METLIFE ADVISERS MARQUIS ASSET ALLOCATION PROGRAM INFORMATION FROM PART II by sarahbrown

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									METLIFE ADVISERS MARQUIS ASSET ALLOCATION PROGRAM (INFORMATION FROM PART II OF FORM ADV)
The information contained herein describes the asset allocation services provided by MetLife Advisers, LLC (‘‘MetLife Advisers,” “we” or “us”), an investment adviser registered under the Investment Advisers Act of 1940, to holders of a Marquis PortfoliosSM variable annuity contract (your “contract”) issued by one of our affiliates, MetLife Investors USA Insurance Company, First MetLife Investors Insurance Company, The Travelers Insurance Company or The Travelers Life and Annuity Company (as applicable to your contract, the “insurance company”), and supplies the information about us and the asset allocation program required by Part II of Form ADV. In the asset allocation program, MetLife Advisers will serve as your investment adviser, but solely for the purpose of developing and updating the asset allocation models. To provide this service, MetLife Advisers currently follows the recommendations of an independent third-party consultant. In this capacity, MetLife Advisers will act as a fiduciary under federal securities laws. As a result of our investment advisory services in the asset allocation program, we are providing this brochure to you, an individual who purchased or considers purchasing a contract, in order to ensure compliance with the Investment Advisers Act of 1940. ABOUT THE MARQUIS ASSET ALLOCATION PROGRAM General. The asset allocation program is a service that the insurance company makes available in connection with your Marquis Portfolios contract, at no additional charge to you, to help you select the underlying investment options for your contract. Asset allocation, in general, is an investment strategy intended to optimize the selection of investment options for a given level of risk tolerance, in order to attempt to maximize returns and limit the effects of market volatility. Asset allocation strategies reflect the theory that diversification among asset classes can help reduce volatility and potentially enhance returns over the long term. An asset class refers to a category of investments having similar characteristics, such as stocks and other equities, bonds and other fixed income investments, and cash equivalents. There are further divisions within asset classes, for example, divisions according to the size of the issuer (large cap, mid cap, small cap), the type of issuer (government, municipal, corporate, etc.) or the location of the issuer (domestic, foreign, etc.). If you elect to participate in the asset allocation program, MetLife Advisers will serve as your investment adviser, but solely for the purpose of developing and updating the models. We currently follow the recommendations of an independent third-party consultant to provide this service. From time to time, we may select a different consultant, to the extent permitted under applicable law. We also serve as the investment adviser to certain investment portfolios available under the contract and receive compensation for those services, as described below. However, we receive no compensation for services we perform in the asset allocation program. Your Marquis Portfolios contract prospectus describes other payments to MetLife Advisers and its affiliates in connection with your contract. The Models. In the asset allocation program, you will choose to allocate your purchase payments among a set of investment portfolios you select using one of the models we provide. An asset allocation model is a set of target percentages for asset classes or sub-classes that represent the principal investments of the available investment portfolios. There currently are twenty models, a disciplined and a flexible model for each of ten levels of risk tolerance and return potential (generally, asset classes and sub-classes with higher potential returns have greater risk of losses and experience greater volatility). Disciplined models are designed to be constructed only from investment portfolios that adhere strictly to their stated investment styles and invest in specific asset classes or sub-classes, whereas flexible models can include allocations to investment portfolios that may invest across multiple asset classes or sub-classes, or that may move between investment styles, or asset classes or sub-classes, depending on market conditions or other factors. It is your responsibility to select or change your model and your investment portfolios. Neither MetLife Advisers, the insurance company nor your registered representative will make this decision for you. Your registered representative can provide you with information that may assist you in selecting a model and your investment portfolio allocations within that model. Selecting a Model. A disciplined or flexible asset allocation model will be suggested based on your responses to a profile questionnaire that seeks to measure your personal investment risk tolerance, investment time horizon, financial goals and other factors. In order to participate in this program, you will need to complete the questionnaire. The insurance company will send you a quarterly performance report that provides information about the investment portfolios within your model. Although you may only use one model at a time, you may elect to change to a different model as your tolerance for risk and/or your needs and objectives change. Using the questionnaire and in consultation with your registered representative, you may determine a different model better meets your risk tolerance and time horizons. There is no fee to change to a different model or for a change to the investment portfolio allocations.

As noted above, it is your responsibility to select or change your model and your investment portfolios. Neither MetLife Advisers, the insurance company nor your registered representative will make this decision for you. Your registered representative can provide you with information that may assist you in selecting a model and your investment portfolio allocations within that model. Once you select a model and the investment portfolio allocations, these selections will remain unchanged until you elect to revise the investment portfolio allocations within your model, select a new model, or both. Although the models are designed to maximize investment returns and reduce volatility for a given level of risk, there is no guarantee that the value of your contract will not decline or experience volatility. A model may fail to perform as intended, or may perform worse than a single investment portfolio, asset class or different combination of investment options. In addition, the model is subject to all of the risks associated with its underlying investment portfolios. If, from time to time, the models are changed, the flows of money into and out of underlying investment portfolios may generate higher brokerage and administrative costs for those portfolios, or such changes may disrupt an investment portfolio’s management strategy. For more complete information about each investment portfolio in the program, including a discussion of the investment portfolio’s risks, investment objective and strategies, fees and expenses, see that investment portfolio’s prospectus. There is no assurance that any investment portfolio will achieve its investment objective. You should read each prospectus carefully before investing. Periodic Updates of the Models. The models are periodically reviewed (typically annually) and asset allocations within a particular model may need to be changed. Similarly, the principal investments, investment style, or investment manager of an investment portfolio may change such that it is no longer appropriate for a model, or it may become appropriate for a model. Also, from time to time, the insurance company may change the investment portfolios available under the contract. As a result of the periodic review and/or any changes in available investment portfolios, each model may change and asset classes or sub-classes may be added or deleted. The insurance company will provide notice regarding any such changes, and you, in consultation with your registered representative, may wish to revise your investment allocations based on these model and investment portfolio changes. You are not required to make any changes, and if you take no action your current allocations will continue in effect (provided the insurance company continues to make the investment portfolios in your current allocations available under the contract— please see your contract prospectus). Risks. In addition to the risks described above, MetLife Advisers and our affiliates receive greater compensation and/or profits from certain investment portfolios than we receive from other portfolios. As noted above, we serve as investment adviser to certain investment portfolios available under the contract. Also, our affiliates provide various services to the investment portfolios you may select (see the prospectuses that describe your contract and investment portfolios for more information about fees and other payments we and our affiliates receive in connection with your contract and the investment portfolios). Therefore, we may have incentives to develop models in such a way that larger allocations will be made to more profitable portfolios. Also, we may believe that certain portfolios we manage may benefit from additional assets or could be harmed by redemptions. As a fiduciary, we legally are obligated to disregard these incentives. In addition, we believe that following the recommendations of an independent third-party to develop and update the models may reduce or eliminate the potential for us to be influenced by these competing interests. As described above, from time to time, we may select a different consultant to provide these recommendations, to the extent permitted under applicable law. Neither MetLife Advisers nor the insurance company is under any contractual obligation to continue this service and each has the right to terminate or change the asset allocation program at any time. Advisory Fees. We do not charge any fee for services we provide in connection with the asset allocation program. You will pay fees and expenses under the terms of your contract. For information regarding those fees and expenses (including, as noted above, payments that may be made to us and our affiliates), see the Marquis Portfolios prospectus that describes your contract. You will also indirectly bear the expenses of the investment portfolios to which you allocate your account or contract value. The net asset value of each investment portfolio reflects the investment advisory fees and other expenses that are deducted from its assets. The fees and expenses for the investment portfolios are described in their prospectuses.. ABOUT METLIFE ADVISERS Other Business Activities. We are the investment adviser to the Metropolitan Series Fund, Inc., a registered investment company consisting of separate portfolios that serve as investment vehicles for variable annuity contracts and variable life insurance policies issued by Metropolitan Life Insurance Company (“MetLife”) (a wholly-owned subsidiary of MetLife, Inc., a publicly traded company) and its affiliated insurance companies. We are also the investment adviser to the MetLife Stock Index Portfolio II (together with the portfolios of the Metropolitan Series Fund, Inc., the “MSF Portfolios”), a portfolio of Metropolitan Series Fund II, a registered investment company that serves as an investment vehicle for certain qualified retirement plans. Shares in the MSF Portfolios are not offered directly to the general public.

We generally do not perform the day-to-day portfolio management for any MSF Portfolio for which we serve as adviser. Rather, with limited exceptions, we typically subcontract portfolio management responsibility to other investment advisory firms pursuant to subadvisory agreements. The Metropolitan Series Fund Inc., the Metropolitan Series Fund II and each of the MSF Portfolios are more fully described in their respective prospectuses and Statements of Additional Information. You may request a copy of any of these documents, or a full copy of Part II of our Form ADV that contains information about our other business activities, by writing to us at MetLife Advisers, LLC, Attn: Secretary, 501 Boylston Street, Boston, MA 02116. Other Financial Industry Activities or Affiliations. We are a Delaware limited liability company. New England Life Insurance Company (“NELICO”) owns all of the voting interest in MetLife Advisers. NELICO is a wholly-owned subsidiary of MetLife, which is a wholly-owned subsidiary of MetLife, Inc., a publicly traded company. NELICO and the other members of MetLife Advisers are insurance companies that use the MSF Portfolios as investment vehicles for certain variable annuity contracts and variable life insurance policies issued by NELICO, MetLife and other affiliated insurance companies. Each member’s interest in MetLife Advisers entitles the member to share in the our profit and loss in proportion to the profit and loss of MetLife Advisers attributable to customers of that insurance company. MetLife serves as subadviser to several MSF Portfolios. We pay MetLife a subadvisory fee for each such portfolio equal to the costs incurred by MetLife in providing subadviser services to the portfolio. MetLife also serves as distributor to the Met Series Fund. We are party to various participation agreements with the MSF Portfolios and each affiliated insurance company that makes the MSF Portfolios available in its variable products. Such participation agreements govern the relationship between these affiliated insurance companies and the MSF Portfolios and the relationships among these various parties. From time to time, the MSF Portfolios may use affiliated broker-dealers, including firms affiliated with us, for portfolio trading. Each MSF Portfolio has adopted procedures pursuant to Rule 17e-1 under the Investment Company Act of 1940, which includes the oversight of and reports to each MSF Portfolio’s board. Education and Business Background of Certain Personnel. As described above, we do not generally render investment advice, but subcontract such services to subadvisers. MetLife Advisers’ officers monitor the performance of these subadvisers. Generally, officers of MetLife Advisers are required to have a college degree. The following officers of MetLife Advisers are jointly responsible for the selection and supervision of the independent third-party consultant who develops and updates the profile questionnaire and asset allocation models: Anthony J. Dufault DOB: January 6, 1971 Education: BS, Siena College, 1993 Business Background: Vice President, MetLife Advisers; Vice President, Met Investors Advisory, LLC Elizabeth M. Forget DOB: September 5, 1966 Education: BS, Boston College, 1988; MBA, J.L. Kellogg Graduate School of Management at Northwestern University, 1993 Business Background: Vice President, MetLife Advisers; President, Met Investors Advisory, LLC; Chief Marketing Officer, MetLife Investors Group, Inc. John Francis Guthrie, Jr. DOB: November 19, 1943 Education: BS, Boston College, 1965; MBA, Boston College, 1967 Business background: Manager and Senior Vice President, MetLife Advisers; Vice President, NELICO Alan C. Leland DOB: July 13, 1952 Education: BA, Williams College, 1973 Business background: Chief Financial Officer and Treasurer, MetLife Advisers; Senior Vice President, NELICO Thomas Charles McDevitt DOB: July 16, 1955 Education: AB, Boston College, 1977; M.Ed., Boston College, 1977 Business background: Vice President, MetLife Advisers; Investment Officer, NELICO

Messrs. Guthrie, Leland and McDevitt, together with the following persons, are the principal executive officers of MetLife Advisers: Hugh C. McHaffie DOB: January 8, 1959 Education: BA, University of Toronto, 1986 Business background: Chair of the Board of Managers, President and Chief Executive Officer, MetLife Advisers, since 2003; Senior Vice President, MetLife, since 1999; formerly, Vice President, Manufacturers Life North America Thomas M. Lenz DOB: July 18, 1958 Education: AB, Harvard University, 1980; JD, Harvard Law School, 1984 Business background: Secretary and General Counsel, MetLife Advisers Peter H. Duffy DOB: December 5, 1955 Education: BS, Bentley College, 1978; MBA, Babson College, 1983 Business background: Senior Vice President, MetLife Advisers; Second Vice President, NELICO Leonard M. Bakal DOB: September 26, 1944 Education: BA, Brooklyn College, 1966; JD, Brooklyn Law School, 1974 Business background: Senior Vice President and Chief Compliance Officer, MetLife Advisers, since 2004; Vice President, Compliance Director and Money Laundering Compliance Officer, Metropolitan Life Insurance Company; Vice President and Compliance Director, MetLife Securities, Inc.

Marquis and Marquis Portfolios are service marks of Citigroup Inc. and its affiliates and are used under license to MetLife, Inc. and its affiliates.

MARADV


								
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