Northwestern Mutual

Long-Term U.S. Government Bond Fund

Fund Overview
Adviser: Mason Street Advisors, LLC
Subadviser: Pacific Investment Management Company LLC
Objective/Focus: Normally invests at least 80% of its net assets in a diversified portfolio of fixed income securities that are issued or guaranteed by the U.S. Government, its agencies or government-sponsored enterprises and derivatives designed to replicate such securities. The objective is to seek maximum total return, consistent with preservation of capital and prudent investment management.
Asset Class: Bond
Style: High Credit Quality, Extensive Interest Rate Sensitivity
Return of principal is not guaranteed. Bond funds have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the Fund. When interest rates rise, bond prices fall. With a fixed income fund, when interest rates rise, the value of the fund's existing bonds drops, which could negatively affect overall fund performance.

The Portfolio may use derivative instruments as part of it investment strategy. Use of these instruments may involve certain risks such as leverage risk, liquidity risk, interest rate risk, market risk, credit risks, management risk and the risk that the Portfolio could not close out a position when it would be more advantageous to do so.  Portfolios investing in derivatives could lose more than the principal amount invested in those instruments.

The potential leverage created by use of derivatives may cause the Portfolio to be more sensitive to interest rate movements and thus more volatile than other long-term U.S. government bond funds that do not use derivatives.
Fund Facts as of 3/31/17
Fund Inception 04-30-2007
First Available for Variable Annuity 04-30-2007
First Available for Variable Life 06-30-2011
Net Assets $111.24 Million
Top 10 Portfolio Holdings % of Market Value
US Treasury, Various 78.0%
Federal National Mortgage Association (Structured Products), Various
Federal Home Loan Mortgage Corp., Various
Resolution Funding Corp., Various 3.8%
Federal National Mortgage Association (Governments), Various 2.7%
DBWF Mortgage Trust, Series 2016-85T, Class A, 3.791%, 12/10/36 144A 0.6%
VNDO Trust, Series 2016-350P, Class A, 3.805%, 1/10/35 144A 0.6%
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2016-C32, Class ASB3, 3.514%, 12/15/49
Commercial Mortgage Pass Through Certificates, Series 2016-667M, Class A, 3.140%, 10/10/36 144A
CityLine Commercial Mortgage Trust, Series 2016-CLNE, Class A, 2.778%, 11/10/31 144A 0.4%
Total % of Market Value 96.5%
Download Publicly Disclosed Holdings
Sector Weightings % of Equities
Government/Government Agencies
Investment Grade Credit
Cash and Equivalents