Annual Reports - Northwestern Mutual

Growth Stock Portfolio
Outlook
After the unprecedented events of 2008, we have a somewhat hopeful outlook for 2009—we are hoping for the reemergence of
a more rational, less volatile market environment where fundamentals matter again. Unfortunately, the economic fundamentals
remain challenging, and it is difficult to see a quick rebound in growth and earnings. Nevertheless, there are reasons we
believe large-cap growth shares are positioned to do reasonably well in 2009. First, growth-oriented shares have historically
done better than value when investors desire earnings certainty, and large companies typically have more arms to their
business and levers to pull to support earnings. Second, we find stocks attractive relative to bonds. Third, stocks typically rally
before the economy turns. So given those factors, we are likely to add exposure to what we believe are the most attractive,
highest quality early cycle companies with the most potential to benefit from an eventual recovery.
Relative Performance
$15,000
10,000
5,000
0
12/98 12/00 12/02 12/04 12/06 12/08
Top 10 Equity Holdings 12/31/08
Security Description
% of Net Assets
Microsoft Corp. 3.0%
Google, Inc. - Class A 2.8%
Hewlett-Packard Co. 2.4%
Wal-Mart Stores, Inc. 2.3%
Abbott Laboratories 2.2%
Cisco Systems, Inc. 2.1%
International Business Machines Corp. 2.1%
QUALCOMM, Inc. 2.1%
Intel Corp. 1.9%
Philip Morris International, Inc. 1.9%
Growth Stock Portfolio
Russell 1000 Growth Index
Average Annual Total Returns
For Periods Ended December 31, 2008
1 Year 5 Years 10 Years
Growth Stock Portfolio
Russell 1000 Growth Index
-38.86% -3.42%
-38.44% -3.42%
-2.07%
-4.27%
Lipper Variable Insurance Products
(VIP) Large Cap Growth Funds
Average -41.68% -3.80% -2.66%
The performance data quoted represents past
performance. Past performance is historical and does
not guarantee future performance. Investment return
and principal value will fluctuate, so that shares, when
redeemed, may be worth more or less than their original
cost. Current performance may be lower or higher than
the performance data quoted. For the most recent
month-end performance information visit
www.nmfn.com.
This chart assumes an initial investment of $10,000
made on 12/31/98. Returns shown include deductions
for management and other portfolio expenses, and
reinvestment of all dividends. Returns exclude
deductions for separte account sale loads and account
fees. Please refer to the Benchmark Definitions section
of this report for information about the indices cited in
the above chart and graph.
Materials
3%
Financials
3%
Energy
8%
Consumer
Discretionary
8%
Industrials
9%
Short-Term Investments
& Other Net Assets
12%
Sector Allocation 12/31/08
Telecommunication Services
1%
Sector Allocation is based on Net Assets.
Sector Allocation and Top 10 Holdings are subject to
change.
Utilities
1%
Information
Technology
25%
Health Care
16%
Consumer
Staples
14%
2 Growth Stock Portfolio