Annual Reports - Northwestern Mutual

Large Company Value Portfolio
months of 2008. For example, the Portfolio did not hold Freeport McMoRan, which is engaged in copper, gold and silver
mining and production. Its stock fell on news that the company would sharply curtail its mining operations.
Within the Consumer Discretionary sector, holding H&R Block helped relative returns as the company closed its subprime
mortgage unit, allowing it to focus on its core tax-preparation services business which is generally perceived as less
economically sensitive.
Outlook
Going forward, we will continue to look for large companies trading at a discount to our estimate of their worth. As a result of
this process, our sector and industry allocations reflect where we are finding the best growth opportunities at a given time. As
of December 31, 2008, some of our largest stakes were in Energy, Financials and Health Care.
$10,000
9,000
8,000
7,000
6,000
Relative Performance
5,000
4/07 12/07 12/08
Large Company Value Portfolio
Russell 1000 Value Index
Average Annual Total Returns
For Periods Ended December 31, 2008
1 Year
Since
Inception*
Large Company Value Portfolio
Russell 1000 Value Index
-37.23%
-36.85%
-27.06%
-26.30%
Lipper Variable Insurance Products
(VIP) Large Cap Value Funds
Average -37.09% –
*Inception date of 4/30/07
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 4/30/07 (commencement of the Portfolio's
operations). Returns shown reflect fee waivers,
deductions for management and other portfolio
expenses, and reinvestment of all dividends. In the
absence of fee waivers, total return would be reduced.
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.
Top 10 Equity Holdings 12/31/08
Security Description
% of Net Assets
Exxon Mobil Corp. 5.6%
Chevron Corp. 4.8%
AT&T, Inc. 4.2%
General Electric Co. 4.2%
Pfizer, Inc. 3.2%
Johnson & Johnson 3.0%
JPMorgan Chase & Co. 3.0%
ConocoPhillips 3.0%
Verizon Communications, Inc. 2.6%
Royal Dutch Shell PLC - Class A, ADR 2.4%
Information Technology
6%
Short-Term Investments
& Other Net Assets
6%
Consumer Staples
7%
Telecommunication
Services
8%
Consumer
Discretionary
9%
Sector Allocation 12/31/08
Sector Allocation is based on Net Assets.
Sector Allocation and Top 10 Holdings are subject to
change.
Materials
3%
Utilities
3%
Energy
18%
Financials
16%
Health Care
14%
Industrials
10%
24 Large Company Value Portfolio