MASSMUTUAL
INSTITUTIONAL FUNDS
This Prospectus
describes Class S shares of the following Funds:
|
·
|
MassMutual Prime
Fund
seeks to maximize current income, consistent with liquidity and capital
preservation, by investing in money market instruments.
|
|
·
|
MassMutual
Short-Term Bond Fund
seeks a high total rate of return primarily from current income while
minimizing fluctuations in capital values by investing primarily in
short-term investment grade fixed income securities.
|
|
·
|
MassMutual Core
Bond Fund
seeks a high total rate of return, consistent with prudent investment
risk and capital preservation, by investing primarily in investment grade
debt securities.
|
|
·
|
MassMutual
Diversified Bond Fund
seeks a superior total rate of return by investing in fixed income
instruments.
|
|
·
|
MassMutual
Balanced Fund
seeks a high total rate of return over time, consistent with capital
preservation, by investing in stock, fixed income and money market
securities.
|
|
·
|
MassMutual Core
Equity Fund
seeks long-term growth of capital and income by investing primarily in
large company stocks.
|
|
·
|
MassMutual Large Cap Value Fund
seeks both capital growth and income.
|
|
·
|
MassMutual
Indexed Equity Fund
seeks to approximate as closely as practicable (before fees and
expenses) the total return of publicly traded common stocks represented by
the S&P 500® Index.
|
|
·
|
MassMutual
Growth Equity Fund
seeks long-term growth of capital and future income.
|
|
·
|
MassMutual
Aggressive Growth Fund
seeks long-term growth of capital.
|
|
·
|
MassMutual OTC
100 Fund
seeks to approximate as closely as practicable (before fees and
expenses) the total return of the 100 largest publicly traded
over-the-counter common stocks.
|
|
·
|
MassMutual
Focused Value Fund
seeks growth of capital over the long term.
|
|
·
|
MassMutual Small
Cap Value Equity Fund
seeks long-term growth of capital and income by investing primarily in
small company stocks.
|
|
·
|
MassMutual Mid
Cap Growth Equity Fund
seeks long-term capital growth.
|
|
·
|
MassMutual Mid
Cap Growth Equity II Fund
seeks growth of capital over the long-term.
|
|
·
|
MassMutual Small
Cap Growth Equity Fund
seeks long-term capital appreciation.
|
|
·
|
MassMutual
Emerging Growth Fund
seeks capital appreciation.
|
|
·
|
MassMutual
International Equity Fund
seeks a high total rate of return over time by investing primarily in
foreign stocks.
|
The Securities and
Exchange Commission has not approved or disapproved these securities or
passed upon the adequacy of this Prospectus. Any statement to the contrary
is a crime.
1
Standard
& Poors®, S&P® and Standard & Poors 500®
are registered trademarks of McGraw-Hill, Inc. and have been licensed for
use by the Fund. The Fund is not sponsored, endorsed, sold or promoted by
Standard & Poors Corporation, a division of McGraw Hill Companies
(S&P). S&P makes no representation or warranty, express
or implied, regarding the advisability of investing in the Fund.
PROSPECTUS
May 1,
2000
Table Of
Contents |
|
Page |
|
|
Summary
Information |
|
3 |
About the
Funds |
MassMutual Prime
Fund |
|
4 |
MassMutual Short-Term
Bond Fund |
|
6 |
MassMutual Core Bond
Fund |
|
8 |
MassMutual Diversified
Bond Fund |
|
10 |
MassMutual Balanced
Fund |
|
12 |
MassMutual Core Equity
Fund |
|
14 |
MassMutual Large Cap
Value Fund |
|
16 |
MassMutual Indexed Equity
Fund |
|
18 |
MassMutual Growth Equity
Fund |
|
20 |
MassMutual Aggressive
Growth Fund |
|
22 |
MassMutual OTC 100
Fund |
|
24 |
MassMutual Focused Value
Fund |
|
26 |
MassMutual Small Cap
Value Equity Fund |
|
28 |
MassMutual Mid Cap Growth
Equity Fund |
|
30 |
MassMutual Mid Cap Growth
Equity II Fund |
|
32 |
MassMutual Small Cap
Growth Equity Fund |
|
34 |
MassMutual Emerging
Growth Fund |
|
36 |
MassMutual International
Equity Fund |
|
38 |
Summary of
Principal Risks |
|
40 |
About the
Investment Adviser and Sub-Advisers |
Massachusetts Mutual Life
Insurance Company |
|
46 |
David L. Babson and
Company Incorporated |
|
46 |
OppenheimerFunds,
Inc. |
|
47 |
Massachusetts Financial
Services Company |
|
48 |
Miller Anderson &
Sherrerd, LLP |
|
48 |
J.P. Morgan Investment
Management Inc. . |
|
48 |
Waddell & Reed
Investment Management Company |
|
49 |
Janus Capital
Corporation |
|
49 |
T. Rowe Price Associates,
Inc. |
|
49 |
Davis Selected Advisers,
L.P. |
|
49 |
Bankers Trust
Company |
|
50 |
Harris Associates
L.P. |
|
50 |
RS Investment Management,
L.P. |
|
50 |
About the
Classes of Shares Multiple Class
Information |
Class S Shares |
|
51 |
Compensation to
Intermediaries |
|
52 |
Investing in
the Funds |
Buying, Redeeming and
Exchanging Shares |
|
53 |
Determining Net Asset
Value |
|
53 |
How to Invest |
|
53 |
Taxation and
Distributions |
|
54 |
Investment
Performance |
|
55 |
Financial
Highlights |
|
58 |
Appendix Additional Investment Policies and
Risk Considerations |
|
65 |
Summary
Information
MassMutual
Institutional Funds provides a broad range of investment choices across the
risk/return spectrum. The summary pages that follow describe each
Funds:
·
|
Principal
Investment Strategies and Risks. A Summary of Principal Risks
of investing in the Funds begins on page 40.
|
·
|
Investment return
over the past ten years, or since inception if less than ten years
old.
|
·
|
Average annual
total returns for the last one, five and ten year periods (or, shorter
periods for newer Funds) and how the Fund did against a comparable
broad-based index.
|
Past Performance
is not an indication of future performance. There is no assurance that
a Funds investment objective will be achieved, and you can lose money
by investing in the Funds.
Important
Notes about performance information for the Funds.
Where indicated,
performance information for a Fund includes the performance of a
predecessor separate investment account of MassMutual before those Funds
were created.
The Growth Equity
Fund, Mid Cap Growth Equity Fund and Small Cap Growth Equity Fund are new
Funds effective May 3, 1999. These Funds do not have returns for a full
calendar year. The Large Cap Value Fund, Focused Value Fund, Aggressive
Growth Fund, Mid Cap Growth Equity II Fund and Emerging Growth Fund are new
funds effective May 1, 2000. These Funds do not have actual performance.
For all these Funds, the performance of the Sub-Adviser is provided based
on a composite of portfolios managed by the Sub-Adviser with substantially
similar investment objectives, policies and investment strategies as the
Fund. The Performance Charts for those Sub-Advisers reflect the
Sub-Advisers composite performance, adjusted for class specific
expenses of the particular Fund.
In all cases,
investment returns assume the reinvestment of dividends and capital gains
distributions. Performance shown does not reflect fees that may be paid
by investors for administrative services or group annuity contract
charges.
Important Note
about Fees and Expenses.
As an investor, you
pay certain fees and expenses in connection with your investment. These
fees and expenses will vary depending on the Fund in which you invest and
the class of shares that you purchase. The fee tables shown on the
following pages under Expense Information are meant to assist
you in understanding these fees and expenses. Each fee table shows a
Funds Annual Fund Operating Expenses. None of the Funds charges any
Shareholder Fees for any class of share. Annual Fund Operating Expenses
refer to the costs of operating the Funds. These costs are deducted from a
Funds assets, which means you pay them indirectly.
MassMutual
Prime Fund
Investment
Objective
This Fund seeks to
maximize current income to the extent consistent with liquidity and the
preservation of capital by investing in a diversified portfolio of money
market instruments.
The Prime Fund is
not a money market fund.
Principal
Investment Strategies and Risks
The Fund invests in
debt instruments that have a remaining maturity not exceeding 397 days and
that have one of the two highest ratings from at least one nationally
recognized statistical rating organization or, if unrated, that the
Sub-Adviser, David L. Babson and Company Incorporated (David L.
Babson), judges to be of equivalent quality. Generally, the
majority of the Funds holdings do not have the highest rating. The
Funds principal investments include:
·
|
commercial paper
and other corporate obligations;
|
·
|
securities issued
or guaranteed by the U.S. Government or its agencies;
|
·
|
certificates
evidencing participation in bank loans; and
|
·
|
certificates of
deposit and bankers acceptances.
|
Some of these
investments are subject to legal restrictions on resale.
The Fund makes
portfolio investments generally in response to changing economic and market
conditions. While trading activity is expected to be low, the Fund may take
advantage of yield disparities in the market to purchase and sell
instruments to improve the Funds yield or credit quality.
The Principal Risks
of investing in the Fund are Market Risk, Credit Risk, Management Risk,
Derivative Risk and Leveraging Risk.
These Risks are
described beginning on page 40.
Annual
Performance*
The bar chart shows
the risks of investing in the Fund as returns vary from year to
year.
Class S
Shares
[GRAPH]
1990 8.15%
1991 6.15%
1992 3.75%
1993 2.92%
1994 4.01%
1995 5.78%
1996 5.24%
1997 5.39%
1998 5.39%
1999 5.10%
During the periods
shown above, the highest quarterly return was 2.01% for the quarter ended
December 31, 1990 and the lowest was .71% for the quarter ended June 30,
1993.
Average Annual
Total Returns
(for the periods
ended December 31, 1999)
The table shows the
risks of investing in the Fund, by comparing the Funds returns with a
broad measure of market performance over different time
periods.
|
|
One
Year |
|
Five
Years |
|
Ten
Years |
Class
S* |
|
5.10 |
% |
|
5.38 |
% |
|
5.18 |
% |
91-day Treasury
Bills
Ù
|
|
4.74 |
% |
|
5.21 |
% |
|
5.06 |
% |
* Performance for Class S shares of the Fund includes
performance of a predecessor separate investment account of MassMutual for
periods prior to October 3, 1994. For a more detailed discussion, please
refer to Investment Performance in this Prospectus.
Performance shown does not reflect fees that may be paid by investors for
administrative services or group annuity contract charges.
Ù
91-day
Treasury Bills are unmanaged and do not incur expenses. Treasury Bills are
backed by the full faith and credit of the United States government and
offer a fixed rate of interest, while the Funds shares are not
guaranteed.
Expense Information
|
|
Class
S |
Annual Fund
Operating Expenses (expenses
that are deducted from Fund assets) (% of
average net assets) |
Management Fees |
|
.35% |
Distribution and Service (Rule 12b-1) Fees |
|
None |
Other
Expenses |
|
.10% |
Total Annual
Fund Operating Expenses
(1)
|
|
.45% |
(1)
|
Employee benefit
plans which invest in the Fund through MassMutual separate investment
accounts may pay additional charges under their group annuity contract or
services agreement. Investors who purchase shares directly from the Fund
may also be subject to charges imposed in their administrative services
or other agreement with MassMutual or MassMutual affiliate. None of these
charges are deducted from Fund assets.
|
Examples
These examples are
intended to help you compare the cost of investing in the Fund with the
cost of investing in other mutual funds. The examples assume that you
invest $10,000 in Class S shares of the Fund for the time periods
indicated, that your investment earns a 5% return each year and that the
Funds operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
Class S |
|
$46 |
|
$144 |
|
$252 |
|
$566 |
The Fund does not
impose any Shareholder Fees. Therefore, the figures shown would be the same
whether you sold your shares at the end of a period or kept
them.
MassMutual
Short-Term Bond Fund
Investment
Objective
This Fund seeks to
achieve a high total rate of return primarily from current income while
minimizing fluctuations in capital values by investing primarily in a
diversified portfolio of short-term investment grade fixed income
securities.
Principal
Investment Strategies and Risks
The Fund invests
primarily in investment grade debt securities, including:
·
|
commercial paper
and other corporate obligations;
|
·
|
securities issued
or guaranteed by the U.S. Government or its agencies; and
|
·
|
mortgage-backed
and other asset-backed securities.
|
The Funds
portfolio duration is the average of the periods
remaining for payments of principal and interest on the Funds debt
securities, weighted by the dollar amount of each payment. The Funds
portfolio duration is estimated to be generally less than three years. The
Sub-Adviser, David L. Babson, may increase the portfolios
duration when longer-term investments offer higher yields. When short-term
investments offer more attractive yields than longer-term investments, but
with less risk, the portfolios duration may be decreased. Portfolio
duration changes are made by reinvesting cash flows and by selective
trading.
The Principal Risks
of investing in the Fund are Market Risk, Credit Risk, Management Risk,
Prepayment Risk, Derivative Risk and Leveraging Risk.
These Risks are
described beginning on page 40.
Annual
Performance*
The bar chart shows
the risks of investing in the Fund because the returns vary from year to
year.
Class S
Shares
[GRAPH]
1990 8.89%
1991 13.60%
1992 6.72%
1993 7.83%
1994 -0.99%
1995 11.77%
1996 5.57%
1997 6.84%
1998 6.29%
1999 3.10%
During the periods
shown above, the highest quarterly return was 4.66% for the quarter ended
December 31, 1991 and the lowest was -1.56% for the quarter ended March 31,
1994.
Average Annual
Total Returns
(for the periods
ended December 31, 1999)
The table shows the
risks of investing in the Fund, by comparing the Funds returns with a
broad measure of market performance over different time
periods.
|
|
One
Year |
|
Five
Years |
|
Ten
Years |
Class
S* |
|
3.10% |
|
6.67% |
|
6.89% |
Lehman Brothers 1-3
Year Government Bond
Index
Ù
|
|
2.98% |
|
6.47% |
|
6.56% |
* Performance for Class S shares of the Fund includes
performance of a predecessor separate investment account of MassMutual for
periods prior to October 3, 1994. For a more detailed discussion, please
refer to Investment Performance in this Prospectus.
Performance shown does not reflect fees that may be paid by investors for
administrative or group annuity contract charges.
Ù
The Lehman
Brothers 1-3 Year Government Bond Index is an unmanaged index of U.S.
government bonds with 1-3 years remaining to the scheduled payment of
principal. The Index does not incur expenses and cannot be purchased
directly by investors.
Expense Information
|
|
Class
S |
Annual Fund
Operating Expenses (expenses
that are deducted from Fund assets) (% of
average net assets) |
Management Fees |
|
.40% |
Distribution and Service (Rule 12b-1) Fees |
|
None |
Other
Expenses |
|
.14% |
Total Annual
Fund Operating Expenses
(1)
|
|
.54% |
(1)
|
Employee benefit
plans which invest in the Fund through MassMutual separate investment
accounts may pay additional charges under their group annuity contract or
services agreement. Investors who purchase shares directly from the Fund
may also be subject to charges imposed in their administrative services
or other agreement with MassMutual or MassMutual affiliate. None of these
charges are deducted from Fund assets.
|
These examples are
intended to help you compare the cost of investing in the Fund with the
cost of investing in other mutual funds. The examples assume that you
invest $10,000 in Class S shares of the Fund for the time periods
indicated, that your investment earns a 5% return each year and that the
Funds operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
Class S |
|
$55 |
|
$173 |
|
$302 |
|
$676 |
The Fund does not
impose any Shareholder Fees. Therefore, the figures shown would be the same
whether you sold your shares at the end of a period or kept
them.
MassMutual
Core Bond Fund
Investment
Objective
This Fund seeks to
achieve a high total rate of return consistent with prudent investment risk
and the preservation of capital by investing primarily in a diversified
portfolio of investment grade fixed income securities.
Principal
Investment Strategies and Risks
The Fund invests
primarily in investment grade debt securities, including:
·
|
domestic and
foreign corporate bonds;
|
·
|
bonds issued or
guaranteed by the U.S. Government or its agencies;
|
·
|
mortgage-backed
and other asset-backed securities; and
|
·
|
money market
securities, including commercial paper.
|
Some of these
investments may be in securities that are not denominated in U.S. dollars
and others may be purchased subject to legal restrictions on resale,
although no more than 15% of the Funds net assets may be restricted
or illiquid at the time of purchase.
The Funds
investment Sub-Adviser, David L. Babson, intends for the Funds
duration to match (within 10%) the duration of the Lehman
Brothers Aggregate Bond Index. Portfolio duration changes are accomplished
through reinvesting cash flow and selective trading. The Fund will now use
the Lehman Brothers Aggregate Bond Index for purposes of comparing the
Funds returns, because the Sub-Adviser believes it better reflects
the strategy for the Funds duration to match (within 10%) the
duration of this new Index. Duration is described
on page 6.
The Principal Risks
of investing in the Fund are Market Risk, Credit Risk, Management Risk,
Prepayment Risk, Liquidity Risk, Foreign Investment Risk, Currency Risk,
Emerging Market Risk and Leveraging Risk.
These Risks are
described beginning on page 40.
Annual
Performance*
The bar chart shows
the risks of investing in the Fund because the returns vary from year to
year.
Class S
Shares
[GRAPH]
1990 8.30%
1991 17.58%
1992 7.04%
1993 11.34%
1994 -4.11%
1995 19.15%
1996 2.80%
1997 9.78%
1998 8.44%
1999 -2.08%
During the periods
shown above, the highest quarterly return was 5.96% for the quarter ended
September 30, 1991 and the lowest was -3.49% for the quarter ended March
31, 1994.
Average Annual
Total Returns
(for the periods
ended December 31, 1999)
The table shows the
risks of investing in the Fund, by comparing the Funds returns with a
broad measure of market performance over different time
periods.
|
|
One
Year |
|
Five
Years |
|
Ten
Years |
Class
S* |
|
-2.08% |
|
7.38% |
|
7.58% |
Lehman Brothers
Aggregate Bond Index
Ù
|
|
-0.82% |
|
7.73% |
|
7.70% |
Lehman Brothers
Government/Corporate
Bond Index
Ù
Ù
|
|
-2.15% |
|
7.60% |
|
7.65% |
* Performance for Class S shares of the Fund includes
performance of a predecessor separate investment account of MassMutual for
periods prior to October 3, 1994. For a more detailed discussion, please
refer to Investment Performance in this Prospectus.
Performance shown does not reflect fees that may be paid by investors for
administrative services or group annuity contract charges.
Ù
The Lehman
Brothers Aggregate Bond Index is an unmanaged index of fixed rate
investment grade securities with at least one year to maturity combining
the Lehman Brothers Government/Corporate Bond Index and the Mortgage-Backed
Securities Index.
Ù
Ù
The Lehman
Brothers Government Corporate Bond Index, the Funds previous
benchmark index, is an unmanaged index of major U.S. government and
investment grade bonds with more than one year remaining to the scheduled
payment of principal. Neither Index incurs expenses nor can they be
purchased directly by investors.
Expense Information
|
|
Class S |
Annual Fund
Operating Expenses
(expenses that are deducted from Fund assets)
(% of average net assets) |
Management Fees |
|
.48% |
Distribution and Service (Rule 12b-1) Fees |
|
None |
Other
Expenses |
|
.11% |
Total Annual
Fund Operating Expenses
(1)
|
|
.59% |
(1)
|
Employee benefit
plans which invest in the Fund through MassMutual separate investment
accounts may pay additional charges under their group annuity contract or
services agreement. Investors who purchase shares directly from the Fund
may also be subject to charges imposed in their administrative services
or other agreement with MassMutual or MassMutual affiliate. None of these
charges are deducted from Fund assets.
|
Expenses
These examples are
intended to help you compare the cost of investing in the Fund with the
cost of investing in other mutual funds. The examples assume that you
invest $10,000 in Class S shares of the Fund for the time periods
indicated, that your investment earns a 5% return each year and that the
Funds operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class S |
|
$60 |
|
$189 |
|
$329 |
|
$737 |
The Fund does not
impose any Shareholder Fees. Therefore, the figures shown would be the same
whether you sold your shares at the end of a period or kept
them.
MassMutual
Diversified Bond Fund
Investment
Objective
This Fund seeks a
superior total rate of return by investing in fixed income
instruments.
Principal
Investment Strategies and Risks
This Fund seeks to
achieve its investment objective by investing primarily in the following
types of fixed income instruments:
·
|
Private placement
bonds, including securities issued pursuant to Rule 144A;
|
·
|
Mortgage-backed
securities, including commercial mortgage-backed securities;
|
·
|
Asset-backed
securities;
|
·
|
Residential whole
loan mortgage pools;
|
·
|
Commercial
mortgage loans;
|
·
|
U.S. Treasury
futures and forward contracts;
|
·
|
Fully hedged
foreign securities;
|
·
|
Interest rate and
currency swaps;
|
·
|
Options on fixed
income investments, including swaptions and interest rate caps and
floors.
|
The average credit
quality of the Fund will not be less than BBB-/Baa3. In determining the
credit quality of assets that are not rated by an independent credit rating
firm, the Funds Sub-Adviser, David L. Babson, will utilize its
own proprietary credit rating system. The Fund will also have specified
liquidity and diversification requirements for particular types of
investments.
The
duration of the Fund is intended to match (within 5%) the
duration of the Lehman Brothers Intermediate Aggregate Bond Index.
Duration is described on page 6.
The Principal Risks
of investing in the Fund are Market Risk, Credit Risk, Management Risk,
Prepayment Risk, Liquidity Risk, Derivative Risk, Foreign Investment Risk,
Currency Risk, Emerging Markets Risk and Leveraging Risk.
These Risks are
described beginning on page 40.
Annual
Performance
The Fund began
operations May 3, 1999 and does not have a full calendar year of returns.
There will be risks of investing in the Fund because the returns would be
expected to vary from year to year.
Average Annual
Total Returns
(for the period
ended December 31, 1999)
Because this Fund
does not have a full calendar year of returns, there is no table which
shows how the Funds returns have deviated from the broad
market.
Expense
Information
|
|
Class S* |
Annual Fund
Operating Expenses (expenses
that are deducted from Fund assets) (% of
average net assets) |
Management Fees |
|
.50% |
Distribution and Service (Rule 12b-1) Fees |
|
None |
Other
Expenses |
|
.24% |
Total Annual Fund
Operating Expenses |
|
.74% |
Expense
Reimbursement
(1)
|
|
(.10%) |
Net Fund
Expenses
(2)
|
|
.64% |
(1)
|
The expenses in
the above table reflect an agreement by MassMutual to cap the fees and
expenses of the Fund at these amounts through April 30, 2001. The
agreement cannot be terminated unilaterally by MassMutual.
|
(2)
|
Employee benefit
plans which invest in the Fund through MassMutual separate investment
accounts may pay additional charges under their group annuity contract or
services agreement. Investors who purchase shares directly from the Fund
may also be subject to charges imposed in their administrative services
or other agreement with MassMutual or MassMutual affiliate. None of these
charges are deducted from Fund assets.
|
Examples
These examples are
intended to help you compare the cost of investing in the Fund with the
cost of investing in other mutual funds. The examples assume that you
invest $10,000 in Class S shares of the Fund for the time periods
indicated, that your investment earns a 5% return each year and that the
Funds operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
Class S |
|
$65 |
|
$226 |
|
$401 |
|
$908 |
The Fund does not
impose any Shareholder Fees. Therefore, the figures shown would be the same
whether you sold your shares at the end of a period or kept
them.
MassMutual
Balanced Fund
Investment
Objective
This Fund seeks to
achieve a high total rate of return over an extended period of time
consistent with the preservation of capital values by investing in a
diversified portfolio of equity securities, fixed income securities and
money market instruments.
Principal
Investment Strategies and Risks
The Funds
portfolio consists of three segments:
·
|
The Prime
Segment, which seeks to meet liquidity needs by investing in
diverse money market instruments.
|
·
|
The Core
Bond Segment, which invests primarily in investment grade debt
securities.
|
·
|
The Core
Equity Segment, which invests primarily in stocks and convertible
securities of large capitalized companies which have below average price
to earnings ratios and higher dividend yields relative to their industry
group. The Core Equity Segment may be invested in non-dividend paying
stocks as well.
|
The Fund adjusts the
mix of investments among these three market segments based on the judgment
of the Funds Sub-Adviser, David L. Babson, about each
segments potential for returns in relation to the corresponding risk.
These adjustments normally will be made in a gradual manner over a period
of time. Under normal circumstances at least 25% of the Funds total
assets will be invested in debt securities. In addition, under normal
circumstances, no investment will be made that would result in more than
35% of the Funds net assets being invested in the Prime Segment, more
than 35% in the Core Bond Segment or more than 65% in the Core Equity
Segment. In unusual circumstances, the Fund may invest up to 70% of its
total assets in the Equity Segment or up to 50% of its total assets in the
Core Bond Segment.
The Principal Risks
of investing in the Fund are Market Risk, Credit Risk, Management Risk,
Prepayment Risk, Liquidity Risk, Derivative Risk, Foreign Investment Risk,
Currency Risk, Emerging Markets Risk and Leveraging Risk.
These Risks are
described beginning on page 40.
Annual
Performance*
The bar chart shows
the risks of investing in the Fund because the returns vary from year to
year.
Class S
Shares
[GRAPH]
1990 3.12%
1991 22.47%
1992 8.90%
1993 9.09%
1994 2.44%
1995 21.31%
1996 12.83%
1997 18.72%
1998 13.50%
1999 -1.58%
During the periods
shown above, the highest quarterly return was 9.37% for the quarter ended
December 31, 1998 and the lowest was -6.91% for the quarter ended September
30, 1990.
Average Annual
Total Returns
(for the periods
ended December 31, 1999)
The table shows the
risks of investing in the Fund, by comparing the Funds returns with a
broad measure of market performance over different time
periods.
|
|
One
Year |
|
Five
Years |
|
Ten
Years |
Class
S* |
|
-1.58% |
|
12.66% |
|
10.81% |
S&P 500
Index
Ù
|
|
21.04% |
|
28.56% |
|
18.21% |
Lipper Balanced
Fund
Index
Ù
|
|
8.98% |
|
16.27% |
|
12.14% |
Lehman Brothers
Aggregate Bond Index |
|
-0.82% |
|
7.73% |
|
7.70% |
Lehman
Brothers
Ù
Government/Corporate
Bond Index
Ù
|
|
-2.15% |
|
7.60% |
|
7.65% |
* Performance for Class S shares of the Fund includes
performance of a predecessor separate investment account of MassMutual for
periods prior to October 3, 1994. For a more detailed discussion, please
refer to Investment Performance in this Prospectus.
Performance shown does not reflect fees that may be paid by investors for
administrative services or group annuity contract charges.
Ù
The S&P
500® Index is a widely recognized, unmanaged index of common stock of
the 500 largest capitalized U.S. companies. The Lipper Balanced Fund Index
is an unmanaged, equally weighted index of the 30 largest mutual Funds
within each of the investment objective categories for the Balanced
Fund.
The Lehman
Brothers Aggregate Bond Index is an unmanaged index of fixed rate
investment grade securities with at least one year to maturity combining
the Lehman Brothers Government/Corporate Bond Index and the Mortgage-Backed
Securities Index.
The Lehman
Brothers Government-Corporate Bond Index, the Funds previous
benchmark index, is an unmanaged index of major U.S. government and
investment grade bonds with more than one year remaining to the scheduled
payment of principal. Neither Index incurs expenses nor can they be
purchased directly by investors.
Expense Information
|
|
Class
S |
Annual Fund
Operating Expenses (expenses
that are deducted from Fund assets) (% of
average net assets) |
|
|
Management Fees |
|
.48% |
Distribution and Service (Rule 12b-1) Fees |
|
None |
Other
Expenses |
|
.10% |
Total Annual
Fund Operating Expenses
(1)
|
|
.58% |
(1)
|
Employee benefit
plans which invest in the Fund through MassMutual separate investment
accounts may pay additional charges under their group annuity contract or
services agreement. Investors who purchase shares directly from the Fund
may also be subject to charges imposed in their administrative services
or other agreement with MassMutual or MassMutual affiliate. None of these
charges are deducted from Fund assets.
|
Examples
These examples are
intended to help you compare the cost of investing in the Fund with the
cost of investing in other mutual funds. The examples assume that you
invest $10,000 in Class S Shares of the Fund for the time periods
indicated, that your investment earns a 5% return each year and that the
Funds operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
Class S |
|
$59 |
|
$186 |
|
$324 |
|
$725 |
The Fund does not
impose any Shareholder Fees. Therefore, the figures shown would be the same
whether you sold your shares at the end of a period or kept
them.
MassMutual
Core Equity Fund
Investment
Objective
This Fund seeks to
achieve long-term growth of capital and income by investing primarily in a
diversified portfolio of equity securities of larger, well-established
companies.
Principal
Investment Strategies and Risks
The Fund invests
primarily in dividend paying stocks, securities convertible into stocks,
and other securities, such as warrants and stock rights whose value is
based on stock prices. The Funds investment Sub-Adviser, David L.
Babson, follows a value approach that favors the stocks of
companies having price/earnings (P/E) ratios generally below
the S&P 500® Index average. The Fund will also favor companies that
have higher dividend yields relative to their industry groups. The Fund
generally invests in the publicly traded stock of companies with market
capitalizations greater than $2 billion and a history of operations of five
years or more. The Fund may also invest a portion of the Funds assets
in non-dividend paying stocks.
The Principal Risks
of investing in the Fund are Market Risk, Credit Risk, Management Risk,
Derivative Risk and Leveraging Risk.
These Risks are
described beginning on page 40.
Annual
Performance*
The bar chart shows
the risks of investing in the Fund because the returns vary from year to
year.
Class S
Shares
[GRAPH]
1990 -0.99%
1991 25.50%
1992 10.55%
1993 9.55%
1994 4.07%
1995 31.54%
1996 20.24%
1997 29.01%
1998 16.74%
1999 -2.60%
During the periods
shown above, the highest quarterly return was 16.49% for the quarter ended
December 31, 1998 and the lowest was -11.97% for the quarter ended
September 30, 1990.
Average Annual
Total Returns
(for the periods
ended December 31, 1999)
The table shows the
risks of investing in the Fund by comparing the Funds returns with a
broad measure of market performance over different time
periods.
|
|
One
Year |
|
Five
Years |
|
Ten
Years |
Class
S* |
|
-2.60% |
|
18.32% |
|
13.77% |
S&P 500
Index
Ù
|
|
21.04% |
|
28.56% |
|
18.21% |
* Performance for Class S shares of the Fund includes
performance of a predecessor separate investment account of MassMutual for
periods prior to October 3, 1994. For a more detailed discussion, please
refer to Investment Performance in this Prospectus.
Performance shown does not reflect fees that may be paid by investors for
administrative services or group annuity contract charges.
Ù
The S&P 500® Index is a widely recognized, unmanaged index
representative of common stocks of the largest capitalized U.S. companies.
The Index does not incur expenses and cannot be purchased directly by
investors.
Expense Information
|
|
Class S |
Annual Fund
Operating Expenses
(expenses that are deducted from Fund assets)
(% of average net assets) |
|
|
Management Fees |
|
.50% |
Distribution and Service (Rule 12b-1) Fees |
|
None |
Other
Expenses |
|
.08% |
Total Annual
Fund Operating Expenses
(1)
|
|
.58% |
(1)
|
Employee benefit
plans which invest in the Fund through MassMutual separate investment
accounts may pay additional charges under their group annuity contract or
services agreement. Investors who purchase shares directly from the Fund
may also be subject to charges imposed in their administrative services
or other agreement with MassMutual or MassMutual affiliate. None of these
charges are deducted from Fund assets.
|
Examples
These examples are
intended to help you compare the cost of investing in the Fund with the
cost of investing in other mutual funds. The examples assume that you
invest $10,000 in Class S shares of the Fund for the time periods
indicated, that your investment earns a 5% return each year and that the
Funds operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class S |
|
$59 |
|
$186 |
|
$324 |
|
$725 |
The Fund does not
impose any Shareholder Fees. Therefore, the figures shown would be the same
whether you sold your shares at the end of a period or kept
them.
MassMutual
Large Cap Value Fund
Investment
Objective
This Fund seeks both
capital growth and income.
Principal
Investment Strategies and Risks
The Fund seeks to
achieve its investment objective by selecting high quality, large
capitalization companies primarily in the S&P 500 Index®. The
Sub-Adviser to the Fund, Davis Selected Advisers, L.P.
(Davis), will invest primarily in common stock of U.S.
companies with market capitalizations of at least $5 billion. The
Funds investment strategy is to select these companies for the
long-term.
Using intensive
research into company fundamentals, the Funds investment Sub-Adviser
looks for factors, both quantitative and qualitative, that they believe
foster sustainable long-term business growth. While few companies will
exhibit all of these qualities, nearly every company in which they invest
has a majority and appropriate mix of these traits:
·
|
First-Class Management: Proven track record;
Significant personal ownership stake in business; Intelligent allocators
of capital; Smart appliers of technology to improve business and lower
costs;
|
·
|
Strong
Financial Condition and Profitability: Strong balance sheets; Low
cost structure/low debt; High after-tax returns on capital; High quality
of earnings;
|
·
|
Strategic Positioning for the Long-Term:
Non-obsolescent products/industries; Dominant position in a growing
market; Global presence and brand names.
|
The Fund may also
invest to a limited extent in foreign securities and use derivatives as a
hedge against currency risks.
The Principal Risks
of investing in the Fund are Market Risk and Management Risk.
These Risks are
described beginning on page 40.
Annual
Performance
The Fund began
operations May 1, 2000, and therefore has no performance history. There
will be risks of investing in the Fund because the returns would be
expected to vary from year to year.
Average Annual
Total Returns
(for the period
ended December 31, 1999)
Because this Fund is
new, there is no table which shows how the Funds returns have
deviated from the broad market.
Expense
Information
|
|
Class S |
Annual Fund
Operating Expenses
(expenses that are deducted from Fund assets)
(% of average net assets) |
Management Fees |
|
.65% |
Distribution and Service (Rule 12b-1) Fees |
|
None |
Other
Expenses |
|
.10% |
Total Annual
Fund Operating Expenses
(1)(2)
|
|
.75% |
(1)
|
Other Expenses and
Total Annual Fund Operating Expenses are based on estimated amounts for
the first fiscal year of the Fund.
|
(2)
|
Employee benefit
plans which invest in the Fund through MassMutual separate investment
accounts may pay additional charges under their group annuity contract or
services agreement. Investors who purchase shares directly from the Fund
may also be subject to charges imposed in their administrative services
or other agreement with MassMutual or MassMutual affiliate. None of these
charges are deducted from Fund assets.
|
Examples
These examples are
intended to help you compare the cost of investing in the Fund with the
cost of investing in other mutual funds. The examples assume that you
invest $10,000 in Class S shares of the Fund for the time periods
indicated, that your investment earns a 5% return each year and that the
Funds operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
1 Year |
|
3 Years |
Class S |
|
$77 |
|
$240 |
|
|
|
|
The Fund does not
impose any Shareholder Fees. Therefore, the figures shown would be the same
whether you sold your shares at the end of a period or kept
them.
Davis Prior
Performance Similar Accounts*
The bar chart
illustrates the variability of returns achieved by Davis for its similar
accounts.
[GRAPH]
1990 -2.75%
1991 41.06%
1992 12.39%
1993 14.84%
1994 -2.11%
1995 40.17%
1996 27.65%
1997 34.81%
1998 15.10%
1999 18.14%
During the periods
shown above, the highest quarterly return was 21.46% for the quarter ended
December 31, 1998 and the lowest was -14.48% for the quarter ended
September 30, 1998.
Davis Average
Annual Total Returns for Similar Accounts*
(for the periods
ended December 31, 1999)
The table compares
Davis investment results for similar accounts to that of an index
measuring the broad market over different time periods.
|
|
One
Year |
|
Five
Years |
|
Ten
Years |
Class
S* |
|
18.14% |
|
26.82% |
|
18.98% |
S&P 500
Index
Ù
|
|
21.04% |
|
28.56% |
|
18.21% |
* Performance shown is a composite of all portfolios managed
by Davis with substantially similar investment objectives, policies and
investment strategies and without significant client-imposed restrictions,
adjusted to reflect the fees and expenses of each of the Funds share
classes. The bar chart is based on Class S expenses. Davis composite
includes performance of the Selected American Shares and Davis New York
Venture Fund, which are registered under the 1940 Act. The quoted
performance does not represent the historical performance of the MassMutual
Large Cap Value Fund and should not be interpreted as being indicative of
the future performance of the Fund. For a more detailed discussion,
please refer to Investment Performance in this
Prospectus. Performance shown does not reflect fees that may be paid by
investors for administrative services or group annuity contract
charges.
Ù
The S&P
500® Index is a widely recognized, unmanaged index representative of
the largest capitalized U.S. companies. The Index does not incur expenses
and cannot be purchased directly by investors.
MassMutual
Indexed Equity Fund
Investment
Objective
The Fund seeks to
approximate as closely as practicable (before fees and expenses) the
capitalization-weighted total rate of return of that portion of the U.S.
market for publicly-traded common stocks composed of larger-capitalized
companies.
Principal
Investment Strategies and Risks
This Fund seeks to
achieve its objective by investing at least 80% of its assets in the equity
securities of companies that make up the S&P 500® Index. The Fund
generally purchases securities in proportions that match their index
weights. This is the basis of achieving capitalization-weighted total rate
of return. Each companys shares contribute to the Funds overall
return in the same proportion as the value of its shares contributes to the
S&P 500® Index. However, the Funds investment Sub-Adviser,
Bankers Trust Company, uses a process known as
optimization, which is a statistical sampling technique. (See
discussion of Optimization on page 76). Therefore, the
Fund may not hold every stock in the Index. This approach allows the Fund
to run an efficient and effective strategy to maximize the Funds
liquidity while minimizing transaction costs. The Fund may also invest in
other instruments whose performance is expected to correspond to the Index.
The Fund may also use derivatives such as index futures and
options, as described in the Appendix. These investments help the Fund
approach the returns of a fully invested portfolio, while keeping cash on
hand for liquidity purposes.
Prior to May 1,
2000, the Fund was a feeder fund. It sought to obtain its
investment objective by investing all its assets in the S&P 500®
Index Master Portfolio (the Master Portfolio) managed by
Barclays Global Fund Advisers. The Fund terminated the master-feeder
structure effective April 30, 2000.
The Principal Risks
of investing in the Fund are Market Risk, Tracking Error Risk, Credit Risk,
Derivative Risk, Foreign Investment Risk, Non-Diversification Risk,
Leveraging Risk and Growth Company Risk.
These Risks are
described beginning on page 40.
Annual
Performance*
The bar chart shows
the risks of investing in the Fund because the returns vary from year to
year.
Class S
Shares
[GRAPH]
1990 N/A
1991 N/A
1992 N/A
1993 N/A
1994 0.56%
1995 36.93%
1996 22.40%
1997 32.85%
1998 28.08%
1999 20.43%
During the period
shown above, the highest quarterly return for the Fund is 21.23% for the
quarter ended December 31, 1998 and the lowest quarterly return is -9.97%
for the quarter ended September 30, 1998.
Average Annual
Total Returns*
(for the periods
ended December 31, 1999)
The table shows the
risk of investing in the Fund because the Funds returns will differ
from the S&P 500® Index, due, in part, to the fees and expenses of
the Fund.
|
|
One
Year |
|
Five
Years |
|
Since
Inception
(7/93) |
Class S |
|
20.43% |
|
27.99% |
|
21.84% |
S&P 500®
Index
Ù
|
|
21.04% |
|
28.56% |
|
22.46% |
* The Fund
commenced operations on March 1, 1998. The performance for periods prior to
March 1, 1998 is calculated by including the corresponding total return of
the Master Portfolio in which the Fund previously invested (which includes,
for the period from July 2, 1993 through May 25, 1994, the performance of
its predecessor) adjusted to reflect the Funds current fees and
expenses. Performance shown does not reflect fees that may be paid by
investors for administrative services or group annuity contract
charges.
Ù
The S&P
500® Index is a widely recognized unmanaged index of common stocks of
the 500 largest capitalized U.S. companies. The S&P 500® Index does
not incur expenses and cannot be purchased directly by
investors.
Expense
Information
|
|
Class S |
Annual Fund
Operating Expenses (expenses that are
deducted from Fund Assets) |
Management Fees |
|
.10% |
Distribution and Service (Rule 12b-1) Fees |
|
None |
Other
Expenses |
|
.31% |
Total Annual
Fund Operating Expenses
(1)(2)
|
|
.41% |
(1)
|
The expenses in
the above table are based on expenses for the fiscal year ended December
31, 1999, adjusted to reflect the new investment advisory agreement with
MassMutual and a reduction in administrative expenses effective May 1,
2000.
|
(2)
|
Employee benefit
plans which invest in the Fund through MassMutual separate investment
accounts may pay additional charges under their group annuity contract or
services agreement. Investors who purchase shares directly from the Fund
may also be subject to charges imposed in their administrative services
or other agreement with MassMutual or MassMutual affiliate. None of these
charges are deducted from Fund assets.
|
Examples
These examples are
intended to help you compare the cost of investing in the Fund with the
cost of investing in other mutual funds. The examples assume that you
invest $10,000 in Class S shares of the Fund for the time periods
indicated, that your investment earns a 5% return each year and that the
Funds operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class S |
|
$42 |
|
$132 |
|
$230 |
|
$517 |
The Fund does not
impose any Shareholder Fees. Therefore, the figures shown would be the same
whether you sold your shares at the end of a period or kept
them.
MassMutual
Growth Equity Fund
Investment
Objective
This Fund seeks
long-term growth of capital and future income.
Principal
Investment Strategies and Risks
The Fund seeks to
achieve its objective by investing its assets, except for working cash
balances, primarily in the common stocks and securities convertible into
common stocks of companies which the Funds investment Sub-Adviser,
Massachusetts Financial Services Company (MFS), believes
offer better than average prospects for long-term growth.
The Sub-Adviser uses
a bottom-up, as opposed to a top-down, investment style, which means that
securities are selected based upon a fundamental analysis performed by the
portfolio manager and the Sub-Advisers large group of equity research
analysts.
In managing the
Fund, MFS seeks to purchase securities of companies which it
considers well-run and poised for growth, particularly companies which
demonstrate:
·
|
a strong
franchise, strong cash flows and a recurring revenue stream;
|
·
|
a strong industry
position, where there is potential for high profit margins and/or
substantial barriers to entry in the industry;
|
·
|
a strong
management with a clearly defined strategy; and
|
·
|
new products or
services.
|
The Fund may invest
up to 30% of its assets in foreign securities, including companies in
emerging markets, and may have exposure to foreign currencies through its
investment in these securities, its direct holdings of foreign currencies,
or through its use of foreign currency exchange contracts for the purchase
or sale of a fixed quantity of foreign currency at a future
date.
The Principal Risks
of investing in the Fund are Market Risk, Credit Risk, Management Risk,
Liquidity Risk, Derivative Risk, Foreign Investment Risk, Currency Risk,
Leveraging Risk, Growth Company Risk and Emerging Markets Risk.
These Risks are
described beginning on page 40.
Annual
Performance
The Fund began
operations May 3, 1999 and does not have a full calendar year of returns.
There will be risks of investing in the Fund because the returns would be
expected to vary from year to year.
Average Annual
Total Returns
(for the period
ended December 31, 1999)
Because this Fund
does not have a full calendar year of returns, there is no table which
shows how the Funds returns have deviated from the broad
market.
Expense
Information
|
|
Class
S* |
Annual Fund
Operating Expenses
(expenses that are deducted from Fund assets)
(% of average net assets) |
|
|
Management Fees |
|
.68% |
Distribution and Service (Rule 12b-1) Fees |
|
None |
Other
Expenses |
|
.29% |
Total Annual
Fund Operating Expenses |
|
.97% |
Expense
Reimbursement
(1)
|
|
(.19%) |
Net Fund
Expenses
(2)
|
|
.78% |
(1)
|
The expenses in
the above table reflect an agreement by MassMutual to cap the fees and
expenses of the Fund at these amounts through April 30, 2001. The
agreement cannot be terminated unilaterally by MassMutual.
|
(2)
|
Employee benefit
plans which invest in the Fund through MassMutual separate investment
accounts may pay additional charges under their group annuity contract or
services agreement. Investors who purchase shares directly from the Fund
may also be subject to charges imposed in their administrative services
or other agreement with MassMutual or MassMutual affiliate. None of these
charges are deducted from Fund assets.
|
Examples
These examples are
intended to help you compare the cost of investing in the Fund with the
cost of investing in other mutual funds. The examples assume that you
invest $10,000 in Class S shares of the Fund for the time periods
indicated, that your investment earns a 5% return each year and that the
Funds operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years
|
Class S |
|
$80 |
|
$290 |
|
$518 |
|
$1,171 |
The Fund does not
impose any Shareholder Fees. Therefore, the figures shown would be the same
whether you sold your shares at the end of a period or kept
them.
MFS Prior
Performance for Similar Accounts and Funds Return Since Inception*
The bar chart
illustrates the variability of returns achieved by MFS for its similar
accounts, and shows the Funds return since inception.
[GRAPH]
MassMutual Growth
MFS Composite Equity Fund
1990 -5.04%
1991 47.83%
1992 6.44%
1993 14.50%
1994 -6.83%
1995 28.47%
1996 22.98%
1997 48.44%
1998 40.84%
1999 41.86% 29.57%
|
|
Highest
Quarter |
|
Lowest
Quarter |
MassMutual
Growth |
|
|
|
|
Equity
Fund |
|
26.54% 4Q
1999 |
|
-3.85% 3Q
1999 |
MFS
Composite |
|
28.33% 4Q
1999 |
|
-25.19% 3Q
1990 |
MFS Average
Annual Total Returns for Similar Accounts and Funds Return Since
Inception*
(for the periods
ended December 31, 1999)
The table compares
MFS investment results for similar accounts, and the Funds
return since inception, to that of an index measuring the broad market over
different time periods.
|
|
One
Year |
|
Five
Years |
|
Ten
Years |
Mass Mutual Growth
Equity |
|
|
|
|
|
|
Fund (since
inception 5/99) |
|
|
|
|
|
|
Class
S* |
|
29.57% |
|
N/A |
|
N/A |
S&P 500 Index
Ù
|
|
21.04% |
|
28.56% |
|
18.21% |
MFS
Composite |
Class
S* |
|
41.86% |
|
36.19% |
|
22.27% |
* MFS
Similar Account performance is a composite of all portfolios managed by MFS
with substantially similar investment objectives, policies and investment
strategies and without significant client-imposed restrictions, adjusted to
reflect the fees and expenses of each of the Funds share classes. The
bar chart is based on Class S expenses. MFS composite includes
performance of the Fund since its inception May 3, 1999, and performance of
the Massachusetts Investors Growth Stock Composite Fund, which is also
registered under the 1940 Act. The Funds actual performance since
inception is also shown separately. The composite performance does not
represent the historical performance of the MassMutual Growth Equity Fund.
Historical performance should not be interpreted as being indicative of the
future performance of the Fund. For a more detailed discussion, please
refer to Investment Performance in this Prospectus.
Performance shown does not reflect fees that may be paid by investors for
administrative services or group annuity contract charges.
Ù
he S&P
500® Index is a widely recognized, unmanaged index representative of
the largest capitalized U.S. companies. The Index does not incur expenses
and cannot be purchased directly by Investors.
MassMutual
Aggressive Growth Fund
Investment
Objective
This Fund seeks
long-term capital appreciation.
Principal
Investment Strategies and Risks
This Fund seeks to
achieve its objective by investing primarily in common stocks selected for
their growth potential. This Fund may invest in companies of any size, from
larger, well-established companies to smaller, emerging growth companies.
The Funds investment Sub-Adviser, Janus Capital Corporation,
generally uses a bottom up approach to identify companies whose
growth potential has not been recognized by the market at large. Companies
are considered one at a time, regardless of size, country of organization,
place of business activity or other similar criteria. Current income is not
an objective of the Fund, and any income realized will be incidental to the
Funds investment objective.
In selecting
securities, the Funds Sub-Adviser focuses on the common stocks of two
types of companies:
·
|
Those experiencing
above-average unit growth versus their peer group or the general economy;
and
|
·
|
Companies that are
realizing positive change as a result of a new product development, an
improved regulatory environment, or strong management team.
|
Sell decisions are
made under two scenarios: first, when a stocks price increases
substantially relative to the companys earnings growth projection,
and the Fund uses the opportunity to take profits; and the Sub-Adviser may
sell when a change in company fundamentals casts doubt on the earnings
expectations.
The Fund is
non-diversified, which means that it may hold larger positions in a smaller
number of stocks than a diversified fund. As a result, an increase or
decrease in value of a single stock could have a greater impact on the
Funds net asset value and its total return. See
Non-Diversification Risk on page 42.
The Principal Risks
of investing in the Fund are Market Risk, Credit Risk, Management Risk,
Liquidity Risk, Derivative Risk, Non-Diversification Risk, Foreign
Investment Risk, Leveraging Risk, Growth Company Risk, Currency Risk and
Emerging Markets Risk.
These Risks are
described beginning on page 40.
Annual
Performance
The Fund began
operations May 1, 2000, and therefore has no performance history. There
will be risks of investing in the Fund because the returns would be
expected to vary from year to year.
Average Annual
Total Returns
(for the period
ended December 31, 1999)
Because this Fund is
new, there is no table which shows how the Funds returns have
deviated from the broad market.
Expense
Information
|
|
Class S |
Annual Fund
Operating Expenses (expenses
that are deducted from Fund assets) (% of
average net assets) |
|
|
Management Fees |
|
.73% |
Distribution and Service (Rule 12b-1) Fees |
|
None |
Other
Expenses |
|
.11% |
Total Annual
Fund Operating Expenses
(1)(2)
|
|
.84% |
(1)
|
Other Expenses and
Total Annual Fund Operating Expenses are based on estimated amounts for
the first fiscal year of the Fund.
|
(2)
|
Employee benefit
plans which invest in the Fund through MassMutual separate investment
accounts may pay additional charges under their group annuity contract or
services agreement. Investors who purchase shares directly from the Fund
may also be subject to charges imposed in their administrative services
or other agreement with MassMutual or MassMutual affiliate. None of these
charges are deducted from Fund assets.
|
Examples
These examples are
intended to help you compare the cost of investing in the Fund with the
cost of investing in other mutual funds. The examples assume that you
invest $10,000 in Class S shares of the Fund for the time periods
indicated, that your investment earns a 5% return each year and that the
Funds operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
1
Year |
|
3
Years |
Class S |
|
$86 |
|
$268 |
The Fund does not
impose any Shareholder Fees. Therefore, the figures shown would be the same
whether you sold your shares at the end of a period or kept
them.
Janus Prior
Performance Similar Accounts*
The bar chart
illustrates the variability of returns achieved by Janus for its similar
accounts.
[GRAPH]
1990 N/A
1991 N/A
1992 N/A
1993 N/A
1994 N/A
1995 N/A
1996 21.93%
1997 26.88%
1998 57.14%
1999 100.20%
During the periods
shown above, the highest quarterly return was 51.54% for the quarter ended
December 31, 1999 and the lowest was -7.89% for the quarter ended September
30, 1998.
Janus Average
Annual Total Returns for Similar Accounts*
(for the periods
ended December 31, 1999)
The table compares
Janus investment results for its similar accounts to that of an index
measuring the broad market over different time periods.
|
|
One
Year |
|
Since
Inception
1/96 |
Janus Capital
Corporation |
|
|
|
|
|
|
Class
S* |
|
100.20% |
|
|
48.53% |
|
S&P 500®
Index |
|
21.04% |
|
|
26.39% |
|
* Performance shown is the composite of all portfolios
managed by Janus with substantially similar investment objectives, policies
and investment strategies and without significant client-imposed
restrictions, adjusted to reflect the fees and expenses of each of the
Funds share classes. The bar chart is based on Class S expenses.
Janus composite includes the Janus Olympus Fund which is registered
under the 1940 Act. The quoted performance does not represent the
historical performance of the MassMutual Aggressive Growth Fund and should
not be interpreted as being indicative of the future performance of the
Fund. For a more detailed discussion, please refer to
Investment Performance in this Prospectus. Performance
shown does not reflect fees that may be paid by investors for
administrative services or group annuity contract charges.
Ù
The S&P
500® Index is a widely recognized, unmanaged index representative of
larger capitalized, U.S. companies. The Index does not incur expenses and
cannot be purchased directly by investors.
MassMutual OTC
100 Fund
Investment
Objective
This Fund seeks to
approximate as closely as practicable (before fees and expenses) the total
return of the 100 largest publicly traded over-the-counter common
stocks.
Principal
Investment Strategies and Risks
This Fund seeks to
achieve its objective by investing at least 80% of its assets in the equity
securities of companies included in the NASDAQ 100 Index®, which is
generally recognized as representative of the over-the-counter market. The
NASDAQ 100 Index® is a modified capitalization-weighted index composed
of the 100 largest non-financial companies listed on the National
Association of Securities Dealers Automated Quotations System
(NASDAQ). The NASDAQ 100 Index® does not incur expenses and
cannot be purchased directly by investors.
The Fund generally
purchases securities in proportions that match their index weights. This is
the basis of achieving a capitalization-weighted total rate of return. Each
companys shares contribute to the Funds overall return in the
same proportion as the value of its shares contributes to the NASDAQ 100
Index®. However, the Funds investment sub-adviser, Bankers
Trust Company, uses a process known as optimization, which
is a statistical sampling technique. (See discussion of
Optimization on page 76). Therefore, the Fund may not
hold every stock in the Index. This approach allows the Fund to run an
efficient and effective strategy to maximize the Funds liguidity
while minimizing transaction costs. The Fund may also invest in other
instruments whose performance is expected to correspond to the Index. The
Fund may also use derivatives such as index futures and
options, as described in the Appendix. These investments help the Fund
approach the returns of a fully invested portfolio, while keeping cash on
hand for liquidity purposes.
The Fund is
non-diversified, which means that it may hold larger positions in a smaller
number of stocks than a diversified fund. As a result, an increase or
decrease in value of a single stock could have a greater impact on the
Funds net asset value and its total return.
The Principal Risks
of investing in the Fund are Market Risk, Tracking Error Risk, Credit Risk,
Management Risk, Liquidity Risk, Derivative Risk, Non-Diversification Risk,
Leveraging Risk, Smaller Company Risk and Growth Company Risk.
These Risks are
described beginning on page 40.
Annual
Performance
The Fund began
operations May 1, 2000, and therefore has no performance history. There
will be risks of investing in the Fund as returns would be expected to vary
from year to year.
Average Annual
Total Returns
(for the periods
ended December 31, 1999)
Because this Fund is
new, there is no table which shows how the Funds returns have
deviated from the broad market.
* NASDAQ 100
Index® is a registered service mark of the NASDAQ Stock Market, Inc.
(NASDAQ). The NASDAQ 100 Index® is composed and calculated
by NASDAQ without regard to the Fund. NASDAQ makes no warranty, express or
implied, regarding, and bears no liability with respect to, the NASDAQ 100
Index® or its use of any data included therein.
Expense
Information
|
|
Class S |
Annual Fund
Operating Expenses (expenses
that are deducted from Fund assets) (% of
average net assets) |
Management Fees |
|
.15% |
Distribution and Service (Rule 12b-1) Fees |
|
None |
Other
Expenses |
|
.39% |
Total Annual
Fund Operating Expenses
(1)(2)
|
|
.54% |
(1)
|
Other Expenses and
Total Annual Fund Operating Expenses are based on estimated amounts for
the first fiscal year of the Fund.
|
(2)
|
Employee benefit
plans which invest in the Fund through MassMutual separate investment
accounts may pay additional charges under their group annuity contract or
services agreement. Investors who purchase shares directly from the Fund
may also be subject to charges imposed in their administrative services
or other agreement with MassMutual or MassMutual affiliate. None of these
charges are deducted from Fund assets.
|
Examples
These examples are
intended to help you compare the cost of investing in the Fund with the
cost of investing in other mutual funds. The examples assume that you
invest $10,000 in Class S shares of the Fund for the time periods
indicated, that your investment earns a 5% return each year and that the
Funds operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
1 Year |
|
3 Years |
Class S |
|
$55 |
|
$173 |
The Fund does not
impose any Shareholder Fees. Therefore, the figures shown would be the same
whether you sold your shares at the end of a period or kept
them.
MassMutual
Focused Value Fund
Investment
Objective
This Fund seeks
growth of capital over the long-term.
Principal
Investment Strategies and Risks
The Fund seeks to
achieve its objective by investing primarily in a non-diversified portfolio
of U.S. equity securities.
As a
non-diversified fund, the Fund is not limited in the percentage
of its assets that it may invest in any one company. This means that it may
hold larger positions in a smaller number of stocks than a diversified
fund. As a result, an increase or decrease in value of a single stock could
have a greater impact on the Funds net asset value and its total
return. See Non-Diversification Risk described on page
42.
The Funds
Sub-Adviser seeks out companies that are trading at significant discounts
to their underlying value. The manager utilizes a fundamental, bottom-up
investment strategy, focusing on companies with market capitalizations
between $1-$10 billion and which have significant profit
potential.
Sell targets are
generally set when a stock is first purchased. The Sub-Adviser generally
sells a stock when it achieves 90-100% of its fair value or when it is
determined that management is no longer a steward of shareholder
interests.
The Funds
investment Sub-Adviser, Harris Associates L.P., intends to invest
primarily in U.S. companies, but the Fund may invest up to 25% of its total
assets (valued at the time of investment) in securities of non-U.S.
issuers. These may include foreign government obligations and foreign
equity and debt securities that are traded over-the-counter or on foreign
exchanges. There are no geographic limits on the Funds foreign
investments, but the Fund does not expect to invest more than 5% of its
assets in securities of issuers based in emerging markets.
The Principal Risks
of investing in the Fund are Market Risk, Credit Risk, Management Risk,
Liquidity Risk, Derivative Risk, Foreign Investment Risk, Leveraging Risk
and Smaller Company Risk.
These Risks are
described beginning on page 40.
Annual
Performance
The Fund began
operations May 1, 2000, and therefore has no performance history. There
will be risks of investing in the Fund because the returns would be
expected to vary from year to year.
Average Annual
Total Returns
(for the period
ended December 31, 1999)
Because this Fund is
new, there is no table which shows how the Funds returns have
deviated from the broad market.
Expense
Information
|
|
Class S |
Annual Fund
Operating Expenses (expenses
that are deducted from Fund assets) (% of
average net assets) |
|
|
Management Fees |
|
.69% |
Distribution and Service (Rule 12b-1) Fees |
|
None |
Other
Expenses |
|
.10% |
Total Annual
Fund Operating Expenses
(1)(2)
|
|
.79% |
(1)
|
Other Expenses and
Total Annual Fund Operating Expenses are based on estimated amounts for
the first fiscal year of the Fund.
|
(2)
|
Employee benefit
plans which invest in the Fund through MassMutual separate investment
accounts may pay additional charges under their group annuity contract or
services agreement. Investors who purchase shares directly from the Fund
may also be subject to charges imposed in their administrative services
or other agreement with MassMutual or MassMutual affiliate. None of these
charges are deducted from Fund assets.
|
Examples
These examples are
intended to help you compare the cost of investing in the Fund with the
cost of investing in other mutual funds. The examples assume that you
invest $10,000 in Class S shares of the Fund for the time periods
indicated, that your investment earns a 5% return each year and that the
Funds operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
1
Year |
|
3
Years |
Class S |
|
$81 |
|
$252 |
The Fund does not
impose any Shareholder Fees. Therefore, the figures shown would be the same
whether you sold your shares at the end of a period or kept
them.
Harris Associates
Prior Performance
Similar Accounts*
The bar chart
illustrates the variability of returns achieved by Harris Associates for
its similar accounts.
1990 N/A
1991 31.94%
1992 29.78%
1993 24.81%
1994 -3.49%
1995 31.09%
1996 21.85%
1997 28.31%
1998 19.06%
1999 14.06%
During the periods
shown above, the highest quarterly return was 22.72% for the quarter ended
December 31, 1998 and the lowest was -15.39% for the quarter ended
September 30, 1998.
Harris Associates
Average Annual Total Returns for Similar Accounts*
(for the periods
ended December 31, 1999)
The table compares
Harris Associates investment results for similar accounts to that of
an index measuring the broad market over different time
periods.
|
|
One
Year |
|
Five
Years |
|
Since
Inception
1/91 |
Class
S* |
|
14.06% |
|
22.72% |
|
21.43% |
Russell 2500
Index
Ù
|
|
24.14% |
|
19.43% |
|
18.98% |
* Performance shown is a composite of all portfolios managed
by Harris Associates with substantially similar investment objectives,
policies and investment strategies and without significant, client-imposed
restrictions, adjusted to reflect the fees and expenses of each of the
Funds share classes. The bar chart is based on Class S expenses.
The quoted performance does not represent the historical performance of
the MassMutual Focused Value Fund and should not be interpreted as being
indicative of the future performance of the Fund. For a more detailed
discussion, please refer to Investment Performance in
this Prospectus. Performance shown does not reflect fees that may be paid
by investors for administrative services or group annuity contract
charges.
Ù
The Russell
2500 Index is a widely recognized, unmanaged index representative of the
mid-capitalization U.S. companies. The Index does not incur expenses and
cannot be purchased directly by investors.
MassMutual
Small Cap Value Equity Fund
Investment
Objective
This Fund seeks to
achieve long-term growth of capital and income by investing primarily in a
diversified portfolio of equity securities of smaller
companies.
Principal
Investment Strategies and Risks
The Fund invests
primarily in stocks, securities convertible into stocks and other
securities, such as warrants and stock rights, whose value is based on
stock prices. This approach favors stocks of companies having
price/earnings (P/E) ratios generally below the S&P
500® Index average. The Fund generally invests in publicly traded
stocks of companies with market capitalizations in the range of companies
in the Russell 2000 Index, the Funds benchmark. Normally, however, at
least 65% of the Funds investments will be in small cap companies.
For these purposes, the Fund treats as small cap those
companies whose market capitalizations are within the range of
capitalizations of companies included in the Lipper, Inc. Small Cap
Category. The range of capitalizations of companies included in Russell
2000 Index and the Lipper, Inc. Small Cap Category will fluctuate as market
prices increase or decrease. The Funds Sub-Adviser, David L.
Babson, will not automatically sell or cease to purchase the stock of a
company it already owns just because the companys market
capitalization grows or falls outside the range of companies in the Russell
2000 Index.
The Principal Risks
of investing in the Fund are Market Risk, Credit Risk, Management Risk,
Liquidity Risk, Currency Risk, Foreign Investment Risk, Derivative Risk,
Leveraging Risk and Smaller Company Risk.
These Risks are
described beginning on page 40.
Annual
Performance*
The bar chart shows
the risks of investing in the Fund because the returns vary from year to
year.
Class S
Shares
[GRAPH]
1990 -5.42%
1991 29.34%
1992 17.10%
1993 14.08%
1994 -4.43%
1995 20.01%
1996 22.82%
1997 36.36%
1998 -9.03%
1999 0.25%
During the periods
shown above, the highest quarterly return was 18.72% for the quarter ended
June 30, 1997 and the lowest was -18.98% for the quarter ended September
30, 1998.
Average Annual
Total Returns
(for the periods
ended December 31, 1999)
The table shows the
risks of investing in the Fund, by comparing the Funds returns with a
broad measure of market performance over different time
periods.
|
|
One
Year |
|
Five
Years |
|
Ten
Years |
Class
S* |
|
0.25 |
% |
|
12.88 |
% |
|
11.09 |
% |
Russell 2000
Index
Ù
|
|
21.26 |
% |
|
16.69 |
% |
|
13.40 |
% |
* Performance for Class S shares of the Fund includes
performance of a predecessor separate investment account of MassMutual for
periods prior to October 3, 1994. For a more detailed discussion, please
refer to Investment Performance in this Prospectus. Performance
shown does not reflect fees that may be paid by investors for
administrative services or group annuity contract charges.
Ù
The Russell 2000 Index is a widely recognized, unmanaged index
representative of small-capitalization U.S. companies. The Index does not
incur expenses and cannot be purchased directly by
investors.
Expense
Information
|
|
Class S |
Annual Fund
Operating Expenses (expenses
that are deducted from Fund assets) (% of
average net assets) |
|
|
Management Fees |
|
.58% |
Distribution and Service (Rule 12b-1) Fees |
|
None |
Other
Expenses |
|
.10% |
Total Annual
Fund Operating Expenses
(1)
|
|
.68% |
(1)
|
Employee benefit
plans which invest in the Fund through MassMutual separate investment
accounts may pay additional charges under their group annuity contract or
services agreement. Investors who purchase shares directly from the Fund
may also be subject to charges imposed in their administrative services
or other agreement with MassMutual or MassMutual affiliate. None of these
charges are deducted from Fund assets.
|
Examples
These examples are
intended to help you compare the cost of investing in the Fund with the
cost of investing in other mutual funds. The examples assume that you
invest $10,000 in Class S Shares of the Fund for the time periods
indicated, that your investment earns a 5% return each year and that the
Funds operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class S |
|
$70 |
|
$218 |
|
$379 |
|
$846 |
The Fund does not
impose any Shareholder Fees. Therefore, the figures shown would be the same
whether you sold your shares at the end of a period or kept
them.
MassMutual Mid
Cap Growth Equity Fund
Investment
Objective
This Fund seeks
long-term capital growth.
Principal
Investment Strategies and Risks
This Fund seeks to
achieve its investment objective by investing primarily in common stocks
and other equity securities having capitalizations in the range of
companies included in the S&P Mid Cap 400 Index. The Sub-Adviser for
the Fund, Miller Anderson & Sherrerd, LLP (MAS),
focuses particularly on the expectations of stock analysts and invests the
portfolio in stocks of companies that it believes will report earnings
growth exceeding analysts expectations. The Fund may invest to a
limited extent in foreign equity securities. MAS may use derivatives
in managing the portfolio.
MAS uses a
quantitative screen to sort stocks based on revisions to analysts
earnings predictions. MAS then conducts extensive fundamental
research into those companies with the most attractive earnings revisions.
Finally, MAS evaluates the valuation of the stocks to eliminate from
consideration the most overvalued stocks. MAS also follows a strict
sell discipline. The Fund will sell stocks when their earnings revision
scores fall to unacceptable levels, fundamental research reveals
unfavorable trends, or their valuations exceed levels that are reasonable
in relation to the stocks growth prospects.
The Principal Risks
of investing in the Fund are Market Risk, Credit Risk, Management Risk,
Liquidity Risk, Derivative Risk, Foreign Investment Risk, Currency Risk,
Leveraging Risk, Smaller Company Risk, Growth Company Risk and Emerging
Markets Risk.
Additional Risks
Regarding Performance: The Funds investments in initial public
offerings (IPOs) may have a significant impact on the
Funds returns during its start-up period. The impact of IPOs would
not be expected to be as great as the Funds assets grow.
These Risks are
described beginning on page 40.
Annual
Performance
The Fund began
operations May 3, 1999 and does not have a full calendar year of returns.
There will be risks of investing in the Fund as returns would be expected
to vary from year to year.
Average Annual
Total Returns
(for the period
ended December 31, 1999)
Because this Fund
does not have a full calendar year of returns, there is no table which
shows how the Funds returns have deviated from the broad
market.
Expense
Information
|
|
Class
S* |
Annual Fund
Operating Expenses (expenses
that are deducted from Fund assets) (% of
average net assets) |
Management Fees |
|
.70% |
Distribution and Service (Rule 12b-1) Fees |
|
None |
Other
Expenses |
|
.19% |
Total Annual Fund
Operating Expenses |
|
.89% |
Expense
Reimbursement
(1)
|
|
(.09%) |
Net Fund
Expenses
(2)
|
|
.80% |
(1)
|
The expenses in
the above table reflect an agreement by Mass Mutual to cap the fees and
expenses of the Fund at these amounts through April 30, 2001. The
agreement cannot be terminated unilaterally by MassMutual.
|
(2)
|
Employee benefit
plans which invest in the Fund through MassMutual separate investment
accounts may pay additional charges under their group annuity contract or
services agreement. Investors who purchase shares directly from the Fund
may also be subject to charges imposed in their administrative services
or other agreement with MassMutual or MassMutual affiliate. None of these
charges are deducted from Fund assets.
|
Examples
These examples are
intended to help you compare the cost of investing in the Fund with the
cost of investing in other mutual funds. The examples assume that you
invest $10,000 in Class S shares of the Fund for the time periods
indicated, that your investment earns a 5% return each year and that the
Funds operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
Class S |
|
$82 |
|
$275 |
|
$484 |
|
$1,086 |
The Fund does not
impose any Shareholder Fees. Therefore, the figures shown would be the same
whether you sold your shares at the end of a period or kept
them.
MAS Prior
Performance for Similar Accounts and Funds Returns Since
Inception*
The bar chart
illustrates the variability of returns achieved by MAS for its similar
accounts, and shows the Funds returns since inception.
[GRAPH]
MassMutual
Mid Cap Growth
MFS Composite Equity Fund
1990 N/A
1991 59.50%
1992 2.71%
1993 18.12%
1994 -5.61%
1995 36.24%
1996 18.70%
1997 33.07%
1998 37.38%
1999 68.31% 39.40%
|
|
Highest
Quarter |
|
Lowest
Quarter |
MassMutual Mid Cap
Growth Equity Fund |
|
36.94%, 4Q
1999 |
|
-1.54%, 3Q
1999 |
MAS
Composite |
|
39.31%, 4Q
1999 |
|
-19.80%, 3Q
1990 |
MAS Average
Annual Total Returns for
Similar Accounts and Funds Returns Since Inception*
(for the periods
ended December 31, 1999)
The table compares
MAS investment results for its similar accounts to that of an index
measuring the broad market over different time periods.
|
|
One
Year |
|
Five
Years |
|
Since
Inception
4/90 |
MassMutual Mid Cap
Growth Equity Fund
(since inception 5/99) |
|
|
|
|
|
|
|
|
Class
S* |
|
39.40% |
|
N/A |
|
|
N/A |
|
MAS Similar
Accounts |
|
|
|
|
|
|
|
|
Class
S* |
|
68.31% |
|
37.84 |
% |
|
26.58 |
% |
Russell 2500
Index
Ù
|
|
24.14% |
|
19.43 |
% |
|
15.81 |
% |
* MAS
Similar Account performance is a composite of all portfolios managed by MAS
with substantially similar investment objectives, policies and investment
strategies and without significant client imposed restrictions, adjusted to
reflect the fees and expenses of each of the Funds share classes. The
bar chart is based on Class S expenses. MAS composite includes
performance of the Fund since its inception May 3, 1999, and performance of
the MAS Funds Mid Cap Growth Portfolio, which is registered under the 1940
Act. The Funds actual performance since inception is also shown
separately. The composite performance does not represent the historical
performance of the MassMutual Mid Cap Growth Fund. Historical performance
should not be interpreted as being indicative of the future performance of
the Fund. For a more detailed discussion, please refer to
Investment Performance in this Prospectus. Performance
shown does not reflect fees that may be paid by investors for
administrative services or group annuity contract charges.
Ù
The Russell
2500 Index is a widely recognized, unmanaged index representative of
mid-capitalization U.S. companies. The Index does not incur expenses and
cannot be purchased directly by investors.
MassMutual Mid
Cap Growth Equity II Fund
Investment
Objective
This Fund seeks
growth of capital over the long-term.
Principal
Investment Strategies and Risks
This Fund seeks to
achieve its objective by investing at least 65% of the Funds total
assets in a diversified portfolio of common stocks of mid-cap companies
whose earnings the Funds investment sub-adviser T. Rowe Price
Associates, Inc., expects to grow at a faster rate than the average
company. Mid-cap companies are defined as those whose market
capitalizations fall within the range of companies in the S&P MidCap
400 Index. However, the Fund is not required to sell a company, or cease to
purchase the stock of a company it already owns, just because the
companys market capitalization has fallen outside that
range.
As investment
Sub-Adviser to the Fund, T. Rowe Price favors companies
that:
·
|
have proven
products or services;
|
·
|
have a record of
above-average earnings growth;
|
·
|
have demonstrated
potential to sustain earnings growth;
|
·
|
operate in
industries experiencing increasing demand;
|
·
|
have stock prices
that appear to undervalue their growth prospects.
|
The Fund will
generally invest its assets in U.S. common stocks. It may also invest in
other securities, including foreign securities and derivatives. The Fund
may sell securities for a variety of reasons, such as to secure gains,
limit losses or redeploy assets into more promising
opportunities.
The Principal Risks
of investing in the Fund are Market Risk, Credit Risk, Management Risk,
Liquidity Risk, Derivative Risk, Foreign Investment Risk, Currency Risk,
Leveraging Risk, Smaller Company Risk, Growth Company Risk and Emerging
Markets Risk.
These Risks are
described beginning on page 40.
Annual
Performance
The Fund began
operations May 1, 2000, and therefore has no performance history. There
will be risks of investing in the Fund because the returns would be
expected to vary from year to year.
Average Annual
Total Returns
(for the period
ended December 31, 1999)
Because this Fund is
new, there is no table which shows how the Funds returns have
deviated from the broad market.
Expense
Information
|
|
Class
S |
Annual Fund
Operating Expenses
(expenses that are deducted from Fund
assets) (% of average net assets) |
Management Fees |
|
.75% |
Distribution and Service (Rule 12b-1) Fees |
|
None |
Other
Expenses |
|
.10% |
Total Annual
Fund Operating Expenses
(1)(2)
|
|
.85% |
(1)
|
Other Expenses and
Total Annual Fund Operating Expenses are based on estimated amounts for
the first fiscal year of the Fund.
|
(2)
|
Employee benefit
plans which invest in the Fund through MassMutual separate investment
accounts may pay additional charges under their group annuity contract or
services agreement. Investors who purchase shares directly from the Fund
may also be subject to charges imposed in their administrative services
or other agreement with MassMutual or MassMutual affiliate. None of these
charges are deducted from Fund assets.
|
Examples
These examples are
intended to help you compare the cost of investing in the Fund with the
cost of investing in other mutual funds. The examples assume that you
invest $10,000 in Class S Shares of the Fund for the time periods
indicated, that your investment earns a 5% return each year and that the
Funds operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
1
Year |
|
3
Years |
Class S |
|
$87 |
|
$271 |
The Fund does not
impose any Shareholder Fees. Therefore, the figures shown would be the same
whether you sold your shares at the end of a period or kept
them.
T. Rowe
Price
Prior
Performance Similar Accounts*
The bar chart
illustrates the variability of returns achieved by T. Rowe Price for its
similar accounts.
1990 N/A
1991 N/A
1992 N/A
1993 26.30%
1994 0.35%
1995 41.01%
1996 24.90%
1997 18.39%
1998 22.06%
1999 23.84%
During the periods
shown above, the highest quarterly return was 26.80% for the quarter ended
December 31, 1998 and the lowest was -17.47% for the quarter ended
September 30, 1998.
T. Rowe Price
Average Annual Total Returns for Similar Accounts*
(for the periods
ended December 31, 1999)
The table compares
T. Rowe Prices investment results for its similar accounts to that of
an index measuring the broad market over different time
periods.
|
|
One
Year |
|
Five
Years |
|
Since
Inception
7/92 |
Class
S* |
|
23.84% |
|
25.81% |
|
23.86 |
% |
S&P Mid Cap
400 Index
Ù
|
|
14.72% |
|
23.05% |
|
18.62 |
% |
* Performance shown is from a mutual fund managed by T. Rowe
Price with substantially similar investment objectives, policies and
investment strategies and without significant client imposed restrictions,
adjusted to reflect the fees and expenses of each of the Funds share
classes. The bar chart is based on Class S expenses. The performance is of
the T. Rowe Price Mid-Cap Growth Fund which is registered under the 1940
Act. The quoted performance does not represent the historical
performance of the MassMutual Mid Cap Growth Equity II Fund and should not
be interpreted as being indicative of the future performance of the Fund.
For a more detailed discussion, please refer to Investment
Performance in this Prospectus. Performance shown does not
reflect fees that may be paid by investors for administrative services or
group annuity contract charges.
Ù
The S &
P Mid Cap 400 Index is a widely recognized, unmanaged index representative
of mid-capitalization U.S. companies. The Index does not incur expenses and
cannot be purchased directly by investors.
MassMutual
Small Cap Growth Equity Fund
Investment
Objective
This Fund seeks
long-term capital appreciation.
Principal
Investment Strategies and Risks
The Fund seeks to
achieve its objective by investing primarily in common stocks and equity
securities of smaller companies which the managers believe offer potential
for long-term growth. The Fund may maintain cash reserves for liquidity and
defensive purposes. The Fund will generally buy securities of companies
whose market capitalizations are included in the Lipper, Inc. Small Cap
Category. The range of capitalizations of companies included in the Lipper,
Inc. Small Cap Category will fluctuate as market prices increase or
decrease. The Fund is not required to invest in dividend paying stocks,
since current income is not an objective of the Fund. Two Sub-Advisers
manage the Fund, each being responsible for a portion of the
portfolio.
The investment
process of J.P. Morgan Investment Management Inc. (J.P.
Morgan) is based on in-depth proprietary research and stock
valuation and selection; insight into companies real growth potential
by forecasting prospects over periods often up to 5 years; quantifying
research results with rankings according to relative value, and buying
under-valued or fairly valued companies poised for long-term growth;
focusing on each companys business strategy and competitive
environment; and high growth sectors such as technology, health care and
consumer services.
Waddell &
Reed Investment Management Company (Waddell & Reed)
uses a bottom-up process, generally emphasizing long-term growth
potential and superior financial characteristics, such as: annual revenue
and earnings growth rate of 25%+, pre-tax margins of 20%+, and debt-free
capital structure. Generally, companies also are considered which are
strong niche players with a defensible market position, have active
involvement of the founder-entrepreneur and demonstrate commitment to their
employees, customers, suppliers and shareholders.
Waddell &
Reed buys companies with an anticipated three year holding period, and
therefore expects this portion of the Funds portfolio to typically
have lower than 50% annual turnover.
The Principal Risks
of investing in the Fund are Market Risk, Credit Risk, Management Risk,
Liquidity Risk, Derivative Risk, Foreign Investment Risk, Currency Risk,
Leveraging Risk, Smaller Company Risk, Growth Company Risk and Emerging
Markets Risk.
Additional Risks
regarding Performance: The Funds investments in initial public
offerings (IPOs) may have a significant impact on the
Funds returns during its start-up period. The impact of IPOs would
not be expected to be as great as the Funds assets grow.
These Risks are
described beginning on page 40.
Annual
Performance
The Fund began
operations May 3, 1999 and does not have a full calendar year of returns.
There will be risks of investing in the Fund as returns would be expected
to vary from year to year.
Average Annual
Total Returns
(for the period
ended December 31, 1999)
Because this Fund
does not have a full calendar year of returns, there is no table which
shows how the Funds returns have deviated from the broad
market.
Expense
Information
|
|
Class
S* |
Annual Fund
Operating Expenses (expenses
that are deducted from Fund assets) (% of
average net assets) |
|
|
|
Management Fees |
|
.82% |
|
Distribution and Service (Rule 12b-1) Fees |
|
None |
|
Other
Expenses |
|
.37% |
|
Total Annual Fund
Operating Expenses |
|
1.19% |
|
Expense
Reimbursement
(1)
|
|
(.24% |
) |
Net Fund
Expenses
(2)
|
|
.95% |
|
(1)
|
The expenses in
the above table reflect an agreement by MassMutual to cap the fees and
expenses of the Fund at these amounts through April 30, 2001. The
agreement cannot be terminated unilaterally by MassMutual.
|
(2)
|
Employee benefit
plans which invest in the Fund through MassMutual separate investment
accounts may pay additional charges under their group annuity contract or
services agreement. Investors who purchase shares directly from the Fund
may also be subject to charges imposed in their administrative services
or other agreement with MassMutual or MassMutual affiliate. None of these
charges are deducted from Fund assets.
|
Examples
These examples are
intended to help you compare the cost of investing in the Fund with the
cost of investing in other mutual funds. The examples assume that you
invest $10,000 in Class S shares of the Fund for the time periods
indicated, that your investment earns a 5% return each year and that the
Funds operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class S |
|
$97 |
|
$354 |
|
$631 |
|
$1,419 |
The Fund does not
impose any Shareholder Fees. Therefore, the figures shown would be the same
whether you sold your shares at the end of a period or kept
them.
J.P. Morgan and
Waddell & Reed Prior
Performance for
Similar Accounts
and Funds
Returns Since Inception*
The bar chart
illustrates the variability of returns achieved by each Sub-Adviser and how
they have differed, and shows the Funds returns since
inception.
[GRAPH]
MassMutual
Small Cap Growth
J.P. Morgan Waddell & Reed Equity Fund
1990 N/A 2.39%
1991 N/A 89.52%
1992 N/A 4.79%
1993 N/A 11.39%
1994 N/A 12.25%
1995 42.29% 34.38%
1996 24.39% 6.87%
1997 29.24% 37.11%
1998 0.27% 55.13%
1999 63.54% 91.29% 60.91%
|
|
Highest Quarter |
|
Lowest Quarter |
MassMutual Small
Cap
Growth Equity Fund |
|
42.51%, 4Q
1999 |
|
3.29%, 3Q
1999 |
J.P.
Morgan |
|
43.37%, 4Q
1999 |
|
-21.94%, 3Q
1998 |
Waddell &
Reed |
|
44.12%, 4Q
1999 |
|
-18.05%, 3Q
1990 |
J.P. Morgan and
Waddell & Reed Average
Annual Total
Returns for Similar Accounts
and Funds
Returns Since Inception*
(for the periods
ended December 31, 1999)
The table compares
each Sub-Advisers investment results for its similar accounts, and
the Funds return since inception, to an index measuring the broad
market over different time periods.
|
|
One
Year |
|
Five
Years |
|
Ten
Years |
MassMutual Small
Cap
Growth Equity Fund
(since inception 5/99) |
|
|
|
|
|
|
Class
S* |
|
60.91% |
|
N/A |
|
N/A |
J. P.
Morgan |
|
|
|
|
|
|
Class
S* |
|
63.54% |
|
30.26% |
|
N/A |
Waddell &
Reed |
|
|
|
|
|
|
Class
S* |
|
91.29% |
|
42.34% |
|
30.97% |
Russell 2000
Index
Ù
|
|
21.26% |
|
16.69% |
|
13.40% |
* Each
Sub-Advisers Similar Account performance is a composite of all
portfolios managed by that Sub-Adviser with substantially similar
investment objectives, policies and investment strategies and without
significant client-imposed restrictions, adjusted to reflect the fees and
expenses of each of the Funds share classes. The bar chart is based
on Class S expenses. Each Sub-Advisers composite includes the return
for the portion of the Funds portfolio which it manages. The
Funds actual performance since inception is also shown separately.
The composite performance does not represent the historical performance of
the MassMutual Small Cap Growth Equity Fund. Historical performance should
not be interpreted as being indicative of the future performance of the
Fund. For a more detailed discussion, please refer to
Investment Performance in this Prospectus. Performance
shown does not reflect fees that may be paid by investors for
administrative services or group annuity contract charges.
Ù
The Russell
2000 Index is a widely recognized, unmanaged index representative of
small-capitalization, U.S. companies. The Index does not incur expenses and
cannot be purchased directly by investors.
MassMutual
Emerging Growth Fund
Investment
Objective
This Fund seeks
capital appreciation.
Principal
Investment Strategies and Risks
This Fund seeks to
achieve its objective by investing primarily in smaller, rapidly growing
emerging companies. The Fund will generally invest in industry segments
experiencing rapid growth, and will likely have a portion of its assets in
technology and technology-related stocks. The Fund will normally invest at
least 65% of its assets in equity securities (primarily common stocks) of
these emerging growth companies. Although the Fund may invest in companies
of any size, under current market conditions at the date of this
prospectus, it is expected that a substantial portion of the Funds
investments will be in companies with market capitalizations of $1.5
billion or less.
RS Investment
Management, L.P. (RS), the Funds Sub-Adviser,
considers companies that:
·
|
have distinct
proprietary advantages;
|
·
|
are gaining market
share;
|
·
|
have superior
margins or experience superior profitability; and
|
·
|
have strong
management teams.
|
A security may be
sold when its price hits RS target. A security may also be
sold if the companys growth rate deteriorates or its performance
disappoints, if its price appears overvalued, or if there has been an
unfavorable change in the issuers management. The Fund may also sell
a security if institutional ownership increases substantially.
The Principal Risks
of investing in the Fund are Market Risk, Credit Risk, Management Risk,
Liquidity Risk, Derivative Risk, Foreign Investment Risk, Currency Risk,
Leveraging Risk, Smaller Company Risk, Growth Company Risk and Emerging
Markets Risk.
Additional Risks
regarding Performance: The Funds investments in initial public
offerings (IPOs) may have a significant impact on the
Funds returns during its start-up period. The impact of IPOs would
not be expected to be as great as the Funds assets grow.
These Risks are
described beginning on page 40.
Annual
Performance
The Fund began
operations May 1, 2000 and therefore has no performance history. There will
be risks of investing in the Fund because the returns would be expected to
vary from year to year.
Average Annual
Total Returns
(for the period
ended December 31, 1999)
Because this Fund is
new, there is no table which shows how the Funds returns have
deviated from the broad market.
Expense
Information
|
|
Class
S |
Annual Fund
Operating Expenses
(expenses that are deducted from Fund assets)
(% of average net assets) |
Management Fees |
|
.79% |
Distribution and Service (Rule 12b-1) Fees |
|
None |
Other
Expenses |
|
.10% |
Total Annual
Fund Operating Expenses
(1)(2)
|
|
.89% |
(1)
|
Other Expenses and
Total Annual Fund Operating Expenses are based on estimated amounts for
the first fiscal year of the Fund.
|
(2)
|
Employee benefit
plans which invest in the Fund through MassMutual separate investment
accounts may pay additional charges under their group annuity contract or
services agreement. Investors who purchase shares directly from the Fund
may also be subject to charges imposed in their administrative services
or other agreement with MassMutual or MassMutual affiliate. None of these
charges are deducted from Fund assets.
|
Examples
These examples are
intended to help you compare the cost of investing in the Fund with the
cost of investing in other mutual funds. The examples assume that you
invest $10,000 in Class S shares of the Fund for the time periods
indicated, that your investment earns a 5% return each year and that the
Funds operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
1
Year |
|
3
Years |
Class S |
|
$ 91 |
|
$284 |
The Fund does not
impose any Shareholder Fees. Therefore, the figures shown would be the same
whether you sold your shares at the end of a period or kept
them.
RS Prior
Performance
Similar Accounts*
The bar chart
illustrates the variability of returns achieved by RS for its similar
accounts.
[GRAPH]
MFS Composite
1990 10.76%
1991 60.28%
1992 -1.95%
1993 8.02%
1994 8.77%
1995 21.38%
1996 22.57%
1997 19.40%
1998 30.21%
1999 181.93%
During the periods
shown above, the highest quarterly return was 74.72% for the quarter ended
December 31, 1999 and the lowest was -23.09% for the quarter ended
September 30, 1998.
|
RS Average
Annual Total Returns for Similar Accounts*
|
(for the periods
ended December 31, 1999)
The table compares
RS investment results for its similar accounts to that of an index
measuring the broad market over different time periods.
|
|
One
Year |
|
Five
Years |
|
Ten
Years |
Class
S* |
|
181.93% |
|
45.50% |
|
29.57% |
Russell 2000
Index
Ù
|
|
21.26% |
|
16.69% |
|
13.40% |
* Performance shown is a composite of all portfolios managed
by RS Investment Management with substantially similar investment
objectives, policies and investment strategies and without significant
client imposed restrictions, adjusted to reflect the fees and expenses of
each of the Funds share classes. The bar chart is based on Class S
expenses. RS composite includes performance of the RS Emerging Growth
Fund, which is registered under the 1940 Act. The quoted performance
does not represent the historical performance of the MassMutual Emerging
Growth Fund and should not be interpreted as being indicative of the future
performance of the Fund. For a more detailed discussion, please refer
to Investment Performance in this Prospectus.
Performance shown does not reflect fees tht may be paid by investors for
administrative services or group annuity contract charges.
Ù
The Russell
2000 Index is a widely recognized, unmanaged index representative of
small-capitalization U.S. companies. The Index does not incur expenses and
cannot be purchased directly by investors.
MassMutual
International Equity Fund
Investment
Objective
This Fund seeks to
achieve a high total rate of return over the long term by investing in a
diversified portfolio of foreign and domestic equity
securities.
The Fund seeks to
achieve its objective by having at least 75% of its total assets invested
in stocks traded primarily in foreign markets, including markets in Europe,
Latin America and Asia. The Funds Sub-Adviser, OppenheimerFunds,
Inc. (OFI), focuses on well-positioned, well-managed
businesses that have strong revenue growth, sustainable profit margins,
capital efficiency and/or business integrity. OFI also considers the
macroeconomic outlook for various regional economies. The Fund tends to
favor companies involved in the following businesses:
·
|
Capital Market
Development;
|
·
|
Telecommunications/Media;
|
·
|
Efficiency
Enhancing Technologies and Services;
|
·
|
Healthcare and
Biotechnology;
|
·
|
Infrastructure
Spending;
|
·
|
Emerging Consumer
Markets;
|
·
|
Corporate
Restructuring; and
|
The Principal Risks
of investing in the Fund are Market Risk, Credit Risk, Management Risk,
Liquidity Risk, Derivative Risk, Foreign Investment Risk, Currency Risk,
Leveraging Risk and Emerging Markets Risk.
These Risks are
described beginning on page 40.
Annual
Performance*
The bar chart shows
the risks of investing in the Fund because the returns vary from year to
year.
Class S
Shares
1990 N/A
1991 N/A
1992 -2.37%
1993 59.84%
1994 -4.96%
1995 5.13%
1996 18.51%
1997 15.79%
1998 5.05%
1999 56.98%
During the periods
shown above, the highest quarterly return was 39.47% for the quarter ended
December 31, 1999 and the lowest was -21.54% for the quarter ended
September 30, 1998.
Average Annual
Total Returns
(for the periods
ended December 31, 1999)
The table shows the
risks of investing in the Fund because the Funds returns may deviate
from the broad market over different time periods.
|
|
One
Year |
|
Five
Years |
|
Since
Inception
(8/91) |
Class
S* |
|
56.98% |
|
18.92% |
|
16.86% |
MSCI
EAFE
Ù
|
|
26.96% |
|
12.83% |
|
11.04% |
* Performance for Class S shares of the Fund includes
performance of a predecessor separate investment account of MassMutual for
periods prior to October 3, 1994. For a more detailed discussion, please
refer to Investment Performance in this Prospectus.
Performance shown does not reflect fees that may be paid by investors for
administrative services or group annuity contract charges.
Ù
MSCI EAFE
is a widely recognized, unmanaged index representative of foreign
securities in the major non-U.S. markets of Europe, Australia and the Far
East. The Index does not incur expenses and cannot be purchased directly by
Investors.
Expense
Information
|
|
Class
S |
Annual Fund
Operating Expenses (expenses
that are deducted from Fund assets) (% of
average net assets) |
Management Fees |
|
.85% |
Distribution and Service (Rule 12b-1) Fees |
|
None |
Other
Expenses |
|
.22% |
Total Annual
Fund Operating Expenses
(1)
|
|
1.07% |
(1)
|
Employee benefit
plans which invest in the Fund through MassMutual separate investment
accounts may pay additional charges under their group annuity contract or
services agreement. Investors who purchase shares directly from the Fund
may also be subject to charges imposed in their administrative services
or other agreement with MassMutual or MassMutual affiliate. None of these
charges are deducted from Fund assets.
|
Examples
These examples are
intended to help you compare the cost of investing in the Fund with the
cost of investing in other mutual funds. The examples assume that you
invest $10,000 in Class S shares of the Fund for the time periods
indicated, that your investment earns a 5% return each year and that the
Funds operating expenses remain the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
1
Year |
|
3
Years |
|
5
Years |
|
10
Years |
Class S |
|
$109 |
|
$340 |
|
$590 |
|
$1,304 |
The Fund does not
impose any Shareholder Fees. Therefore, the figures shown would be the same
whether you sold your shares at the end of a period or kept
them.
Summary of
Principal Risks
The value of your
investment in a Fund changes with the values of the investments in a
Funds portfolio. Many things can affect those values. Factors that
may have an important or significant affect on a particular Funds
portfolio as a whole are called Principal Risks. These
Principal Risks are summarized in this section. The chart at the end of
this section displays similar information. All Funds could be subject to
additional Principal Risks because the types of investments made by each
Fund can change over time. Although the Funds strive to reach their stated
goals, they cannot offer guaranteed results. You have the potential to make
money in these Funds, but you can also lose money.
·
|
Market
Risk Prime/Bond Funds
|
|
All the Funds are
subject to market risk, which is the general risk of unfavorable
market-induced changes in the value of a security. The Prime Fund, the
Short-Term Bond Fund, the Core Bond Fund, the Balanced Funds Core
Bond Segment and the Diversified Bond Fund are subject to market risk
because they invest some or all of their assets in debt
securities. Debt securities are obligations of an issuer to pay
principal and/or interest at a specified interest rate over a
predetermined period. If interest rates rise close to or higher than the
specified rate, those securities are likely to be worth less and the
value of the Funds will likely fall. If interest rates fall, most
securities held by Funds paying higher rates of interest will likely be
worth more, and the Funds value will likely increase.
|
|
This kind of
market risk, also called interest rate risk, is generally greater for
debt securities with longer maturities and portfolios with longer
durations. Duration is defined on page 6 of the
Prospectus and in the Statement of Additional Information. Even the
highest quality debt securities are subject to interest rate risk. Market
risk is generally greater for lower-rated securities or comparable
unrated securities.
|
·
|
Market
Risk Equity Funds
|
|
The Core Equity
Fund, the Small Cap Value Equity Fund, the Indexed Equity Fund, the
International Equity Fund, the Core Equity Segment of the Balanced Fund,
the Large Cap Value Fund, the Growth Equity Fund, the Aggressive Growth
Fund, the OTC 100 Fund, the Focused Value Fund, the Mid Cap Growth Equity
Fund, the Mid Cap Growth Equity II Fund, the Emerging Growth Fund and the
Small Cap Growth Equity Fund are subject to market risk. Market risk
arises since stock prices can fall for any number of factors, including
general economic and market conditions, prospects of the securities
issuer, changing interest rates and real or perceived economic and
competitive industry conditions.
|
|
These Funds
maintain substantial exposure to equities and do not attempt to time the
market. Because of this exposure, the possibility that stock market
prices in general will decline over short or even extended periods
subjects these Funds to unpredictable declines in the value of their
shares, as well as periods of poor performance. Market risk also includes
specific risks affecting the companies whose shares are purchased by the
Fund, such as management performance,
Terms appearing in bold type are discussed in greater detail
under Appendix Additional Investment Policies and
Risk Considerations. Those sections also include more information
about the Funds, their investments and the related risks.
|
40
|
financial
leverage, industry problems and reduced demand for the issuers
goods or services.
|
·
|
Credit
Risk. All the Funds are subject to credit risk. This is
the risk that the issuer or
|
|
the guarantor of a
debt security, or the counterparty to a derivatives contract or
securities loan, will be unable or unwilling to make timely
principal and/or interest payments, or to otherwise honor its
obligations. There are varying degrees of credit risk, which are often
reflected in credit ratings. Credit risk is particularly significant for
the Prime Fund, the Core Bond Fund, the Diversified Bond Fund and the
Prime Segment and the Core Bond Segment of the Balanced Fund to the
extent they invest in below investment grade securities. These debt
securities and similar unrated securities, which are commonly
known as junk bonds, either have speculative elements or are
predominantly speculative investments. The Core Bond Fund, the Core Bond
Segment of the Balanced Fund and the Diversified Bond Fund invest in
foreign debt securities and, accordingly, are also subject to increased
credit risk because of the difficulties of requiring foreign entities,
including issuers of sovereign debt, to honor their contractual
commitments, and because a number of foreign governments and other
issuers are already in default.
|
·
|
Management
Risk. All the Funds are, other than the Indexed Equity
Fund and the OTC 100 Fund, subject to management risk because those Funds
are actively managed investment portfolios. Management risk is the chance
that poor security selection will cause the Fund to underperform other
Funds with similar investment objectives. Each Funds investment
Sub-Adviser manages the Fund according to the traditional methods of
active investment management, which involves the buying and selling of
securities based upon economic, financial and market analysis and
investment judgment. Each Funds investment Sub-Adviser applies its
investment techniques and risk analyses in making investment decisions
for the Fund, but there can be no guarantee that they will produce the
desired result.
|
|
Certain types of
investments may have a greater effect on a Funds performance.
Investments by the MassMutual Small Cap Growth Equity Fund and MassMutual
Emerging Growth Fund in initial public offerings (IPOs) may
have a significant impact on each Funds returns during its start up
period. However, the impact of IPOs would not be expected to be as great
as each Funds assets grow.
|
·
|
Tracking Error
Risk There are several reasons that the Index Equity
Funds or the OTC 100 Funds performance may not track the
relevant Index exactly. Unlike the Index, each Fund incurs administrative
expenses and transaction costs in trading stocks. The composition of the
Index and the stocks held by the Fund may occasionally diverge. The
timing and magnitude of cash inflows from investors buying shares could
create balances of uninvested cash. Conversely, the timing and magnitude
of cash outflows to investors selling shares could require ready reserves
of uninvested cash. Either situation would likely cause the Funds
performance to deviate from the fully invested
Index.
|
·
|
Prepayment and Reinvestment Risk. Prepayment and
reinvestment risk is the risk that principal will be repaid at a
different rate than anticipated, causing the return on
mortgage-backed securities to be less than expected when
purchased. The interest rate risk described above may be compounded for
the Short-Term Bond Fund, the Core Bond Fund, the Core Bond Segment of
the Balanced Fund and the Diversified Bond Fund to the extent that these
Funds invest to a material extent in mortgage-related or other
asset-backed securities that may be prepaid. These securities have
variable
maturities that tend to lengthen when interest rates are rising, which is
the least desirable time. These Funds are also subject to reinvestment
risk, which is the chance that cash flows from securities will be
reinvested at lower rates if interest rates fall.
|
·
|
Liquidity Risk. Liquidity risk exists
when particular investments are difficult to sell. A Fund may not be able
to sell these illiquid securities at the best prices. Investments
in derivatives, foreign investments and securities having
small market capitalization, substantial market and/or credit risk tend
to involve greater liquidity risk. Accordingly, the Core Bond Fund, the
Diversified Bond Fund, the Small Cap Value Equity Fund, the International
Equity Fund, the Core Bond Segment of the Balanced Fund, the Growth
Equity Fund, the Aggressive Growth Fund, the Focused Value Fund, the Mid
Cap Growth Equity Fund, the Mid Cap Growth Equity II Fund, the Emerging
Growth Fund and the Small Cap Growth Equity Fund may be subject to
liquidity risk.
|
·
|
Derivatives Risk. All Funds may use
derivatives, which are financial contracts whose value depends on,
or is derived from, the value of an underlying asset, interest rate or
index. The Funds will sometimes use derivatives as part of a strategy
designed to reduce other risks and sometimes will use derivatives for
leverage, which increases opportunities for gain but also involves
greater risk. In addition to other risks such as the credit risk of the
counterparty, derivatives involve the risk of mispricing or improper
valuation and the risk that changes in the value of the derivative may
not correlate perfectly with relevant assets, rates and indices. In
addition, a Funds use of derivatives may affect the timing and
amount of taxes payable by shareholders.
|
·
|
Non-Diversification Risk. Diversification
is a way for a Fund to reduce its risk. It means that the Fund invests in
securities of a broad range of companies. A non-diversified
fund may purchase larger positions in a smaller number of issuers.
Therefore, the increase or decrease in the value of each single stock
will have a greater impact on the Funds net asset value. In
addition, the Funds net asset value can be expected to fluctuate
more than a comparable diversified fund. This fluctuation can also affect
the Funds performance. The Aggressive Growth Fund and the Focused
Value Fund are actively managed non-diversified funds. Each Funds
investment Sub-Adviser uses a strategy of limiting the number of
companies which the Fund will hold. The Indexed Equity Fund and the OTC
100 Fund are considered non-diversified funds. They satisfy their
investment objectives of replicating a particular index by purchasing the
securities in the index without regard to how much of each security the
Funds buy.
|
·
|
Foreign
Investment Risk. Funds investing in foreign
securities may experience more rapid and extreme changes in value
than Funds which invest solely in U.S. companies. This is because the
securities markets of many foreign countries are relatively small, with a
limited number of companies representing a small number of industries. In
addition, foreign companies are usually not subject to the same degree of
regulation as U.S. companies. Reporting, accounting and auditing
standards of foreign countries differ, in some cases significantly, from
U.S. standards. Also, nationalization, expropriation or confiscatory
taxation, currency blockage, political changes or diplomatic developments
could adversely affect a Funds non-U.S. investments. In the event
of nationalization, expropriation or other confiscation, a Fund could
lose its entire investment. Economic downturns in certain regions, such
as Southeast Asia, can also adversely affect other countries whose
economies appear to be unrelated. The Core
Bond Fund, the International Equity Fund, the Focused Value Fund, the
Diversified Bond Fund, the Core Bond Segment of the Balanced Fund, the
Growth Equity Fund, the Aggressive Growth Fund, the Indexed Equity Fund,
the Mid Cap Growth Equity Fund, the Mid Cap Growth Equity II Fund, the
Emerging Growth Fund and the Small Cap Growth Equity Fund are subject to
foreign investment risk.
|
|
These Funds may
also invest in foreign securities known as American Depositary Receipts
(ADRs), Global Depositary Receipts (GDRs) and
European Depositary Receipts (EDRs). ADRs, GDRs and EDRs
represent securities or a pool of securities of an underlying foreign or,
in the case of GDRs and EDRs, U.S. or non-U.S. issuer. They are subject
to many of the same risks as foreign securities. ADRs, GDRs and EDRs are
more completely described in the Statement of Additional
Information.
|
·
|
Emerging
Markets Risk. The Core Bond Fund, the Diversified Bond
Fund, the Core Bond Segment of the Balanced Fund, the Growth Equity Fund,
the Aggressive Growth Fund, the Focused Value Fund, the Mid Cap Growth
Equity Fund, the Mid Cap Growth Equity II Fund, the Emerging Growth Fund,
the Small Cap Growth Equity Fund and the International Equity Fund may
invest in emerging markets, subject to the applicable restrictions on
foreign investments, when the Sub-Adviser deems those investments are
consistent with the Funds investment objectives and policies.
Emerging markets are generally considered to be the countries having
emerging market economies based on factors such as the
countrys foreign currency debt rating, its political and economic
stability, the development of its financial and capital markets and the
level of its economy. Investing in foreign securities in emerging markets
involves special risks, including less liquidity and more price
volatility than securities of comparable domestic issuers or in
established foreign markets. Emerging markets also may be concentrated
towards particular industries. There may also be different clearing and
settlement procedures, or an inability to handle large volumes of
transactions. These could result in settlement delays and temporary
periods when a portion of a Funds assets are not invested, or a
loss in value due to illiquidity.
|
·
|
Currency
Risk. The Core Bond Fund, the International Equity Fund,
the Diversified Bond Fund, the Core Bond Segment of the Balanced Fund,
the Growth Equity Fund, the Aggressive Growth Fund, the Focused Value
Fund, the Mid Cap Growth Equity Fund, the Mid Cap Growth Equity II Fund,
the Emerging Growth Fund and the Small Cap Growth Equity Fund are subject
to currency risk to the extent that they invest in securities of foreign
companies that are traded in, and receive revenues in, foreign
currencies. Currency risk is caused by uncertainty in foreign
currency exchange rates. Fluctuations in the value of the U.S. dollar
relative to foreign currencies may enhance or diminish returns that a
U.S. investor would receive on foreign investments. The Funds may, but
will not necessarily, engage in foreign currency transactions in order to
protect against fluctuations in the value of holdings denominated in or
exposed to other currencies. Those currencies can decline in value
relative to the U.S. Dollar, or, in the case of hedging positions, the
U.S. Dollar can decline in value relative to the currency hedged. A
Funds investment in foreign currencies may increase the amount of
ordinary income recognized by the Fund.
|
·
|
Smaller
Company Risk. Market risk and liquidity risk are
particularly pronounced for stocks of smaller companies. These companies
may have limited product lines, markets or financial resources or they
may depend on a few key employees. The Small Cap Value Equity Fund, Mid
Cap Growth
Equity Fund, Mid Cap Growth Equity II Fund, Focused Value Fund, Emerging
Growth Fund and Small Cap Growth Equity Fund generally have the greatest
exposure to this risk.
|
·
|
Growth
Company Risk. Market risk is also particularly pronounced
for growth companies. The prices of growth company securities
may fall to a greater extent than the overall equity markets (represented
by the S&P 500 Index) due to changing economic, political or market
factors. Growth company securities tend to be more volatile in terms of
price swings and trading volume. The Growth Equity Fund, the Indexed
Equity Fund, the Aggressive Growth Fund, the OTC 100 Fund, the Mid Cap
Growth Equity Fund, the Mid Cap Growth Equity II Fund, the Emerging
Growth Fund and the Small Cap Growth Equity Fund have significant growth
company risk. Growth companies, especially technology related companies,
have seen dramatic rises in stock valuations. These Funds may also have
the risk that the market may deem their stock prices over-valued, which
could cause steep and/or volatile price swings. Also, since investors buy
these stocks because of their expected superior earnings growth, earnings
disappointments often result in sharp price declines.
|
·
|
Leveraging Risk. When a Fund borrows
money or otherwise leverages its portfolio, the value of an investment in
that Fund will be more volatile and all other risks will tend to be
compounded. All of the Funds may take on leveraging risk by investing
collateral from securities loans, by using derivatives and
by borrowing money to repurchase shares or to meet redemption
requests.
|
Principal
Risks by Fund
The following chart
summarizes the Principal Risks of each Fund. A particular Fund may,
however, still have risks even if not marked.
Fund |
|
Market
Risk |
|
Credit
Risk |
|
Manage-
ment
Risk |
|
Pre-
payment
Risk |
|
Liquidity
Risk |
|
Derivative
Risk |
|
Non-
Diversi-
fication
Risk |
|
Foreign
Invest-
ment
Risk |
|
Currency
Risk |
|
Leveraging
Risk |
|
Smaller
Company
Risk |
|
Growth
Company
Risk |
|
Emerging
Markets
Risk |
|
Tracking
Error
Risk |
|
Prime
Fund |
|
X |
|
X |
|
X |
|
|
|
|
|
X |
|
|
|
|
|
|
|
X |
|
|
|
|
|
|
|
|
|
Short-Term
Bond Fund |
|
X |
|
X |
|
X |
|
X |
|
|
|
X |
|
|
|
|
|
|
|
X |
|
|
|
|
|
|
|
|
|
Core Bond
Fund |
|
X |
|
X |
|
X |
|
X |
|
X |
|
X |
|
|
|
X |
|
X |
|
X |
|
|
|
|
|
X |
|
|
|
Diversified Bond
Fund |
|
X |
|
X |
|
X |
|
X |
|
X |
|
X |
|
|
|
X |
|
X |
|
X |
|
|
|
|
|
X |
|
|
|
Balanced
Fund |
|
X |
|
X |
|
X |
|
X |
|
X |
|
X |
|
|
|
X |
|
X |
|
X |
|
|
|
|
|
X |
|
|
|
Core Equity
Fund |
|
X |
|
X |
|
X |
|
|
|
|
|
X |
|
|
|
|
|
|
|
X |
|
|
|
|
|
|
|
|
|
Large Cap
Value Fund |
|
X |
|
|
|
X |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indexed Equity
Fund |
|
X |
|
X |
|
|
|
|
|
|
|
X |
|
X |
|
X |
|
|
|
X |
|
|
|
X |
|
|
|
X |
|
Growth Equity
Fund |
|
X |
|
X |
|
X |
|
|
|
X |
|
X |
|
|
|
X |
|
X |
|
X |
|
|
|
X |
|
X |
|
|
|
Aggressive
Growth Fund |
|
X |
|
|
|
X |
|
|
|
X |
|
X |
|
X |
|
X |
|
X |
|
|
|
X |
|
X |
|
X |
|
|
|
OTC 100
Fund |
|
X |
|
X |
|
X |
|
|
|
X |
|
X |
|
X |
|
|
|
|
|
X |
|
X |
|
X |
|
|
|
X |
|
Focused Value
Fund |
|
X |
|
X |
|
X |
|
|
|
X |
|
X |
|
X |
|
X |
|
|
|
X |
|
X |
|
|
|
|
|
|
|
Small Cap
Value Equity
Fund |
|
X |
|
X |
|
X |
|
|
|
X |
|
X |
|
|
|
X |
|
X |
|
X |
|
X |
|
|
|
|
|
|
|
Mid Cap Growth
Equity Fund |
|
X |
|
X |
|
X |
|
|
|
X |
|
X |
|
|
|
X |
|
X |
|
X |
|
X |
|
X |
|
X |
|
|
|
Mid Cap Growth
Equity II Fund |
|
X |
|
X |
|
X |
|
|
|
X |
|
X |
|
|
|
X |
|
X |
|
X |
|
X |
|
X |
|
X |
|
|
|
Small Cap
Growth Equity
Fund |
|
X |
|
X |
|
X |
|
|
|
X |
|
X |
|
|
|
X |
|
X |
|
X |
|
X |
|
X |
|
X |
|
|
|
Emerging
Growth Fund |
|
X |
|
X |
|
X |
|
|
|
X |
|
X |
|
|
|
X |
|
X |
|
X |
|
X |
|
X |
|
X |
|
|
|
International
Equity Fund |
|
X |
|
X |
|
X |
|
|
|
X |
|
X |
|
|
|
X |
|
X |
|
X |
|
|
|
|
|
X |
|
|
About the
Investment Adviser and Sub-Advisers
Massachusetts
Mutual Life Insurance Company (MassMutual) located at 1295
State Street, Springfield, Massachusetts 01111, is the Funds
investment adviser and is responsible for providing all necessary
investment management and administrative services. Founded in 1851,
MassMutual is a mutual life insurance company that provides a broad range
of insurance, money management, retirement and asset accumulation products
and services for individuals and businesses. MassMutual, together with its
subsidiaries, has assets of $70.6 billion and assets under management in
excess of $206.6 billion.
MassMutual contracts
with the Sub-Advisers described below to help manage the Funds. In 1999,
MassMutual was paid an investment management fee based on a percentage of
its average daily net assets as follows: .35% for the Prime Fund; .40% for
the Short-Term Bond Fund; .48% for the Core Bond Fund; .50% for the
Diversified Bond Fund; .48% for the Balanced Fund; .50% for the Core Equity
Fund; .68% for the Growth Equity Fund; .58% for the Small Cap Value Equity
Fund; .70% for the Mid Cap Growth Equity Fund; .82% for the Small Cap Value
Equity Fund; and .85% for the International Equity Fund. MassMutual Large
Cap Value Fund, MassMutual Aggressive Growth Fund, MassMatual OTC 100 Fund,
MassMutual Focused Value Fund, MassMutual Mid Cap Growth Equity II Fund and
MassMutual Emerging Growth Fund commenced operations May 1, 2000. The
current investment management fee paid by each Fund to MassMutual is
identified under Expense Information for each Fund.
The Fund also pays
MassMutual an administrative and shareholder service fee at an annual rate
based on a percentage of daily net assets for the applicable class of
shares. In 1999, the fee ranges for each share class of those funds, other
than for the Indexed Equity Fund, were .0657% to .1232% for Class S shares;
.1432% to .2575% for Class Y shares; and .2932% to .4075% for Class L and
Class A shares. With respect to the Indexed Equity Fund, in 1999 MassMutual
received administrative and shareholder services fees at an annual rate
based on a percentage of daily net assets for each class equal to .3545%
for Class S shares; .3845% for Class Y shares; and .5345% for Class L and
Class A shares.
Effective January 1,
2000, David L. Babson and Company Incorporated, a MassMutual majority-owned
and controlled subsidiary, was appointed by MassMutual to be the investment
Sub-Adviser to the Prime Fund, the Short-Term Bond
Fund, the Core Bond Fund, the Diversified Bond
Fund and the Prime and Core Bond
segments of the Balanced Fund. This resulted from the
consolidation of certain investment advisory businesses of MassMutual. No
changes in the investment personnel who manage these Funds or in the fees
resulted from this corporate reorganization.
David L. Babson,
located at 1295 State Street, Springfield, Massachusetts 01111 and at
One Memorial Drive, Cambridge, Massachusetts 02142, also manages the
investments of the Core Equity Fund, the Small Cap
Value Equity Fund and the Core Equity Segment of the
Balanced Fund. David L. Babson has provided investment advice
to individual and institutional investors for more than 50 years and,
giving effect to the reorganization, had assets under management as of
January 1, 2000 of more than $67 billion.
|
Principally
responsible for the day-to-day management of the Prime
Fund, the Core Bond Fund, the Prime
and Core Bond Segments of the Balanced Fund
and the Diversified Bond Fund. She has managed these Funds
since their inception. She has been associated with MassMutual since 1982
and is responsible for overseeing all public fixed income trading for
MassMutual and its insurance company subsidiaries.
|
|
Principally
responsible for the day-to-day management of the Short-Term Bond
Fund. He has managed the Fund since its inception. He has 23
years of investment experience and has been associated with MassMutual
since 1989.
|
|
is primarily
responsible for managing the portfolio of the Core Equity
Fund and the Core Equity Segment of the
Balanced Fund. Mr. Tall began managing the portfolios of
these Funds on April 20, 2000. Mr. Tall, a Senior Vice President of David
L. Babson, is a Chartered Financial Analyst with more than 18 years of
investment experience. Mr. Tall joined David L. Babson in January 2000.
Prior to that, Mr. Tall had worked for Allianz Asset Management (Munich,
Germany) and for Allianz of America (Westport, Connecticut), since 1991,
most recently as a portfolio manager and head of global research team.
Mr. Tall is assisted by a team of David L. Babson professionals,
including Mr. Maramarco.
|
|
assists Mr. Tall
in managing the portfolio of the Core Equity Fund and
Core Equity Segment of the Balanced Fund. Mr.
Maramarco, a Chartered Financial Analyst, has more than 18 years of
investment experience, has been a portfolio manager with David L. Babson
(and a company which merged into David L. Babson) since 1993.
|
|
Principally
responsible for the day-to-day management of the Small Cap Value
Equity Fund since December 1, 1999. Prior to assuming day-to-day
responsibility for managing the Fund, Mr. Szczygiel was actively involved
in assisting the previous portfolio manager. Mr. Szczygiel also currently
serves as portfolio manager for several other registered and unregistered
funds sponsored by David L. Babson with similar investment objectives to
the Fund. Mr. Szczygiel is a Chartered Financial Analyst with over 14
years of investment experience. He has been associated with the
MassMutual organization since 1994, prior to which he was an Associate
Director at Bear Stearns. Mr. Szczygiel is assisted in the day-to-day
management of the Fund by a team of David L. Babson investment
professionals.
|
|
assists Mr.
Szczygiel in the day-to-day management of the Small Cap Value
Equity Fund. Mr. James is Executive Vice President of David L.
Babson and manages registered funds and other unregistered accounts for
David L. Babson. Mr. James has been employed by David L. Babson in
portfolio management since 1986.
|
OppenheimerFunds,
Inc. located at Two World Trade Center, New York, New York 10048
manages the investments of the International Equity Fund.
OppenheimerFunds, Inc. is a majority owned, indirect subsidiary of
MassMutual. Together with its subsidiaries, OFI manages mutual funds with
assets of more than $120 billion.
|
Primarily
responsible for the day-to-day management of the International
Equity Fund, Mr. Evans has managed the Fund since its inception.
He has been an officer and portfolio manager for OppenheimerFunds for the
past five years. Prior to that, Mr. Evans was an international equities
portfolio manager/analyst for Brown Brothers, Harriman &
Co.
|
|
An
OppenheimerFunds investment professional, Mr. Wilby assists George Evans
in managing the International Equity Fund. He is a senior
vice president of OppenheimerFunds, Inc. and has been a portfolio manager
for OppenheimerFunds, Inc. for more than five years.
|
Massachusetts
Financial Services Company (MFS), located at 500 Boylston
Street, Boston, Massachusetts 02116, manages the investments of the
Growth Equity Fund. MFS has approximately $136 billion in
assets under management. MFS is an indirect, wholly-owned subsidiary of
SunLife Assurance Company of Canada.
|
is a portfolio
manager of the Growth Equity Fund. Mr. Pesek has been a
portfolio manager with MFS since 1994. Mr. Pesek is a senior vice
president of MFS and manages other portfolios with similar investment
objectives to the Fund.
|
|
is a portfolio
manager of the Growth Equity Fund. Mr. Barrett, a vice
president of MFS, became a portfolio manager on May 1, 2000. Mr. Barrett
has been employed in the investment management area of MFS since 1996.
Prior to joining MFS in 1996, Mr. Barrett had been an Assistant Vice
President and Equity Research Analyst with The Boston Company Asset
Management, Inc.
|
Miller Anderson
& Sherrerd, LLP, located at One Tower Bridge, West Conshohocken,
Pennsylvania 19428, manages the investments of the Mid Cap Growth
Equity Fund. Miller Anderson & Sherrerd, LLP (MAS),
a Pennsylvania limited liability partnership founded in 1969, is a
wholly-owned indirect subsidiary of Morgan Stanley Dean Witter & Co.,
and a division of Morgan Stanley Dean Witter Investment Management. As of
December 31, 1999, Morgan Stanley Dean Witter Investment Management had in
excess of $170 billion in assets under management.
|
Primarily
responsible for the day-to-day management of the portfolio of the
Mid Cap Growth Equity Fund. Ms. Armstrong, a managing
director of Morgan Stanley & Co., Incorporated, joined Miller
Anderson & Sherrerd, LLP in 1986. She joined the Mid Cap Growth
management team in 1990.
|
|
A vice president
of Morgan Stanley Dean Witter & Co., Mr. Chu assists Ms. Armstrong in
the day-to-day management of the Mid Cap Growth Equity
Fund. Mr. Chu joined Miller Anderson & Sherrerd, LLP and the
Mid Cap Growth management team in 1998. He served as senior equity
analyst from 1992 to 1997 and as co-portfolio manager in 1997 for
NationsBank and its subsidiary TradeStreet Investment
Associates.
|
J.P. Morgan
Investment Management Inc. located at 522 Fifth Avenue, New York, New
York 10036, manages a portion of the portfolio of the Small Cap
Growth Equity Fund. J.P. Morgan manages over $348 billion in
assets, and $129 billion in U.S. equity assets.
|
An investment
professional with J.P. Morgan since 1968, Ms. Pardo is primarily
responsible for day-to-day management of the Small Cap Growth
Equity Fund. Ms. Pardo is co-manager of a similar registered
mutual fund sponsored by J.P. Morgan.
|
|
A J.P. Morgan
professional who assists Ms. Pardo with the day-to-day management of the
portfolio of the Small Cap Growth Equity Fund, Ms. Durcanin
has been with J.P. Morgan since July of 1995 as a small company equity
analyst and portfolio manager after graduating from the University of
Wisconsin with an M.S. in finance. Ms. Durcanin is a vice president of
J.P. Morgan and manages or assists with managing other portfolios for
J.P. Morgan with similar investment objectives to the Fund.
|
Waddell &
Reed Investment Management Company, located at 6300 Lamar, Overland
Park, Kansas 66202, manages a portion of the portfolio of the Small
Cap Growth Equity Fund. Waddell & Reed has approximately $36
billion in assets under management, including more than $4 billion in
institutional assets.
|
Primarily
responsible for the day-to-day management of the portfolio of the
Small Cap Growth Equity Fund. Mr. Seferovich is a senior
vice president of Waddell & Reed and the lead portfolio manager of
its small cap style. He joined Waddell & Reed in February 1989 as
manager of small capitalization growth equity funds. From 1982 to 1988 he
was a portfolio manager for Security Management Company and prior to that
was security analyst/portfolio manager with Reimer & Koger
Associates.
|
|
A vice president
and portfolio manager for Waddell & Reed, Mr. Sarris assists Mr.
Seferovich in the day-to-day management of the portfolio of the
Small Cap Growth Equity Fund. He joined Waddell & Reed
in 1991 as an investment analyst. In 1996, he was named assistant
portfolio manager of the small capitalization growth equity style. Prior
to joining Waddell & Reed, he was an intern with Shin-Nihon Kohan,
Ltd. in Tokyo.
|
Janus Capital
Corporation, located at 100 Fillmore Street, Denver, Colorado 80206,
manages the investments of the portfolio of the Aggressive Growth
Fund. Janus Capital Corporation (Janus) began serving
as investment advisers to mutual funds in 1970. As of December 31, 1999,
Janus managed more that $248.8 billion in mutual fund, institutional and
private account assets.
|
Primarily
responsible for the day-to-day management of the portfolio of the
Aggressive Growth Fund. Ms. Young is an Executive Vice
President of Janus, and has been with Janus since January 1992. She has
managed a similar fund sponsored by Janus since August 1997.
|
T. Rowe Price
Associates, Inc., located at 100 East Pratt, Baltimore, Maryland 21202,
manages the investments of the Mid Cap Growth Equity II Fund.
T. Rowe Price has been managing assets since 1937. T. Rowe Price has
approximately $180 billion in assets under management, with more than $5.5
billion under management in a similarly managed registered investment
company.
|
Primarily
responsible for the day-to-day management of the Mid Cap Growth
Equity II Fund. Mr. Berghuis is a Chartered Financial Analyst and
chairman of the T. Rowe Price investment advisory committee. He joined T.
Rowe Price in 1985.
|
Davis Selected
Advisers, L.P., located at 2949 East Elvira Road, Suite 101, Tucson,
Arizona 86706 manages the investments of the Large Cap Value Fund.
Davis has approximately $26 billion in assets under management,
with more than $16 billion under management in similarly managed registered
investment companies.
|
is a portfolio
manager of the Large Cap Value Fund. Mr. Davis serves as
portfolio manager for a number of equity funds managed by Davis Selected
Advisers. Mr. Davis has served as a portfolio manager since 1995.
Previously, Mr. Davis served as a research analyst at Davis Selected
Advisers, L.P. beginning in 1989.
|
|
is a portfolio
manager of the Large Cap Value Fund. Mr. Feinberg serves as
portfolio manager for a number of equity funds managed by Davis Selected
Advisers. Mr. Feinberg has served as a portfolio manager since 1998.
Previously, Mr. Feinberg served as a research analyst at Davis Selected
Advisers, L.P., beginning in 1994.
|
Bankers Trust Company, a part of Deutsche Asset Management,
manages the investments of the Indexed Equity Fund and
the OTC 100 Fund. Deutsche Asset Management is the marketing
name for the asset management activities of Bankers Trust Company and its
affiliates. As of December 31, 1999, the entities that comprise Deutsche
Asset Management globally had assets under management in excess of $580
billion. As of December 31, 1999, Bankers Trust Company had assets under
management of $270.5 billion. Pursuant to a merger, Bankers Trust Company
became an affiliate of Deutsche Bank AG in June 1999. Bankers Trust Company
was acquired by Deutsche Bank AG in June 1999. In March, 1999, Bankers
Trust Company pleaded guilty to felonies regarding its custodial operations
that were not related to its investment advisory businesses. Without a
permanent exemption from the Securities and Exchange Commission, Deutsche
Asset Management would be unable to serve as investment sub-adviser to
these Funds. A temporary exemption has been issued by the Securities and
Exchange Commission to continue providing investment advisory services, but
there is no assurance that a permanent exemptive order will be
issued.
Harris Associates
L.P., located at 2 North LaSalle Street, Chicago, Illinois 60602,
manages the investment of the Focused Value Fund. Harris
Associates L.P. (Harris Associates) developed and has been
investing under the Focused Value strategy since Harris Associates was
organized in 1995 to succeed to the business of a previous limited
partnership, also named Harris Associates L.P. (the Former
Adviser), that together with its predecessor, had advised and managed
mutual funds since 1970. Harris Associates is a wholly-owned subsidiary of
Nvest Companies, L.P. (Nvest). Nvest is a limited partnership
that owns investment management and related firms. Harris Associates
managed assets in excess of $12.5 billion as of December 31, 1999,
including $2.0 billion in similarly managed registered investment
portfolios.
|
Primarily
responsible for the day-to-day management of the Focused Value
Fund. Mr. Levy is the President and Chief Executive Officer of
Harris Associates since 1997 and has managed other investment portfolios
under the Focused Value Strategy since 1985. Prior to that, he was a
portfolio manager and director of Gofen and Glossberg, Inc.
|
RS Investment
Management, L.P., located at 388 Market Street, Suite 200, San
Francisco, California 94111, manages the investments of the Emerging
Growth Fund. RS Investment Management commenced operations in March
1986 and is part of the RS Investment Management, L.P. organization. RS
manages assets in excess of $8 billion, including more than $2.5 billion in
a similarly managed registered investment company.
|
is primarily
responsible for the day-to-day management of the Emerging Growth Fund.
Since June 1996 as an officer of RS Investment Management, Inc., Mr.
Callinan has been primarily responsible for the similarly managed RS
Emerging Growth Fund. From 1986 until June 1996, Mr. Callinan was a
portfolio manager for Putnam Investments and managed the Putnam OTC
Emerging Growth Fund.
|
MassMutual is
seeking exemptive relief from the Securities and Exchange Commission
(SEC) to permit MassMutual to change sub-advisers or hire new
sub-advisers for one or more Funds from time to time without obtaining
shareholder approval. Normally, shareholders are required to approve
investment sub-advisory agreements. Several other mutual fund companies
have received similar relief. MassMutual believes having this authority is
important, because it allows MassMutual to quickly remove a sub-adviser
when its performance is inadequate or the sub-adviser no longer is able to
meet a Funds investment objective and strategies. MassMutual will not
rely on this authority for any Fund until the SEC has granted the exemption
and the Funds shareholders have approved this
arrangement.
About the
Classes of Shares Multiple Class
Information
The Funds offer
four Classes of shares: Class S, Class Y, Class L and Class A. The shares
offered by this Prospectus are Class S, Class Y, Class L and Class A
shares. None of the Classes of shares has up-front or deferred sales
charges. Only Class A shares charge a service (Rule 12b-1) fee.
Class S, Class Y and
Class L shares are primarily offered to institutional investors through
institutional distribution channels, such as employer-sponsored retirements
plans or through broker-dealers, financial institutions or insurance
companies. Class A shares are primarily offered through retail distribution
channels, such as broker-dealers or financial institutions. The different
Classes have different fees, expenses and/or minimum investor size
requirements. The difference in the fee structures among the Classes is the
result of their separate arrangements for shareholder and distribution
services and not the result of any difference in amounts charged by the
Adviser for investment advisory services. Accordingly, investment advisory
expenses do not vary by Class. Different fees and expenses of a Class will
affect performance of that Class. For additional information, call us toll
free at 1-888-743-5274 or contact a sales representative or financial
intermediary who offer the Classes.
Except as described
below, all Classes of shares of a Fund have identical voting, dividend,
liquidation and other rights, preferences, terms and conditions. The only
differences among the various Classes are: (a) each Class may be subject to
different expenses specific to that Class; (b) each Class has a different
Class designation; (c) each Class has exclusive voting rights with respect
to matters solely affecting such Class; (d) each Class offered in
connection with a 12b-1 Plan will bear the expense of the payments that
would be made pursuant to that 12b-1 Plan, and only that Class will be
entitled to vote on matters pertaining to that 12b-1 Plan; and (e) each
Class will have different exchange privileges.
Each Class of a
Funds shares invests in the same portfolio of securities. Because
each Class will have different expenses, they will likely have different
share prices. All Classes of shares are available for purchase by insurance
company separate investment accounts.
Class S
Shares
Eligible
Purchasers. Class S shares may be purchased by:
·
|
Qualified plans
under Section 401(a) of the Internal Revenue Code of 1986 as amended (the
Code), Code Section 403(b) plans, Code Section 457 plans and
other retirement plans, where plan assets of the employer generally
exceed or are expected to exceed $100 million;
|
·
|
Registered mutual
funds and collective trust funds; and
|
·
|
Other
institutional investors with assets generally in excess of $100
million.
|
These Eligible
Purchasers must have an agreement with MassMutual or a MassMutual affiliate
to purchase Class S Shares.
Shareholder and
Distribution Fees. Class S shares of each Fund are purchased
directly from the Trust without a front-end sales charge. Therefore, 100%
of an Investors money is invested in the Fund or Funds of its choice.
Class S shares do not have deferred sales charges or any Rule 12b-1
distribution or services fees.
Compensation
to Intermediaries
MassMutual does not
expect to pay compensation on account of sales of Class S shares. The Funds
may pay brokerage commissions to Advest, Inc. (Advest) and
Jefferies & Co., Inc. (Jefferies). Jefferies and Advest are
each wholly-owned subsidiaries of companies for which one Trustee serves as
director. Each Fund may also pay brokerage commissions to affiliates of its
Sub-Adviser.
Investing In
The Funds
Buying,
Redeeming and Exchanging Shares
The Funds sell their
shares at a price equal to their net asset value (NAV). The
Funds generally determine their NAV at 4:00 p.m. Eastern Time every
day the New York Stock Exchange (NYSE) is open. Your purchase
order will be priced at the next net asset value calculated after the
transfer agent accepts your purchase order. The Funds will suspend selling
their shares during any period when the determination of NAV is suspended.
The Funds can reject any purchase order and can suspend purchases if it is
in their best interest.
The Funds redeem
their shares at their next NAV computed after the Funds transfer
agent receives your redemption request. You will usually receive payment
for your shares within 7 days after the transfer agent receives your
written redemption request. If, however, you request redemption of shares
recently purchased by check, you may not receive payment until the check
has been collected, which may take up to 15 days from receipt of the check.
The Funds can also suspend or postpone payment, when permitted by
applicable law and regulations.
You can exchange
shares of one Fund for the same class of shares of another Fund. An
exchange is treated as a sale of shares in one Fund and a purchase of
shares in another Fund at the NAV next determined after the transfer agent
received the exchange request. Your right to exchange shares is subject to
applicable regulatory requirements or contractual obligations. The Funds
may limit or refuse exchanges, if, in the opinion of
MassMutual:
·
|
you have engaged
in excessive trading;
|
·
|
a Fund receives or
expects simultaneous orders affecting significant portions of the
Funds assets;
|
·
|
a pattern of
exchanges occurs which coincides with a market timing strategy which may
be disruptive to the Fund; or
|
·
|
the Fund would be
unable to invest the Funds effectively based on its investment objectives
and policies, or if the Fund would be adversely affected.
|
The Funds reserve
the right to modify or terminate the exchange privilege on 60 days written
notice.
The Funds do not
accept purchase, redemption or exchange orders or compute their NAVs on
days when the NYSE is closed. This includes: weekends, Good Friday and all
federal holidays other than Columbus Day and Veterans Day. Certain foreign
markets may be open on days when the Funds do not accept orders or price
their shares. As a result, the NAV of a Funds shares may change on
days when you will not be able to buy or sell shares.
Determining
Net Asset Value
We calculate the net
asset value of each class of shares of each Fund separately. The net asset
value (closing price) for shares of a class of a Fund is determined by
adding the current value of all of the Funds assets attributable to
that Class, subtracting the liabilities attributable to that class and then
dividing the resulting number by the total outstanding shares of the
class.
Each Funds
assets are valued based on market value of the Funds total portfolio.
The Funds valuation methods are defined in the Statement of
Additional Information.
How to
Invest
When you buy shares
of the Fund through an agreement with MassMutual, your agreement will
describe how you need to submit buy, sell and exchange orders. Purchase
orders must be accompanied by sufficient Funds. You can pay by check or
Federal Funds wire transfer. You must submit any buy, sell or exchange
orders in good form as described in your agreement.
Taxation and
Distributions
Each Fund intends to
continue to qualify as a regulated investment company under Subchapter M of
the Internal Revenue Code. As a regulated investment company, a Fund will
not be subject to Federal income taxes on its ordinary income and net
realized capital gain distributed to its shareholders. In general, a Fund
that fails to distribute at least 98% of such income and gain in the
calendar year in which earned will be subject to a 4% excise tax on the
undistributed amount. Many investors, including most tax qualified plan
investors, may be eligible for preferential Federal income tax treatment on
distributions received from a Fund and dispositions of Fund shares. This
Prospectus does not attempt to describe in any respect such preferential
tax treatment. Any prospective investor that is a trust or other entity
eligible for special tax treatment under the Code that is considering
purchasing shares of a Fund, including either directly or indirectly
through a life insurance company separate investment account, should
consult its tax advisers about the Federal, state, local and foreign tax
consequences particular to it, as should persons considering whether to
have amounts held for their benefit by such trusts or other entities
investing in shares of a Fund.
Investors that do
not receive preferential tax treatment are subject to Federal income taxes
on distributions received in respect of their shares. Distributions of the
Funds ordinary income and short-term capital gains (i.e. gains from
capital assets held for one year or less) are taxable to the shareholder as
ordinary income whether received in cash or additional shares. Certain
designated dividends may be eligible for the dividends-received deduction
for corporate shareholders. Designated capital gain dividends (relating to
gains from capital assets held for more than one year) are taxable as
long-term capital gains in the hands of the investor whether distributed in
cash or additional shares and regardless of how long the investor has owned
shares of the Fund. The nature of each Funds distributions will be
affected by its investment strategies. A Fund whose investment return
consists largely of interest, dividends and capital gains from short-term
holdings will distribute largely ordinary income. A Fund whose return comes
largely from the sale of long-term holdings will distribute largely capital
gain dividends. Distributions are taxable to a shareholder even though
they are paid from income or gains earned by a Fund prior to the
shareholders investment and thus were included in the NAV paid by the
shareholder.
Any gain resulting
from the exchange or redemption of an investors shares in a Fund will
generally be subject to tax. A loss incurred with respect to shares of a
Fund held for six months or less will be treated as a long-term capital
loss to the extent of capital gains dividends with respect to such
shares.
The Funds
investments in foreign securities may be subject to foreign withholding
taxes. In that case, the Funds yield on those securities would be
decreased. Shareholders of the Funds other than the International Equity
Fund generally will not be entitled to claim a credit or deduction with
respect to foreign taxes. Shareholders of the International Equity Fund,
however, may be entitled to claim a credit or deduction with respect to
foreign taxes. In addition, the Funds investments in foreign
securities or foreign currencies may increase or accelerate the Funds
recognition of ordinary income and may affect the timing or amount of the
Funds distributions.
Shareholders should
consult their tax adviser for more information on their own tax situation,
including possible state, local and foreign taxes.
Investment
Performance
The registration
statement for the Prime Fund, Short-Term Bond Fund, Core Bond Fund,
Balanced Fund, Core Equity Fund, Small Cap Value Equity Fund and
International Equity Fund became effective, and those Funds commenced
operations, on October 3, 1994. Those Funds were the successors to seven
separate investment accounts of MassMutual having corresponding investment
objectives, policies and limitations. Class S shares of the Funds were
exchanged for the assets of the separate investment accounts and, while the
separate investment accounts continue to exist, their assets consist solely
of Class S shares of the corresponding Funds. Except for the seed capital
provided by MassMutual, each Funds portfolio of investments on
October 3, 1994 was the same as the portfolio of the corresponding separate
investment account immediately prior to the transfer.
The quoted
performance data in this Prospectus for those funds includes the
performance of the separate investment accounts for periods before the
Registration Statement became effective on October 3, 1994. The separate
investment accounts were not registered under the Investment Company Act of
1940, as amended (the 1940 Act), and thus were not subject to
certain investment restrictions that are imposed by this Act. If the
separate investment accounts had been registered under the 1940 Act, their
performance might have been adversely affected. The historical performance
of the separate investment accounts has been restated to reflect the
Funds expenses, as described in the Fees and Expenses
section of the prospectus.
Sub-Adviser
Performance
MFS. Performance data shown for MFS is
based on a composite of all substantially similar portfolios managed by
MFS, the Sub-Adviser to the Growth Equity Fund, adjusted to reflect
the fees and expenses of each of the Growth Equity Funds share
classes. Some of these portfolios are mutual funds registered with the SEC,
including Massachusetts Investors Growth Stock Fund, and some are private
accounts. MFS composite also includes the returns for the Growth
Equity Fund since its inception date of May 3, 1999 through December 31,
1999. All the portfolios have substantially the same investment objectives
and policies and are managed in accordance with essentially the same
investment strategies and techniques as those of the Fund.
MAS. Performance data shown for Miller,
Anderson & Sherrerd, LLP is based on a composite of all
substantially similar portfolios managed by MAS, the Mid Cap Growth Equity
Funds Sub-Adviser, adjusted to reflect the fees and expenses of each
of the Funds share classes. One of these portfolios is the MAS Funds
Mid Cap Growth Portfolio, a mutual fund registered with the SEC. MAS
composite also includes the returns for the Mid Cap Growth Equity Fund
since its inception date of May 3, 1999 through December 31, 1999. All the
portfolios have substantially the same investment objective and policies
and are managed in accordance with essentially the same investment
strategies and techniques as those of the Fund.
J.P. Morgan
and Waddell & Reed. J.P. Morgan and Waddell &
Reed each manage a portion of the Small Cap Growth Equity Fund. The
J.P. Morgan performance information is shown based on the historical
performance of all discretionary investment management accounts under the
management of J.P. Morgan with substantially similar investment objectives,
policies and investment strategies as for the Fund, adjusted to reflect the
fees and expenses of each of the Funds share classes. Some of these
portfolios are mutual funds registered with the SEC, including the J.P.
Morgan U.S. Small Company Opportunities Fund, and some are private
accounts. The J.P. Morgan
composite also includes the returns for that portion of the Small Cap Growth
Equity Fund which J.P. Morgan managed from the Funds inception date
of May 3, 1999 through December 31, 1999.
From January 1,
1996, the Waddell & Reed performance information shown is based on a
composite of all accounts it manages with substantially similar investment
objectives and policies as the Fund, adjusted to reflect the fees and
expenses of each of the Funds share classes, including that portion
of the Small Cap Growth Equity Fund which Waddell & Reed managed from
the Funds inception date of May 3, 1999 through December 31, 1999.
From inception of Waddell & Reeds Small Cap Composite on
4/1/89 through 12/31/95, performance is based on data of Small Cap style
mutual fund portfolios managed by Waddell & Reed.
Davis Selected
Advisers, L.P. Performance data shown for Davis is based
on a composite of all substantially similar portfolios managed by
Davis, the Large Cap Value Funds Sub-Adviser, adjusted to reflect
the fees and expenses of each of the Funds share classes. Some of
these portfolios are mutual funds registered with the SEC, including
Selected American Shares and Davis New York Venture Fund, and some are
private accounts. All the portfolios have substantially the same investment
objectives and policies and are managed in accordance with essentially the
same investment strategies and techniques as those of the Fund.
Harris
Associates L.P. Performance data shown for Harris
Associates is based on a composite of all substantially similar portfolios
managed by Harris Associates, the Focused Value Funds
Sub-Adviser, adjusted to reflect the fees and expenses of each of the
Funds share classes. All the portfolios have substantially the same
investment objectives and policies and are managed in accordance with
essentially the same investment strategies and techniques as those of the
Fund. Harris Associates also manages a non-diversified mutual fund
registered with the SEC.
RS Investment
Management, L.P. Performance data shown for RS is based
on a composite of all substantially similar portfolios managed by
RS, the Emerging Growth Funds Sub-Adviser, adjusted to reflect
the fees and expenses of each of the Funds share classes. Some of
these portfolios are mutual funds registered with the SEC, including RS
Emerging Growth Fund, and some are private accounts. All the portfolios
have substantially the same investment objectives and policies and are
managed in accordance with essentially the same investment strategies and
techniques as those of the Fund.
Janus Capital
Corporation. Performance data shown for Janus is based
on a composite of all substantially similar portfolios managed by Janus
Capital Corporation, the Aggressive Growth Funds Sub-Adviser,
adjusted to reflect the fees and expenses of each of the Aggressive Growth
Funds share classes. This composite includes is the Janus Olympus
Fund, which is a registered mutual fund. All the portfolios have has
substantially the same investment objectives and policies and is managed in
accordance with essentially the same investment strategies and techniques
as those of the MassMutual Aggressive Growth Fund.
T. Rowe Price
Associates, Inc. Performance data shown for T. Rowe
Price Associates, the Sub-Adviser to the Mid Cap Growth Equity II Fund, is
based on the performance of the T. Rowe Price Mid-Cap Growth Fund, a
registered mutual fund, adjusted to reflect the fees and expenses of each
of the Funds share classes. The T. Rowe Price Mid-Cap Growth Fund has
substantially the same investment objective and policies and is managed in
accordance with essentially the same investment strategies and techniques
as those of the Fund.
For all of the
Sub-Advisers, the private account portfolios are not registered with the
SEC and therefore are not subject to the limitations, diversification
requirements and other
restrictions which the Funds, as registered mutual funds, will be subject to.
The performance of the private accounts may have been adversely affected if
they had been registered with the SEC.
Composite
performance for each of the Sub-Advisers portfolios is provided
solely to illustrate that Sub-Advisers performance in
managing portfolios with investment objectives substantially similar to the
applicable Fund. Such performance is not indicative of future rates of
return. Prior performance of the Sub-Advisers is no indication of future
performance of any of the Funds.
Financial
Highlights
The financial
highlights table is intended to help you understand the Funds
financial performance for the past 5 years (or earlier periods for newer
Funds). Some Funds in this prospectus commenced operations May 1, 2000 and
do not have financial results. Certain information reflects financial
results for a single Fund share. The total returns in the table represent
the rate that an investor would have earned on an investment in the Fund
(assuming reinvestment of all dividends and distributions). This
information has been audited by Deloitte & Touche LLP, whose report,
along with the Funds financial statements, are included in the Annual
Report, which is available on request.
PRIME
FUND
|
|
Class S
(1)
|
|
|
Year ended
12/31/99
|
|
Year ended
12/31/98
|
|
Year ended
12/31/97
|
|
Year ended
12/31/96
|
|
Year ended
12/31/95
|
Net asset
value, beginning of period |
|
$ 150.74 |
|
|
$ 150.84 |
|
|
$ 151.00 |
|
|
$ 151.06 |
|
|
$ 150.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
7.82 |
*** |
|
8.10 |
*** |
|
8.14 |
*** |
|
7.85 |
*** |
|
8.70 |
*** |
Net
realized and unrealized gain (loss) on
investments |
|
(0.13 |
) |
|
0.03 |
|
|
(0.01 |
) |
|
0.06 |
|
|
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income
(loss) from investment
operations |
|
7.69 |
|
|
8.13 |
|
|
(8.13 |
) |
|
7.91 |
|
|
8.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From
net investment income |
|
(6.29 |
) |
|
(8.23 |
) |
|
(8.29 |
) |
|
(7.97 |
) |
|
(7.98 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset
value, end of period |
|
$ 152.14 |
|
|
$ 150.74 |
|
|
$ 150.84 |
|
|
$ 151.00 |
|
|
$ 151.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Return@ |
|
5.10% |
|
|
5.39% |
|
|
5.39% |
|
|
5.24% |
|
|
5.78% |
|
Ratios /
Supplemental Data: |
Net
assets, end of period (000s) |
|
$316,805 |
|
|
$251,757 |
|
|
$241,370 |
|
|
$258,729 |
|
|
$253,936 |
|
Net
expenses to average daily net assets# |
|
0.48% |
|
|
0.55% |
|
|
0.54% |
|
|
0.52% |
|
|
0.52% |
|
Net
investment income to average daily net
assets |
|
5.06% |
|
|
5.23% |
|
|
5.25% |
|
|
5.10% |
|
|
5.61% |
|
|
# Computed
after giving effect to the voluntary
partial waiver of management fee by
MassMutual, which terminated May 1, 1997.
Without this partial waiver of fees by
MassMutual, the ratio of expenses to average
daily net assets would have been: |
|
N/A |
|
|
N/A |
|
|
0.55% |
|
|
0.55% |
|
|
0.55% |
|
***
|
Per
share amount calculated on the average shares method.
|
(1)
|
Class S
shares were previously designated as Class 4 shares.
|
@
|
Employee
retirement benefit plans that invest plan assets in the Separate
Investment Accounts (SIAs) may be subject to certain charges as set forth
in their respective Plan Documents. Total return figures would be lower
for the periods presented if they reflected these
charges.
|
SHORT-TERM BOND
FUND
|
|
Class
S(1)
|
|
|
Year ended
12/31/99
|
|
Year ended
12/31/98
|
|
Year
ended
12/31/97
|
|
Year ended
12/31/96
|
|
Year ended
12/31/95
|
Net asset
value, beginning of period |
|
$ 10.30 |
|
|
$ 10.23 |
|
|
$ 10.11 |
|
|
$ 10.15 |
|
|
$ 9.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
from investment operations: |
Net investment income |
|
0.56 |
*** |
|
0.56 |
|
|
0.65 |
*** |
|
0.60 |
|
|
0.66 |
|
Net realized and unrealized gain (loss) on
investments |
|
(0.24 |
) |
|
0.08 |
|
|
0.04 |
|
|
(0.03 |
) |
|
0.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income (loss) from investment
operations |
|
0.32 |
|
|
0.64 |
|
|
0.69 |
|
|
0.57 |
|
|
1.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
distributions to shareholders: |
From net investment income |
|
(0.64 |
) |
|
(0.56 |
) |
|
(0.57 |
) |
|
(0.60 |
) |
|
(0.66 |
) |
In excess of net investment
income |
|
(0.00 |
)**** |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
From net realized gains |
|
(0.01 |
) |
|
(0.01 |
) |
|
0.00 |
|
|
(0.01 |
) |
|
(0.20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions |
|
(0.65 |
) |
|
(0.57 |
) |
|
(0.57 |
) |
|
(0.61 |
) |
|
(0.86 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset
value, end of period |
|
$ 9.97 |
|
|
$ 10.30 |
|
|
$ 10.23 |
|
|
$ 10.11 |
|
|
$ 10.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Return@ |
|
3.10% |
|
|
6.29% |
|
|
6.84% |
|
|
5.57% |
|
|
11.77% |
|
|
Ratios /
Supplemental Data: |
Net assets, end of period
(000s) |
|
$211,137 |
|
|
$283,673 |
|
|
$200,268 |
|
|
$145,182 |
|
|
$122,904 |
|
Net expenses to average daily net
assets# |
|
0.54% |
|
|
0.55% |
|
|
0.54% |
|
|
0.52% |
|
|
0.52% |
|
Net investment income to average daily net
assets |
|
5.34% |
|
|
5.58% |
|
|
6.22% |
|
|
6.00% |
|
|
6.32% |
|
Portfolio turnover rate |
|
59% |
|
|
44% |
|
|
48% |
|
|
61% |
|
|
114% |
|
|
# Computed after giving effect to the
voluntary partial waiver
of management fee by MassMutual, which terminated
May
1, 1997. Without this partial waiver of fees by
MassMutual,
the ratio of expenses to average daily net assets
would have
been: |
|
N/A |
|
|
N/A |
|
|
0.55% |
|
|
0.55% |
|
|
0.55% |
|
|
***
|
Per share
amount calculated on the average shares method.
|
|
****
|
Distributions
in excess of net realized gains is less than $0.01 per
share.
|
|
(1)
|
Class S shares
were previously designated as Class 4 shares.
|
|
@
|
Employee
retirement benefit plans that invest plan assets in the Separate
Investment Accounts (SIAs) may be subject to certain charges as set forth
in their respective Plan Documents. Total return figures would be lower
for the periods presented if they reflected these
charges.
|
CORE BOND
FUND
|
|
Class
S(1)
|
|
|
Year ended
12/31/99
|
|
Year ended
12/31/98
|
|
Year ended
12/31/97
|
|
Year ended
12/31/96
|
|
Year ended
12/31/95
|
Net asset
value, beginning of period |
|
$ 11.06 |
|
|
$ 10.81 |
|
|
$ 10.45 |
|
|
$ 10.75 |
|
|
$ 9.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
from investment operations: |
Net investment income |
|
0.66 |
*** |
|
0.67 |
*** |
|
0.69 |
*** |
|
0.67 |
*** |
|
0.72 |
*** |
Net realized and unrealized gain (loss) on
investments |
|
(0.89 |
) |
|
0.24 |
|
|
0.33 |
|
|
(0.37 |
) |
|
1.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income (loss) from investment
operations |
|
(0.23 |
) |
|
0.91 |
|
|
1.02 |
|
|
0.30 |
|
|
1.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
distributions to shareholders: |
From net investment income |
|
(0.68 |
) |
|
(0.56 |
) |
|
(0.64 |
) |
|
(0.54 |
) |
|
(0.65 |
) |
From net realized gains |
|
(0.01 |
) |
|
(0.10 |
) |
|
(0.02 |
) |
|
(0.06 |
) |
|
(0.33 |
) |
In excess of net realized gains |
|
(0.00 |
)**** |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions |
|
(0.69 |
) |
|
(0.66 |
) |
|
(0.66 |
) |
|
(0.60 |
) |
|
(0.98 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset
value, end of period |
|
$ 10.14 |
|
|
$ 11.06 |
|
|
$ 10.81 |
|
|
$ 10.45 |
|
|
$ 10.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Return@ |
|
(2.08)% |
|
|
8.44% |
|
|
9.78% |
|
|
2.80% |
|
|
19.15% |
|
|
Ratios /
Supplemental Data: |
Net assets, end of period
(000s) |
|
$594,002 |
|
|
$709,459 |
|
|
$455,931 |
|
|
$356,699 |
|
|
$253,540 |
|
Net expenses to average daily net assets
# |
|
0.57% |
|
|
0.55% |
|
|
0.54% |
|
|
0.51% |
|
|
0.51% |
|
Net investment income to average daily net
assets |
|
6.07% |
|
|
5.92% |
|
|
6.34% |
|
|
6.26% |
|
|
6.56% |
|
Portfolio turnover rate |
|
61% |
|
|
51% |
|
|
54% |
|
|
54% |
|
|
104% |
|
|
# Computed after giving effect to
the voluntary partial
waiver of management fee by MassMutual, which
terminated May 1, 1997. Without this partial waiver
of
fees by MassMutual, the ratio of expenses to
average daily
net assets would have been: |
|
N/A |
|
|
N/A |
|
|
0.55% |
|
|
0.56% |
|
|
0.56% |
|
|
***
|
Per share
amount calculated on the average shares method.
|
|
****
|
Distributions
in excess of net realized gains is less than $0.01 per
share.
|
|
(1)
|
Class S shares
were previously designated as Class 4 shares.
|
|
@
|
Employee
retirement benefit plans that invest plan assets in the Separate
Investment Accounts (SIAs) may be subject to certain charges as set forth
in their respective Plan Documents. Total return figures would be lower
for the periods presented if they reflected these
charges.
|
DIVERSIFIED BOND
FUND
|
|
Class
S
|
|
|
Period ended
12/31/99**
|
Net asset
value, beginning of period |
|
$ 10.00 |
|
|
|
|
|
|
Income (loss)
from investment operations: |
Net investment income |
|
0.42 |
*** |
Net realized and unrealized gain (loss) on
investments |
|
(0.44 |
) |
|
|
|
|
Total income (loss) from investment
operations |
|
(0.02 |
) |
|
|
|
|
Less
distributions to shareholders: |
|
|
|
From net investment income |
|
(0.42 |
) |
In excess of net investment
income |
|
(0.00 |
)**** |
|
|
|
|
Total distributions |
|
(0.42 |
) |
|
|
|
|
Net asset
value, end of period |
|
$ 9.56 |
|
|
|
|
|
|
Total
Return@ |
|
(0.25)% |
|
|
Ratios /
Supplemental Data: |
Net assets, end of period
(000s) |
|
$24,975 |
|
Net expenses to average daily net
assets |
|
0.74% |
* |
Net investment income to average daily net
assets |
|
6.33% |
* |
Portfolio turnover rate |
|
32% |
|
|
|
**
|
For the
period from May 3, 1999 (commencement of operations) through December 31,
1999.
|
|
***
|
Per
share amount calculated on the average shares method.
|
|
****
|
Distributions in excess of net investment income is less
than $0.01 per share.
|
|
@
|
Employee
retirement benefit plans that invest plan assets in the Separate
Investment Accounts (SIAs) may be subject to certain charges as set forth
in their respective Plan Documents. Total return figures would be lower
for the periods presented if they reflected these
charges.
|
BALANCED
FUND
|
|
Class S
(1)
|
|
|
Year
ended
12/31/99
|
|
Year
ended
12/31/98
|
|
Year
ended
12/31/97
|
|
Year
ended
12/31/96
|
|
Year
ended
12/31/95
|
Net asset
value, beginning of period |
|
$ 14.20 |
|
|
$ 13.59 |
|
|
$ 12.34 |
|
|
$ 11.51 |
|
|
$ 9.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
from investment operations: |
Net investment income |
|
0.48 |
*** |
|
0.49 |
*** |
|
0.48 |
|
|
0.46 |
|
|
0.44 |
|
Net realized and unrealized gain (loss) on
investments |
|
(0.70 |
) |
|
1.33 |
|
|
1.82 |
|
|
1.02 |
|
|
1.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income (loss) from investment
operations |
|
(0.22 |
) |
|
1.82 |
|
|
2.30 |
|
|
1.48 |
|
|
2.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
distributions to shareholders: |
From net investment income |
|
(0.51 |
) |
|
(0.48 |
) |
|
(0.48 |
) |
|
(0.46 |
) |
|
(0.44 |
) |
Tax return of capital |
|
(0.00 |
)**** |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
From net realized gains |
|
(0.22 |
) |
|
(0.73 |
) |
|
(0.57 |
) |
|
(0.19 |
) |
|
(0.09 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions |
|
(0.73 |
) |
|
(1.21 |
) |
|
(1.05 |
) |
|
(0.65 |
) |
|
(0.53 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset
value, end of period |
|
$ 13.25 |
|
|
$ 14.20 |
|
|
$ 13.59 |
|
|
$ 12.34 |
|
|
$ 11.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Return@ |
|
(1.58% |
) |
|
13.50% |
|
|
18.72% |
|
|
12.83% |
|
|
21.31% |
|
|
Ratios /
Supplemental Data: |
Net assets, end of period
(000s) |
|
$655,478 |
|
|
$771,763 |
|
|
$655,135 |
|
|
$563,280 |
|
|
$456,773 |
|
Net expenses to average daily net
assets# |
|
0.57% |
|
|
0.54% |
|
|
0.54% |
|
|
0.51% |
|
|
0.51% |
|
Net investment income to average daily net
assets |
|
3.36% |
|
|
3.42% |
|
|
3.57% |
|
|
3.83% |
|
|
4.18% |
|
Portfolio turnover rate |
|
19% |
|
|
30% |
|
|
28% |
|
|
26% |
|
|
23% |
|
|
# Computed after giving effect to the
voluntary partial waiver of
management fee by MassMutual, which terminated May
1,
1997. Without this partial waiver of fees by
MassMutual, the
ratio of expenses to average daily net assets would
have been: |
|
N/A |
|
|
N/A |
|
|
0.55% |
|
|
0.55% |
|
|
0.55% |
|
|
|
***
|
Per share
amount calculated on the average shares method.
|
|
****
|
Tax return of
capital is less than $0.01 per share.
|
|
(1)
|
Class S shares
were previously designated as Class 4 shares.
|
|
@
|
Employee
retirement benefit plans that invest plan assets in the Separate
Investment Accounts (SIAs) may be subject to certain charges as set forth
in their respective Plan Documents. Total return figures would be lower
for the periods presented if they reflected these
charges.
|
CORE EQUITY
FUND
|
|
Class S(1)
|
|
|
Year ended
12/31/99
|
|
Year ended
12/31/98
|
|
Year ended
12/31/97
|
|
Year ended
12/31/96
|
|
Year ended
12/31/95
|
Net asset
value, beginning of period |
|
$
18.39 |
|
|
$
17.00 |
|
|
$
14.46 |
|
|
$
12.63 |
|
|
$
9.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
from investment operations: |
Net investment income |
|
0.27 |
*** |
|
0.31 |
|
|
0.32 |
|
|
0.34 |
|
|
0.31 |
|
Net realized and unrealized gain (loss) on
investments |
|
(0.75 |
) |
|
2.49 |
|
|
3.83 |
|
|
2.22 |
|
|
2.82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income (loss) from investment
operations |
|
(0.48 |
) |
|
2.80 |
|
|
4.15 |
|
|
2.56 |
|
|
3.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
distributions to shareholders: |
From net investment income |
|
(0.30 |
) |
|
(0.31 |
) |
|
(0.31 |
) |
|
(0.34 |
) |
|
(0.31 |
) |
In excess of net investment
income |
|
(0.00 |
)**** |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
From net realized gains |
|
(1.23 |
) |
|
(1.10 |
) |
|
(1.30 |
) |
|
(0.39 |
) |
|
(0.10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions |
|
(1.53 |
) |
|
(1.41 |
) |
|
(1.61 |
) |
|
(0.73 |
) |
|
(0.41 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset
value, end of period |
|
$
16.38 |
|
|
$
18.39 |
|
|
$
17.00 |
|
|
$
14.46 |
|
|
$
12.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Return@ |
|
(2.60% |
) |
|
16.75% |
|
|
29.01% |
|
|
20.24% |
|
|
31.54% |
|
|
Ratios / Supplemental Data: |
Net assets, end of period
(000s) |
|
$2,854,390 |
|
|
$3,586,177 |
|
|
$3,197,848 |
|
|
$2,485,743 |
|
|
$2,125,248 |
|
Net expenses to average daily net
assets# |
|
0.57% |
|
|
0.54% |
|
|
0.54% |
|
|
0.51% |
|
|
0.51% |
|
Net investment income to average daily net
assets |
|
1.45% |
|
|
1.67% |
|
|
1.91% |
|
|
2.42% |
|
|
2.72% |
|
Portfolio turnover rate |
|
10% |
|
|
12% |
|
|
20% |
|
|
13% |
|
|
16% |
|
|
# Computed after giving effect to the
voluntary
partial waiver of management fee by
MassMutual, which terminated May 1, 1997.
Without this partial waiver of fees by
MassMutual, the ratio of expenses to average
daily net assets would have been: |
|
N/A |
|
|
N/A |
|
|
0.55% |
|
|
0.55% |
|
|
0.55% |
|
|
***
|
Per share
amount calculated on the average shares method.
|
|
****
|
Distributions
in excess of net investment income is less than $0.01 per
share.
|
|
(1)
|
Class S shares
were previously designated as Class 4 shares.
|
|
@
|
Employee
retirement benefit plans that invest plan assets in the Separate
Investment Accounts (SIAs) may be subject to certain charges as set forth
in their respective Plan Documents. Total return figures would be lower
for the periods presented if they reflected these
charges.
|
INDEXED EQUITY
FUND
|
|
Class
S
|
|
|
Period ended
12/31/99
|
|
Year ended
02/28/99
|
Net asset
value, beginning of period |
|
$ 11.82 |
|
|
$ 10.00 |
|
|
|
|
|
|
|
|
Income (loss)
from investment operations: |
Net investment income |
|
0.12 |
** |
|
0.13 |
** |
Net realized and unrealized
gain |
|
2.19 |
|
|
1.78 |
|
|
|
|
|
|
|
|
Total income (loss) from investment
operations |
|
2.31 |
|
|
1.91 |
|
|
|
|
|
|
|
|
Less
distributions to shareholders: |
From net investment income |
|
(0.10 |
) |
|
(0.09 |
) |
From net realized gains |
|
(0.15 |
) |
|
- |
|
|
|
|
|
|
|
|
|
|
(0.25 |
) |
|
(0.09 |
) |
|
|
|
|
|
|
|
Net asset
value, end of period |
|
$ 13.88 |
|
|
$ 11.82 |
|
|
|
|
|
|
|
|
|
Total
Return@ |
|
19.61% |
|
|
19.13% |
|
|
Ratios /
Supplemental Data: |
Net assets, end of period
(000s) |
|
$ 813,419 |
|
|
$ 426,687 |
|
Net expenses to average daily net
assets |
|
0.42% |
* |
|
0.43% |
|
Net investment income to average daily net
assets |
|
1.06% |
* |
|
1.23% |
|
|
**
|
Per share
amount calculated on the average shares method.
|
|
|
For the period
from March 1, 1999 through December 31, 1999.
|
|
@
|
Employee
retirement benefit plans that invest plan assets in the Separate
Investment Accounts (SIAs) may be subject to certain charges as set forth
in their respective Plan Documents. Total return figures would be lower
for the periods presented if they reflected these
charges.
|
GROWTH EQUITY
FUND
|
|
Class
S
|
|
|
Period ended
12/31/99**
|
Net asset
value, beginning of period |
|
$ 10.00 |
|
|
|
|
|
Income (loss)
from investment operations: |
Net investment income (loss) |
|
(0.01 |
)*** |
Net realized and unrealized gain (loss) on
investments |
|
2.97 |
|
|
|
|
|
Total income (loss) from investment
operations |
|
2.96 |
|
|
|
|
|
Less
distributions to shareholders: |
From net realized gains |
|
(0.03 |
) |
|
|
|
|
Net asset
value, end of period |
|
$ 12.93 |
|
|
|
|
|
|
Total
Return@ |
|
29.57% |
|
|
Ratios /
Supplemental Data: |
Net assets, end of period
(000s) |
|
$62,968 |
|
Net expenses to average daily net
assets |
|
0.97 |
%* |
Net investment income (loss) to average
daily net assets |
|
(0.10 |
)%* |
Portfolio turnover rate |
|
114 |
% |
|
**
|
For the period
from May 3, 1999 (commencement of operations) through December 31,
1999.
|
|
***
|
Per share
amount calculated on the average shares method.
|
|
@
|
Employee
retirement benefit plans that invest plan assets in the Separate
Investment Accounts (SIAs) may be subject to certain charges as set forth
in their respective Plan Documents. Total return figures would be lower
for the periods presented if they reflected these
charges.
|
SMALL CAP VALUE
EQUITY FUND
|
|
|
|
|
|
Class
S(1)
|
|
|
|
|
|
|
Year ended
12/31/99
|
|
Year ended
12/31/98
|
|
Year ended
12/31/97
|
|
Year ended
12/31/96
|
|
Year ended
12/31/95
|
Net asset
value, beginning of period |
|
$ 14.06 |
|
|
$ 16.61 |
|
|
$ 13.43 |
|
|
$ 11.44 |
|
|
$ 9.69 |
|
Income (loss)
from investment operations: |
Net investment income |
|
0.14 |
*** |
|
0.13 |
|
|
0.13 |
|
|
0.31 |
|
|
0.19 |
|
Net realized and unrealized gain (loss) on
investments |
|
(0.11 |
) |
|
(1.67 |
) |
|
4.73 |
|
|
2.29 |
|
|
1.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income (loss) from investment
operations |
|
0.03 |
|
|
(1.54 |
) |
|
4.86 |
|
|
2.60 |
|
|
1.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
distributions to shareholders: |
From net investment income |
|
(0.15 |
) |
|
(0.13 |
) |
|
(0.14 |
) |
|
(0.30 |
) |
|
(0.19 |
) |
From net realized gains |
|
(0.36 |
) |
|
(0.88 |
) |
|
(1.54 |
) |
|
(0.31 |
) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions |
|
(0.51 |
) |
|
(1.01 |
) |
|
(1.68 |
) |
|
(0.61 |
) |
|
(0.19 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset
value, end of period |
|
$ 13.58 |
|
|
$ 14.06 |
|
|
$ 16.61 |
|
|
$ 13.43 |
|
|
$ 11.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Return@ |
|
0.25% |
|
|
(9.02% |
) |
|
36.36% |
|
|
22.82% |
|
|
20.01% |
|
|
Ratios /
Supplemental Data: |
Net assets, end of period
(000s) |
|
$640,600 |
|
|
$682,578 |
|
|
$690,378 |
|
|
$456,935 |
|
|
$380,398 |
|
Net expenses to average daily net
assets# |
|
0.67% |
|
|
0.64% |
|
|
0.64% |
|
|
0.61% |
|
|
0.61% |
|
Net investment income to average daily net
assets |
|
1.03% |
|
|
0.86% |
|
|
0.89% |
|
|
2.40% |
|
|
1.78% |
|
Portfolio turnover rate |
|
34% |
|
|
31% |
|
|
31% |
|
|
28% |
|
|
28% |
|
|
# Computed after giving effect to the
voluntary
partial waiver of management fee by
MassMutual, which terminated May 1, 1997.
Without this partial waiver of fees by
MassMutual, the ratio of expenses to average
daily net assets would have been: |
|
N/A |
|
|
N/A |
|
|
0.65 |
% |
|
0.65 |
% |
|
0.65% |
|
|
***
|
Per share
amount calculated on the average shares method.
|
|
(1)
|
Class S shares
were previously designated as Class 4 shares.
|
|
@
|
Employee
retirement benefit plans that invest plan assets in the Separate
Investment Accounts (SIAs) may be subject to certain charges as set forth
in their respective Plan Documents. Total return figures would be lower
for the periods presented if they reflected these
charges.
|
MID CAP GROWTH
EQUITY FUND
|
|
Class S
|
|
|
Period ended
12/31/99**
|
Net asset
value, beginning of period |
|
$ 10.00 |
|
|
|
|
|
Income (loss)
from investment operations: |
Net investment loss |
|
(0.02 |
)*** |
Net realized and unrealized gain (loss) on
investments |
|
3.96 |
|
|
|
|
|
Total income
(loss) from investment operations |
|
3.94 |
|
|
|
|
|
Net asset
value, end of period |
|
$ 13.94 |
|
|
|
|
|
|
Total
Return@ |
|
39.40% |
|
|
Ratios / Supplemental Data: |
Net assets, end of period
(000s) |
|
$ 60,279 |
|
Net expenses to average daily net
assets |
|
0.89% |
* |
Net investment income to average daily net
assets |
|
(0.32)% |
* |
Portfolio turnover rate |
|
127% |
|
|
* Annualized |
** For the period from May 3, 1999
(commencement of operations) through December 31, 1999. |
*** Per share amount calculated on the
average shares method. |
@ Employee retirement benefit plans that
invest plan assets in the Separate Investment Accounts (SIAs) may be
subject to certain charges as set forth in their respective Plan
Documents. Total return figures would be lower for the periods
presented if they reflected these charges. |
|
SMALL CAP
GROWTH EQUITY FUND |
|
|
|
Class
S
|
|
|
Period
ended
12/31/99**
|
Net asset
value, beginning of period |
|
$ 10.00 |
|
|
|
|
|
Income
(loss) from investment operations: |
Net investment income
(loss) |
|
0.02 |
*** |
Net realized and unrealized gain
(loss) on investments |
|
6.07 |
|
|
|
|
|
Total
income (loss) from investment operations |
|
6.09 |
|
|
|
|
|
Less
distributions to shareholders: |
From net investment income |
|
(0.01 |
) |
In excess of net investment
income |
|
(0.00 |
)**** |
From net realized gains |
|
(0.17 |
) |
|
|
|
|
Total
distributions |
|
(0.18 |
) |
|
|
|
|
Net asset
value, end of period |
|
$ 15.91 |
|
|
|
|
|
|
Total
Return@ |
|
60.91% |
|
|
Ratios / Supplemental Data: |
Net assets, end of period
(000s) |
|
$ 92,254 |
|
Net expenses to average daily net
assets |
|
1.19% |
* |
Net investment income (loss) to
average daily net assets |
|
0.19% |
* |
Portfolio turnover rate |
|
68% |
|
|
**
|
For the
period from May 3, 1999 (commencement of operations) through
December 31, 1999.
|
|
***
|
Per share
amount calculated on the average shares method.
|
|
****
|
Distributions
from net investment income/in excess of net investment income is
less than $0.01 per share.
|
|
@
|
Employee retirement benefit plans that invest plan
assets in the Separate Investment Accounts (SIAs) may be subject to
certain charges as set forth in their respective Plan Documents.
Total return figures would be lower for the periods presented if
they reflected these charges.
|
INTERNATIONAL EQUITY FUND
|
|
|
|
Class S(1)
|
|
|
|
|
Year ended
12/31/99
|
|
Year ended
12/31/98
|
|
Year ended
12/31/97
|
|
Year ended
12/31/96
|
|
Year ended
12/31/95
|
Net asset
value, beginning of period |
|
$
11.37 |
|
|
$
12.38 |
|
|
$
11.11 |
|
|
$
9.58 |
|
|
$
9.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from investment operations: |
Net investment income |
|
0.05 |
*** |
|
0.10 |
|
|
0.06 |
|
|
0.06 |
|
|
0.07 |
|
Net realized and unrealized gain on
investments and foreign
currency |
|
6.38 |
|
|
0.51 |
|
|
1.69 |
|
|
1.71 |
|
|
0.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income (loss) from investment
operations |
|
6.43 |
|
|
0.61 |
|
|
1.75 |
|
|
1.77 |
|
|
0.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
distributions to shareholders: |
From net investment income |
|
(0.03 |
) |
|
(0.17 |
) |
|
(0.07 |
) |
|
(0.24 |
) |
|
(0.07 |
) |
In excess of net investment
income |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(0.11 |
) |
From net realized gains |
|
(0.81 |
) |
|
(1.45 |
) |
|
(0.41 |
) |
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions |
|
(0.84 |
) |
|
(1.62 |
) |
|
(0.48 |
) |
|
(0.24 |
) |
|
(0.18 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset
value, end of period |
|
$
16.96 |
|
|
$
11.37 |
|
|
$
12.38 |
|
|
$
11.11 |
|
|
$
9.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Return@ |
|
56.98% |
|
|
5.05% |
|
|
15.79% |
|
|
18.51% |
|
|
5.13% |
|
|
Ratios /
Supplemental Data: |
Net assets, end of period
(000s) |
|
$1,087,858 |
|
|
$ 640,498 |
|
|
$ 546,790 |
|
|
$ 356,311 |
|
|
$ 220,718 |
|
Net expenses to average daily net
assets # |
|
1.06% |
|
|
1.04% |
|
|
1.06% |
|
|
1.00% |
|
|
1.00% |
|
Net investment income to average
daily net assets |
|
0.42% |
|
|
0.73% |
|
|
0.53% |
|
|
0.59% |
|
|
0.76% |
|
Portfolio turnover rate |
|
63% |
|
|
80% |
|
|
83% |
|
|
58% |
|
|
121% |
|
# Computed after giving effect
to the voluntary partial waiver
of management fee by MassMutual, which
terminated May
1, 1997. Without this partial waiver of fees
by MassMutual,
the ratio of expenses to average daily net
assets would have
been: |
|
N/A |
|
|
N/A |
|
|
1.07% |
|
|
1.07% |
|
|
1.09% |
|
|
***
|
Per share
amount calculated on the average shares method.
|
|
****
|
Distributions from income is less than $0.01 per
share.
|
|
(1)
|
Class S
shares were previously designated as Class 4 shares.
|
|
@
|
Employee
retirement benefit plans that invest plan assets in the Separate
Investment Acoounts (SIAs) may be subject to certain charges as set
forth in their respective Plan Documents. Total return figures would
be lower for the periods presented if they reflected these
charges.
|
APPENDIX
ADDITIONAL INVESTMENT POLICIES
AND RISK
CONSIDERATIONS
The Funds may
invest in a wide range of investments and engage in various
investment-related transactions and practices. These practices are
pursuant to non-Fundamental policies and therefore may be changed by
the Board of Trustees without the consent of shareholders. Some of the
more significant practices and some associated risks are discussed
below.
Euro
Risk
The
International Equity Fund and, to a lesser extent, the other Funds,
including the Large Cap Value Fund, the Focused Value Fund, the Growth
Equity Fund, the Aggressive Growth Fund, the Mid Cap Growth Equity II
Fund and the Emerging Growth Fund, may be subject to an additional
risk regarding their foreign securities holdings. On January 1, 1999,
eleven countries in the European Monetary Union adopted the euro as
their official currency. However, their current currencies (for
example, the franc, the mark and the lire) will also continue in use
until January 1, 2002. After that date, it is expected that only the
euro will be used in those countries. A common currency is expected to
confer some benefits in those markets, by consolidating the government
debt market for those countries and reducing some currency risks and
costs. But the conversion to the new currency will affect the Funds
operationally and also has potential risks, some of which are listed
below. Among other things, the conversion will affect:
·
|
Issuers in
which the Funds invest, because of changes in the competitive
environment from a consolidated currency market and greater
operational costs from converting to the new currency. This might
depress stock values.
|
·
|
Vendors the
Funds depend on to carry out their business, such as custodians
(which hold the foreign securities the Funds buy), the Funds
managers and Sub-Advisers (which must price the Funds
investments to deal with the conversion to the euro) and brokers,
foreign markets and securities depositories. If they are not
prepared, there could be delays in settlements and additional costs
to the Funds.
|
·
|
Exchange
contracts and derivatives that are outstanding during the transition
to the euro. The lack of currency rate calculations between the
affected currencies and the need to update the Funds contracts
could pose extra costs to the Funds.
|
The Sub-Adviser
to the International Equity Fund and the custodian for all the Funds,
have each advised MassMutual of their plans to deal with the
conversion including how they will update its recordkeeping systems
and handle the redenomination of outstanding foreign debt. The
possible effect of these factors on the Funds investments cannot
be determined at this time, but they may reduce the value of some of
the Funds holdings and increase their operational
costs.
Repurchase Agreements and Reverse Repurchase
Agreements
Each Fund may
engage in repurchase agreements and reverse repurchase agreements. A
repurchase agreement is a contract pursuant to which a Fund agrees to
purchase a security and simultaneously agrees to resell it at an
agreed-upon price at a stated time, thereby determining the yield
during the Funds holding period. A reverse repurchase agreement
is a
contract pursuant to which a Fund agrees to sell a security and
simultaneously agrees to repurchase it at an agreed-upon price at a
stated time. The Statement of Additional Information provides a
detailed description of repurchase agreements, reverse repurchase
agreements and related risks.
Securities Lending
Each Fund may
seek additional income by making loans of portfolio securities of not
more than 33% of its total assets taken at current value. Although
lending portfolio securities may involve the risk of delay in recovery
of the securities loaned or possible loss of rights in the collateral
should the borrower fail financially, loans will be made only to
borrowers deemed by MassMutual and the Funds Custodian to be in
good standing.
Under
applicable regulatory requirements and securities lending agreements
(which are subject to change), the loan collateral received by a Fund
when it lends portfolio securities must, on each business day, be at
least equal to the value of the loaned securities. Cash collateral
received by a Fund will be reinvested by the Funds securities
lending agent in high quality, short term instruments, including bank
obligations, U.S. Government Securities, repurchase agreements, money
market Funds and U.S. dollar denominated corporate instruments with an
effective maturity of one-year or less, including variable rate and
floating rate securities, insurance company Funding agreements and
asset-backed securities. All investments of cash collateral by a Fund
are for the account and risk of that Fund.
Hedging
Instruments and Derivatives
Each Fund may
buy or sell forward contracts and other similar instruments and may
engage in foreign currency transactions (collectively referred to as
hedging instruments or derivatives), as more
fully discussed in the Statement of Additional
Information.
The portfolio
managers may normally use derivatives:
·
|
to protect
against possible declines in the market value of a Funds
portfolio resulting from downward trends in the markets (for
example, in the debt securities markets generally due to increasing
interest rates);
|
·
|
to protect a
Funds unrealized gains or limit its unrealized losses;
and
|
·
|
to manage a
Funds exposure to changing securities prices.
|
Our portfolio
managers may also use derivatives to establish a position in the debt
or equity securities markets as a temporary substitute for purchasing
or selling particular securities and to manage the effective maturity
or duration of fixed income securities in a Funds
portfolio.
(1)
|
Forward
Contracts Each Fund may purchase or sell securities
on a when issued or delayed delivery basis or may
purchase or sell securities on a forward commitment basis
(forward contracts). When such transactions are
negotiated, the price is fixed at the time of commitment, but
delivery and payment for the securities can take place a month or
more after the commitment date. The securities so purchased or sold
are subject to market fluctuations and no interest accrues to the
purchaser during this period. While a Fund also may enter into
forward contracts with the initial intention of acquiring securities
for its portfolio, it may dispose of a commitment prior to
settlement if MassMutual or the Funds Sub-Adviser deems it
appropriate to do so.
|
(2)
|
Currency
Transactions The International Equity Fund, the
Large Cap Value Fund, the Growth Equity Fund, the Mid Cap Growth
Equity Fund, the Mid Cap Growth Equity II Fund, the Aggressive
Growth Fund, the Small Cap Growth Equity Fund, the Focused Value
Fund and the
Emerging Growth Fund may, but will not necessarily, engage in foreign
currency transactions with counterparties in order to hedge the
value of portfolio holdings denominated in or exposed to particular
currencies against fluctuations in relative value. The Short-Term
Bond Fund, the Core Bond Fund, the Core Bond Segment of the Balanced
Fund and the Diversified Bond Fund may invest in foreign securities
that are not denominated in U.S. dollars only if the Fund
contemporaneously enters into a foreign currency transaction to
hedge the currency risk associated with the particular foreign
security.
|
Certain
limitations apply to the use of forward contracts by the Funds. For
example, a Fund will not enter into a forward contract if, as a
result, more than 25% of its total assets would be held in a
segregated account covering such contracts. This 25% limitation is not
applicable to the Aggressive Growth Fund. For more information about
forward contracts and currency transactions and the extent to which
tax considerations may limit a Funds use of such instruments,
see the Statement of Additional Information.
There can be no
assurance that the use of hedging instruments and derivatives by a
Fund will assist it in achieving its investment objective. Risks
inherent in the use of these instruments include the
following:
·
|
the risk that
interest rates and securities prices will not move in the direction
anticipated;
|
·
|
the imperfect
correlation between the prices of a forward contract and the price
of the securities being hedged; and
|
·
|
the
Funds portfolio manager may not have the skills needed to
manage these strategies.
|
Therefore,
there is no assurance that hedging instruments and derivatives will
assist the Fund in achieving its investment objective. As to forward
contracts, the risk exists that the counterparty to the transaction
will be incapable of meeting its commitment, in which case the desired
hedging protection may not be obtained and the Fund may be exposed to
risk of loss. As to currency transactions, risks exist that purchases
and sales of currency and related instruments can be negatively
affected by government exchange controls, blockages, and manipulations
or exchange restrictions imposed by governments which could result in
losses to the Fund if it is unable to deliver or receive currency or
funds in settlement of obligations. It also could cause hedges it has
entered into to be rendered useless, resulting in full currency
exposure as well as incurring transaction costs.
Options
and Futures Contracts
The Large Cap
Value Fund, the Growth Equity Fund, the Aggressive Growth Fund, the
Focused Value Fund, the Mid Cap Growth Equity Fund, the Mid Cap Growth
Equity II Fund, the Small Cap Growth Equity Fund, the Emerging Growth
Fund, the Indexed Equity Fund, and the OTC 100 Fund may engage in
options transactions, such as writing covered put and call options on
securities and purchasing put and call options on securities. These
strategies are designed to increase a Funds portfolio return, or
to protect the value of the portfolio, by offsetting a decline in
portfolio value through the options purchased. Writing options,
however, can only constitute a partial hedge, up to the amount of the
premium, and due to transaction costs.
These Funds may
also write covered call and put options and purchase call and put
options on stock indexes in order to increase portfolio income or to
protect the Fund against declines in the value of portfolio
securities. In addition, these Funds and the International Equity Fund
may also purchase and write options on foreign currencies to protect
against declines in the dollar value of portfolio securities and
against increases in the dollar cost of securities to be
acquired.
The Growth
Equity Fund, the Aggressive Growth Fund, the Focused Value Fund, the
Mid
Cap Growth Equity Fund, the Mid Cap Growth Equity II Fund, the Emerging
Growth Fund, the Small Cap Growth Equity Fund, the Indexed Equity Fund
and the OTC 100 Fund may also
enter into stock index futures contracts. These Funds and the
International Equity Fund may enter into foreign currency futures
contracts. These transactions are hedging strategies. They are
designed to protect a Funds current or intended investments from
the effects of changes in exchange rates or market declines. They may
also be used for other purposes, such as an efficient means of
adjusting a Funds exposure to certain markets; in an effort to
enhance income; and as a cash management tool. A Fund will incur
brokerage fees when it purchases and sells futures contracts. Futures
contracts entail risk of loss in portfolio value, if the Sub-Adviser
is incorrect in anticipating the direction of exchange rates or the
securities markets.
These Funds may
also purchase and write options on these futures contracts. This
strategy also is intended to protect against declines in the values of
portfolio securities or against increases in the costs of securities
to be acquired. Like other options, options on futures contracts
constitute only a partial hedge up to the amount of the premium, and
due to transaction costs.
While these
strategies will generally be used by a Fund for hedging purposes,
there are risks. For example, the Sub-Adviser may incorrectly forecast
the direction of exchange rates or of the underlying securities index
or markets. When these transactions are unsuccessful, the Fund may
experience losses. When a Fund enters into these transactions to
increase portfolio value (i.e., other than for hedging
purposes), there is a liquidity risk that no market will arise for
resale and the Fund could also experience losses. Options and
Futures Contracts strategies and risks are described more
fully in the Statement of Additional Information.
Restricted and Illiquid Securities
Each Fund may
invest up to 15% of its net assets in illiquid and restricted
securities. These policies do not limit the purchase of securities
eligible for resale to qualified institutional buyers pursuant to Rule
144A under the Securities Act of 1933, as amended, provided that such
securities are determined to be liquid by the Fund or its adviser or
Sub-Adviser pursuant to Board-approved guidelines. If there is a lack
of trading interest in particular Rule 144A securities, a Funds
holdings of those securities may be illiquid, resulting in the
possibility of undesirable delays in selling these securities at
prices representing fair value.
Foreign
Securities
Investments in
foreign securities offer potential benefits not available from
investing solely in securities of domestic issuers, such as the
opportunity to invest in foreign issuers that appear to offer growth
potential, or to invest in foreign countries with economic policies or
business cycles different from those of the United States or foreign
stock markets that do not move in a manner parallel to U.S. markets,
thereby diversifying risks of fluctuations in portfolio
value.
Investments in
foreign securities, however, entail certain risks, such as: the
imposition of dividend or interest withholding or confiscatory taxes;
currency blockages or transfer restrictions; expropriation,
nationalization, military coups or other adverse political or economic
developments; less government supervision and regulation of securities
exchanges, brokers and listed companies; and the difficulty of
enforcing obligations in other countries. Certain markets may require
payment for securities before delivery. A Funds ability and
decision to purchase and sell portfolio securities may be affected by
laws or regulations relating to the convertibility of currencies and
repatriation of assets. Further, it may be more difficult for a
Funds agents to keep currently informed about corporate actions
which may affect the prices of portfolio securities. Communications
between the United States and foreign countries may be less reliable
than within the United States, thus increasing the risk of delayed
settlements of portfolio transactions or loss of certificates for
portfolio securities.
Trading
A Funds
Sub-Adviser may use trading as a means of managing the portfolios of
the Fund in seeking to achieve their investment objectives.
Transactions will occur when the Sub-Adviser believes that the trade,
net of transaction costs, will improve interest income or capital
appreciation potential, or will lessen capital loss potential. Whether
the goals discussed above will be achieved through trading depends on
the Sub-Advisers ability to evaluate particular securities and
anticipate relevant market factors, including interest rate trends and
variations from such trends. If such evaluations and expectations
prove to be incorrect, a Funds income or capital appreciation
could fall and its capital losses could increase. In addition, high
portfolio turnover in any Fund can result in additional brokerage
commissions to be paid by the Fund. The Growth Equity Fund, the
Aggressive Growth Fund, the Mid Cap Growth Equity Fund, the Mid Cap
Growth Equity II Fund, the Small Cap Growth Equity Fund and the
Emerging Growth Fund would be expected to have the highest incidence
of trading activity.
Indexing
v. Active Management
Active
management involves the investment Sub-Adviser buying and selling
securities based on research and analysis. Unlike the Funds that are
actively managed, the Indexed Equity Fund and the OTC 100 Fund are
index fundsthey try to match, as closely as
possible, the performance of a target index by generally holding
either all, or a representative sample of, the securities in the
index. Indexing provides simplicity because it is a straightforward
market-matching strategy. Index funds generally provide
diversification by investing in a wide variety of companies and
industries (although index funds are technically
non-diversified for purposes of the Investment Company Act of
1940see Non-Diversification Risk). An index funds
performance is predictable in that the funds value is expected
to move in the same direction, up or down, as the target index. Index
funds also tend to have lower costs because they do not have many of
the expenses of actively managed funds such as research; index funds
usually have relatively low trading activity and therefore brokerage
commissions tend to be lower; and index funds generally realize low
capital gains.
Optimization
To attempt to
match the risk and return characteristics of the S&P 500®
Index as closely as possible for the MassMutual Indexed Equity Fund
and the NASDAQ 100 Index® for the MassMutual OTC 100 Fund, Bankers
Trust Company, the Funds investment Sub-Adviser, generally
invests in a statistically selected sample of the securities found in
the S&P 500® Index or NASDAQ 100 Index®, as the case may
be, using a process known as optimization. Each Fund may
not hold every one of the stocks in its target Index. The Funds
utilize optimization, a statistical sampling technique, in
an effort to run an efficient and effective strategy.
This will be
most pronounced for the OTC 100 Fund when the Fund does not have
enough assets to be fully invested in all securities in the NASDAQ 100
Index®. Optimization entails that the Funds first buy the stocks
that make up the larger portions of the relevant Indexs value in
roughly the same proportion as the Index. Second, smaller stocks are
analyzed and selected. In selecting smaller stocks, the investment
Sub-Adviser tries to match the industry and risk characteristics of
all of the smaller companies in the Index without buying all of those
stocks. This approach attempts to maximize the Funds liquidity
and returns while minimizing its costs.
Cash
Positions
Each Fund may
hold cash or cash equivalents to provide for expenses and anticipated
redemption payments and so that an orderly investment program may be
carried out in accordance with the Funds investment policies. In
certain market conditions, a Funds Sub-Adviser may for temporary
defensive purposes, invest in investment grade debt securities,
government obligations, or money market instruments or cash
equivalents. These investments may also give the Fund liquidity and
allow it to achieve an investment return during such
periods.
Industry
Concentration
As a general
rule, a Fund will not acquire securities of issuers in any one
industry (as determined by the Board of Trustees) if as a result more
than 25% of the value of the total assets of the Fund would be
invested in such industry, with the following exceptions:
(1)
|
There is no
limitation for U.S. Government Securities.
|
(2)
|
In the case
of the Prime Fund and the Short-Term Bond Fund, there is no industry
concentration limitation for certificates of deposit and
bankers acceptances.
|
Industry
Diversification
MassMutual
Indexed Equity Fund, MassMutual OTC 100 Fund, MassMutual Aggressive
Growth Fund and MassMutual Focused Value Fund are classified as
non-diversified, which means that the proportion of each Funds
assets that may be invested in the securities of a single issuer is
not limited by the Investment Company Act of 1940, as amended (the
1940 Act). A diversified investment company is
required by the 1940 Act generally, with respect to 75% of its total
assets, to invest not more than 5% of such assets in the securities of
a single issuer. Since a relatively high percentage of each
Funds assets may be invested in the securities of a limited
number of issuers, some of which may be within the same economic
sector, the Funds portfolio may be more sensitive to the changes
in market value of a single issuer or industry. However, to meet
Federal tax requirements, at the close of each quarter the Fund may
not have more than 25% of its total assets invested in any one issuer
and, with respect to 50% of total assets, not more than 5% of its
total assets invested in any one issuer. These limitations do not
apply to U.S. government securities.
Mortgage-Backed U.S. Government Securities and
CMOs
The Funds may
invest in mortgage-backed U.S. Government Securities and
collateralized mortgage obligations (CMOs). These
securities represent participation interests in pools of residential
mortgage loans made by lenders such as banks and savings and loan
associations. The pools are assembled for sale to investors (such as
the Funds) by government agencies and also, in the case of CMOs, by
private issuers, which issue or guarantee the securities relating to
the pool. Such securities differ from conventional debt securities
which generally provide for periodic payment of interest in fixed or
determinable amounts (usually semi-annually) with principal payments
at maturity or specified call dates. Some mortgage-backed U.S.
Government Securities in which a Fund may invest may be backed by the
full faith and credit of the U.S. Treasury (e.g., direct
pass-through certificates of the Government National Mortgage
Association); some are supported by the right of the issuer to borrow
from the U.S. Government (e.g., obligations of the Federal Home
Loan Mortgage Corporation); and some are backed by only the credit of
the issuer itself (e.g., the Federal National Mortgage
Association). Those guarantees do not extend to the value or yield of
the mortgage-backed securities themselves or to the net asset value of
a Funds shares. These government agencies may also issue
derivative mortgage backed securities such as CMOs.
The expected
yield on mortgage-backed securities is based on the average expected
life of the underlying pool of mortgage loans. The actual life of any
particular pool will be shortened by any unscheduled or early payments
of principal. Principal prepayments generally result from the sale of
the underlying property or the refinancing or foreclosure of
underlying mortgages. The occurrence of prepayments is affected by a
wide range of economic, demographic and social factors and,
accordingly, it is not possible to predict accurately the average life
of a particular pool. Yield on such pools is usually computed by using
the historical record of prepayments for that pool, or, in the case of
newly-issued mortgages, the prepayment history of similar pools. The
actual prepayment experience of a pool of mortgage loans may cause the
yield realized by a Fund to differ from the yield calculated on the
basis of the expected average life of the pool.
Prepayments
tend to increase during periods of falling interest rates, while
during periods of rising interest rates prepayments may likely
decline. When prevailing interest rates rise, the value of a
pass-through security may decrease as do the values of other debt
securities, but, when prevailing interest rates decline, the value of
a pass-through security is not likely to rise to the extent that the
values of other debt securities rise, because of the risk of
prepayment. A Funds reinvestment of scheduled principal payments
and unscheduled prepayments it receives may occur at times when
available investments offer higher or lower rates than the original
investment, thus affecting the yield of the Fund. Monthly interest
payments received by the Fund have a compounding effect which may
increase the yield to the Fund more than debt obligations that pay
interest semi-annually. Because of these factors, mortgage-backed
securities may be less effective than Treasury bonds of similar
maturity at maintaining yields during periods of declining interest
rates. A Fund may purchase mortgage-backed securities at a premium or
at a discount. Accelerated prepayments adversely affect yields for
pass-through securities purchased at a premium (i.e., at a price in
excess of their principal amount) and may involve additional risk of
loss of principal because the premium may not have been fully
amortized at the time the obligation is repaid. The opposite is true
for pass-through securities purchased at a discount.
Asset-Backed Securities
These
securities, issued by trusts and special purpose entities, are backed
by pools of assets, such as automobile and credit-card receivables and
home equity loans, which pass through the payments on the underlying
obligations to the security holders (less servicing fees paid to the
originator or fees for any credit enhancement). The value of an
asset-backed security is affected by changes in the markets
perception of the asset backing the security, the creditworthiness of
the servicing agent for the loan pool, the originator of the loans and
the financial institution providing any credit enhancement. Value is
also affected if any credit enhancement has been exhausted. Payments
of principal and interest passed through to holders of asset-backed
securities are typically supported by some form of credit enhancement,
such as a letter of credit, surety bond, limited guarantee by another
entity or by having a priority to certain of the borrowers other
assets. The degree of credit enhancement varies, and generally applies
to only a fraction of the asset-backed securitys par value until
exhausted. If the credit enhancement of an asset-backed security held
by a Fund has been exhausted, and, if any required payments of
principal and interest are not made with respect to the underlying
loans, the Fund may experience losses or delays in receiving payment.
The risks of investing in asset-backed securities are ultimately
dependent upon payment of consumer loans by the individual borrowers.
As a purchaser of an asset-backed security, the Funds would generally
have no recourse to the entity that originated the loans in the event
of default by a borrower. The underlying loans are subject to
prepayments,
which shorten the weighted average life of asset-backed securities and
may lower their return, in the same manner as described above for
prepayments of a pool of mortgage loans underlying mortgage-backed
securities. However, asset-backed securities do not have the benefit
of the same security interest in the underlying collateral as do
mortgage-backed securities.
Roll
Transactions
To take
advantage of attractive financing opportunities in the mortgage market
and to enhance current income, each of the Funds may engage in dollar
roll transactions. A dollar roll transaction involves a sale by a Fund
of a GNMA certificate or other mortgage backed securities to a
financial institution, such as a bank or broker-dealer, currently with
an agreement by the Fund to repurchase a similar security from the
institution at a later date at an agreed upon price. The securities
that are repurchased will bear the same interest rate as those sold,
but generally will be collateralized by different pools of mortgages
with different prepayment histories than those sold. Dollar roll
transactions involve potential risks of loss which are different from
those related to the securities underlying the transaction. The
Statement of Additional Information gives a more detailed description
of dollar roll transactions and related risks.
Certain
Debt Securities
While the
Funds, except for the Prime Fund, may invest in investment grade debt
securities that are rated in the fourth highest rating category by at
least one nationally recognized statistical rating organization
(e.g., Baa3 by Moodys Investors Service, Inc.) or, if
unrated, are judged by MassMutual to be of equivalent quality, such
securities have speculative characteristics, are subject to greater
credit risk, and may be subject to greater market risk than higher
rated investment grade securities.
When
Issued Securities
The Short-Term
Bond Fund, the Core Bond Fund, the Diversified Bond Fund, the Balanced
Fund, the Growth Equity Fund, the Aggressive Growth Fund, the Focused
Value Fund, the Mid Cap Growth Equity Fund, the Mid Cap Growth Equity
II Fund, the Small Cap Growth Equity Fund and the Emerging Growth Fund
may purchase securities on a when-issued or on a
forward delivery basis, which means securities will be
delivered to the Fund at a future date beyond the settlement date. A
Fund will not have to pay for securities until they are delivered.
While waiting for delivery of the securities, the Fund will segregate
sufficient liquid assets to cover its commitments. Although the Funds
do not intend to make such purchases for speculative purposes, there
are risks related to liquidity and market fluctuations prior to the
Fund taking delivery.
MASSMUTUAL
INSTITUTIONAL FUNDS
1295 State
Street
Springfield,
Massachusetts 01111
Learning
More About the Funds
You can learn
more about the Funds by reading the Funds Annual and
Semiannual Reports and the Statement of Additional
Information (SAI). This information is available free upon
request. In the Annual and Semiannual Reports, you will find a
discussion of market conditions and investment strategies that
significantly affected each Funds performance during the period
covered by the Report and a listing of portfolio securities. The SAI
will provide you more detail regarding the organization and operation
of the Funds, including their investment strategies. The SAI is
incorporated by reference into this Prospectus and is therefore
legally considered a part of this Prospectus.
How to
Obtain Information
From
MassMutual Institutional Funds: You may request information about
the Funds (including the Annual/Semiannual Reports and the SAI) or
make shareholder inquiries by calling 1-888-309-3539 or by
writing MassMutual Institutional Funds c/o Massachusetts Mutual Life
Insurance Company, 1295 State Street, Springfield, Massachusetts
01111-0111, Attention: MassMutual Institutional Funds Coordinator,
MIP N312.
From the
SEC: You may review information about the Funds (including the
SAI) at the SECs Public Reference Room in Washington, D.C. (call
1-800-SEC-0330 for information regarding the operation of the
SECs public reference room). You can get copies of this
information, upon payment of a copying fee, by writing to the
SECs Public Reference Section, Washington, D.C. 20549-6009.
Alternatively, if you have access to the Internet, you may obtain
information about the Funds from the SECs Internet site at
http://www.sec.gov.
When obtaining
information about the Funds from the SEC, you may find it useful to
reference the Funds SEC file number:
811-8274.
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