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| Fund Overview |  | | | Adviser: | Mason Street Advisors, LLC | | Objective: | High level of long-term total rate of return and preservation of capital | | Focus: | Invests in investment-grade corporate, U.S. Treasury and government agency bonds and mortgage-backed securities. | | Asset Class: | Bond | | Style: | High Quality, Intermediate Maturity |
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Bonds and other debt obligations are affected by changes in interest rates, inflation risk and the creditworthiness of their issuers. High yield bonds generally have greater price swings and higher default risks than investment grade bonds. Return of principal is not guaranteed. In contrast to owning individual bonds, there are ongoing fees and expenses associated with owning shares of bond funds. |
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| Fund Facts as of 03-31-2008 | | | | Variable Annuity Fund Inception | 12-31-1981 | | Variable Life Fund Inception | 07-01-1984 | | The original Variable Annuity and Variable Life funds merged on 05-03-1994. | | | Net Assets | $1.15 Billion |
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| Top Ten Holdings (% of Net Assets) | | | Federal National Mortgage Assoc., Various | 20.3% | | United States Treasury Notes/Bonds, Various | 16.7% | | Federal Home Loan Mortgage Corp., Various | 9.8% | | Thornburg Mortgage Securities Trust, Various | 1.4% | | AEP Texas Central Transition Funding, 5.306%, 7/21/21 | 1.4% | | Wells Fargo Mortgage Backed Securities Trust, Various | 1.2% | | John Deere Owner Trust, Series 2007-A, Class A3, 5.04%, 7/15/11 | 1.2% | | Honda Auto Receivables Trust, Series 2007-2, Class A3, 5.46%, 5/23/11 | 0.9% | | Union Pacific Corp., Various | 0.8% | | Nissan Auto Receivables Owner Trust, Various | 0.7% | | | | | Total % of Net Assets | 54.4% |
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The Select Bond Portfolio's net assets will normally invest a majority in investment grade bonds and debentures which have maturities of at least one year. The Select Bond Portfolio invests in obligations of a number of U.S. Government agencies. Obligations of some agencies are supported by the full faith and credit of the U.S. Treasury, others are supported only by the credit of the agency. No assurance can be given that the U.S. Government would provide financial support to any agency if it is not obligated to do so by law. The Select Bond Portfolio will invest in the securities of a particular agency only when the investment adviser is satisfied that the credit risk with respect to such agency is minimal. The Select Bond Portfolio may invest up to 20% of its total assets in high yield/high risk securities and up to 30% of its total assets in foreign securities, consistent with its investment objectives. |
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R. David Ells, Chartered Financial Analyst, is a Director of MSA and joined Northwestern Mutual in 2004. He holds a B.A. degree in Economics from Trinity College in Hartford, Connecticut. He has primary responsibility for the management of the Select Bond Portfolio, the fixed-income portion of the Balanced Portfolio, and the investment grade bond portion of the Asset Allocation Portfolio, manages various fixed income portfolios for Northwestern Mutual, and is the portfolio manager primarily responsible for the day-to-day management of the American Century-Mason Street Select Bond Fund. You should carefully consider the investment objectives, risks, expenses and charges of the investment company before you invest. Your Northwestern Mutual Investment Services Registered Representative can provide you with a contract and fund prospectus that will contain the information noted above, and other important information that you should read carefully before you invest or send money. |
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