Brighthouse Separate Account A
04/24/2024 | Press release | Distributed by Public on 04/24/2024 10:16
Notice Document by Insurance Company - Form N-VP
Marquis II
The Variable Annuity Contract
issued by
Brighthouse Life Insurance Company
and
Brighthouse Separate Account A
Marquis Portfolios (offered on and after April 30, 2012)
Disclosure Notice
April 29, 2024
A flexible premium deferred variable annuity contract
This Disclosure Notice provides certain updated information about your Marquis Portfolios (offered on and after April 30, 2012) Variable Annuity Contract (the "Contract" or "contract"), a flexible premium deferred variable annuity contract issued by Brighthouse Life Insurance Company ("BLIC", the "Company", or "we" or "us"). The Contract is no longer available for purchase.
Updated financial statements for BLIC and Brighthouse Separate Account A (the "Separate Account") are available, free of charge at https://dfinview.com/BHF/TAHD/BHF219. The Contract prospectus, dated May 1, 2017, as supplemented, is available and contains more information about the Contract including its features, benefits, and risks. You can obtain this information at no cost by calling (888) 243-1932 or by sending an email request to [email protected].
Additional general information about certain investment products, including variable annuities, has been prepared by the Securities and Exchange Commission's staff and is available at Investor.gov.
The Securities and Exchange Commission has not approved or disapproved these securities or determined if this Disclosure Notice is accurate or complete. Any representation to the contrary is a criminal offense.
1
TABLE OF CONTENTS
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Page
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Special Terms
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3
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Updated Information You Should Consider About the Contract
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3
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Important Information You Should Consider About the Contract
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6
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APPENDIX A: Investment Portfolios Available Under the Contract
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A-1
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APPENDIX B: Investment Portfolios Available Under the Benefits Offered Under the Contract
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B-1
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2
Special Terms
Account Value. The sum of your interests in the Investment Portfolios.
Accumulation Phase. The period in which earnings accumulate on a tax-deferred basis.
Asset Allocation Program. A program that directs us to automatically rebalance the investment allocations upon any change or update to the elected asset allocation model. This program is a separate service and is not part of your contract. There is no charge for this service. May also be referred to as "Marquis Asset Allocation Program" or the "Program."
Automatic Rebalancing Program. A program that directs us to automatically rebalance the investment allocations to return to your original percentage investment allocations on a periodic basis. There is no charge for this service.
Brighthouse Investment Advisers, LLC. An investment adviser registered under the Investment Advisers Act of 1940. May also be referred to as "Brighthouse Advisers."
Contract Year. A Contract Year is defined as a one-year period starting on the date the contract is issued and on each contract anniversary thereafter.
Investment Portfolios. The means of investing offered to Owners in various underlying fund portfolios. May also be referred to as "Portfolio Company."
Monitored Portfolios. Certain Investment Portfolios on which we monitor transfer activity. We may change the Monitored Portfolios at any time without notice in our sole discretion.
Purchase Payment. A Purchase Payment is the money you give us to invest in the contract. The initial Purchase Paymentis due on the date the contract is issued. You may also be permitted to make subsequent Purchase Payments.
Separate Account. We have established Brighthouse Separate Account A to hold the assets that underlie the Contracts.
Updated Information You Should Consider About the Contract
The information in this section of the Disclosure Notice is a summary of certain Contract features that have changed since the prospectus supplement dated May 1, 2023. This does not reflect all of the changes that have occurred since you entered into your Contract.
Contact Information Changes
Effective October 16, 2023, the contact information for the Annuity Service Center for various Contract transactions changed. Please use the contact information listed below.
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Death Claims
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P.O. Box 4330
Clinton, IA 52733-4330
Fax: (877) 245-8163
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Annuity Payments/Income
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• Requests to receive regular income payments
(referred to as Annuity Payments) Payments
|
P.O. Box 4365
Clinton, IA 52733-4365
Telephone: (800) 882-1292
Fax: (877) 246-8424
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|
• Death Claims for Contracts receiving Annuity
Payments
|
P.O. Box 4364
Clinton, IA 52733-4364
Telephone: (800) 882-1292
Fax: (877) 245-8163
|
3
|
• General requests and elections for Contracts
receiving Annuity Payments
|
P.O. Box 4363
Clinton, IA 52733-4363
Telephone: (800) 882-1292
Fax: (877) 246-8424
|
|
All other requests and elections, including subsequent
Purchase Payments, and general inquiries
|
P.O. Box 4301
Clinton, IA 52733-4301
Telephone: (888) 243-1932
Fax: (877) 246-8424
|
Other Information
Cybersecurity and Certain Business Continuity Risks. Our variable annuity contract business is largely conducted through complex information technology and communications systems operated by us and our service providers and business partners (e.g., the Investment Portfolios and the firms involved in the distribution and sale of our variable annuity contracts). Our operations rely on the secure processing, storage and transmission of confidential and other information in our systems and the systems of third party service providers. For example, many routine operations, such as processing Owners' requests and elections and day-to-day recordkeeping, are all executed through computer networks and systems. We have established administrative and technical controls and business continuity and resilience plans to protect our operations against attempts by unauthorized third parties to improperly access, modify, disrupt the operation of, or prevent access to critical networks or systems or data within them (a "cyber-attack"). Despite these protocols, the techniques used to attack systems and networks change frequently, are becoming more sophisticated, and can originate from a wide variety of sources including terrorists, nation states, financially motivated actors, internal actors, or third parties, such as external service providers, and the techniques used change frequently or are often not recognized until after they have been launched. The rapid evolution and increased adoption of artificial intelligence technologies may intensify our cybersecurity risks, including the deployment of artificial intelligence technologies by threat actors. There may be an increased risk of cyber-attacks during periods of geo-political or military conflict.
A cyber-attack could have a material, negative impact on the Company and the Separate Account, as well as individual Owners and their contracts. There are inherent limitations in our plans and systems, including the possibility that certain risks have not been identified or that unknown threats may emerge in the future. Unanticipated problems with, or failures of, our disaster recovery systems and business continuity plans could have a material impact on our ability to conduct business and on our financial condition and operations, and such events could result in regulatory fines or sanctions, litigation, penalties or financial losses, reputational harm, loss of customers, and/or additional compliance costs for us. Our operations also could be negatively impacted by a cyber-attack affecting a third party, such as a service provider, business partner, another participant in the financial markets, or a governmental or regulatory authority. Potential attacks can occur through a variety of sources, including, but not limited to, cyber-attacks, phishing attacks, account takeover attempts, the introduction of computer viruses or malicious code, ransomware or other extortion tactics, denial of service attacks, credential stuffing, and other computer-related penetrations. Hardware, software or applications developed by us or received from third parties may contain exploitable vulnerabilities, bugs, or defects in design, maintenance or manufacture or other issues that could compromise information and cybersecurity. Malicious actors may attempt to fraudulently induce employees, customers, or other users of our systems to disclose credentials or other similar sensitive information in order to gain access to our systems or data, or that of our customers, through social engineering, phishing, mobile phone malware, and other methods. Cybersecurity threats can originate from a wide variety of sources including, but not limited to, natural catastrophe, military or terrorist actions, public health crises (such as the COVID-19 pandemic), and unanticipated problems with our or our service providers' disaster recovery systems. Such disasters and events may adversely affect our ability to conduct business or administer the contract, particularly if our employees or the employees of our service providers are unable or unwilling to perform their responsibilities as a result of any such event.
Cyber-attacks, disruptions or failures to our business operations can interfere with our processing of contract transactions, including the processing of transfer orders from our website or with the Investment Portfolios; impact our ability to calculate Accumulation Unit values; cause the release and/or possible loss, misappropriation or corruption of confidential Owner or business information; or impede order processing or cause other operational issues. Cyber-attacks, disruptions or failures
4
may also impact the issuers of securities in which the Investment Portfolios invest, and it is possible the funds underlying your contract could lose value. There can be no assurance that we or our service providers or the Investment Portfolios will avoid losses affecting your contract due to cyber-attacks, disruptions or failures in the future. Although we continually make efforts to identify and reduce our exposure to cybersecurity risk, there is no guarantee that we will be able to successfully manage and mitigate this risk at all times. Furthermore, we cannot control the cybersecurity plans and systems implemented by third parties, including service providers or issuers of securities in which the Investment Portfolios invest.
Investment Portfolios
•Monitored Portfolios. We monitor transfer activity in the following "Monitored Portfolios" for purposes of imposing our restrictions on frequent transfers:
American Funds Global Growth Fund
American Funds Growth Fund
American Funds Growth-Income Fund
BlackRock High Yield Portfolio
Brighthouse Small Cap Value Portfolio
Brighthouse/abrdn Emerging Markets Equity Portfolio
Brighthouse/Dimensional International Small Company Portfolio
Brighthouse/Eaton Vance Floating Rate Portfolio
CBRE Global Real Estate Portfolio
ClearBridge Variable Small Cap Growth Portfolio
Harris Oakmark International Portfolio
Invesco Global Equity Portfolio
Invesco Small Cap Growth Portfolio
JPMorgan Small Cap Value Portfolio
Loomis Sayles Small Cap Core Portfolio
MFS® Research International Portfolio
Neuberger Berman Genesis Portfolio
Templeton Foreign VIP Fund
Western Asset Management Strategic Bond Opportunities Portfolio
Western Asset Variable Global High Yield Bond Portfolio
5
Important Information You Should Consider About the Contract
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Fees and Expenses
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Location in
Prospectus
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|
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Charges for Early
Withdrawals
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None
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Fee Table and
Examples
Expenses -
Withdrawal
Charge
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Transaction
Charges
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You may be charged for the following transactions: transfers of cash value
between investment options, which include the Investment Portfolios.
Transfer Fee. Currently, we allow unlimited transfers among the investment
options without charge. However, we reserve the right to charge for transfers
after the first 12 transfers per year.
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Fee Table and
Examples
Expenses -
Transfer Fee
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Ongoing Fees and
Expenses (annual
charges)
|
The table below describes the fees and expenses that you may pay each year,
depending on the options you choose. Please refer to your Contract
specifications page for information about the specific fees you will pay each
year based on the options you have elected.
|
Fee Table and
Examples
Expenses -
Product
Charges
Appendix A
Investment
Portfolios
Available
Under the
Contract
(located in this
Disclosure
Notice)
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Annual Fee
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Minimum
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Maximum
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Base Contract1
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1.33%
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1.33%
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Investment options
(Portfolio Company fees and
expenses)2
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0.52%
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1.31%
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Optional benefits available for
an additional charge (for a
single optional benefit, if
elected)
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0.20%3
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0.35%4
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1 As a percentage of average Account Value in the Separate Account. The charge shown also
includes the Account Fee.
2 As a percentage of fund assets before temporary expense reimbursements and/or fee waivers.
3 As a percentage of average Account Value in the Separate Account. This charge is the current
charge for the least expensive optional benefit.
4 As a percentage of the average Account Value in the Separate Account, which is a value used to
calculate your benefit. This charge is the current charge for the most expensive optional benefit.
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||
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Because your Contract is customizable, the choices you make affect how
much you will pay. To help you understand the cost of owning your
Contract, the following table shows the lowest and highest cost you could
pay each year, based on current charges. This estimate assumes that you do
not take withdrawals from the Contract.
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Lowest Annual Cost
$2,021
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Highest Annual Cost
$3,615
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Assumes:
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Assumes:
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•Investment of $100,000
•5% annual appreciation
•Least expensive Portfolio Company fees
and expenses
•No optional benefits
•No additional Purchase Payments,
transfers, or withdrawals
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•Investment of $100,000
•5% annual appreciation
•Most expensive combination
of optional benefits and
Portfolio Company fees and
expenses
•No additional Purchase
Payments, transfers, or
withdrawals
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6
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Risks
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Location in
Prospectus
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Risk of Loss
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You can lose money by investing in this Contract including loss of principal.
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The Annuity
Contract
Investment
Options
|
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Not a Short-Term
Investment
|
This Contract is not a short-term investment and is not appropriate for an
investor who needs ready access to cash.
The benefits of tax deferral and living benefit protection also mean the
Contract is more beneficial to investors with a long time horizon.
|
The Annuity
Contract
Investment
Options
|
|
Risks Associated
with Investment
Options
|
•An investment in this Contract is subject to the risk of poor investment
performance and can vary depending on the performance of the investment
options available under the Contract (e.g., Portfolio Companies).
•Each investment option has its own unique risks.
•You should review the prospectuses for the available funds before making
an investment decision.
|
Investment
Options
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Insurance
Company Risks
|
An investment in the Contract is subject to the risks related to us. Any
obligations and guarantees and benefits of the Contract that exceed the assets
of the Separate Account are subject to our claims-paying ability. If we
experience financial distress, we may not be able to meet our obligations to
you. More information about BLIC, including our financial strength ratings,
is available by contacting us at (888) 243-1968.
|
The Annuity
Contract
|
|
Restrictions
|
||
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Investments
|
•Currently, we allow unlimited transfers without charge among investment
options during the Accumulation Phase. However, we reserve the right to
impose a charge for transfers in excess of 12 per year.
•We reserve the right to limit transfers in circumstances of frequent or large
transfers.
•We reserve the right to remove or substitute the Portfolio Companies
available as investment options under the Contract.
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Investment
Options
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Optional Benefits
|
•Contract owners enrolled in the Asset Allocation Program will have their
allocations automatically rebalanced/transferred upon any change or
update to the elected asset allocation model. For contract owners
participating in the Asset Allocation Program, our affiliate Brighthouse
Advisers, an investment adviser registered under the Investment Advisers
Act of 1940, serves as your investment adviser, but solely for the purpose
of developing and updating the models.
•We may stop offering an optional benefit at any time for new sales.
|
Investment
Options -
Marquis Asset
Allocation
Program
Appendix B:
Investment
Portfolios
Available
Under the
Benefits
Offered Under
the Contract
(located in this
Disclosure
Notice)
|
7
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Taxes
|
||
|
Tax Implications
|
•Consult with a tax professional to determine the tax implications of an
investment in and payments received under this Contract.
•If you purchase the Contract through a tax-qualified plan or individual
retirement account, you do not get any additional tax benefit.
•You will generally not be taxed on increases in the value of the Contract
until they are withdrawn. Withdrawals will be subject to ordinary income
tax, and may be subject to tax penalties if you take a withdrawal before
age 59 1∕2.
|
Federal
Income Tax
Status
|
|
Conflicts of Interest
|
||
|
Investment
Professional
Compensation
|
Your investment professional may receive compensation for selling this
Contract to you, in the form of commissions, additional cash benefits (e.g.,
bonuses), and non-cash compensation. This conflict of interest may influence
your investment professional to recommend this Contract over another
investment for which the investment professional is not compensated or
compensated less.
|
Other
Information -
Distributor
|
|
Exchanges
|
If you already own an insurance contract, some investment professionals may
have a financial incentive to offer you a new contract in place of the one you
own. You should only exchange a contract you already own if you
determine, after comparing the features, fees, and risks of both contracts,
that it is better for you to purchase the new contract rather than continue to
own your existing Contract.
|
Replacement
of Contracts
|
8
APPENDIX A
Investment Portfolios Available Under the Contract
The following is a list of Investment Portfolios under the Contract. More information about the Investment Portfolios is available in the prospectuses for the Investment Portfolios, which may be amended from time to time and can be found online at https://dfinview.com/BHF/TAHD/BHF219. You can also request this information at no cost by calling (888) 243-1932 or sending an email request to [email protected].
The current expenses and performance information below reflects fees and expenses of the Investment Portfolio, but do not reflect the other fees and expenses that your Contract may charge. Expenses would be higher and performance would be lower if these other charges were included. Each Investment Portfolio's past performance is not necessarily an indication of future performance.
|
Investment Objectives
|
Portfolio Company and
Adviser/Sub-Adviser
|
Current
Expenses
|
Average Annual
Total Returns
(as of 12/31/2023)
|
||
|
1
Year
|
5
Year
|
10
Year
|
|||
|
Seeks long-term growth of capital.
|
American Funds Global Growth
Fund - Class 2#
Capital Research and Management
CompanySM
|
0.66%
|
22.60%
|
13.65%
|
9.58%
|
|
Seeks growth of capital.
|
American Funds Growth
Fund - Class 2
Capital Research and Management
CompanySM
|
0.59%
|
38.49%
|
18.68%
|
14.36%
|
|
Seeks long-term growth of capital
and income.
|
American Funds Growth-Income
Fund - Class 2
Capital Research and Management
CompanySM
|
0.53%
|
26.14%
|
13.36%
|
10.91%
|
|
Seeks to maximize total return,
consistent with income generation
and prudent investment
management.
|
BlackRock High Yield
Portfolio - Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: BlackRock Financial
Management, Inc.
|
0.65%
|
13.41%
|
5.92%
|
4.79%
|
|
Seeks long-term capital appreciation.
|
Brighthouse Small Cap Value
Portfolio - Class B#
Brighthouse Investment Advisers,
LLC
Subadviser: Delaware Investments
Fund Advisers, a series of Macquarie
Investment Management Business
Trust, and Allspring Global
Investments, LLC
|
1.12%
|
13.95%
|
10.81%
|
7.17%
|
|
Seeks capital appreciation.
|
Brighthouse/abrdn Emerging
Markets Equity
Portfolio - Class B#
Brighthouse Investment Advisers,
LLC
Subadviser: abrdn Investments
Limited
|
1.21%
|
6.47%
|
2.88%
|
1.30%
|
A-1
|
Investment Objectives
|
Portfolio Company and
Adviser/Sub-Adviser
|
Current
Expenses
|
Average Annual
Total Returns
(as of 12/31/2023)
|
||
|
1
Year
|
5
Year
|
10
Year
|
|||
|
Seeks a high level of current income.
|
Brighthouse/Eaton Vance Floating
Rate Portfolio - Class B
Brighthouse Investment Advisers,
LLC
Subadviser: Eaton Vance
Management
|
0.95%
|
10.79%
|
4.27%
|
3.41%
|
|
Seeks long-term capital appreciation.
|
Brighthouse/Wellington Large Cap
Research Portfolio - Class E#
Brighthouse Investment Advisers,
LLC
Subadviser: Wellington Management
Company LLP
|
0.69%
|
25.51%
|
15.21%
|
11.54%
|
|
Seeks total return through
investment in real estate securities,
emphasizing both capital
appreciation and current income.
|
CBRE Global Real Estate
Portfolio - Class B#
Brighthouse Investment Advisers,
LLC
Subadviser: CBRE Investment
Management Listed Real Assets
LLC
|
0.90%
|
12.73%
|
6.15%
|
4.38%
|
|
Seeks long-term capital appreciation.
|
Harris Oakmark International
Portfolio - Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Harris Associates L.P.
|
0.73%
|
19.26%
|
7.50%
|
3.45%
|
|
Seeks capital growth and income.
|
Invesco Comstock
Portfolio - Class B#
Brighthouse Investment Advisers,
LLC
Subadviser: Invesco Advisers, Inc.
|
0.81%
|
12.21%
|
13.33%
|
8.86%
|
|
Seeks capital appreciation.
|
Invesco Global Equity
Portfolio - Class B#
Brighthouse Investment Advisers,
LLC
Subadviser: Invesco Advisers, Inc.
|
0.83%
|
34.58%
|
12.20%
|
8.41%
|
|
Seeks long-term growth of capital.
|
Invesco Small Cap Growth
Portfolio - Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Invesco Advisers, Inc.
|
0.81%
|
12.33%
|
8.90%
|
7.66%
|
|
Seeks long-term capital growth.
|
JPMorgan Small Cap Value
Portfolio - Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: J.P. Morgan Investment
Management Inc.
|
0.77%
|
13.21%
|
10.68%
|
6.55%
|
|
Seeks long-term growth of capital.
|
Loomis Sayles Growth
Portfolio - Class A††
Brighthouse Investment Advisers,
LLC
Subadviser: Loomis, Sayles &
Company, L.P.
|
0.55%
|
52.06%
|
16.39%
|
10.80%
|
A-2
|
Investment Objectives
|
Portfolio Company and
Adviser/Sub-Adviser
|
Current
Expenses
|
Average Annual
Total Returns
(as of 12/31/2023)
|
||
|
1
Year
|
5
Year
|
10
Year
|
|||
|
Seeks long-term growth of capital.
|
Loomis Sayles Growth
Portfolio - Class B#
Brighthouse Investment Advisers,
LLC
Subadviser: Loomis, Sayles &
Company, L.P.
|
0.80%
|
51.73%
|
16.12%
|
10.53%
|
|
Seeks capital appreciation.
|
MFS® Research International
Portfolio - Class B#
Brighthouse Investment Advisers,
LLC
Subadviser: Massachusetts Financial
Services Company
|
0.90%
|
12.82%
|
8.54%
|
4.17%
|
|
Seeks capital appreciation.
|
Morgan Stanley Discovery
Portfolio - Class B#
Brighthouse Investment Advisers,
LLC
Subadviser: Morgan Stanley
Investment Management Inc.
|
0.92%
|
40.86%
|
10.81%
|
8.50%
|
|
Seeks maximum real return,
consistent with preservation of
capital and prudent investment
management.
|
PIMCO Inflation Protected Bond
Portfolio - Class B
Brighthouse Investment Advisers,
LLC
Subadviser: Pacific Investment
Management Company LLC
|
0.93%
|
3.59%
|
3.05%
|
2.08%
|
|
Seeks maximum total return,
consistent with the preservation of
capital and prudent investment
management.
|
PIMCO Total Return
Portfolio - Class B#
Brighthouse Investment Advisers,
LLC
Subadviser: Pacific Investment
Management Company LLC
|
0.80%
|
6.05%
|
1.01%
|
1.60%
|
|
Seeks long-term capital appreciation
by investing in common stocks
believed to be undervalued. Income
is a secondary objective.
|
T. Rowe Price Large Cap Value
Portfolio - Class B#
Brighthouse Investment Advisers,
LLC
Subadviser: T. Rowe Price
Associates, Inc.
|
0.78%
|
9.64%
|
11.26%
|
8.66%
|
|
Seeks high total return by investing
in equity securities of mid-sized
companies.
|
Victory Sycamore Mid Cap Value
Portfolio - Class B#
Brighthouse Investment Advisers,
LLC
Subadviser: Victory Capital
Management Inc.
|
0.85%
|
9.94%
|
14.38%
|
8.30%
|
|
Seeks a competitive total return
primarily from investing in fixed-
income securities.
|
BlackRock Bond Income
Portfolio - Class E#
Brighthouse Investment Advisers,
LLC
Subadviser: BlackRock Advisors,
LLC
|
0.54%
|
5.68%
|
1.38%
|
2.05%
|
A-3
|
Investment Objectives
|
Portfolio Company and
Adviser/Sub-Adviser
|
Current
Expenses
|
Average Annual
Total Returns
(as of 12/31/2023)
|
||
|
1
Year
|
5
Year
|
10
Year
|
|||
|
Seeks long-term growth of capital.
|
BlackRock Capital Appreciation
Portfolio - Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: BlackRock Advisors,
LLC
|
0.57%
|
49.61%
|
16.15%
|
12.88%
|
|
Seeks a high level of current income
consistent with prudent investment
risk and preservation of capital.
|
BlackRock Ultra-Short Term Bond
Portfolio - Class E#
Brighthouse Investment Advisers,
LLC
Subadviser: BlackRock Advisors,
LLC
|
0.51%
|
4.90%
|
1.60%
|
1.06%
|
|
Seeks long-term capital appreciation.
|
Brighthouse/Dimensional
International Small Company
Portfolio - Class B#
Brighthouse Investment Advisers,
LLC
Subadviser: Dimensional Fund
Advisors LP
|
1.05%
|
13.52%
|
7.32%
|
4.42%
|
|
Seeks to provide a growing stream of
income over time and, secondarily,
long-term capital appreciation and
current income.
|
Brighthouse/Wellington Core Equity
Opportunities Portfolio - Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Wellington Management
Company LLP
|
0.61%
|
7.66%
|
13.12%
|
10.36%
|
|
Seeks long-term growth of capital.
|
Jennison Growth
Portfolio - Class B#
Brighthouse Investment Advisers,
LLC
Subadviser: Jennison Associates LLC
|
0.80%
|
52.86%
|
17.69%
|
14.03%
|
|
Seeks long-term capital growth from
investments in common stocks or
other equity securities.
|
Loomis Sayles Small Cap Core
Portfolio - Class B#
Brighthouse Investment Advisers,
LLC
Subadviser: Loomis, Sayles &
Company, L.P.
|
1.14%
|
17.18%
|
11.07%
|
7.63%
|
|
Seeks a favorable total return
through investment in a diversified
portfolio.
|
MFS® Total Return
Portfolio - Class F#
Brighthouse Investment Advisers,
LLC
Subadviser: Massachusetts Financial
Services Company
|
0.82%
|
10.19%
|
8.31%
|
6.38%
|
|
Seeks capital appreciation.
|
MFS® Value Portfolio - Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Massachusetts Financial
Services Company
|
0.58%
|
8.15%
|
11.55%
|
8.78%
|
|
Seeks high total return, consisting
principally of capital appreciation.
|
Neuberger Berman Genesis
Portfolio - Class B#
Brighthouse Investment Advisers,
LLC
Subadviser: Neuberger Berman
Investment Advisers LLC
|
1.05%
|
15.20%
|
12.13%
|
8.48%
|
A-4
|
Investment Objectives
|
Portfolio Company and
Adviser/Sub-Adviser
|
Current
Expenses
|
Average Annual
Total Returns
(as of 12/31/2023)
|
||
|
1
Year
|
5
Year
|
10
Year
|
|||
|
Seeks long-term growth of capital.
|
T. Rowe Price Large Cap Growth
Portfolio - Class B††
Brighthouse Investment Advisers,
LLC
Subadviser: T. Rowe Price
Associates, Inc.
|
0.82%
|
46.53%
|
13.23%
|
11.60%
|
|
Seeks to maximize total return
consistent with preservation of
capital.
|
Western Asset Management Strategic
Bond Opportunities
Portfolio - Class E#
Brighthouse Investment Advisers,
LLC
Subadviser: Western Asset
Management Company LLC
|
0.71%
|
9.30%
|
2.65%
|
2.87%
|
|
Seeks to maximize total return
consistent with preservation of
capital and maintenance of liquidity.
|
Western Asset Management
U.S. Government
Portfolio - Class A#
Brighthouse Investment Advisers,
LLC
Subadviser: Western Asset
Management Company LLC
|
0.50%
|
4.87%
|
0.95%
|
1.23%
|
|
Seeks long-term capital growth.
|
Templeton Foreign VIP
Fund - Class 2#
Templeton Investment Counsel,
LLC
|
1.07%
|
20.76%
|
5.27%
|
1.28%
|
|
Seeks long-term capital appreciation.
|
ClearBridge Variable Appreciation
Portfolio - Class I
Legg Mason Partners Fund Advisor,
LLC
Subadviser: ClearBridge
Investments, LLC
|
0.72%
|
19.71%
|
14.07%
|
10.88%
|
|
Seeks long-term growth of capital as
its primary objective. Current
income is a secondary objective.
|
ClearBridge Variable Large Cap
Value Portfolio - Class I
Legg Mason Partners Fund Advisor,
LLC
Subadviser: ClearBridge
Investments, LLC
|
0.72%
|
15.09%
|
13.02%
|
8.99%
|
|
Seeks long-term growth of capital.
|
ClearBridge Variable Small Cap
Growth Portfolio - Class I
Legg Mason Partners Fund Advisor,
LLC
Subadviser: ClearBridge
Investments, LLC
|
0.80%
|
8.40%
|
9.56%
|
7.89%
|
|
Seeks to maximize total return.
|
Western Asset Variable Global High
Yield Bond Portfolio - Class I
Legg Mason Partners Fund Advisor,
LLC
Subadvisers: Western Asset
Management Company, LLC;
Western Asset Management
Company Limited; Western Asset
Management Pte. Ltd.
|
0.83%
|
10.26%
|
3.42%
|
2.89%
|
#
Certain Investment Portfolios and their investment advisers have entered into temporary expense reimbursements and/or fee waivers, which are reflected in the Current Expenses. Please see the Investment Portfolios' prospectuses for additional information regarding these arrangements.
A-5
††
Closed to new investments except under dollar cost averaging and rebalancing programs in existence at the time of closing.
A-6
APPENDIX B
Investment Portfolios Available Under the Benefits Offered Under the Contract
Marquis Asset Allocation Program
The Marquis Asset Allocation Program ("Program") is not offered by the prospectus and is not a part of your contract. This Program is a separate service we make available in connection with the contract, at no additional charge to you, to help you select investment options. You should be aware that certain aspects of the administration of this Program are provided by your selling firm and are dependent upon the continued ability of the selling firm to provide that administrative support. When you purchase the contract, you are required to enroll in the Asset Allocation Program. At the time the contract is issued, and at any time you change or update your asset allocation model with your financial representative, your default investment allocation for Purchase Payments and automatic rebalancing will be set in accordance with the one model you select. Although the Marquis Portfolios contract is designed to work together with the Asset Allocation Program, at any time after the contract is issued, you may transfer Account Value or change the investment allocation for future Purchase Payments and automatic rebalancing, without any investment allocation restrictions related to the Asset Allocation Program. However, if you wish to change your investment allocation to an allocation that is not in accordance with any of the models, or transfer to an allocation outside any of the models, you will need to contact us.Asset allocation, in general, is an investment strategy intended to optimize the selection of investment options for a given level of risk tolerance, in order to attempt to maximize returns and limit the effects of market volatility. Asset allocation strategies reflect the theory that diversification among asset classes can help reduce volatility and potentially enhance returns over the long term. An asset class refers to a category of investments having similar characteristics, such as stocks and other equities, bonds and other fixed income investments, and cash equivalents. There are further divisions within asset classes, for example, divisions according to the size of the issuer (large cap, mid cap, small cap), the type of issuer (government, municipal, corporate, etc.) or the location of the issuer (domestic, foreign, etc.).While you participate in the Asset Allocation Program, our affiliate Brighthouse Investment Advisers, LLC ("Brighthouse Advisers"), an investment adviser registered under the Investment Advisers Act of 1940, will serve as your investment adviser, but solely for the purpose of developing and updating the models. Brighthouse Advisers currently follows the recommendations of an independent third-party consultant in providing this service. From time to time, Brighthouse Advisers may select a different consultant, to the extent permitted under applicable law. Brighthouse Advisers also serves as the investment adviser to certain Investment Portfolios available under the contract and receives compensation for those services. (See "Investment Options - Certain Payments We Receive with Regard to the Investment Portfolios," in the prospectus. See also "Appendix A: Underlying Funds Available Under the Contract" located in this Disclosure Notice.) However, Brighthouse Advisers receives no compensation for services it performs in developing and updating the asset allocation models discussed below.It is your responsibility to select or change your model and your Investment Portfolios. Your financial representative can provide you with information that may assist you in selecting a model and your Investment Portfolios. Once you select a model and the Investment Portfolio allocations, these selections will remain unchanged until you elect to revise the Investment Portfolio allocations, select a new model, or both. Although the models are designed to maximize investment returns and reduce volatility for a given level of risk, there is no guarantee that an asset allocation model will not lose money or experience volatility. A model may fail to perform as intended, or may perform worse than any single Investment Portfolio, asset class or different combination of investment options. In addition, the model is subject to all of the risks associated with its underlying Investment Portfolios. If, from time to time, Brighthouse Advisers changes the models, the flows of money into and out of underlying Investment Portfolios may generate higher brokerage and administrative costs for those portfolios, or such changes may disrupt an Investment Portfolio's management strategy. In the Asset Allocation
B-1
Program, you will choose to allocate your Purchase Payments among a set of Investment Portfolios you select using one of the asset allocation models Brighthouse Advisers provides. An asset allocation model is a set of target percentages for asset classes or sub-classes that represent the principal investments of the available Investment Portfolios. There currently are twenty asset allocation models, a disciplined and a flexible model for each of ten levels of risk tolerance and return potential (generally, asset classes and sub-classes with higher potential returns have greater risk of losses and experience greater volatility). Disciplined models are designed to be constructed only from Investment Portfolios that adhere strictly to their stated investment styles and invest in specific asset classes or subclasses, whereas flexible models can include allocations to Investment Portfolios that may invest across multiple asset classes or sub-classes, or that may move between investment styles, or asset classes or subclasses, depending on market conditions or other factors.A disciplined or flexible asset allocation model will be suggested based on your responses to a profile questionnaire that seeks to measure your personal investment risk tolerance, investment time horizon, financial goals and other factors. In order to participate in this Program, you will need to complete the questionnaire. Although you may only use one model at a time, you may elect to change to a different model as your tolerance for risk and/or your needs and objectives change. Using the questionnaire and in consultation with your financial representative, you may determine a different model better meets your risk tolerance and time horizons. There is no fee to change to a different model or for a change to the Investment Portfolioallocations. Brighthouse Advisers, through its consultant as described above, periodically reviews the models (typically annually) and may find that asset allocations within a particular model may need to be changed. Similarly, the principal investments, investment style, or investment manager of an Investment Portfolio may change such that it is no longer appropriate for a model, or it may become appropriate for a model. Also, from time to time, we may change the Investment Portfolios available under the contract. As a result of the periodic review and/or any changes in available Investment Portfolios, each model may change and asset classes or sub-classes may be added or deleted. We will provide notice regarding any such changes, and you, in consultation with your financial representative, may wish to revise your investment allocations based on these model and Investment Portfolio changes. You are not required to make any changes, and if you take no action your current allocations will continue in effect.If you also participate in the Automatic Rebalancing Program, the allocations in your models will be applied under the terms of that program. (See "Investment Options - Automatic Rebalancing Program" in the prospectus.) Transfers among Investment Portfolios due to a change in the models or your selection of a different model are not taken into account in determining any transfer fee. For purposes of the limit on the number of investment options in a single Purchase Payment allocation or transfer request, each Investment Portfolio in an asset allocation model is counted separately; an asset allocation model is not counted as a single investment option.(See "Purchase - Allocation of Purchase Payments" and "Transfers - General" in the prospectus.)Our affiliates, including Brighthouse Advisers, receive greater compensation and/or profits from certain Investment Portfolios than we receive from other portfolios. Therefore, it is conceivable that Brighthouse Advisers may have an incentive to develop models in such a way that larger allocations will be made to more profitable portfolios. Also, Brighthouse Advisers, in its capacity as investment adviser to certain of the Investment Portfolios, may believe that certain portfolios it manages may benefit from additional assets or could be harmed by redemptions. As a fiduciary, Brighthouse Advisers legally is obligated to disregard these incentives. In addition, Brighthouse Advisers believes that following the recommendations of an independent third-party to develop and update the asset allocation models may reduce or eliminate the potential for Brighthouse Advisers to be influenced by these competing interests. As described above, from time to time, Brighthouse Advisers may select a different consultant to provide these recommendations, to the extent permitted under applicable law.For more information about Brighthouse Advisers and its role as investment adviser for the Marquis Asset Allocation Program, please see the disclosure document, which is available to you at no charge, containing information from Part II of its Form ADV, the SEC investment adviser registration form. Your financial representative can provide you this disclosure document, or you can request a copy by writing to Brighthouse Investment Advisers, LLC, c/o Brighthouse Life Insurance Company, P.O. Box 4301, Clinton, IA 52733-4363. We may perform certain administrative functions on behalf of our
B-2
affiliate, Brighthouse Advisers; however, we are not registered as an investment adviser and are not providing any investment advice in making the Asset Allocation Program available.
B-3
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The prospectus, as supplemented, and statement of additional information ("SAI"), dated May 1, 2017, include additional information. The prospectus, as supplemented, and SAI are available, without charge, upon request. For a free copy, call us at (888) 243-1932, or send an email request to [email protected]. You can also access other information about the Contract online at https://dfinview.com/BHF/TAHD/BHF219.
Reports and other information about the Separate Account are available on the SEC's website at https://www.sec.gov/and copies of this information may be obtained, upon payment of a duplicating fee, by electronic request at the following email address: [email protected].
The Financial Industry Regulatory Authority ("FINRA") provides background information about broker-dealers and their registered representatives through FINRA BrokerCheck. You may contact the FINRA BrokerCheck Hotline at 1-800-289-9999, or log on to www.finra.org. An investor brochure that includes information describing FINRA BrokerCheck is available through the Hotline or on-line.
We are not a fiduciary and do not give advice or make recommendations regarding insurance or investment products. Ask your financial representative for guidance regarding any requests or elections and for information about your particular investment needs. Please bear in mind that your financial representative, or any financial firm or financial professional you consult to provide advice, is acting on your behalf. We are not a party to any agreement between you and your financial professional. We do not recommend and are not responsible for any securities transactions or investment strategies involving securities (including account recommendations).
EDGAR Contract Identifier No. is C000014238