Expected 2009 Revenue Sharing. Generally, for 2009 we expect the revenue sharing arrangements resulting in the largest payments to PFSI to consist of: (i) a one-time payment of up to .25 percent (25 basis points) of an investor’s purchase amount, and (ii) a quarterly payment of up to .0125 percent (1.25 basis points) for as long as the fund family retains the investor’s assets. On an investment of $10,000 (none of which is invested in the money market fund discussed below), the maximum revenue sharing payment any fund-family affiliate would pay to PFSI would be a one-time payment of $25, and $1.25 for each quarter that the fund retains the assets. These revenue sharing arrangements vary and some fund-family affiliates will pay less. Separately, PFSI receives additional revenue sharing on investments in the Western Asset Money Market Fund (a Legg Mason Partners fund). For investments in this fund, PFSI expects to receive revenue sharing at the quarterly rate of .03375 percent (3.375 basis points). Accordingly, on an investment of $10,000, PFSI would receive a payment of $3.37 for each quarter that the fund retains the assets. All revenue sharing arrangements are subject to change at any time. For more information, please refer to a fund’s description of its revenue sharing practices, usually included in its prospectus or Statement of Additional Information.
2008 Revenue Sharing. Following are the fund families from which PFSI received revenue sharing payments in 2008, arranged in order of the amount of revenue sharing paid to PFSI in 2008: Legg Mason Partners Funds, Van Kampen Investments, American Funds, OppenheimerFunds, Franklin Templeton Investments, Pioneer Investments, Invesco Aim, Putnam Investments, Fidelity Investments and AllianceBernstein Investment Research and Management.
Revenue Sharing from
Variable Annuities
Important Information for Our Variable Annuity Clients
How PFS Investments Inc. and Your Representative are Compensated When You Invest in the PrimElite IV Variable Annuity
PFS Investments Inc. (“PFSI”) is the broker-dealer through which you purchased your variable annuity. The variable annuities sold by PFSI do not charge an upfront sales charge, but PFSI and your representative receive compensation when you invest. The amount of the compensation depends upon the variable annuity purchased, the amount invested, and the age of the owner (or annuitant) at the time of an investment. In addition, PFSI and your representative receive annuity contract servicing payments (sometimes called “trail commissions”) beginning in the second year of the contract and continuing for as long as you retain your variable annuity. Both the upfront and trail commission payments are paid by the issuer, MetLife Investors USA Insurance Company (“MetLife”), to PFSI, which in turn pays your representative. Both the upfront and trail commission payments are paid out of the issuer’s assets, but may be derived from the product fees and expenses described in the prospectus. PFSI representatives participate in award and incentive programs in which they may receive trips or additional non-cash compensation based on their variable annuity sales, which may influence their decision to recommend a product to you. PFSI exclusively offers variable annuities issued by MetLife and its affiliates and is eligible for a bonus payment if aggregate premium payments into individual variable annuity products in any calendar year exceed a designated amount. PFSI may be reimbursed by MetLife or its affiliates for expenses incurred for various meetings, seminars, and conferences held in the normal course of business. Please see the prospectus for further details about the compensation paid to PFSI and the fees and expenses of your product.Marketing and Administrative Services Payments Received by PFSI from Sales of the PrimElite IV Variable Annuity
PFSI receives additional compensation from MetLife for providing marketing and administrative services in support of the PrimElite IV Variable Annuity. Generally, this additional compensation consists of the following: (i) a one-time payment of up to 1.01 percent (101 basis points) of an investor’s premium payment, and (ii) a monthly payment of up to, on an annual basis, .125 percent (12.5 basis points) of the daily average of assets in the separate accounts that MetLife uses to support PrimElite IV. For example, on a premium payment of $10,000 into the PrimElite IV Variable Annuity, the additional compensation MetLife would pay to PFSI would be (i) a one-time payment of up to $101 and (ii) up to $1.04 for each month that MetLife retains the assets (assuming no change in the market value of the assets).* This compensation is payable to, and retained by, PFSI. Neither your representative, nor his or her supervisor receives any additional compensation as a result of these payments. The additional compensation may be used by PFSI to pay for training and educational meetings or materials, sales meetings, various administrative costs and general marketing support, or applied to the earnings of the company.
* Market appreciation in the value of the hypothetical $10,000 investment would cause the monthly payments to PFSI to increase.
07PFS39-1
February 2008
Important Information for Our Variable Annuity Clients
(New York Only)
How PFS Investments Inc. and Your Representative are Compensated When You Invest in the PrimElite IV Variable Annuity
PFS Investments Inc. (“PFSI”) is the broker-dealer through which you purchased your variable annuity. The variable annuities sold by PFSI do not charge an upfront sales charge, but PFSI and your representative receive compensation when you invest. The amount of the compensation depends upon the variable annuity purchased, the amount invested, and the age of the owner (or annuitant) at the time of an investment. In addition, PFSI and your representative receive annuity contract servicing payments (sometimes called “trail commissions”) beginning in the second year of the contract and continuing for as long as you retain your variable annuity. Both the upfront and trail commission payments are paid by the issuer, First MetLife Investors Insurance Company (“MetLife”), to PFSI, which in turn pays your representative. Both the upfront and trail commission payments are paid out of the issuer’s assets, but may be derived from the product fees and expenses described in the prospectus. PFSI representatives participate in award and incentive programs in which they may receive trips or additional non-cash compensation based on their variable annuity sales, which may influence their decision to recommend a product to you. PFSI exclusively offers variable annuities issued by MetLife and its affiliates and is eligible for a bonus payment if aggregate premium payments into individual variable annuity products in any calendar year exceed a designated amount. PFSI may be reimbursed by MetLife or its affiliates for expenses incurred for various meetings, seminars, and conferences held in the normal course of business. Please see the prospectus for further details about the compensation paid to PFSI and the fees and expenses of your product.
Marketing and Administrative Services Payments Received by PFSI from Sales of the PrimElite IV Variable Annuity
PFSI receives additional compensation from MetLife for providing marketing and administrative services in support of the PrimElite IV Variable Annuity. This additional compensation consists of a one-time payment of up to 1.01 percent (101 basis points) of an investor’s premium payment into PrimElite IV. For example, on a premium payment of $10,000, the additional compensation MetLife would pay to PFSI would be a one-time payment of up to $101. This compensation is payable to, and retained by, PFSI. Neither your representative, nor his or her supervisor receives any additional compensation as a result of these payments. The additional compensation may be used by PFSI to pay for training and educational meetings or materials, sales meetings, various administrative costs and general marketing support, or applied to the earnings of the company.
07PFS39-1
February 2008 / New York