04 %      1,069.40        5.41        1,019.90        5.28  
Equity Income Fund                 

Initial Class

      1,000        0.75 %      1,116.60        3.99        1,021.40        3.81  

Service Class

      1,000        1.00 %      1,115.90        5.32        1,020.10        5.08  
Equity Index Fund                 

Class I

      1,000        0.43 %      1,075.70        2.24        1,023.00        2.19  

Class II

      1,000        0.28 %      1,076.70        1.46        1,023.70        1.42  

Class III

      1,000        0.13 %      1,076.50        0.68        1,024.50        0.66  

Service Class I

      1,000        0.68 %      1,074.10        3.55        1,021.70        3.46  
Focused Equity Fund                 

Class II

      1,000        0.90 %      1,198.40        4.97        1,020.60        4.57  

Service Class I

      1,000        1.15 %      1,197.30        6.35        1,019.40        5.84  

 

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Other Information (Unaudited) (Continued)

 

     Beginning
Value		      Annualized
Expense
Ratio		     Ending
Value (Based
on Actual
Returns and
Expenses)		      Operating
Expenses
Incurred*		      Ending
Value (Based
on
Hypothetical
Returns and
Expenses)		      Operating
Expenses
Incurred*		  

Foreign Fund

                 

Initial Class

    $ 1,000        0.97 %    $ 1,075.60      $ 5.06      $ 1,020.30      $ 4.93  

Service Class

      1,000        1.22 %      1,074.50        6.36        1,019.00        6.19  

Fundamental Growth Fund

                 

Class II

      1,000        0.83 %      1,039.00        4.25        1,021.00        4.22  

Service Class I

      1,000        1.08 %      1,037.90        5.53        1,019.70        5.48  

Fundamental Value Fund

                 

Class II

      1,000        0.79 %      1,090.30        4.15        1,021.20        4.01  

Service Class I

      1,000        1.04 %      1,089.40        5.46        1,019.90        5.28  

Global Fund

                 

Class I

      1,000        0.82 %      1,046.10        4.22        1,021.00        4.17  

Class II

      1,000        0.82 %      1,045.60        4.22        1,021.00        4.17  

Service Class I

      1,000        1.07 %      1,044.70        5.50        1,019.80        5.43  

Growth & Income Fund

                 

Initial Class

      1,000        0.55 %      1,069.10        2.86        1,022.40        2.80  

Service Class

      1,000        0.80 %      1,067.90        4.16        1,021.10        4.06  

Income & Growth Fund

                 

Initial Class

      1,000        0.69 %      1,109.30        3.66        1,021.70        3.51  

Service Class

      1,000        0.94 %      1,107.80        4.98        1,020.40        4.77  

International Equity Fund

                 

Class II

      1,000        1.00 %      1,198.30        5.53        1,020.10        5.08  

Service Class I

      1,000        1.25 %      1,196.90        6.90        1,018.90        6.34  

Large Cap Growth Fund

                 

Initial Class

      1,000        0.69 %      1,029.60        3.52        1,021.70        3.51  

Service Class

      1,000        0.95 %      1,028.90        4.84        1,020.40        4.82  

Managed Volatility Fund

                 

Initial Class

      1,000        0.91 %      1,031.90        4.65        1,020.60        4.62  

Service Class

      1,000        1.16 %      1,030.60        5.92        1,019.30        5.89  

Mid Cap Growth Fund

                 

Initial Class

      1,000        0.81 %      1,047.30        4.17        1,021.10        4.12  

Service Class

      1,000        1.06 %      1,046.40        5.45        1,019.80        5.38  

Mid Cap Value Fund

                 

Initial Class

      1,000        0.88 %      1,112.20        4.67        1,020.70        4.47  

Service Class

      1,000        1.13 %      1,110.40        5.99        1,019.50        5.74  

Small Cap Growth Equity Fund

                 

Initial Class

      1,000        1.10 %      1,128.80        5.89        1,019.60        5.58  

Service Class

      1,000        1.35 %      1,127.40        7.22        1,018.30        6.85  

Small Company Value Fund

                 

Class II

      1,000        0.96 %      1,214.40        5.34        1,020.30        4.88  

Service Class I

      1,000        1.21 %      1,212.70        6.73        1,019.10        6.14  

Small/Mid Cap Value Fund

                 

Initial Class

      1,000        0.79 %      1,187.10        4.34        1,021.20        4.01  

Service Class

      1,000        1.04 %      1,186.10        5.71        1,019.90        5.28  

Total Return Bond Fund

                 

Class II

      1,000        0.60 %      981.00        2.99        1,022.10        3.05  

Service Class I

      1,000        0.85 %      979.40        4.23        1,020.90        4.32  

 

 

* Expenses are calculated using the annualized expense ratio for the six months ended December 31, 2016, multiplied by the average account value over the period, multiplied by 184 days in the period, divided by 366 days in the year, unless stated otherwise. The annualized expense ratio does not reflect expenses deducted under the variable life insurance or variable annuity contract through which the Funds are invested in. Inclusion of these expenses would increase the annualized expense ratios shown.

 

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Underwriter:

MML Distributors, LLC

100 Bright Meadow Blvd.

Enfield, CT 06082-1981

    LOGO

 

 

 

LOGO

 

© 2017 Massachusetts Mutual Life Insurance Company, Springfield, MA. All rights reserved. www.massmutual.com.

MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated

companies and sales representatives. Investment Adviser: MML Investment Advisers, LLC

    RS-41633-01

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Item 2. Code of Ethics.

As of December 31, 2016, the Registrant adopted a Code of Ethics that applies to the Principal Executive Officer and Principal Financial Officer pursuant to the Sarbanes-Oxley Act of 2002. For the year ended December 31, 2016, there were no reportable amendments to a provision of the Code of Ethics. A copy of its Code of Ethics is filed with this Form N-CSR under Item 12(a)(1).

Item 3. Audit Committee Financial Expert.

The Registrant’s Board of Trustees has determined that Susan B. Sweeney and Nabil N. El-Hage, both members of the Audit Committee, are audit committee financial experts as defined by the Securities and Exchange Commission (the “SEC”). Ms. Sweeney and Mr. El-Hage are both “independent” as defined by the SEC for purposes of audit committee financial expert determinations.

Item 4. Principal Accountant Fees and Services.

References below to Deloitte & Touche LLP include its affiliates where applicable.

 

  (a)

AUDIT FEES: The aggregate fees billed to the Registrant for professional services rendered by its independent auditors, Deloitte & Touche LLP, for the audit of the Registrant’s annual financial statements for the fiscal years ended 2016 and 2015 were $796,850.64 and $1,038,764, respectively.

  (b)

AUDIT RELATED FEES: No such fees were billed to the Registrant by Deloitte & Touche LLP for the fiscal years ended 2016 and 2015. No such fees were billed to the Registrant’s adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the Registrant by Deloitte & Touche LLP* for the fiscal years ended 2016 and 2015.

  (c)

TAX FEES: The aggregate fees billed to the Registrant for professional services rendered by Deloitte & Touche LLP for the review of Form 1120-RIC, Form 8613, excise distribution projections, distribution calculation and reasonable out of pocket expenses for the fiscal years ended 2016 and 2015 were $128,347 and $126,364, respectively. No such fees were billed to the Registrant’s adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the Registrant by Deloitte & Touche LLP* for the fiscal years ended 2016 and 2015.

  (d)

ALL OTHER FEES: No such fees were billed to the Registrant by Deloitte & Touche LLP for the fiscal years ended 2016 and 2015. No such fees were billed to the Registrant’s adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the Registrant by Deloitte & Touche LLP* for the fiscal years ended 2016 and 2015.

  (e)

(1) AUDIT COMMITTEE PRE-APPOVAL POLICY: All services to be performed for the Registrant by Deloitte & Touche LLP must be pre-approved by the audit committee. All services performed during the fiscal years ended 2016 and 2015 were pre-approved by the committee.

(2) Not applicable.

  (f)

Not applicable.

  (g)

The aggregate non-audit fees billed by Deloitte & Touche LLP for services rendered to the Registrant, the Registrant’s adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the Registrant, for the fiscal years ended 2016 and 2015 were $7,296,695 and $732,859, respectively.

  (h)

The audit committee considers whether the provision of non-audit services by Deloitte & Touche LLP to the Registrant’s adviser and any entity controlling, controlled by, or under common control with the 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 is compatible with maintaining Deloitte & Touche LLP’s independence.

 

   *

Refers to fees that were required to be approved by the audit committee for services that relate directly to the operations and financial reporting of the Registrant.

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Item 5. Audit Committee of Listed Registrants.

Not applicable to this filing.

Item 6. Investments.

Please see portfolio of investments contained in the Reports to Stockholders included under Item 1 of this form N-CSR.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to this filing.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to this filing.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to this filing.

Item 10. Submission of Matters to a Vote of Security Holders.

Not applicable to this filing.

Item 11. Controls and Procedures.

(a) The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this Form N-CSR, to provide reasonable assurance that the information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, based on their evaluation of these disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Code of Ethics (Item 2) is attached.

(a)(2) Certifications of the Principal Executive Officer and Principal Financial Officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) are attached hereto as Exhibit 99CERT.

(a)(3) Not applicable to this filing.

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 as required by Rule 30a-2(b), under the 1940 Act (17 CFR 270.30a-2(b)), Rule 15d-14(b) under the Securities Exchange Act of 1934 (17 CFR 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) are attached hereto as Exhibit 99.906CERT.

 

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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.

 

(Registrant)

  

  MML Series Investment Fund

 

By (Signature and Title)    

   

  /s/ Brian Haendiges

   Brian Haendiges, President and Principal Executive Officer

 

Date  

  

  2/21/17

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 (Signature and Title)    

   

  /s/ Brian Haendiges

   Brian Haendiges, President and Principal Executive Officer

 

Date  

  

  2/21/17

 

By (Signature and Title)    

   

  /s/ Renee Hitchcock

   Renee Hitchcock, Treasurer and Principal Financial Officer

 

Date  

  

  2/21/17