Strategy. The Portfolio seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell 1000 Value Index (the Index) over the long term through a portfolio optimization process employed by the Portfolios subadviser. Under normal circumstances, the Portfolio invests at least 80% of its net assets in equity securities of U.S. large capitalization companies. The Portfolio primarily invests in common stock of U.S. large capitalization companies included in the Index. As of February 28, 2025, the market capitalization range of the companies in the Index was between approximately $ 294.624 million and $1.108 trillion. The size of the companies in the Index changes with market conditions and the composition of the Index. The subadvisers selection process is … Show more… The Portfolio seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell 1000 Value Index (the Index) over the long term through a portfolio optimization process employed by the Portfolios subadviser. Under normal circumstances, the Portfolio invests at least 80% of its net assets in equity securities of U.S. large capitalization companies. The Portfolio primarily invests in common stock of U.S. large capitalization companies included in the Index. As of February 28, 2025, the market capitalization range of the companies in the Index was between approximately $ 294.624 million and $1.108 trillion. The size of the companies in the Index changes with market conditions and the composition of the Index. The subadvisers selection process is designed to select stocks for the Portfolio that have favorable exposure to certain factors, including but not limited to quality, value, momentum and alternative. Factors are common characteristics that relate to a group of issuers or securities that are important in explaining the returns and risks of those issuers securities. The quality factor incorporates measurements such as return on equity, earnings variability, cash return on assets and leverage. The value factor incorporates measurements such as price to earnings, price to forward earnings, price to book value and dividend yield. The momentum factor incorporates measurements such as 6 -month risk adjusted price momentum and 12 -month risk adjusted price momentum. The alternative factor incorporates measurements such as short interest and option implied volatility from the equity options market. The subadviser uses a proprietary model to assign a quantitative factor score for each issuer in the Portfolios investible universe based on that issuers factor exposures. Each stock is then further analyzed based on the assigned factor scores, but taking into account certain sector weight limits and security weight limit constraints determined by, among others, the portfolio management team. Under normal market conditions, the Portfolio holds 175 to 250 of the common stocks in the Index. The subadviser selects such stocks on a monthly basis; however, it may change the position size of a stock, determine to buy a new stock or sell an existing one between its monthly selection if the stock scores change materially or if there are adverse developments concerning a particular stock, an industry, the economy or the stock market generally. During the selection process, the subadviser applies a proprietary ESG (environmental, social and governance) rating methodology to all stocks. The subadviser determines the most relevant underlying Environmental, Social and Governance sub-factors to a companys returns and risk. These E, S and G sub-factors are assigned a score which, when combined, allow to establish an overall ESG score for each stock. The subadviser seeks to invest in stocks which score high on its multi-factor selection process and also have an ESG score equal to or higher than the median ESG score of the Index. The subadviser may, however, invest up to 10% of the Portfolios net assets in stocks which have an ESG score below this threshold, for risk control purposes if necessary, as assessed by the portfolio management team. The Portfolio aims to have high scores to the multifactor selection process and the ESG process that is substantially higher than the Index at each quarterly rebalance. Show less