B-1 STATEMENT OF ADDITIONAL INFORMATION Dated May 1 ...

Broker High Yield Bond BalancedAssetAllocationBank of America — — —Barclays — — —Citigroup 740 9,529 537Credit Suisse — 6,526 457Deutsche Bank — 462 26Goldman Sachs — 4,775 356JPMorgan Chase 932 1,497 75Lehman Brothers — 47 5Merrill Lynch — 6,363 343Morgan Stanley — 4,098 268UBS Securities — 944 91DISCLOSURE OF PORTFOLIO HOLDINGSThe Directors of the Fund have adopted a Policy on Disclosure of Portfolio Holdings and relatedprocedures (the “Holdings Disclosure Policy and Procedures”) to govern the dissemination of portfolioholdings information. It is the policy of the Fund to disclose the holdings in its Portfolios only incompliance with applicable laws, rules and regulations, and in accordance with the Holdings DisclosurePolicy and Procedures. It is also the policy of the Fund to disclose material non-public portfolio holdingsinformation only where there is a legitimate business purpose for doing so and where there is a reasonablebelief that the recipient will keep the information confidential and use it only for the purposes for which itwas provided. The Fund has directed its adviser and sub-advisers to adhere to the Holdings DisclosurePolicy and Procedures. The Fund reserves the right to amend the Holdings Disclosure Policy andProcedures at any time and from time to time, without prior notice, in its sole discretion.The procedures applicable to disclosure of portfolio holdings vary depending on whether or not theinformation to be disclosed is publicly available. Information regarding a Portfolio’s sector or industryweightings and other investment portfolio characteristics that does not refer to specific securities by nameis not subject to the Holdings Disclosure Policy and Procedures.Disclosure of Publicly Available Holdings InformationThe Fund makes each Portfolio’s complete holdings available semi-annually in its annual and semiannualreports to shareholders. The Fund also makes this information available semi-annually in filingson Form N-CSR, and after the first and third fiscal quarters in filings on Form N-Q. These regulatoryfilings normally are filed with the SEC within 45 to 60 days after the end of the Fund’s fiscal quarter.Once the Portfolio’s holdings information is filed with the SEC in this manner, it is considered publiclyavailable for purposes of the Holdings Disclosure Policy and Procedures.In addition, a list of the ten largest holdings for each Portfolio (other than International Growth andthe International Equity Portfolios), the percentage of Portfolio net assets that each such holdingrepresents, and a list of each Portfolio’s full holdings, as of the most recent calendar-quarter end, isnormally posted on the internet at www.nmfn.com. The information may be found in either (1) the lifeinsurance section of the “Insurance Products” page, or (2) the annuities section of the “InvestmentProducts” page, and then selecting “Fund Information” and the specific Portfolio. The Fund may fromtime to time withhold posting to, or remove from, the website any portion of this information with respectto a Portfolio. Internet disclosure of a Portfolio’s holdings is made available to all categories of persons,B-58