Fund BBgBarc US Corporate High Yield Bond Index Sector Weightings: Defines what % of each sector this fund holds compared to its benchmark listed here. QTD YTD Portfolio Attribution: Describes how fund manager sector and stock weighting decisions affected returns. Sector Attribution Details: S e c t o r F u n d W e i g h t Q T D Y T D Bkrg./Asst.Mgrs. 1.08 0.01 0.03 Basic Industry 10.28 0.07 -0.01 Capital Goods 11.30 -0.01 0.35 Communications 23.29 -0.16 0.23 Consumer Cyclical 7.69 -0.03 -0.08 Consumer Non-Cycl. 15.32 0.00 -0.26 Energy 7.84 -0.36 -0.14 Insurance 2.28 0.03 0.20 Other Industrial 1.59 -0.04 -0.08 Technology 7.11 -0.00 0.14 Transportation 4.12 0.05 -0.11 Other 8.10 -0.06 -0.27 Quarterly Portfolio Commentary: Alpha Lyons, CFA Investment Director Investment Experience: 7 Years HIGHLIGHTS • High-yield fixed-income securities produced positive returns for the quarter and outperformed all other major fixed income asset categories. • The three major tiers (BB, B & CCC) were positive for the quarter and relatively in line with each other, while CC & C were the only negative quality tiers in the high yield universe. • Banking, finance companies, and basic industry outperformed all other industries for the quarter. • An underweight to banking and consumer cyclical, combined with an overweight to communications, weighed on relative returns. • Ratings exposures had very little impact on returns over the quarter. Fund Objective: This Fund seeks to achieve a high level of total return, with an emphasis on current income, by investing primarily in high yield debt and related securities. These materials and the platform of investments made available by MassMutual are offered without regard to the individualized needs of any plan, its participants, or beneficiaries. These materials are not intended as impartial investment advice or to give advice in a fiduciary capacity to any plan. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Quarterly Review R5 SHARE CLASS TICKER: MPHSX As of 12/31/2019 MassMutual Premier High Yield Fund Barings LLC Bkrg./Asst.Mgrs. Basic Industry Capital Goods Communications Consumer Cyclical Consumer Non-Cycl. Energy Insurance Other Industrial Technology Transportation Other 0 6 12 18 24 Percent of Portfolio Bkrg./Asst.Mgrs. Basic Industry Capital Goods Communications Consumer Cyclical Consumer Non-Cycl. Energy Insurance Other Industrial Technology Transportation Other -0.50 -0.25 0.00 0.25 0.50 Value Added vs. Benchmark (%)
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Quarterly Review As of 12/31/2019 MassMutual Premier High ... · industry, several names contributed to strong performance including First Quantum Minerals, Northwest Acquisitions
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Fund BBgBarc US Corporate High Yield Bond Index
Sector Weightings: Defines what % of each sector this fund holdscompared to its benchmark listed here.
QTD YTD
Portfolio Attribution: Describes how fund manager sector and stockweighting decisions affected returns.
Sector Attribution Details: Sector Fund Weight Q T D Y T D
Bkrg./Asst.Mgrs. 1.08 0.01 0.03
Basic Industry 10.28 0.07 -0.01
Capital Goods 11.30 -0.01 0.35
Communications 23.29 -0.16 0.23
Consumer Cyclical 7.69 -0.03 -0.08
Consumer Non-Cycl. 15.32 0.00 -0.26
Energy 7.84 -0.36 -0.14
Insurance 2.28 0.03 0.20
Other Industrial 1.59 -0.04 -0.08
Technology 7.11 -0.00 0.14
Transportation 4.12 0.05 -0.11
Other 8.10 -0.06 -0.27
Quarterly Portfolio Commentary:
Alpha Lyons, CFA Investment DirectorInvestment Experience: 7 Years
HIGHLIGHTS• High-yield fixed-income securities produced positive returns for thequarter and outperformed all other major fixed income asset categories.• The three major tiers (BB, B & CCC) were positive for the quarter andrelatively in line with each other, while CC & C were the only negativequality tiers in the high yield universe.• Banking, finance companies, and basic industry outperformed all otherindustries for the quarter.• An underweight to banking and consumer cyclical, combined with anoverweight to communications, weighed on relative returns.• Ratings exposures had very little impact on returns over the quarter.
Fund Objective: This Fund seeks to achieve a high level of total return, with an emphasis on current income, by investing primarily in high yield debtand related securities.
These materials and the platform of investments made available by MassMutual are offered without regard to the individualized needs of any plan, itsparticipants, or beneficiaries. These materials are not intended as impartial investment advice or to give advice in a fiduciary capacity to any plan.
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
Quarterly Review
R5 SHARE CLASS TICKER: MPHSX
As of 12/31/2019
MassMutual Premier High Yield FundBarings LLC
Bkrg./Asst.M
grs.
Basic Industry
Capital G
oods
Com
munications
Consumer Cyclical
Consumer Non-Cycl.
Energy
Insurance
Other Industrial
Technology
Transportation
Other
0
6
12
18
24
Percent of P
ortfolio
Percent of P
ortfolio
Bkrg./Asst.M
grs.
Basic Industry
Capital G
oods
Com
munications
Consumer Cyclical
Consumer Non-Cycl.
Energy
Insurance
Other Industrial
Technology
Transportation
Other
-0.50
-0.25
0.00
0.25
0.50
Value Added vs. Benchmark (%
)Value Added vs. Benchmark (%
)
Quarterly Portfolio Commentary:
High-yield bonds continued their positive run and led fixed income asset category performance over the quarter and year. The asset category began thequarter with option-adjusted spreads at slightly over 400 basis points, despite a rise in spreads in early October, and rallied to end the quarter at spreadlevels of approximately 360 basis points. Within high-yield, the three major quality tiers (BB, B & CCC) performed relative in-line with each other, whileCC and C, only representing slightly more than 2% of the index, were the only negatively performing tiers. Sector wise, banking, finance companies andbasic industry were the best performing industries, while real estate investment trusts (REITs) and communications were the worst performing industries.
The Fund underperformed its benchmark and median peer for the quarter. Industry and rating allocations played a muted role in relative returns. Theprimary driver to relative underperformance was poor selection, particularly within the energy industry.An underweight to banking, the best performing industry in the quarter, combined with an overweight to communications, the second worst performingindustry, proved slight headwinds. Additionally, a slight exposure to CC weighed on returns. Most of the Fund’s underperformance came from poorselection in the energy industry. Within energy, Fieldwood Energy, Jupiter Resources, Farrellgas Parterns and Tullow Oil were the largest detractors.
Alternatively, an overweight to and strong selection within basic industry, combined with strong selection in transportation, insurance and financecompanies positively contributed to relative returns. Within transportation, tank truck transporter Kenan Advantage Group drove results. Within basicindustry, several names contributed to strong performance including First Quantum Minerals, Northwest Acquisitions and Suncoke Energy Partners.
The Fund maintains an overweight allocation to bonds rated CCC and a corresponding underweight allocation to BB-rated bonds, though these tilts havedecreased in recent years. However, Fund managers find the risk-return outlook for bonds in the lower-quality tiers more attractive with more potentialroom for spread compression. They therefore maintain an overweight to Fund holdings in the lower-quality tiers. Relative to the benchmark, the Fundended the quarter with its largest overweight positions in basic industry and transportation, and its largest underweights in the energy and consumercyclical sectors.
TICKER: MPHSX Fund Inception: 9/5/2000Morningstar Category: High Yield Bond
Average Annual Total Return
Q T D Y T D 1 Year 3 Year 5 Year 10 year
MassMutual Premier High Yield R5 2.01% 13.42% 13.42% 5.82% 6.25% 7.99%
BBgBarc US Corporate High Yield Bond Index 2.61% 14.32% 14.32% 6.37% 6.13% 7.57%
Category Average Return -- -- 12.62% 5.31% 4.87% 6.42%